PETALING JAYA: Property developers and consultants from Penang to Johor are generally bullish about the residential property market and do not think there is a bubble.

They are of the view that there are two types of buyers, one who is buying out of need and the other out of fear that prices would go up further. The speculative element which was evident a few years ago has dissipated.

Real Estate and Housing Developers’ Association (Rehda, Penang) chairman Datuk Jerry Chan said: “Buyers have money which they would like to park somewhere.

“Sales this year have been better than last year, driven by fear rather than the speculative element,” said Chan who is also group managing director for Penang-based Asas Dunia Bhd.

Chan was commenting on a report Debunking the property bubble myth by CIMB which said that talk of a property bubble was overstated as the sharp rise in residential property prices over the past few years was confined to selected areas.

“Affordability is near its all-time high and prices have to surge 50% to 100% before affordability falls to pre-Asian financial crisis levels,” the report said.

The report said it was surprising that residential prices had not risen at a faster pace as new supply had fallen significantly over the past few years.

Chan said tourism was also very big in Penang and if China and Indian nationals were to buy in Penang, it would “turn the market upside down.”

“So I foresee Penang prices would continue to rise because of inadequate supply of land, not because of inadequate developments,” he said.

In the Klang Valley, Reapfield Properties Sdn Bhd chief executive officer Gerard Kho said domestic demand for residentials was expected to be strong until the middle of this year.

Managing director for the Khong & Jaffar group of companies Elvin Fernandez said “it is not a question of whether there is a bubble or not but whether prices in certain areas are tied in to fundamentals or not.

“And we know in certain hot spots, they are not,” Fernandez said.

In Johor, KGV International Property Consultants Samuel Tan said the state was undergoing a transition because of the Iskandar Malaysia factor.

“New houses entering the market are priced a lot higher than three years ago but the market is accepting it,” he said.

SOURCE: The Star

City Residence and City Mall, a mixed development by Ivory on a 2.42 arce prime freehold land in Tanjung Tokong.

The commercial segment (City Mall)  will consists of 23 three-storey units ranging from 3,750 sq.ft. to 14,200 sq.ft. Enhanced with tropical style interior design that appeals to the landscape elements, giant palm trees and water features. Its open design ensures abundant natural light, efficiency and flexibility in terms of design and fit-out as well as proper ventilation.

The 202 residential units (City Residence) will feature studio apartments from the 7th to 10th floor as well as typical units and penthouses, ranging from 660 sq.ft. to 5,600 sq.ft. With facilities including a pool, gym room, sauna room, children’s playground and BBQ pit, the two 39-storey towers will appeal to your individuals and couples looking for trendy, cosmopolitan-style home.

City Mall

• No. of Storey : 3
• Total Units : 23
• Built-up Area : 3,750 sq.ft – 14,200 sq.ft

City Residence

• No. of Storey : 39
• Total Units : 202
• Unit Types :
  • Type B3 – 660 sq.ft.
  • Type C3 – 1,120 sq.ft.
  • Type D – 1,700 sq.ft.
  • Type E – 1,230 sq.ft.
  • Type F – 1,830 sq.ft.
  • Penthouse –  up to 5,600 sq.ft.

Location : Tanjung Tokong, Penang
Property Type : Commercial & Luxury Condominium
Tenure : Freehold
Developer : Ivory Properties
Website : www.ivory.com.my

GEORGE TOWN: Ivory Properties Group Bhd is expecting approval from the Penang Development Corporation (PDC) this week for its proposed RM10 billion “Penang World City” project at Bayan Mutiara.

Executive director Murly Manokharan said yesterday the development was expected to incorporate, among others, medical facilities, Grade-A offices and both high-end and affordable housing units.

“We are open to working with strategic partners for certain components of the development, such as a shopping mall and a medical centre, as opposed to seeking investors for an outright sale of chunks of the land,” he told Business Times after the company’s extraordinary general meeting (EGM).

Present was Ivory’s deputy chairman and executive director Datuk Seri Nazir Ariff Mushir Ariff.

During the EGM, which lasted 40 minutes and saw a shareholder turnout of 62 per cent, the company received unanimous approval from those present for its plan to purchase and develop a 41.02ha site in Bayan Mutiara on Penang island, from the PDC and Chief Minister of Penang (Incorporated).

The land was sold for RM1.07 billion, or RM240 per sq ft, to be paid over five years.

