TAIYO Resort (KL) Bhd is targeting the upgrading works at the Bukit Jambul Country Club (BJCC) golf course to be completed in 2012, a year before the scheduled completion.

Taiyo managing director Datuk Eiro Sakamoto said that the first nine holes of the 18-hole golf course was now 60% completed.

?The other 40% is scheduled for completion by end of the year.

?So far, we have completed replacing the grass at the putting greens with imported TifEagle grass.

?We have also completed the trenches on the fairway, which is topped up with sand to improve the drainage system of the golf course,? he said in an interview.

Sakamoto said the cow grass for the fairway was expected to be replaced with Bermuda grass by end of the year.

?We will start upgrading the second nine holes next year and this will take 12 months to complete,? he added.

Sakamoto said the renovation of the golf course would turn it into a buggy-course.

?The buggies are now restricted on only the buggy track.

?Once the renovation is done for the first nine holes, new buggies will be brought in to service the golfers, bringing them to the fairway,? Sakamoto said.

He also said Taiyo would spend about RM3mil to buy 110 new buggies.

He said renovation work for the clubhouse would start in July.

The renovation, which should be ready by December 2011, will see a restaurant serving Japanese, Chinese, and local cuisine, a terrace coffee-house and new changing rooms.

Sakamoto said the upgrading work for the 18-hole golf course is around RM6mil, while the clubhouse renovation would cost another RM3mil.

Taiyo is also allocating about RM30mil to maintain the golf course and the clubhouse for the next 10 years.

?We understand the importance of the club to attract overseas golfers to Penang and its role in promoting tourism,? he said.

Last November, Taiyo signed an agreement with Penang Development Corporation (PDC) and Island Golf Properties Bhd (IGP), a subsidiary of PDC, to undertake the management and operation of BJCC for 20 years.

Under the agreement, Taiyo will complete the upgrading works of the golf course by 2013.

?The name Bukit Jambul Country Club is expected to be changed officially to Penang Golf & Country Club soon,? Sakamoto said.

PDC general manager Datuk Rosli Jaafar said Taiyo should be given time to complete the upgrading works by 2013, according to the agreement.

BJCC liaison committee chairman Datuk Boonler Somchit said following a discussion by the liaison council and the management on May 26 regarding the poor maintenance of the second nine holes of the golf-course, Sakamoto agreed to take immediate action to improve conditions.

?Sakamoto also reassured that the renovation deadline of the first nine holes will be met by December this year,? he said.

SOURCE: The Star

PETALING JAYA: Inflation will most probably rise in June, driven by increasing non-food prices and the electricity tariff hike. But economists are mixed on the longer-term trend of inflation as global energy prices have started to recede.

May’s inflation, up from 3.2% in April, also marks the highest rise since March 2009.

“Inflation is increasingly becoming a nuisance … We expect inflation to further gain momentum in June, following the electricity tariff hike for the first time in three years. This will see some levels of transfer pricing to end-users by business,” said MIDF head of economics Anthony Dass.

He expects June inflation to hover around 3.5% as prices of housing, utilities and fuels continue to add pressure. Effective June 1, the average electricity tariff has been increased by 7.12%.

Thus, Dass expects the overnight policy rate to be raised by another 25 basis points as this will ease inflation pressure and also contain further erosion of the negative real returns now at 0.3%.

“We believe our outlook of a stronger ringgit (of RM3=US$1) and higher base comparison in the second half of 2011 is inadequate to contain inflation pressure,” Dass, who reiterated his 2011 inflation forecast of 3.3% from 1.7% in 2010, said.

Meanwhile, CIMB head of economics Lee Heng Guie believes that inflation pressure will gradually ease off going into the second half, thanks to the easing global oil price. He expects inflation to increase at a slower pace of 3% to 3.2% between July and December, taking inflation to average 3.2% in 2011.

Lee also maintains his expectations that Bank Negara will raise interest rate by 25 basis points to 3.25% in the third quarter. The timing will be a close call between July and September.

“Compared with the previous rate hike in May, we think the confluences of external headwinds have tilted the balance of risk towards the downside for the growth outlook.

“As such, this necessitates a careful assessment on whether the current soft patch will be short-lived or prolonged before making the next rate move,” said Lee.

Taking a closer look at the numbers, core inflation, which excludes changes in the prices of food and energy, headed higher to 1.8% from 1.6% in April as non-core inflation spilt over to the core components. In January to May, inflation increased 3%.

Breaking it down, food inflation eased to 4.5% from 4.9% in April amid higher prices of chicken and sugar, which increased by 20 sen per kg in May.

However, transport prices accelerated to 6% in May from 5.3% in April, driven by the 20 sen price hike in petrol RON97 on May 5.

“We expect inflation to peak in June at 3.4%, reflecting the combined knock-on effects of power tariff hike, the removal of diesel super subsidy as well as costlier fish as fishermen went on strike over diesel subsidy cut,” said Lee.

