THE RM2.1bil seafront Southbay City project in Batu Maung, Penang, is scheduled for completion in 2018.

It comprises a shopping mall of 1mil sq ft and a five-star hotel that will further boost the property value of the south-west district of the island.

The project has a 60% residential component and 40% of commercial properties, comprising six phases.

Mah Sing Group Bhd executive director Lim Kiu Hock said the second, third, and fourth phases of Southbay City would have residential and commercial towers.

“For the fifth phase, we are planning The Wharf project that will include a marina for yachts to berth, while the final phase will be either another hotel or a commercial tower.

“The group is now constructing the Southbay Plaza, the first phase of Southbay City, which comprises two residential towers erected on top of a 250,000sq ft retail podium,” Lim said.

Lim said there were also plans to develop a shopping mall for Southbay City once the second Penang bridge was completed.

“The second bridge is expected to be completed next year and upon its completion, we will start the development of the mall so that it will be in a position to attract shoppers from the northern region.

“We can then anticipate a strong flow of visitors from Seberang Prai to the island,” he said.

He spoke at the Mah Sing ‘Realising Dreams Property Showcase’ held on Saturday and Sunday at Hotel Equatorial in conjunction with the group’s 18th anniversary celebration.

The event attracted more than 3,000 people.

Lim said that Southbay City, sitting on a 33-acre high plateau land, was the only integrated seafront resort project on the island.

“Such integrated projects in the Asean region are difficult to find, especially with the pricing in Penang.

“This is the reason we have already locked in 75% or RM80mil of the sales for the launched portion of the RM329mil Southbay Plaza project.

“About 15% of the buyers for Southbay Plaza comes from Singapore.

”The project has easy access to the expressway, airport, the second bridge and the industrial park,” he said.

The value of the three-story linked property in the Residence@Southbay by Mah Sing in Batu Maung has appreciated about 15% per annum since 2009, influenced by the master plan of Southbay City as an integrated seafront resort project.

Priced at about RM800,000 per unit in 2009, a linked unit in the Residence@Southbay is now priced about RM1.2mil in the sub-sales market.

“When the second bridge is completed, the Southbay City project will definitely impact positively the property value of the south-west districts,” Lim said.

The Southbay Plaza is one of the projects at the two-day showcase.

The other project in Penang that received overwhelming enquiries, registrations and bookings at the event was the Legenda@Southbay.

“We have received about 3,000 registrations for Ferringhi Residence, which we expect to preview in July once approval is given.

The other projects displayed at the property showcase that received strong response from Penangites were the RM.14bil M City project in Jalan Ampang, about 4km from Kuala Lumpur City Centre, and the RM3.25bil Icon City project in Petaling Jaya which is an integrated development.

“For M City, we have sold all 401 units of the small home office units and 24 units of retail lots.

“It sold well because of the four acres of garden located on various floors all over the building to give the residents the feel of living in a landed property scheme,” Lim said.

Source: The Star

GEORGE TOWN: SP Setia Bhd is projecting its Penang properties would generate about 15% or about RM500mil of the company’s 2012 revenue, expected to be about RM4bil.

SP Setia Property (North) general manager Datuk S. Rajoo said that the developer’s key contributing projects in Penang included Setia V Residences, Setia Triangle, Pearl Villas and 11 Brook Residences.

The biggest contributor to revenue for the financial year ending Oct 31, 2012 (FY12) would be the Setia V Residences project, comprising 166 units in 43- and 48-storey towers in Kelawei Road.

“This project will generate RM150mil for the company’s 2012 fiscal year. We have sold about 20% of the project to Penangites working overseas, locals and foreigners from Medan and China,” he said.

According to Rajoo, the 48-storey block would be the tallest residential tower in Penang and is built to withstand earthquake vibrations of up to 6.8 on the richter scale.

The Setia V Residences units have built-up areas of at least 2,700 sq ft and are priced from RM2.7mil onwards.

“The buyers comprised largely those who have the disposable income to upgrade their lifestyle,” he said.

The RM265mil Setia Triangle is expected to add about RM120mil to the company’s FY12 revenue.

“The project, already 50% sold since the soft launch two months ago, comprises 34 units of two, three and four-storey shop-offices with built-up areas of 3,000, 4,500 and 6,000 sq ft, respectively,” he said.

The units are priced between RM1.95mil and RM3.6mil.

“There will also be a residential component comprising a 225-unit condominium, priced between RM575,000 and RM1.2mil,” he said.

The Pearl Villas bungalows and 11 Brook Residences are expected to contribute about RM150mil to the group’s 2012 revenue.

“The balance will be generated by the release of bumiputra units from other projects,” he said.

