Penang Property Talk

The Penang government is hoping to call for an open tender for the Penang Transport Master Plan (PTMP) projects in the second half of next year.

Chief Minister Chow Kon Yeow said the state and the project delivery partner were looking at the financial structure and other aspects of the PTMP.

“The second half (target) is more realistic. The first half is a bit too soon.

“We welcome those interested to put in their proposals and their bids (when the tender is called) so that the government can choose the best ‘solution’ to help us realise the projects under the PTMP.

“I believe that there will be many consortium of companies that will be interested,” Chow told reporters after delivering his keynote address at the Penang Transport Forum 2019: Unlocking Mobility in Penang Through Rail at St Giles Wembley Hotel in George Town today.

Chow was referring to the Penang South Reclamation (PSR), Pan Island Link 1 (PIL1) and Bayan Lepas LRT projects.

“Like it or not, it (the PSR) is the financial model to support the (other) two projects.

“The three projects (PSR, PIL1 and Bayan Lepas LRT) are ‘bundled together’,” Chow said, adding that several consortium of companies and banks had expressed interest in taking part in the projects.

Chow said that works within each project could be packaged out.

“Works such as the civil structural works, the system, and others can be packaged out.

“We have no restriction on foreign companies bidding for the projects. They may also work together with local companies. I believe that the projects are quite big.

“Of course, we welcome local participation,” he said.

Chow said that the PTMP is viable.

“If the PTMP is not viable, companies and banks would not have come forward and they would not have formed consortiums to arrange the financing of the projects.

“This gives us the confidence to move ahead since it is financially possible to deliver the PTMP projects,” he added.

Source: Buletin Mutiara

About City of Dreams

A freehold luxury lifestyle development at Seri Tanjung Pinang. The residential units come with size ranging from 1,000 sq.ft. onwards, with a well equipped kitchen accessories. Resident can also enjoy a wide range of luxury facilities such as private lift, private lobby, yacht services, Rolls Royce limousine, private bowling alley, private cinema, sky lounge, sky pool and many more.

Find out more about City of Dreams

Proposed future development in Jesselton Villas neighborhood by Berjaya Land Development Sdn. Bhd. at Penang Turf Club.  Strategically located along Jalan Batu Gantung, this development is surrounded by the affluent neighbourhoods namely Western Gardens, Jesselton Heights and Pulau Tikus. Kensington Gardens was the first parcel launched three years ago, comprises 68 bungalow lots with built-ups of between 5,995 and 9,634 sq ft.

The proposed development for parcel 2 to 5 comprises:

Parcel 2

• Courtyard villas (low-rise condominiums) with built-ups ranging from 2,800 sq.ft. onwards. (222 units)

Parcel 3

• 32-storey low-medium cost apartments known as Mutiara Jesselton. (505 units)

Parcel 4

• Affordable housing (271 units)

Parcel 5

• Condominium (1,380 units)

Project is still pending for approval. More details to be available upon official launch.

Project Name : (to be confirmed)
Location : Penang Turf Club
Property Type : Mixed development
Built-up Size: (to be confirmed)
Indicative Price : (to be confirmed)
Developer : Berjaya Land Deveploment Sdn. Bhd.

Location Map:

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement, unless stated otherwise. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

The move to lower the threshold for foreigners to buy condominiums and apartments in urban areas from RM1mil to RM600,000 is only applicable to existing unsold units, says Finance Minister Lim Guan Eng.

He said the measure announced in the 2020 Budget, effective from Jan 1 to Dec 31 next year, does not cover new projects that are yet to be launched.

“Existing units that have not been sold are the residential units that do not interest local buyers. Hence the relaxation in the form of lower foreign buying threshold for condominiums and apartments will not deny the rights of local buyers, ” he said in a statement Sunday (Oct 13).

Lim said the move is expected to benefit the property sector without being detrimental to Malaysians’ interest.

Lim explained that the proposal was made to reduce the supply overhang in condominiums and apartments amounting to RM8.3bil as of the second quarter of 2019.

“If the units are able to be sold, it will produce a direct spillover effect on the country’s economy, ” he said.

Lim added that the Finance Ministry will monitor continuously the implementation of the measure to ensure that it achieves its objective.

Source: Bernama

Residents at high-rise buildings without strata titles, where there are also offices and retail lots, will now pay service or maintenance charges according to a fixed formula following a landmark court decision.

The Court of Appeal held that the Joint Management Body (JMB) committees of high-rise buildings are not allowed to charge different rates on owners in any mixed development projects.

It overturned a High Court decision that JMB had power under the Strata Management Act to determine or fix different rates of service or maintenance charges for

different parcels in a mixed development.

“Mixed development projects usually comprised residential and office units, retail lots and carparks.

“There had been a grave disparity in the maintenance or service charges imposed by the JMB on property owners.

“With this decision, each property owner will pay a single maintenance or service charge rate in proportion with their share of the unit in the property.

“The JMB can only determine and fix one consistent rate of service or maintenance charges for all properties within the strata development, ” he told The Star.

This court judgment, he said, was a welcome decision for those owning properties in mixed development projects, where they are subjected to different rates of maintenance or service charges.

“Dwellers are often at the mercy of those with a larger share of the units. Unreasonable maintenance or service charge rates are imposed on the minority share unit holders, ” he said.

By virtue of their greater share of the units held by retail and carpark owners, Joy said these owners could control the election and decisions of the JMB at the expense of the minority.

He noted that all JMB should now observe charging a flat rate effective immediately provided for under the Strata Management Act and the ruling or risk breaching the law.

JMB that do not comply can be referred to the Commissioner of Buildings (CoB) under the local councils, he added.

Joy said the judgment stemmed from a case between an individual parcel owner and the Menara Rajawali JMB as well as Denflow Sdn Bhd, the carpark owner of Menara Rajawali in Subang Jaya.

“The owner was dissatisfied with the JMB and the company’s decision in allowing lower maintenance charges imposed on owners with a substantial share of the units.

“On Jan 26 last year, we initiated a case against the JMB and the company, ” said Joy, who was one of the counsels representing the owner.

The case was brought to the Court of Appeal in October last year after the High Court dismissed the case in September.

The Court of Appeal unanimously held that the Act does not confer any power to the JMB or joint management committee to fix different rates of service or maintenance charges for different parcels in a mixed development.

It also held that Section 21 of the Act only accords the JMB the power to determine, impose and collect the charges from parcel owners in proportion to the allocated share units of their respective parcels.

When asked if high-rise property owners will pay less maintenance or service fees following the ruling, Joy said it would depend on the cost of maintenance of the common property of the high rise building.

“Property owner will now contribute in proportion to their share of units.

“In other words, the formula should be – the total cost of maintenance of the common property of the high rise property divided by the total amount of share units, multiply the number of share units for each property, ” he said.

Citing the Menara Rajawali case, where condo and retail owners before this paid RM2.80 per share unit while the carpark owner paid only half, Joy said all the property owners would now pay the same rate of RM2.80.

When contacted, SPOAS chairman Law Hock Hua said a majority of high-rise properties in Malaysia were without strata titles.

“Even after the owners of a property have obtained strata titles, less than 25% of them have the titles. So the property is still bound by the Court of Appeal’s ruling.

“This landmark ruling will likely benefit individual residential owners in a mixed development who are paying higher maintenance charges than owners of offices and retail outlets, ” he said.

Source: TheStar.com.my