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Penang state govt takes measures to lower prices for residential units

October 26th, 2016 Leave a comment 中文版

development-densityThe state government has increased the development density to 128 units per acre up from 87 units per acre as part of measures to cushion the unfavorable economic impact on developers and to lower prices for residential units.

Penang Housing, Town and Country Planning Committee chairman Jagdeep Singh said units built under this guideline cannot be less than 900sq ft and not cost less than RM400,000.

He said developers found it difficult to sell bigger size units under the 87 units per acre guideline as a 1,400sq ft unit was priced at more than RM900,000 in some cases.

Jagdeep reasoned the higher density was allowed since the higher the density, the smaller the unit size and the smaller the unit the cheaper the price.

He nonetheless said the requirements for having affordable housing elements and low-cost (LC) and low-medium cost (LMC) components under the new guideline was maintained.

“So across the board I am going to get more affordable units, this is a win-win,” he said in a press conference on Monday night after attending the annual Penang Real Estate Housing Developers (REHDA) annual dinner.

Asked to elaborate, Jagdeep said the floor price of RM400,000 was set so developers building projects under the increased guidelines would not compete with developers who were building 100% affordable housing projects.

Source: TheSundaily.my

Categories: Property News Tags:
  1. River Park
    October 26th, 2016 at 14:46 | #1

    Developer and Gov always the winner.

  2. C
    October 26th, 2016 at 20:55 | #2

    I don’t think increasing density is a good idea… Penang is the next Hong Kong (Dog cages)

  3. Be nice
    October 26th, 2016 at 23:14 | #3

    This might not be an effective solution. Increasing the density is possible to enlarge the existing issue – traffic congestion. Having a higher density, whether the state government is able to retain the cleanliness and green environment of the city is another question.

    Other than Penang island, we actually have Penang mainland to develop further. If the state government puts more effort in developing the potential areas such as Batu Kawan and Simpang Ampat, they can be a gem that helps the state to attract more local/foreign investors and the people who would like to live in Penang permanently.

    The above is merely my point of view.

  4. Getha
    October 27th, 2016 at 04:10 | #4

    Better buy properties on Penang Island. Leave mainland alone. Mainland already no hope

  5. Penang Kia
    October 27th, 2016 at 08:34 | #5

    Penang still not mature to the extend that no development is needed, why want develop mainland. Penang need to develop Balik Pulau Area, Teluk Kumbar, Batu Maung or Relau Area as there are plenty of land there. Future flyover bridge road project already in planning, build more office tower like in KL, let Oversea bank like JP Morgan those to setup the HQ in Penang to be next financial HUB in Asia.

    For mainland can develop it port, expand the port make the port an international port… By then Penang will be develop state.

  6. water fish
    October 27th, 2016 at 08:55 | #6

    Getha :
    Better buy properties on Penang Island. Leave mainland alone. Mainland already no hope

    better buy properties on Hong Kong or Singapora. Leave Malaysia alone. Malaysia already no hope.

  7. penghulu
    October 27th, 2016 at 08:58 | #7

    @Penang Kia

    JP Morgan? Office towers like KL? Financial hub in Asia? HAHAHA! Bro, wake up lah!

    When it comes to investment banking, they only need to set up shop in where the money and “people” are. Most mega investment deals (if not all) are made in KL, bond issuance, syndicated loans etc are in KL, mainly GLCs. Msia is a small country, with a very small capital market, one KL is more than enough to cater to all the investment needs. So that’s where it starts, and that’s where it grows. Furthermore, financial regulations are formulated and BNM is in KL.

  8. edisongan
    October 27th, 2016 at 09:09 | #8

    @Penang Kia
    You have great visions…But it’s still long long distance from being financial hub in Asia..How about being financial hub in Malaysia first? I think still possible in my lifetime..

    Agreed that Island side should be more focused on business activities while mainland side more on logistics but this is great vision..Without having our great great PM stepping down..No investors are so daring to come in Malaysia…Robert Kwok also retreating fast…

  9. alsean
    October 27th, 2016 at 11:24 | #9

    All I can see in Penang now conjestion after conjestion. Even many of the parking lots (some in front of shops or hawker stores) are only occupied by man-made dry cement tins, hence no parking ! I wonder the council men must be sleeping on their jobs ?!

  10. gooner
    October 27th, 2016 at 11:55 | #10

    So the solution to lower prices is to put a MINIMUM price of 400k?
    Ridiculous.

    Already less than 400k is not affordable for many, and now the price is restricted to more than 400k?

  11. Jibril
    October 27th, 2016 at 13:13 | #11

    Without having our great CM stepping down, no investors are so daring to come to Penang. The fact of the matter is a lot of multinational leaving Penang since current CM is in power. Penang people are losing their income, thus getting a home will be a whole lot more difficult to do.

  12. wyleong
    October 27th, 2016 at 14:04 | #12

    @Jibril

    Are u BN supporter

  13. liamliam
    October 27th, 2016 at 14:05 | #13

    @gooner

    “So the solution to lower prices is to put a MINIMUM price of 400k? Ridiculous.”

