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Penang property developers cautious

December 4th, 2014 Leave a comment

Rehda Penang chairman Datuk Jerry Chan Fook Sing says developers in Penang are facing high land prices.

Penang property developers will adopt a “wait-and-see” approach in rolling out new property projects next year in view of various factors, including rising power costs, fuel subsidy cuts and house buyers’ cautious stance.

The Real Estate and Housing Developers Association (Rehda) has expressed concern over bureaucratic red tape involved in obtaining developers’ licences and advertising permits for new launches, in addition to being saddled with rising construction and compliance costs.

Rehda Penang chairman Datuk Jerry Chan yesterday said Penang developers have to contend with not only making the biggest contribution to infrastructure, drainage and non-delivery of low- and low-medium cost homes, but also of high land costs, especially on Penang island.

“Since August, the issuance of advertising permits for new launches is taking longer than two weeks and run up to more than two months, while plans for fire safety now have to be vetted by the Ministry of Housing and Local Government as opposed to local council previously,” he said.

Also present was IJM Land northern region general manager Datuk Toh Chin Leong.

“We are cautious and will launch our new projects accordingly next year as house buyers appear to be cautious and there is still confusion over the effects of property prices once the Goods and Services Tax is implemented,” said Toh.

Chan said Rehda is disappointed with the lack of incentives for private developers to build affordable housing and the lack of measures to lift the soft property market since cooling measures were introduced in 2014 Budget.

“The 50 per cent stamp duty exemption for properties up to RM500,000 until December 31 2016 will help ease home ownership cost. However, full exemption would be more helpful for the first time buyers in view of property prices, particularly in Penang, Johor and the Klang Valley.”

He said apart from having to fork out the higher charges for property development in Penang compared with the rest of the country, developers are faced with high land prices.

“With these kind of costs, it is tough for property prices here to come down and the future trend for low-cost and low-medium cost housing would be to make them smaller,” Chan noted.

He expressed Rehda’s concerns over the availability of financing for affordable homes in Penang.

“We do not want a situation where affordable houses are built and buyers are unable to purchase them if financing does not come through.”

Chan said some projects have started work and will be completed in three years.

“Rehda shares the government’s vision and mission of providing adequate, quality and affordable housing for the people. One of the ways is reviewing residential property plot ratio guidelines further to allow developers to bring down the cost of building, thus provide more affordable housing for the people of Penang,” he said.

Source: New Straits Times Online

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  1. Real
    December 4th, 2014 at 12:37 | #1

    “Penang developers have to contend with not only making the biggest
    contribution to infrastructure, drainage and non-delivery of low- and low
    medium cost homes, but also of high land costs, especially on Penang
    island”, Jerry Chan.

    Don’t build then and can alway close shops for all members.

  2. dawn
    December 4th, 2014 at 14:45 | #2

    @Real

    When local gov is not doing a good job controlling prices, this is what happens. Finally, the cost would come back to bite the end users –> Penangites.

  3. James
    December 4th, 2014 at 23:20 | #3

    @dawn
    Do you think is it easy to control the price, say and do is difference thing, the hike in property price not only happen in Penang but also others like JB, KL even other countries China and SGP and Australia.

  4. dawn
    December 5th, 2014 at 08:05 | #4

    Due to precise and decisive measures by sgp gov, their property prices have already come down 30%. It’s not that difficult, it’s all about skills.

  5. Real
    December 5th, 2014 at 10:07 | #5

    @dawn

    My point is very simple, can’t make a decent profit for any business just
    close shop and nobody is asking why ? Don’t give reasons.

  6. wj
    December 5th, 2014 at 10:24 | #6

    Instead gov taking up all the responsibility, How about “rakyat” buy many many property for growing spiderweb maybe sooner spiderweb can use to make cloth…. do we need to wait till gov to control?

  7. Sam fong
    December 5th, 2014 at 11:45 | #7

    Penang developer have to make biggest contribution to infrastructure. that not true course all the cost will still pay by the buyer not develope in the End. only few developer adsorb the cost or share the costing.

  8. Sam fong
    December 5th, 2014 at 11:53 | #8

    now affordable housing also very expensive, 800sqft or 900 sqft pricing range about 400k-500k. where are the 200k to 300k affordable housing that developer going to built for penang middle income buyer. since middle income buyer cannot buy low cost.

  9. lily
    December 5th, 2014 at 11:56 | #9

    Penang Redha PIC not doing their jobs lah. just know how to talk cock.

  10. R-e-a-l
    December 5th, 2014 at 14:28 | #10

    @Real
    My point is very simple, can’t make a decent profit for any business just
    close shop and nobody is asking why ? Don’t give reasons.

  11. david
    December 5th, 2014 at 15:18 | #11

    Malaysia developer profit margin very high 20% compare to other country.

  12. PeeNUT
    December 5th, 2014 at 16:25 | #12

    Street hawkers profit margin very high … 200%… let’s all be hawkers … No need send our kids study hard hard and become architects, engineers etc. just learn how to fry Char Koay Teow with lots of “hum”

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