Shareholders also gave their nod for a joint-venture between Ivory and Dijaya Corporation Bhd to develop the land, which is located near the Penang Bridge.

After the execution of the Builder Agreement, Tropicana Ivory Sdn Bhd – which is 55-per cent owned by Dijaya and 45 per cent by Ivory – will develop the RM10-billion Penang World City development. The development will be a mixed-use residential and commercial project.

Murly said the master-planned development, which has been crafted by international firm Design 103 International Ltd, would adhere to any height restrictions imposed by the Department of Civil Aviation, owing to the project’s proximity to the Penang International Airport at Bayan Lepas. Any project sited within 15km from the airport is deemed by the DCA to be in the flight path.

Penang World City, he noted, was expected to be completed in eight years, with work on the first phase commencing at the end of this year.

“Now that we have obtained shareholder approval to enter into the joint-venture with Dijaya and also for the proposed rights issue, we are looking at a RM500 million capitalisation and are in a better financial position to carry out the project,” Murly said.

As the principal builder of the project and turnkey contractor, Ivory will manage and develop the entire project, for which it will be entitled for 48 per cent of the gross development value.

“We are currently engaging with both local and foreign investors who may been keen to partner us in certain phases of the proposed development.

“However, our first obligation is to honour whatever outstanding payments which are being owed and we are looking at settling the RM80 million being owed to the PDC by April 10,” Murly added.

PDC and Chief Minister Inc sealed a deal on November 11 last year to sell the land to Penang-based Ivory Properties Group Bhd for RM1.07 billion, or RM240 per sq ft, to be paid up in five years.

Ivory’s chairman and group chief executive officer Datuk Low Eng Hock was quoted last month saying that the company has paid a RM22.1 million deposit for the land and that the remainder will be paid according to the scheduled progress payment after shareholder approval was obtained at the EGM.

SOURCE: Business Times

Carissa Villas, a low-density gated and guarded development by Tambun Indah. Located at Bagan Lallang at the centre of fast growing Raja Uda Township and near to the renowned Chung Ling High School, SRJK Kwang Hwa, wet markets, Sunway Carnival, banks & other amenities.

Its strategic location & established infrastructure provides fast access to the Penang Bridge, Butterworth Outer Ring Road and other major towns like Bukit Mertajam and Juru.

Property Project : Carissa Villas
Location : Bagan Lallang, Butterworth, Penang
Property Type : 3-Storey Terrace
Land Area : 20′ x 61′ onwards
Built-up Area : 20′ x 40′ onwards
Total Units : 48
Indicative Price : RM 628,000 onwards
Tenure : Freehold
Developer : Tambun Indah

Contributed by reader (28/09/2012)

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THE Penang Development Corporation (PDC) Properties has successfully completed the construction of 715 low to low medium-cost housing units in Sungai Dua.

PDC Properties chief executive officer Phan Gaik Cher said the development cost of the project was about RM80mil.

“Construction started in early 2009 with a targeted completion date in July this year.

“We managed to finish the project four months ahead of schedule,” Phan declared, adding that the required Certificate of Fitness (CF) was ob-tained on Jan 30 this year.

PDC Properties is a subsidiary of the state’s development arm Penang Development Corpo-ration.

The project called Halaman Kenanga stands on a 1.74ha plot and has 510 low medium-cost units and 204 low-cost units in two 22-storey blocks.

The 700sq ft low medium-cost units cost RM72,500 while the 680sq ft low-cost units cost RM42,000.

Chief Minister Lim Guan Eng, who was present yesterday to hand over keys to some of the owners, said that the project was proof that the state put the interests of the people first.

“There has been criticism from certain quarters that the state has not provided a single low-cost unit.

“Since taking over the state government, the Pakatan administration has in fact approved 11,596 low-cost and low medium-cost units,” he said after handing over mock keys to 22 Halaman residents.

Lim hopes that the affordable housing issue would finally be put to rest.

“The state could have used this land for profit, but instead we decided to use it in the commu-nity’s interests,” he added.

The Penang Government came under fire last year after the Auditor-General’s Report 2010 stated that the state had not built a single low-cost house from 2008 to 2010.

Among those who received their keys was self- employed Ahmad Yatim, 70.

“This is the first home I have ever owned,” the grandfather of 10 said, adding that he would move into the three-bedroom flat with three family members.

Source: The Star