E&O to build residential and commercial projects
GEORGE TOWN: Eastern & Oriental Bhd plans to develop residential and commercial projects worth RM25bil over the next 20 years for Seri Tanjung Pinang’s (STP) second phase. And this will generate some 15,000 jobs.
Group managing director Datuk Terry Tham said the ratio of commercial to residential properties for the entire scheme would be one to two.
“There would be some 28.45 million sq ft of mixed-use commercial area allotted for retail, office, serviced apartments and a tourism hub with seafront promenade, museum and an international marina for the entire 307ha reclamation scheme,” he said after a public dialogue on STP’s second phase’s detailed environmental impact assessment report at the Straits Quay in Tanjong Tokong here yesterday.
Tham added that E&O would ensure that some 30% of the residential properties in STP were priced from RM42,500 onwards.
“Some 12,000 residential properties will be developed for the second phase, of which 32% will be low-rise properties of four-storeys, 45% medium-rise, and 23% 10-storey high buildings,” he said.
On open spaces, Tham said there would be 26.7ha of land for green development projects and 8.9ha of landscaped buffer in between the second phase and 16.5ha of open space in Gurney Drive.
“The illustrative master plan will be submitted to the local authorities following the approval of the detailed EIA report’s approval from the Department of Environment at Federal-level.”
Tham said reclamation would be carried out in two stages. “The first involves reclaiming 102ha of land which would take about 30 months to complete and 10 years to develop. The second stage involves reclaiming the remaining 205ha and this would take four years to complete and 14 years to develop,” he added.
Tham said the group would cede to the state government 24.2ha of land in the second phase for the undersea tunnel and other supporting infrastructure projects.
“We will also reclaim for the state government 53ha of land in Gurney Drive of which 20.2ha will be used for open spaces.”
Source: StarProperty.my
Which buyer is the target for this market? Who is going to buy this property?
Hahahaha. Just hahahaha
This will never happen… The property market will collapse before this thing takes of the ground.
Look at Dubai… Penang is pocket change when compared to the money Dubai has… Yet the property market collapsed and all those fancy islands they build are just sitting empty worth 60-70% less then launch price.
Sorry I forget Penang people are more wealthy and have more money then all those Shekkes and billionaire businessman in Dubai…
really hahaha….
Is it going to be freehold again?????
Too many ppl come in goreng the property already. Fresh graduate really having hard time to survive in penang.
Tanjung Pinang???
Tsunami Come again and will wash away your good name.
Become “Tanjung Tsunami”.
@Yeah Right,
The property market of a country will not just die off forever just because of one collapse. Look at the US, they had the biggest shit of the century, and see how they will slowly get back up again. These E&O guys are talking about development for the next 30 years. So whether property crash in Penang happens or not in this coming few years, it is immaterial. And isn’t it obvious by now that E&O doesn’t give a shit if Penangites can afford or not. This is going to be the Manhattan of south east asia, and the ELYSIUM of Penang, THE PELYSIUM….:) It shall be the playground for the rich and famous in the region. Penang has the ingredients, the administrators just need to know how to cook up a good meal.
@Yeah Right
Penang residence as a whole is indeed wealthier than Dubai residence. In Dubai there is ultra rich and ultra poor. Just the same as China and India. At least in Penang, the wealth is spread quite evenly.
this is definite good news for current owners of STP projects, they wld see their property appreciation would keep going up till next 20 yrs. all will try to hold as long as they cld and this benefit the sellers.
30% with RM42,500? I need one LMC there, with sea view, but need to wait 20 years?
I went for the public conference. E&O claims that they have enough $$$$ through JV with Temasek, MitSui and Sime Darby to complete the entire project. They are fully invested in Penang.
I am happy that finally this project is taking off. This will add a lot of value for those who are fully vested in this booming area.
Besides that, they are going to clean up Gurney Drive and it will look so much better compared to now. A shopping hub, a lifestyle hub, a wellness hub, a cultural hub, a food paradise, an ECO island etc
It is going to be the next Bukit Bintang and Orchard Road in Penang.
I personally hold 3 properties at STP 1 area. Bought it back in 2008 onwards.
I plan to hold it until STP 2 materializes. Prices would easily double again over the next 10 years.
For those who are not believers of this area yet. I advise you to find something suitable around this area and if your budget allows you try to commit yourself into it.
That is even better than placing your money in the bank.
I would like to say that i am not a speculator but an investor. I don’t buy and sell within 3-5 years. I have the holding power for the next 40 years. Like every normal citizen, i work hard, i save and i invest with my savings. My borrowing from the banks for each property i bought are less then 30% of the total amount.
btw, the picture used above for STP 2 is outdated.