    Well, this may be counter intuitive at first, but if you use more of your brains, you will realize that there is a good reason for that. Very innovative. And it’s a good strategy to keep prices down.

  14. wyleong
    October 27th, 2016 at 14:08 | #14

    @Jibril

    Basic Salary Malaysia are higher compare to Thailand, Vient, Loas and Indonesian

  15. liamliam
    October 27th, 2016 at 14:30 | #15

    @wyleong

    If you keep comparing to poorer countries, you will get poorer for sure. I am no BN supporter, nor DAP. I talk facts, without bias.

  16. edisongan
    October 27th, 2016 at 14:54 | #16

    @penghulu
    Hehehe….That’s great visions..dude..great visions…

  17. Penang Kia
    October 27th, 2016 at 14:56 | #17

    Develop the people make them more income, then stuff will get cheaper. Develop the country, make the currency strong and then import stuff from others country will be cheaper. With this our home price will drop significantly.

    Need to make the financial base strong first only house price will go down. Citizen are getting poorer and poorer nowdays i don’t know why and don’t want comment why cause even i comment it won’t help. If our country can create company like APPLE, TOYOTA, BOEING, COKE… Then problem solved, but our country is helping ppl by giving BR1M to survive that is best method ever.

  18. water fish
    October 27th, 2016 at 15:52 | #18

    Jibril :
    Without having our great CM stepping down, no investors are so daring to come to Penang. The fact of the matter is a lot of multinational leaving Penang since current CM is in power. Penang people are losing their income, thus getting a home will be a whole lot more difficult to do.

    yes, if not CM keep promote affordable project, properties price in island wont slow down, he make investor earn less and run away only, or I think properties price will keep increase and can invest more earn more, but now property games over damn CM

  19. Unforgetable
    October 27th, 2016 at 16:10 | #19

    Decreasing in property price is a good for the Rakyat. Only the developer and Gov suck all the Rakyat hard earn money. Property games over definitely is good for the People’s

  20. gooner
    October 27th, 2016 at 16:21 | #20

    liamliam :
    @gooner
    “So the solution to lower prices is to put a MINIMUM price of 400k? Ridiculous.”
    Well, this may be counter intuitive at first, but if you use more of your brains, you will realize that there is a good reason for that. Very innovative. And it’s a good strategy to keep prices down.

    Kindly explain how.

  21. Cincin
    October 27th, 2016 at 16:23 | #21

    Jibril :
    Without having our great CM stepping down, no investors are so daring to come to Penang. The fact of the matter is a lot of multinational leaving Penang since current CM is in power. Penang people are losing their income, thus getting a home will be a whole lot more difficult to do.

    Should ask your big boss MO1 step down. But again, you can be fired.

  22. mac 2kl
    October 27th, 2016 at 22:13 | #22

    Penang has lost its shine due to indiscriminate developments. Very messy parking place is eating into the already narrow road space and everywhere people are complaining but to a dead ear !!!

  23. Jibril
    October 28th, 2016 at 09:44 | #23

    I’m sad. When I complained about CM, automatically I’m being labelled as a BN supporter. FYI, nobody is perfect. If constructive criticism cannot be given out, be it to the government or the opposition, how can we strive for the better? The fact is Penang’s GDP from 2008 to 2015 is 3rd worst in comparison to other states. Even Kelantan is better, for god’s sake. When we are complaining about Malaysia’s economy, we tend to forget that each individual states contribute to the country.
    I’m thinking about my children and their future, and I’m sad that they might end up living in a high dense, low square footage and so freakingly expensive home…..

  24. jan
    October 28th, 2016 at 11:21 | #24

    @Jibril
    Third worst in what? Growth? I read 2010-2015 Penang is number 5-6. Same percentage as Sabah.

  25. jlc
    October 28th, 2016 at 11:28 | #25

    @Jibril

    3rd worst in what? Where did you read the statistics? I read
    https://www.statistics.gov.my/index.php?r=column/cthemeByCat&cat=102&bul_id=Y1NNYUhXOG14MTNQeEpCbXJVNURkZz09&menu_id=TE5CRUZCblh4ZTZMODZIbmk2aWRRQT09

  26. Ryu
    October 28th, 2016 at 13:04 | #26

    @Jibril,

    Attach herewith an article for your attention.

    http://www.themalaymailonline.com/malaysia/article/gerakan-used-outdated-gdp-stats-to-bash-penang-says-guan-eng

    “I have verified these figures with Penang Institute CEO Dr Lim Kim Hwa who has a doctorate in economics from Cambridge University. Dr Lim confirms that Penang went from bottom state in 2007 to national champion in 2015,” he said”.

    You know how much Penang contribute to the country? It is a lot more than other states and in Penang and investors also made handsome profits. I am 90s generation and capable to own a house in island, its all about hard work. We also managed to see how much effort CM put to reduce the price in Penang.

  27. Jibril
    October 28th, 2016 at 14:32 | #27

    @jan
    @jlc

    Read my post..from 2008 to 2015, Penang is 3rd worst in comparison to other states. We have 15 states (including WP Labuan), and Penang is languishing in 12 place. My source is from Penang Institute’ calculation based on the latest GDP data published by Department of Statistics Malaysia. Google it.

