The most significant feature in Penang’s property market last year was the marked increase in prices in some established housing areas on the island, with single storey and double-storey terraced houses breaching the RM580,000 and RM800,000 respectively.

Double-digit price and rental hikes were noted throughout the state in established housing areas, the Valuation and Property Services Department says in its Property Market Report 2010.

The situation in Penang is a general reflection of the mood of the overall market in the country, with Putrajaya recording a two-fold increase in the volume from 170 units in 2009 to 337 units last year. In ringgit terms, Putrajaya sales saw a three-fold increase from RM88mil to RM375mil. It should be noted that Putrajaya is beginning from a low base, being a relatively new area.

Klang Valley prices and volume of transactions were also robust last year. The only state which experienced a soft market was Labuan, while Malacca saw very marginal growth.

Going back to the situation in Penang, as with other states, the residential sub-sector dominated market activity, capturing 70.2% of the market share, followed by commercial sub-sector with a distant 11.9% share of the market. While agricultural and industrial sub-sectors enjoyed growth, it was the residential sector that saw major movements last year.

On the island, single storey terraced houses in Green Garden recorded an increase of 16.5%, ranging from RM455,000 to RM550,000. Similar houses in Jalan Van Praagh were transacted at a higher range of RM530,000 to RM580,000. Bandar Bayan Baru saw both its single and double-storey terraces charting gains of 16.1% and 20.2% to record RM275,000 to RM340,000 and RM403,500 to RM490,000 respectively.

According to the report, its proximity to Sunshine Square shopping complex, Suntech@Penang Cybercity office blocks and being adjacent to Penang International Sports Arena gave it the extra edge.

Other locations which had notable increases were in Taman Sri Nibong, Taman Sri Mewah and Taman Sunway Banyan. Houses in Taman Sunway Banyan went as high as RM750,000. Other popular areas were Island Glades and Island Park, recording sales between RM560,000 and RM800,000 for its residential units.

In Seberang Perai on the mainland, prices of landed residential units also recorded positive movements, particularly Taman Bertam Perdana (B), Bandar Putra Bertam. It should be noted that prices in Seberang Perai Utama are also gradually moving up.

While landed units recorded a general trend of double-digit growth, high rise residential units are not to be left out. Prices of upscale condominium by the beach increased by 3.6% to as high as 22.2% in Sri Pantai/Gurney Beach Resort Condominium.

In the rental market, growth was recorded in Green Garden and Taman Lip Sin, with rental rates seeing an increase of 12.5% and 11.1% respectively. In the high rise segment, rental growth also saw an uptrend. Two-bedroom flats in MaCallum Streets and three-bedroom flats in Mutiara Heights, and George Town city centre recorded 9.4% and 9.1% increases respectively. Prices of shops were stable with isolated increases noted in choice locations. Since the inscription of George Town as a World heritage Site by Unesco in 2008, the number and value of pre-war shops’ transactions have increased. Institutional buyers have been actively buying up commercial lands in George Town.

Overall, Penang enjoyed a total of 25,986 transactions worth RM9.37bil last year, an increase of 14% in volume and 43.5% in value against 2009 (22,724 transcations worth RM6.53bil). It was one of several top performing states both in terms of value and transactions. – By Thean Lee Cheng

SOURCE: The Star

The built environment in the Klang Valley, Penang and other parts of the country is poised for major changes going by the ambitious infrastructure and development projects that have been planned to boost the liveability and growth potential of our major cities.

Projects such as the mass rapid transit in the Klang Valley and the light rail transit and monorail projects in Penang will certainly herald many new changes in the property landscape.

These infrastructure projects will undoubtedly spawn opportunities for other types of development such as housing, office buildings, shopping malls, industrial parks and public facilities.

With all the big plans under way, there may be a tendency to pay too much attention on building mega buildings and structures, and neglect the basic, simple needs and necessities of the common folks.

Many Klang Valley folks consider it unnecessary to spend too much resources on gigantic structures and projects just to add to the city’s skyline.

In fact, the debate on whether there is a need to build the 100-storey Warisan Merdeka tower in the vicinity of Dataran Merdeka, Kuala Lumpur, is still on.

Personally, I believe there are many worthwhile projects that can be pursued, such as cultural and art centres that should be planned based on traditional architecture and using local and indigenous designs and materials. They present opportunities to liven up our cities with more holistic activities and showcase the rich local culture and heritage to visitors.

So it makes sense to incorporate Malaysia’s multi-culture and multi-ethnic heritage into the new commercial projects in our major cities.

We must remember that foreign visitors and tourists to the country are here to savour and experience the living heritage of the people in our cities, towns and villages, instead of gazing at the skyscrapers and concrete jungle which they can find in their own countries. In many ways, what they hope to experience is the simple, yet rich and original way of life of the local people.

Likewise, new residential projects should also look into the basic needs of potential buyers and should be functional instead of over-emphasising the aesthetics. There is a growing number of people who want to live in the city centre but find the prices of the property way beyond their reach.

There should be more effort to build smaller “starter” units in the urban conurbations in order to attract and retain young talent and workforce in cities, particularly Kuala Lumpur.

A review of planning laws and incentives should be considered to encourage developers to build more such entry-level properties for first-time homeowners.

These developments can be integrated with some nice lifestyle food and beverage outlets and retail centres.

