Penang Property Talk

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Ewein Bhd is looking to launch the second phase of its maiden project — City of Dreams next year (2020) following the completion of the first phase by the end of this year.

Dubbed City of Dreams 2, Ewein Bhd group founder and managing director Datuk Ewe Swee Kheng told reporters that the second phase will be on a 4.5-acre freehold site fronting G Hotel, Penang. It has an estimated gross development value (GDV) of RM1.2 billion.

“We will launch the second phase, which has a similar concept to the first phase, sometime next year, after the completion of the first phase,” said Ewe in a media briefing during its buyers’ appreciation Penang-Port Klang-Langkawi-Penang cruise trip from organised by Ewein from Jan 3 to Jan 6.

City of Dreams is a 3.67-acre seafront development located in Bandar Tanjong Pinang, overlooking Gurney Drive. Ewe said 15 out of 37 storeys of the serviced apartment project’s first phase have been built so far and it was on track for completion by the end of this year.

“The first phase has hit about 80% take-up rate so far and hopefully it will be fully sold by the end of this year,” Ewe shared, adding that the first phase has a total of 572 units.

He added that he has confidence in the Penang property market despite the overall industry slowdown over the past three years.

Appointed marketing agency Zeon Properties Sdn Bhd CEO Leon Lee attributed the good take-up rate of the luxury project to its unique selling points.

“It is a luxury project that everyone can afford. The bank value of the first phase is RM1,800 psf but we are selling at RM1,350 psf inclusive of all the fittings, such as lighting, air-conditioners, television and 60 other luxury common facilities,” Lee noted.

Some of the facilities in the 2-block first phase include private lift lobbies, yacht services, Rolls Royce limousine service, private cinema, and a ballroom that can accommodate 250 to 300 people.

The built-up size of the first phase units range from 1,097 sq ft to 1,335 sq ft. All are 3-bedroom units.

For the second phase, Ewe revealed that it will be a single block offering smaller sized units with a majority of them being two-bedroom units.

“Just like the first phase, we are targeting local buyers (for the second phase). We hope to achieve at least 70% local buyers for phase two. We will have smaller units because the family size in Malaysia is getting smaller and it will also be more affordable,” Ewe said, adding that about 30% of phase one buyers are foreign buyers from Thailand, Singapore, Indonesia, China and Europe.

City of Dreams is part of a 50-acre mixed development which consists of university, hotel, offices, residential and commercial properties.

The entire development will be developed over 10 years and has an estimated GDV of RM15 billion.

“We are currently in talks with an international hotelier and university to join us in City of Dreams. Hopefully, we will announce some good news this year or next,” said Ewe.

Source: EdgeProp.my

A proposed mixed development by Definite Harmony Development Sdn. Bhd. (a subsidiary of WHH Land) at Sungai Ara, Penang. Strategically located along Jalan Tun Dr. Awang, next to The Clovers condominium by Asia Green Group. It is less than 2km away from Penang International Airport.

This piece of land will be developed in 3 phases:

PHASE 1
The initial phase of the development comprises a 31-storey condominium, offering 174 residential units with 6 levels of car park and facilities located at level 7.

PHASE 2
35-storey condominium (260 units) with 8 units of shop lots located at the ground floor.

PHASE 3
25-storey hotel (436 rooms) with commercial lots.

This project is still pending for approval, more details to be available upon official launch.

Property Project : (to be confirmed)
Location : Sungai Ara
Property Type : Mixed development
Tenure: Freehold
Total Units : (to be confirmed)
Indicative Price : (to be confirmed)
Developer : Definite Harmony Development Sdn. Bhd. (WHH Land)

Location Map:

If you are looking for an early Chinese New Year celebration while searching for your dream home, Asia Green Group will be giving away free iPhone XS MAX for any purchase during their roadshow at Queensbay Mall (16 – 21 January 2019).

Venue: Queensbay Mall (in front of Sephora)
Date: 16 – 21 January 2019
Time: 10:00 am – 10:30 pm

By Timothy Tye

By “now”, I am referring to January 2019. To answer that question, I need you to take a moment to look back at the Penang property landscape for the past 5-6 years. In particular, I want you to pay attention to Penang Island, for that’s the context of this article.

You will notice that many parts of Penang Island have undergone a huge transformation. Where once was rural or even forested, there are now new condominiums in its place. Indeed, many of us are taken aback by the speed of the development. What is even more astonishing is that many of the latest developments are snapped up as soon as they are launched.