  28. Jibril
    October 28th, 2016 at 14:41 | #28

    @jan
    @jlc

    Oh…by the way..you can view Penang Institute’s GDP summary table that I’m referring to at Lim Guan Eng’s FB page. It is there. The CM is so proud of the fact the state is languishing in 12 or 13 places out of all 15 states that he shared the GDP summary table for years 2007-2015 and 2008-2015 on his FB page…go and look at it..

  29. Jibril
    October 28th, 2016 at 14:50 | #29

    @jan
    @jlc
    Oh…by the way..you can view Penang Institute’s GDP summary table that I’m referring to at CM’s FB page. It is there. The CM is so proud of the fact the state is languishing in 12 or 13 places out of all 15 states that he shared the GDP summary table for years 2007-2015 and 2008-2015 on his own FB page…go and look at it..

  30. Do Na Tion
    October 28th, 2016 at 16:31 | #30

    Of course la idiot Jibril, who is in charge at the level of Federal Gov.
    Federal Gov holding all the resource ma.
    your stay at Penang tax pay to Federal ma.
    As your see recently AhDi and AhJib, both of them getting very close together.
    Aiya, I don’t wanna saytoo much la, later on said I m misleading u.

    Anyway, Only idiots believe Cow run faster than Horse and Sun go down at east.

  31. tuakong
    October 28th, 2016 at 17:00 | #31

    I think no amount of argument about who is right or wrong about the GDP numbers can do any good to our economy. Finger pointing, blaming the other side etc, all are tools used by politicians (from both sides) to distract the people from the MAIN ISSUE now. The REALITY is, if we continue to rely on manufacturing for a living, we are as good as dead. Honestly, with the way things are now, we will all become beggers very soon.

  32. jan
    October 28th, 2016 at 17:48 | #32

    @Jibril
    The link I posted I from the gov statistics department 2010-2015. Penang looked fine to me. Kelantan is really alarming though.

  33. behck
    October 28th, 2016 at 18:33 | #33

    Jibril, do u really understand the chart is trying to convey? Yes, if take 2008 to 2015 growth rate was bad compare to other states..it was bcos u know who deliberately causing that in the past, can’t chg that fact. We are looking recent growth rate n projected future growth.

  34. Ronnie Tan
    October 31st, 2016 at 10:03 | #34

    PLease look into the project @ Seri Tanjung Tokong “ISantorini”, many of us who had stay here for many years are shocked to realise the recent developments happened at this small plot of reclaimed land. Beside our homes are the ISantori consisting of more than 2,000 units of residential and commercial units, may we ask you how many acres of land on this project? As you stated very clearly many a times “a acre for 128units as increased by your present government compared to previous.”
    Beside that a low or medium flats built by E&O(2blocks of a few hundred units), opposite is the E&O Tamarind Condos( afew hundred units); beside THe Jazz Hotel and Condos( few hundred units); beside already completed project so called M……. then we have the “Vantage commercial ” beside the “Brezza Condo.”How will be the traffic in the future….??? Thanks.

  35. Ronnie Tan
    October 31st, 2016 at 10:05 | #35

    @wyleong
    Supporter or not, he has his Right to suggest la…….

  36. Jibril
    November 1st, 2016 at 12:26 | #36

    One thing to ponder is the statement from the article which read “units built under this guideline cannot be less than 900sq ft and not cost LESS than RM400,000”. Instead of setting a MAXIMUM price, the CM and his govt set a MINIMUM price. With that guideline, the developer can sell a 900sq ft at no price limit! They can sell a 900sq ft house for a million ringgit! Instead of helping people to buy affordable home, this guideline will greatly reduce Penangites capability to buy a home. What CM and his govt trying to do is guaranteeing profit to the developers.

    Is this acceptable for all of you folks out there? It’s not for me…..sigh…

  37. Jibril
    November 1st, 2016 at 12:36 | #37

    @Do Na Tion
    If I’m an idiot for telling the truth, so be it. I’m not talking based on assumption or speculation, just referring to the data.

    @behck
    I do understand what the chart is all about, and thank you for agreeing with me to the fact that Penang under CM was not performing well based on GDP data. Once again I want to stress out that I based my statement on the data. And I did not speculate with sentences like “bcos u know who deliberately causing that in the past”. Throwing out assumption as a fact is not how it should work.

    @ja
    By looking at shorter time frame, the data might be skewed somewhat. Looking at it from the longer terms, only then you can see which states has been doing well recently, has been consistent throughout the years, has been dropping in GDP and so on and so forth. You can make better conclusion with time based data. Interpret it as what you may, but a longer time based data will be more meaningful.

  38. Dan
    November 1st, 2016 at 13:11 | #38

    @Jibril
    they are setting the rules for non affordable unit per acre……. This is because they set affordable unit below 400k.
    So with this is to set rules for non affordable units which is cannot be less than 900sqft and cannot below 400k.

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