Penang Mainland is the next investment hub. Here’s why

March 8th, 2018 Comments off

freemen-chart* Article by Freemen *

Following news reports on the decrease of transaction volume in the property market, many experts have been citing drops of it not only in Kuala Lumpur, but Penang as well.

Penang is a state by itself, but the island and mainland have both very different affairs.

In this graph, it’s shown that demand in the island is high, which means the probability of affordable housing is relatively low. On the contrary, mainland is less crowded with low demand and a slightly higher supply than island.

From an investor’s point of view, it’s much more desirable to invest in the island as prices will continue to increase with demand. However, the high demand is already making island prices shoot up higher, so why fight in a saturated market?

Instead, investors should try buying in mainland because demand there is currently low and booming with oversupply. You can definitely get a deal below market price, if you look properly.

According to property expert and millionaire-maker Michael Tan, the island’s properties prices have been rising continuously, especially ones near the beaches up north. That area is particularly populated by tourists and locals alike with its proximity near town centres and long beaches alongside the island. Its popularity has increased the number of hospitality developments and to cater to the growing number of demand, new resorts, hotels, and tourist centres have been popping up everywhere.

What the developers should have seen coming, though, is how quickly this would turn into a sticky situation of oversupply. Previously when house prices were predominantly very high it was easy to make a quick buck knowing the property appreciation would increase. Now prices are slowing down and its a sign that investors should be more careful on which properties to invest in, especially in the south part of Penang island.

Meanwhile, mainland is steadily catching up to its isle counterpart. Prices have been gaining more traction and the number of transactions improved as well. A lot of developers have been proposing new projects to launch soon, such as Eco Horizon by EcoWorld, mixed residential developments at Seberang Perai, Taman Nuri Emas, Kubang Semang, Simpang Ampat and more. Commercial developments are making their move too, at locations Bukit Minyak and Bukit Mertajam to name a few.

Therefore, investors should prep themselves to start doing their research on mainland. Self-study is more important than ever if you are a serious investor, because mainland is bigger and has a wide array of activity happening all the way from the north to south. You’d definitely want to know which of these will take off when the time is right.

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Rehda: Insufficient data behind supply-demand housing mismatch

March 8th, 2018 1 comment

penang-propertyLack of information is the reason for the current residential property overhang in Malaysia, the Real Estate and Housing Developers Association (Rehda) said today.

Its deputy president Datuk Soam Heng Choon said lack of data causes developers to build in locations that do not generate demand as projected during the planning stage.

“The issue of end financing and loan rejection, as well as issues from unreleased Bumi quota also contributed to the mismatch between demand and supply,” he told Malay Mail.

Soam was commenting on the recent report by Bank Negara Malaysia (BNM) which said that unsold properties in the country last year was the highest in a decade.

According to the BNM report, 146,497 units remain unsold in the second quarter of 2017 and that 82 per cent of the unsold properties were those priced more than RM250,000.

Soam said Rehda has proposed to the government to set up a federal body to regulate the creation of affordable housing in the right locations to ensure its supply meets demands.

He also said what was considered affordable housing differed from state to state.

As example, he said affordable housing in Negeri Sembilan is capped at RM400,000 while in Selangor, the ceiling price is set at RM250,000.

Soam explained that the location mismatch was the reason for the high number of unsold affordable housing units in the segment.

Soam said Rehda members were committed to support the government’s initiatives to provide sufficient affordable housing, but added that they needed financial measures in place to do so.


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BM Idaman

March 7th, 2018 No comments


BM Idaman, an upcoming strata residential development by Metro Jelata Group in Bukit Minyak, Penang. Strategically located next to BM Utama housing scheme by DNP Land, about 5 minutes away from AEON Big hypermarket. It will takes about 15-20 minutes drive to Penang bridge.

This gated and guarded development scheme will offer various type of terrace and semi-detached houses:

  • 2-storey semi-detached (2 units)
  • 2-storey terrace (38 units)
  • 3-storey terrace (29 units)

The project currently open for registration. More details to be available upon official launch.