Source: The Star

UDA Land (North) Sdn Bhd plans to launch a RM650mil condominium project on a leasehold site in Tanjung Tokong in the first quarter of next year in view of the strong demand for high-rise residence in prime locations and the changed perception towards leasehold properties among Penangites.

UDA Land chief operating officer Kamarudzaman Mohd Zain says in an interview that the project, Darra, located by the sea will comprise condominiums with built-up areas ranging between 1,400 sq ft and 1,800 sq ft and are priced above RM800,000.

“The layout plan is in the final stages of approval. The project is expected to be launched in the first quarter of 2013,” he says.

Kamarudzaman says that with the right pricing residential properties located in prime locations are still selling very well.

“For example, Brezza, comprising 312 condominium units of between 1,250 sq ft and 1,450 sq ft in the same location as Darra, was sold out in a year to mainly local buyers.

“The selling price in the sub-sales market for Brezza units has appreciated to about RM700,000 from the initial pricing of between RM350,000 and RM500,000 per unit in late 2010,” he says.

The demand for commercial properties in the right location is still strong, despite a slowing economy with an anticipated GDP of 4.6%, compared to over 5% in 2011.

The Vantage Desiran Tanjung, comprising a four-story business centre with 120 units of shop office, although 80% completed, is already 100% sold. The price for a standard ground floor unit is around RM1.2mil. The units on the higher floors are priced lower.

“The RM87mil Vantage Desiran Tanjung sold well because of its broadband facilities, ample car park bays. The project’s proximity to a hospital, international hotels, botanical gardens, and renowned project Straits Quay mall in Tanjung Tokong were plus points,” he says.

Registered and chartered valuer C.A. Lim & Co proprietor Lim Chien Aun says the value of properties on leasehold land in the island has appreciated substantially. This shows that Penangites, who have always been reluctant to invest in leasehold properties, have changed.

“Leasehold properties in prime locations are now appreciating faster than freehold properties in a non-prime location. Actually, the leaseholds in neighbouring countries have appreciated very well. For example, the land in Hong Kong island is leasehold and yet the value of properties on the island is among the highest in Asia.

“A lot of the land in central London, for example, is leasehold too, but the value of property is very high,” he says.

Raine & Horne Malaysia director Micahel Geh says Penangites now give more importance to the location of the property rather than to the status of the land on which it sits.

“They are now looking for conveniences and amenities like easy access to shopping malls, food and beverage outlets, banks, cinemas, and hospitals.

“Some of the leasehold projects on prime locations in the island have been appreciating at over 10% per annum over the past two years,” he adds.

In Seberang Prai, UDA Land plans to launch a RM33mil four-storey commercial mall come end of 2012, known as TPJ Business Park, in Jalan Baru, a prime location.

“The mall will have about 8,500 sq m of gross built-up area that can accommodate 76 commercial lots of 1,160 sq ft and 2,100 sq ft. We are planning more commercial projects on our remaining land bank of about 20 acres. These commercial schemes are to support the needs of the residential community in Seberang Prai,” he says.

Kamarudzaman says UDA Land also plans to submit the building plan for the RM98mil Serambi project soon to the local authorities.

The project, which is on a 16-acre site, comprises three-storey semi-detached, terrace, and bungalow units. “The plan for the project has received the green-light,” he adds.

He says UDA Land will launch the RM22mil Arcaria project early next year. It comprises 26 units of three-story semi-detached, three-story super-linked, and bungalows.

The terrace units will be priced from RM725,000 onwards, a semi-detached for about RM900,000, and bungalow units from RM1.4mil.

Meanwhile, Fook Tone Huat of Henry Butcher Seberang Prai says property prices in central Seberang Prai have appreciated by about 20% since 2010.

“In prime locations of Seberang Prai, a semi-detached house is priced at about RM750,000. A terrace house in similar locations is now priced at about RM280,000, compared with about RM350,000 two years ago. Similarly, a bungalow has a price tag of RM1mil now, about 20% more than two years ago,” he says.

The value of commercial properties in Seberang Prai has also appreciated by about 20% from 2010, Fook adds.

“A three-storey shop lot in a business park in Bukit Mertajam is now priced at RM700,000, approximately 20% more than in 2010. People are buying properties on the mainland for investment, as the second bridge is scheduled to be completed soon. More funds are coming into the industrial park south of Seberang Prai,” he says.

Source: The Star

PETALING JAYA: While house buyers are seeking more affordable homes, developers do not want to be bound into building low- and medium-cost homes.

In its memorandum to the Finance Ministry, Real Estate and Housing Developers Association (Rehda) said it wanted to develop affordable homes in line with the increased household income instead of being compelled to build low- and low-medium cost units, which it said consumers did not want.