He said the good news was the 10 sen cut in petrol RON97 in June to RM2.80 per litre would help to offset the price pressure. Hence, price pressures should start to subside in the second half.

Source: The Star

1 TANJONG which represents Lone Pine Group of Companies’ maiden foray into the luxury super condominium market, is set for completion by 2013.

The group’s marketing and corporate affairs general manager Mabel Ooi said work on the two 41-storey towers was on track.

“We’ve incorporated eco-friendly features that reduce heat absorption as well as energy and water consumption and have applied for the Green Building Index (GBI) certification. The targeted completion date is two years from now.”

“So far, response from both local and foreign buyers is good. We have potential purchasers from Singapore, Kuala Lumpur as well,” she said, adding that 1 Tanjong, a freehold project, was among a rare breed of luxury condominiums along the Tanjung Bungah beachfront in Penang.

“There is limited land along the state’s beautiful coastline. 1 Tanjong sits on the former Tanjong Country Club site, just beside Penang Swimming Club. Residents will have direct access to the beach,” she said.

Ooi said the project was developed for “resort style living”.

She said the group had studied the various super condominium projects in the region to ensure that 1 Tanjong was a step up from what is available in the market.

“With 1 Tanjong, we wanted to make improvements on complaints that we had heard from residents in other luxury living projects. For instance, the car park does not have a spiral ramp. You drive straight in so there is no risk of scratching your car,” she explained.

1 Tanjong comprises 147 freehold units, with each floor having only two units.

There are three layouts : a typical unit (4,760sq ft), penthouse (9,600sq ft), and top penthouse (18,600sq ft).

On the group’s Pine Valley Business Centre in the Paya Terubong township, Ooi said 34 freehold units were available for rent and purchase.

“It is Paya Terubong’s first trendy, modern commercial business centre,” she said.

For more details, visit the Lone Pine Group of Companies? office at the Pine Valley Business Centre, 1077, Jalan Paya Terubong or call 04-827 8566.

Lone Pine will also be showcasing many of its properties at The Star’s Property Fair 2011.

Other key exhibitors include IJM Land, Sunway Grand, Vienna Home (Mah Sing), Ideal Property Develop-ment, SP Setia Group, Taman Sri Setia (Boon Siew Group), Ivory Pro-perties Group, Nusmetro, MTT Pro-perties & Development, Reka Indah Development, Lembaman Develop-ment (Belleview Group), DNP Land, GD Development and Tambun Indah Development.

To date, 28 major developers (representing almost all the big boys in the industry) along with several financial institutions, have taken up booths in the fair.

Touted as Penang’s premier pro-perty expo, the fair?s ninth edition will be held at Gurney Plaza and the adjoining G Hotel from July 21 to July 24.

The RM30,000 worth of prizes for the “Surf, Click & Win” contest are sponsored by IJM Land.

The fair, which is open to the public from 10am to 10pm daily, is orga-nised by The Star in co-operation with Henry Butcher Penang.

Admission is free. For more enquiries, call 04-647 3388 ext 3357 (Shirmein) or ext 3418 (Bessie).

SOURCE: The Star

More growth expected as island sees new projects

The Penang housing market is expected to grow further in 2Q2011 as more new developments come up with expectations of high take-up rates.

Raine & Horne International Zaki + Partners director Micheal Geh says that in 1Q2011, the property market in Penang was positive, with strong take-up rates despite the recent hike in interest rates, which makes home financing packages less attractive than when the global financial crisis was at its height. This was when developers introduced innovative financing packages such as the 5/95 scheme (where property buyers only paid a deposit of 5% of the purchase price and paid the remaining sum upon completion of the property).

“There seem to be fewer marketing campaigns and promotional strategies by developers this year but even so, take-up for new homes seems pretty strong,” he says when presenting The Edge/Raine & Horne International Zaki + Partners Penang Housing Property Monitor for 1Q2011.
“This indicates strong market fundamentals or maybe there are few investment options besides property available in Penang or maybe even in the country,” he adds.

A number of new projects were launched in Penang in 1Q2011, including S P Setia Bhd's Reflections in Sungai Ara, which offers 317 condos with prices starting at RM416 psf. Some 80% of the units have been sold so far.

Also launched during the quarter was Meridien Residence by Reka Indah Development in Sungai Ara, offering 160 condos in a 30-storey block, with prices starting at RM380 psf. The built-ups ranged from 1,260 to 1,916 sq ft. These units too have seen an 80% take-up rate so far.

“We expect more vertical developments/luxury homes [condominiums] to come up around the island in the following quarters. Among the interesting developments to look out for in 2Q would be the luxury condominium Setia V Residence by S P Setia in Jalan Kelawei. The project is named after the V-shaped layout of the building, which offers full views of the famous Gurney Drive area,” Geh explains.