Project Name: BM Idaman
Location : Bukit Minyak, Penang
Property Type : Residential (Gated & Guarded)
Built-up Size: (to be confirmed)
Land Area: (to be confirmed)
Total Unit: 38 (2-storey terrace), 29 (3-storey terrace), 2 (semi-d)
Indicative Price : (to be confirmed)
Developer Metro Jelata Group

Register your interest here

(This information may be used by the developer or their appointed agent to initiate follow-up communications with you on the project.)

Location Map:

Center map



Developers still upbeat about market

March 5th, 2018 1 comment
Ecoworld Gallery at Batu Kawan

Ecoworld Gallery at Batu Kawan

Six developers will launch more than RM6.29bil worth of properties in the country this year amid a backdrop of property glut and rising bank interest rates.

Ideal Property Sdn Bhd will launch properties with a total gross development value (GDV) of with RM550mil, IJM Land Bhd RM987mil, Mah Sing Group Bhd RM2.2bil, Aspen (Group) Holdings Ltd RM959mil and Eastern & Oriental Bhd RM1.6bil.

Eco World Development Group Bhd has yet to finalise the GDV for its new projects in the country, while SP Setia Bhd is still deciding on a new launch.

Mah Sing

The majority of the properties planned are priced below RM1mil. Mah Sing is focusing more on units which are in the price range of between RM328,000 and RM550,000.

Executive chairman Tan Sri Leong Hoy Kum says the group will focus on developing affordable products for the mass market.

“Mid-range products will spur growth in the immediate term. About 74% of the targeted sales are priced below RM500,000,” he adds. Up to 70% of their buyers are below the age of 40. It will leverage on the digital marketing to reach out to the younger target audience, he says.

Leong says the market was supported by Malaysia’s young demographic and growing population.

Citing HSBC Housing Survey 2017, Leong says 94% of Malaysian millennials have yet to own a property and plan to do so in the next five years, which effectively means there will be “long-term demand”.

Ideal Property

In Penang there is growing demand for serviced apartments although there is quite a large segment of that in the Klang Valley currently.

Ideal Property plans to launch the RM550mil Sunsuri Residences, a serviced apartment project in Bayan Lepas this year.

Executive chairman Tan Sri Alex Ooi, dubbed the Condo King of Penang, says the Sunsuri Residences will provide good rental yield of about 6% per annum.

“Investors can rent out their units at about RM280 per night.

“Based on the daily rental and selling price of the units at around RM439,000, the yield per annum is about 6%,” he said.

The Sunsuri Residences with built-up areas of 600 sq ft and 800 sq ft are priced between RM439,000 and RM654,000.

According to Ooi, the younger generation will look to generating rental income with their properties.

“There is interest among young entrepreneurs to invest in serviced apartments to generate a monthly income.

“Although there are many hotels and AirBnB units on the island, some of them are not properly run and lack professional management.

“We plan to bring in a reputable management company to run the Sunsuri Residences,” he added.


EcoWorld is planning five projects for Penang, Iskandar Malaysia, and Kuala Lumpur. In Batu Kawan, Penang, the group plans to launch Brydon, the second of collection of Eco Horizon, comprising terraced, semi-detached, super-link, and linked-semi-detached houses.

EcoWorld (north) general manager Chan Soo How says the first collection for Eco Horizon, Ashton, did very well, having sold 70% since the launch last September.

The Ashton landed units are sold from RM840,000 onwards.

“This is why we are launching Brydon, the second collection this year, comprising bungalows and semi-detached houses,” he added.

According to Chan, 2018 will be tough for the property market but with the right location, connectivity, product type and concept, demand can be strong.

“Malaysia’s strong fundamentals bode well for the outlook going forward.

“For example, Malaysia’s population is young with an average age of 30 to 31 years old.

“Unemployment remains low at just over 3%. GDP is projected to grow further. The GDP was 6.2% in the third quarter of 2017,” Chan says.