Naturally, due to the high number of housing units entering the market, we are momentarily experiencing a “buyer’s market”. If you are sub selling – that is, selling off what you have bought from a developer – you will have a harder time than if you were the buyer.

It is worth noting therefore, that Penang Island at this point in time is not a place for property speculators –local regulations are in place to prevent the price from overheating – and, it’s not a time to sell. It’s a time to buy!

For as long as anybody can remember, Penang Island has always experienced land scarcity. For that reason, its real estate prices have always remained among the highest in the country (aside from choice localities such as the KLCC neighbourhood of downtown Kuala Lumpur).

The situation in Penang Island today is different from the Penang Island of a decade ago because land that can be developed into residential properties on Penang Island is fast depleting. Previously, although the land was scarce, there was still much land on the eastern side of Penang Island to be developed. Nowadays, almost all that land has been used. You should notice the gravity of the situation when you see high rises being developed in hilly places including Mount Erskine, Paya Terubong and Bayan Lepas. This thirst for housing has even clawed its way to Balik Pulau.

I observe that the desire to buy is not matched by the desire to occupy. Unless you are purchasing in a good location, you might have difficulty finding tenants. Therefore, if you purchase your property to let, it is worth your trouble to understand every neighbourhood in Penang, to know what sort of people stay there, where they go to work, what’s the traffic situation, all this will lead to your ease (or difficulty) of securing a tenant.

My general advice is not to touch Penang Island properties as a speculator. Now is not the time for the impatient. It will be so difficult for me, and for any real estate agent you engage, to provide you quality help if you are in a hurry. However, if you approach Penang Island properties as an investor or would-be occupant, then this is the time. Property options (as of Jan 2019) are plentiful, and at prices which are generally lower than it was a year or two ago.

If you enter the Penang Island property market to buy and sell, you are a speculator. In other words, a gambler. Gamblers sometimes lose the game. But if you enter as investor, you will win. To do that, get a real estate agent that provides you with the knowledge for the long-term growth of your assets. Not one that encourages you to gamble.

Property prices on Penang Island will not stay in the doldrums forever. As mentioned, land for residential development is depleting. What we are experiencing now is a “rubber band phenomenon”. It takes a while for the glut to be absorbed, but the underlying demand remains strong, largely because Penang Island is a desirable place for home ownership. That alone benefits those who are willing to wait.

Timothy Tye is a renowned Penang blogger who writes Penang Travel Tips. He serves as the spokesperson for AnakPinang, a Penang-based civil group. He is also a real estate negotiator with IQi Global, and has established property websites Timothy Property and The Property Investor.

The National Home Ownership Campaign, which was revived in Budget 2019 to tackle the high number of unsold homes in the country, will begin March 1 and feature some 30,115 completed homes, according to the Ministry of Housing and Local Government (KPKT).

Set to be unveiled at a three-day launch event from March 1 to 3 at the Kuala Lumpur Convention Centre, the campaign is expected to involve 180 developers and banks that will assist buyers with their loan applications, KPKT Minister Zuraida Kamaruddin told reporters at the ministry’s office here today.

“We are bringing back the homeownership campaign that was held in 1998. It is good to take all the overhang units to be exhibited [at the campaign] and offer them to buyers at a discount,” she said, adding that the discount for those houses will be at least 10%.

Among the 30,115 homes that will be showcased at the upcoming campaign, 10,410 units are priced below RM300,000, 7,561 units between RM300,000 and RM500,000 while the remaining 12,144 units are priced at RM501,000 and above, KPKT national housing department director-general Jayaselan Navaratnam told EdgeProp.my after the media conference.

He added that the discount on the selling prices and other offers will be made available for the buyers for a tentative period of one year after the three-day event.

“After the event, buyers will still be able to enjoy what was being offered during the launching period and we are working for one year. We are in the midst of negotiations with Rehda (Real Estate and Housing Developers Association Malaysia) to see how to make it happen,” he said.

The Home Ownership Campaign was conducted twice for three months each time in 1998 and 1999 with waivers for the stamp duty on properties priced at RM250,000 and below, as well as some processing fees such as the memorandum of transfer, to lessen the burden of homebuyers and to encourage homeownership.

In Budget 2019, Finance Minister Lim Guan Eng announced that in order to address the issue of property overhang, the government will exempt stamp duty on the instrument of transfer and the loan agreement for purchases of homes valued between RM300,001 and RM1 million by first-time homebuyers for six months, starting Jan 1.

This will be part of the National Home Ownership Campaign, where in return, developers will offer a minimum price discount of 10% for these residential properties.

Source: EdgeProp.my