Meanwhile in Bayan Indah, GSD Land is offering Summerton, comprising two 17-storey blocks of condominiums with 300 units in total. Priced from RM400 psf, the leasehold project with 1,733 to 2,403 sq ft units is open for registration.

As tracts for development become scarce, property prices are expected to remain high.

Based on the 1Q2011 data presented in the monitor, properties in a number of housing developments sampled continued to see a rise in value. The highest price jumps from the previous quarter were for standard 3-bedroom apartments in Tanjung Tokong and Tanjung Bungah. Prices rose 7% or by RM20,000 from RM300,000 in 4Q2010.

Geh says the increases in these areas are due to the pull of commercial activity where Tesco and Straits Quay are located.

He also expects the planned relocation of Tenby International School from Gurney to Tanjung Bungah by S P Setia to attract investors to condominiums in these areas for rental yields and capital appreciation.

There were also slight increases in the property prices of 3-bedroom flats in Relau, Greenlane and Sungai Dua and Lip Sin Garden in 1Q2011. Geh says most of the affordable flats below the RM200,000 price range sampled offer better yields.

The 2-storey semi-detached houses in Sungai Nibong saw a 3.5% increase in value to RM880,000 in 1Q2011 while 2-storey bungalows in Minden Heights saw a 3% rise to RM1.75 million. Standard 2-storey terraced houses in Sungai Nibong also saw a 3% increase in value.

The rental market in Penang in 1Q2011 was generally stagnant except for 3-bedroom apartments in Batu Uban where there was an almost 4% increase from RM1,400 in 4Q2010, to RM1,450 in 1Q2011. Geh believes the lacklustre rental market in Penang is due to oversupply.

“The increase in the number of transactions does not represent demand for rental properties as many of the buyers are bulk investors or speculators,” he says, adding that he does not expect the rental market to move much in the coming quarter. According to him, one major concern on Penang island is traffic congestion.

With regard to George Town's Unesco World Heritage Site status, there was a display of a Draft Special Area Plan (SAP) of the city for public viewing recently. It was open for public comments and submissions as well as other inputs that will be included in a review of the Draft SAP before it is adopted and gazetted.

Geh says the proposed guidelines are for the management of the George Town Heritage site. The time given for feedback has ended and deliberations are going on to finalise the plans. The adoption of an SAP will ensure George Town retains its Unesco World Heritage Site status.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 860, May 30-June 5, 2011

SOURCE: The Edge Property

LOCAL property buyers who are looking to invest Down Under can look forward to a showcase of the latest available Melbourne property at the Star Property Fair 2011 in Penang.

It is presented by the Kuala Lumpur-based property consultant Jalin Realty. The highlights will include the EXO property at the Victoria Harbour, which is part of the city’s master-plan developed by Lend Lease.

Property group Lend Lease is one of the world’s leading fully integrated property solutions providers.

Located at the junction of Collins Street & Merchant Street, EXO features 1,200sq m of retail shops, 642 car parks and 96 units of one or two-bedroom apartments.

“EXO fits into the perfect lifestyle of wanting a city life with the option of strolling away from the hustle and bustle to enjoy the view from the waterfront. The train, tram, bus and bicycle routes are within quick access for easy travelling,” said Jalin Realty chief executive officer Ian Chen.

Chen described EXO as a rare opportunity for investors and home owners to own apartments nestled between the pristine view of the Harbour and the Yarra River.

“Community facilities and lifestyle entertainment outlets such as the Etihad Stadium, more than 120 cafes, bars, eateries and water recreational activities are all around the corner,” he said, adding that investors who purchase units would stand to enjoy huge stamp duty savings.

Other Melbourne property by Jalin Realty includes units of the strategically located freehold park-facing terrace houses located at the border of Burwood & Glen Iris and low-rise apartments located at Prahran off Chapel Street and Clayton South.

Touted as Penang’s premier property exposition, the fair into its ninth edition will be held at Gurney Plaza and the adjoining G Hotel from July 21 to July 24.

To date, 28 major developers — representing almost all of the major players in the industry — along with several financial institutions, have taken up booths at the fair.

The key exhibitors include IJM Land, Sunway Grand, Vienna Home (Mah Sing), Ideal Property Development, SP Setia Group, Taman Sri Setia (Boon Siew Group), Ivory Properties Group, Nusmetro, MTT Properties & Development, Reka Indah Development, Lembaman Development (Belleview Group), DNP Land, GD Development, Lone Pine Group and Tambun Indah Development.

The RM30,000 worth of prizes for the ‘Surf, Click & Win’ contest, are sponsored by IJM Land.

The fair, which will be opened to the public from 10am to 10pm daily, is organised by The Star in cooperation with Henry Butcher Penang. Admission is free.

For more enquiries, call 04-6473388 ext 3357 (Shirmein) or ext 3418 (Bessie).

SOURCE: The Star