Eastern & Oriental Bhd.

Like other developers, Eastern & Oriental Bhd’s RM1.6bil worth of properties are in Penang, Johor Baru and Kuala Lumpur.

They include the final phases of The Ariza Seafront Terraces (RM28mil GDV) and 18 East Andaman (RM632mil) in Seri Tanjung Pinang, Penang, the Avira Garden Terraces (RM80mil) in Medini Central, Johor Baru, and RM880mil worth of serviced apartments in Kuala Lumpur.

E&O senior general manager (marketing and sales) Wayne Wong says this year’s outlook is positive but muted, given the continued tight mortgage financing environment coupled with other global headwinds.

“Penang is expected to remain our key revenue driver, especially with the realisation of the Seri Tanjung Pinang (STP) 2 project. Sales in Penang have been promising despite the soft market conditions,” he says.

Penang projects have consistently contributed about 80% of its revenue in recent years.

Wong says the company will leverage on pockets of stronger sentiment across the region, which will involve enhancing their value proposition by devising appealing product packages and working with the banks to structure attractive financing packages.

“Our properties have been appealing to foreign buyers for their distinctive concept, craftsmanship, location in tandem with the recent recovery of the ringgit which has further injected greater confidence from investors to the market,” he adds.

Aspen Group

Aspen (Group) Holdings Ltd president and chief executive officer Datuk M Murly says the group expecs the property market to improve. It will launch the HH Park Residence at Tanjung Bungah with a GDV of RM613mil and Viluxe Designer Bungalows worth RM346mil in GDV. There are plans to set up a new customer experience centre in Tanjung Bungah to showcase HH Park Residence.

Murly says the group’s focus is on established locations where the brand positioning of the developer and the project play an important role in launches.

“As purchasers have more choices, they will prefer to buy from reputable brands. A good location, fitted and furnished units are always our strategies.

“We have managed to attract catalyst investments in Aspen Vision City which will help to boost the commercial viability and ecosystem of the entire development,” says Murly.

He says Aspen has started construction for Beacon Executive Suite and the take-up rate is positive.

IJM Land

At IJM Land, senior general manager (north) Datuk Toh Chin Leong says the group anticipates a pick-up in the second half of 2018.

IJM Land Bhd plans to launch the RM156mil Sanctuary Ridge landed properties in Bukit Mertajam, the RM318mil 3 Residence at Karpal Singh Drive, and the RM513mil Mezzo for The Light Waterfront second phase next to the Penang Bridge soon.

SP Setia

SP Setia Bhd (north) general manager Ng Han Seong says the plan is to have a launch this year.

“We are still studying the options,” Ng says.

Following Bank Negara’s decision to raise the overnight policy rate (OPR) by 25 basis points, banks in the country have raised their lending rates to 3.25% from 3% previously.

Current housing interest rates hover around 4.65% compared with 4.25% previously.



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Sunway Carnival Mall Expansion & Refurbishment

March 4th, 2018 7 comments


Situated in 12 acres land in the heart of thriving Seberang Jaya township, Sunway Carnival mall has established itself as a major suburban shopping mall since opening in 2007. The expansion will be implemented in phases with Phase 1 to be completed by November 2020, featuring more than 1.2 million sqft GFA with a new face lift.

Sunway Construction Group Bhd (SunCon)’s unit has been appointed as the project delivery partner for the proposed expansion of a nine-storey commercial development to an existing mall for a total contract sum of RM274 million.

In a filing with Bursa Malaysia today, SunCon said Sunway Construction Sdn Bhd (SCSB) accepted the letter of award by SA Architects Sdn Bhd, on behalf of Sunway REIT Management Sdn Bhd, which acts as the manager for Sunway Real Estate Investment Trust (Sunway REIT).

SCSB is tasked to plan, coordinate, build and complete the development to the existing Sunway Carnival Mall in Seberang Jaya within the project period of 32 months from March this year till November 2020.


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