“Unoccupied and excess low-cost units are a waste of resources. They are cross-subsidised by both developers, through lower profit, and lower tax collected by the Government and buyers of non-low cost units, in additional tax,” said Rehda president Datuk Seri Michael Yam.

“They are either vacant or abused by being rented to foreigners. The hardcore poor group, which is falling in numbers, can be housed in the government-built social housing (PPR).”

He said Rehda had also proposed a lower stamp duty, with buyers of cheaper units paying less.

“The ceiling for higher priced units should be lifted as inflation and higher costs have increased the prices of even affordable homes,” he said, adding that more incentives were needed to encourage faster adoption of the Green agenda.

Yam said Rehda had also suggested an auto release mechanism for Bumiputra units, which were not sold after a certain period.

“Penalties should not be imposed for such releases as it is caused by low demand,” he said.

National Housebuyers Associa-tion (HBA) secretary-general Chang Kim Loong said the organisation had not submitted a memorandum for the upcoming Budget as its previous request for the enforcement of the “build-and-sell” system had yet to become a reality.

“Although Sharia-compliant housing using the BTS system was announced in Budget 2012, it is yet to be implemented,” he said.

It was reported that the ministry had approached HBA early this month for recommendations on how to reduce the price of homes.

Among its 10 recommendations, HBA urged the Government to unlock its land banks in various locations and give priority to affordable housing projects instead of high-end properties.

Source: The Star

THE Star Property Fair 2012 from July 12 to July 15 looks set to be a highly visited event with representatives from 40 property developers in-cluding major players like IJM Land Berhad and SP Setia Group attending a briefing.

IJM sales and marketing assistant manager Wan Zahrah Wan Abdullah said the company had been participating in the fair since its inception 10 years ago.

“We are taking part in the fair because it provides us with really good publicity.

“We do not have any new property to launch at the fair but we are expecting a lot of interest for our upcoming projects,” she said after the briefing at the G Hotel yesterday.

SP Setia sales and marketing manager Susie Loh said the company was looking forward to the fair.

She said the company had been taking part in the fair for 10 years.

“The fair always draws in the crowd as it is the largest such fair in the northern region. We have lined up a host of attractive promotions and packages for at least four projects.”

Ivory Properties Group Berhad corporate communications manager Ann Tan said the company would focus on the sale of its project, The Latitude in Mount Erskine, as well as the registration of The Wave at Penang Times Square.

“We look forward to the good turnout at the fair which is the best platform for us to showcase our quality and iconic homes to potential buyers.

“We have also not missed taking part in the fair as it is been a brand of its own and a yearly must- visit event for property buyers and investors,” she said.

Mah Sing Properties Sdn Bhd group central marketing head Jennifer Chow said visitors to the fair would be spoilt for choice as the company’s 11 projects would be featured.

“The fair conincides with our 18th anniversary celebration which started on June 16 and it will carry on until Sept 15.

“One of the highlights of the programme is the 2% ‘low downpayment’ for potential purchasers,” she said.

Chow added that selected banks would also offer pre-approved loan assessment services on the spot.

Sunway Bintang Sdn Berhad senior manager Venus Ho said the company would be featuring six projects in Penang, Ipoh and the Klang Valley during the fair.

“Visitors can register for their preferred projects. We will also be offering special packages for them.”

The briefing was conducted by Star Publications (M) Bhd marketing services executive Eric Voon.

Touted as Malaysia’s premier showcase for stylish living, the three-day property extravaganza will be held at the Gurney Plaza and adjoining G Hotel.

Organised by The Star for the 10th year, the fair will be opened to the public from 10am to 10pm daily. Admission is free.

To date, 43 exhibitors, including financial institutions and investment companies, have confirmed their participation.

Other major players included DNP Land, Oriental Realty, Modular Platinum (Ideal Property), Bukit Kiara Properties, Andaman Property, Henry Butcher, KPWG International, Magna Putih, Province Valley and Tambun Indah Land.

This year’s new faces include Elite Forward, Sunrise Manner, Solid Tribute (Asia Green Group), GSD Land, Quantum Metro Deve-lopment, Zetapark Development, East West One Consortium, PJD Eastern Land, Airmas Management, Property Talk, Avenue Properties and Popular Realty.

A special ‘Star-IJM Contest’ has been lined up for the fair. IJM Land is the official sponsor while Hong Leong Bank is the sponsor for the talks and forums.

Visitors who fill in the form published in the newspapers will be entitled to a lucky dip offering prizes including digital devices and tablets.

A booth will also be set up for those wanting to subscribe to The Star’s newspaper and ePaper bundle.

Source: The Star