@STP 2
Will it affected the existing condo price in Gurney Drive? The lagoon between the Gurney Drive and STP2 must be deep enough to avoid death water, and it must create something similar to Kawloon of HK, or Merlion Park of Sg, so that water activities can be in place. And, will STP2 is private of accessible by public? Current STP1 only accessible by residents only, right?
Hope this really can bring our Gurney Drive up to another level, and not bury it.
@STP 2
Good for you, may Penangnite prosperous. Since you were in the conference, do you mind to share what is the environment impact at the Gurney Drive after land reclamation? It is already muddy now. Will this make it worse? Thanks
I still remember someone make statement no more reclaimation in gurney, now new project talking abts man -made Island. Nowdays everyone only thinks of money, investment nobody bother abts eco-system. The impact of the project.
@PK LU LU
It will onlt take a major tsunami to wipe this clean and take away the greed and disregard for mother earth. One major tsunami is predicted by scientists off Acheh within the next 5 to 10 years. Lets see. I too hope Penang will be spared
Project worth = RM25 billion
Commercial area = 28.45 Million
Residential area = 56.9 Million (Commercial to residential ration of 1 to 2)
Total area = 85. 35
Per square foot = RM293 sq. ft.
The developers all say their profit margins are low??? Lets say a high profit margin of 30%
so Selling Price = RM381 sq. ft.
This means most of the properties in Gurney drive and the rest of Penang are over priced by 30% to 150%…
Hahahahahahaha Pop goes the Property Bubble.
@STP 2
You are average hard working citizen???? hahahahaha
The only thing you own is some pictures posted on the wall in your mummy’s house.
Average Salary = 65k
Lets say you paid on the very low end and got 3 properties for 500k each – 1.5 million
So 30% bank loan means you paid 70% = 1.05 million
So is you didn’t eat of pay for a house or fuel or utility bills like the average citizen has to, then it would take you 16 years to save… Plus another 12 years to save for your 40 years of holding power…
According to the “experts” on that day that consist of a panel of professors from UKM and most importantly UK’s leading engineering firm and town planning Pharrel and Hublot?
They said the canal formed between Straits Quay and the future man made island will act as a vacuum to increase the velocity of the current and this will help to wash away all the mud from Gurney drive in the future.
One of them claimed that the mud was brought in by the tsunami back in 2004.
From developer’s point of view this will increase the value of Gurney Drive in the long run because it will be integrated with this man made island STP 2
There will be a stretch of park, cycling lane, jogging lane, promenade that connects to the island and most importantly the roads will be expanded to 9 lanes to accommodate future traffic.
It will certainly act a lot of value to STP 1 and Gurney Drive area.
STP 1 is accessible by public. So is STP 2 in the future. However, residential area will be gated and guarded. Fair enough.
There will also be electric cars, water taxis and mass transit hubs to take you around the island.
There will also be air shows in the future. There will also be a canal similar to the one in Paris.
The government reserve land between tesco and quayside will be a tourism hub.
@Numbers Man
i work hard, i started my own business, i save and i re-invest.
1 million is not a lot now a days. Maybe it was 10-15 years ago.
@STP 2
I applaud you for your success in life, may your wealth prosper more in the future.
However, if you look at it from another angle, it seems like all the new properties are only affordable by people who dedicate their lives to earn more money and get richer. Not wrong of course, selling property is business and business is profit driven.
That leaves the real ‘average’ worker deprived of choice. Example, a young couple who both hold bachelor degrees, works for a local company, few years of working experience and have a combined salary of maybe 70k a year? They don’t qualify for LMC units, and the next available new property will be too much of a struggle for them.
It’s nice to look at all these new high end developments taking place. It makes me feel like I’m living in a very developed city. But it also makes me sad that more and more people are not able to afford the new properties, but they are sold out anyway due to those who are rich.
Thanks Chris.
I fear the same as well. This is one of the flaws of capitalism.
It is like a race, whoever runs faster or gets help will tend to fare better than the others.
Just remember, whenever you see a successful business, someone made a courageous decision once upon a time ago. It doesnt come easy.
@STP 2
Well I don’t want to pretend to know something I don’t. I have a decent job, but I’m no businessman. Someone once told me I’m a bit too honest to earn big money from business, maybe they are right, I’m very poor at sales at least.
I think it’s safe to say things will change, just by looking at all high density cities. Property price per square feet will go up, when it got too expensive the apartment size will shrink. I wouldn’t be surprise that one day those “efficient” home will be an in-thing in Penang, those designs that makes small living space much more useable.