Since a number of condominium projects have yet to be fully sold or occupied, perhaps the developers can look at redesigning the layout plans and turn some of the overly spacious units to smaller homes.

Developers of such starter homes have reported brisk sales and there is still a long waiting list for these smaller residences.

In fact, there is also tremendous opportunity to further liven up the Klang Valley’s retail landscape with more average size lifestyle outlets and centres.

The plan to link major retail destinations in Kuala Lumpur’s main shopping hub will help promote the city as a favourite shopping destination.

Walking around shopping malls that are well spaced out, safe and not overcrowded has proven to be therapeutic and relaxing.

It is not only the fairer gender who are taking to shopping as a favourite past-time but their male counterparts have also caught up with this habit. Whether it is to look for something to buy or just taking a stroll, shopping complexes have become favourite haunts for many Klang Valley folks.

The scorching sun has made walking a chore these days and setting up shaded pedestrian walkways in major shopping streets will do well to promote the city’s shopping potential.

SOURCE: The Star

• 01-Single Storey Terrace Homes
• 02-Double Storey Terrace Homes
• 03-Double Storey Terrace Homes
• 04-Commercial Shop Lots
• 05-Damai 86 – Double Storey Terrace Homes
• 06-East View – Double Storey Terrace Homes
• 07-Open Space
• 08-Canary Terrace – Double Storey Linked Homes
• 09-Double Storey Semi-Detached Homes
• 10-Low Rise Apartment
• 11-Double Storey Terrace Homes
• 12-Proposed Academic Site
• 13-Open Space
• 14-Linked Homes
• 15-Linked Homes
• 16-Future Development
• 17-Semi-Detached Homes
• 18-Linked Homes
• 19-Semi-Detached Homes
• 20-Semi-Detached Homes
• 21-Future Development
• 22-Semi-Detached Homes
• 23-Semi-Detached Homes

Location Map

• 01 – Light Industrial Area
• 02 – Bagan 10
• 03 – Commercial Shoplots
• 04 – Double Storey Terrace
• 05 – Villa Sri Bagan
• 06 – Double Storey Terrace
• 07 – Single Storey Terrace
• 08 – Open Space
• 09 – Low Rise Apartment
• 10 – Open Space
• 11 – Market
• 12 – Commercial Shoplots
• 13 – Open Space
• 14 – Bagan Specialist
• 15 – Double Storey Semi Detached
• 16 – Double Storey Terrace
• 17 – Double Storey Terrace
• 18 – Open Space
• 19 – Double Storey Terrace
• 20 – Double Storey Terrace
• 21 – Bagan 59
• 22 – Tropicana Terrace
• 23 – Tropicana Exclusive Series
• 24 – Institution
• 25 – SRK (C) Chung Hwa ll
• 26 – Residential
• 27 – Religious
• 28 – Park
• 29 – Commercial/Retail
• 30 – Commercial/Retail
• 31 – Commercial
• 32 – Commercial/Retail
• 33 – Commercial/Retail
• 34 – Shoplots
• 35 – Commercial
• 36 – Commercial
• 37 – Residential

Location Map

“We also expect more foreign companies to set up base here. Our Islamic banking is No. 1 in the world (so) all this will attract foreigners to come into Malaysia,” Lim said, adding that this would also contribute towards pushing up prices of properties in Malaysia.

He said rising oil prices would also cause prices to escalate.

“There’s a lot of uncertainty in the Middle East. It’s beyond our control and that (rising oil prices) will affect the other things,” he said adding that property prices in Malaysia were currently at a “manageable position.”

According to Napic’s statistics, the Malaysian property market recorded 376,583 transactions in 2010 worth RM107.44bil.

Both the volume and value of transactions registered double-digit growth of 11.4% and 32.6% respectively from 338,089 transactions worth RM81.02bil in 2009.

Napic valuation director-general Datuk Abdullah Thalith Md Thani said 2010’s (RM107.44bil) value was a new high for the Malaysian property market.

“In 2008 and 2009, we (Malaysian property market) suffered a bit. The volume of property transactions will go up (this year) but the margin will not be as high as last year.

“We had a good year last year because we rebounded from the sub-prime experience,” he said.

Abdullah added that Malaysia’s fundamentals were still good, despite the uncertainties.

“People are worried about oil prices now but bear in mind, we are oil producers too. I will not say that property (by volume and value) will be better than 2010. There will be an increase. The question is the rate of increase.”

Napic expects the property market to remain promising in 2011, supported by various measures proposed under the Tenth Malaysia Plan and Budget 2011.

It said projects such as the Kuala Lumpur International Financial District, Mass Rapid Transit in Greater KL, the 100-storey Warisan Merdeka, the development of the Malaysian Rubber Board land in Sungai Buloh and the redevelopment of Pudu prison were expected to have positive spill-over effects.

Napic also said the Government’s Skim Rumah Pertamaku to assist young adults to own homes below RM220,000, together with other incentives such as stamp duty exemption of 50% on instruments of transfer on a house not exceeding RM350,000 for first time buyers, would increase transaction volumes of homes in this price range.

“With the cessation of the Foreign Investment Committee’s approval for the acquisition of properties by foreigners which took effect in June 2009, property investment in Malaysia will be more attractive to foreigners,” said Napic in a statement.

“Given that foreigners are only allowed to purchase commercial and residential properties priced above RM500,000, it is anticipated that more activities will be recorded in the high-end housing units in sought-after neighbourhoods,” it said.