fbpx

Seberang Perai is now a City

May 20th, 2019 3 comments 中文版
Seberang_Perai_Skyline

Image source: wikipedia.org

Penang will be the only state in Malaysia with all its Local Authorities (PBTs) elevated to city council status.

Penang has two local authorities – the Penang Municipal Council (MPPP) which obtained city council status in 2015, known as the Penang Island City Council (MBPP) and Seberang Perai Municipal Council (MPSP) which has now been upgraded.

Penang Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said the Federal Government had approved the state government’s application to upgrade the MPSP to city council status last week.

“There are 155 local authorities in Malaysia and 13 of them have city council status. MPSP will be the 14th to be upgraded to city council status and the first after the 14th general election,” he told a press conference here today.

He said the official announcement regarding MPSP’s status as a city council would be made after Hari Raya Aidilfitri once the paperwork was completed.

“The state government will have to decide who will be the mayor for the Seberang Perai City Council after the announcement is made,” he added.

Source: Bernama

 

Categories: Property News Tags:

D’Nonce Technology and OCR team up to develop affordable housing in Penang

May 18th, 2019 No comments

deloft

D’nonce Technology Bhd and OCR Group Bhd are teaming up to develop affordable apartments in Seberang Perai Tengah, Penang, said the latter in a bourse filing today.

OCR’s unit Fajar Simfoni Sdn Bhd (FSSB) has entered into a joint venture with D’nonce’s wholly-owned unit D’nonce Properties Sdn Bhd (DPSB) to develop a 19-storey block housing 281 units of flats and a seven-storey car park podium on 6,774 sq m of land belonging to Tan Than Kau and Tan Tiang Yang.

The project will have a gross development value (GDV) of RM85 million.

Under the agreement, FSSB will build and develop the land into the apartment block at its own cost, while DPSB will deliver the site possession to FSSB.

In total FSSB is to pay DPSB a total of RM12.1 million as part of the agreed returns of the deal.

FSSB is solely entitled to the relevant revenue from the project or sale of apartment units, and its expected profit entitlement is RM10 million.

OCR said the JV presents an opportunity to further capitalise on property development experience and grow its property development segment through direct land acquisitions or ventures with landowners.

OCR non-independent and non-executive director Lim Tech Seng is also an executive director of D’nonce Technology Bhd with a direct interest of 1.046%, as well as a director of DPSB.

OCR closed 1.52% or half a sen higher to 33.5 sen — with 2.61 million shares traded — giving it a market capitalisation of RM108 million.

Meanwhile, shares in D’nonce Technology traded 7.14% or three sen higher at 45 sen — with 233,000 shares changing hands — giving it a market capitalisation of RM113.3 million.

Source: EdgeProp.my

 

Categories: Property News Tags:

Property crowdfunding framework unveiled

May 18th, 2019 No comments

property crowdfunding

The Securities Commission Malaysia (SC) has released a new property crowdfunding framework, following revisions made to its Guidelines on Recognised Markets here today.

This is in relation to an initiative announced in Budget 2019 to provide an alternative financing avenue for first-time homebuyers through a property crowdfunding scheme, said SC chairman Datuk Syed Zaid Albar in his opening remarks at the inaugural SC Fintech Roundtable held here today.

“The SC is supportive of ideas that utilise technology to benefit investors by democratising access to investments while broadening financing options available for Malaysians,” he said.

“As such, we are pleased to announce that we revised our Guidelines on Recognised Markets today. The revised guidelines will introduce new requirements to facilitate property crowdfunding,” he added.

Property crowdfunding offers the same potential as that of equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms in providing an alternative source of financing but is specifically tailored for first-time homebuyers, said SC in statement today, adding that it will also provide investors access to a new investment option.

Eligibility criteria

Under the property crowdfunding scheme, at the initial phases, only eligible properties and homebuyers will be allowed to participate.

Some of the eligibility criteria of homebuyers are that the individual has to be Malaysian, at least 21 years old, and a first-time homebuyer.

During the technical briefing two days ago, SC’s spokesperson also noted that an individual is not eligible for this scheme if the individual had inherited a house from the person’s family.

An obligation of the homebuyer, under this scheme, is that the property must be occupied by the homebuyer at all times.

However, the homebuyer is permitted to rent out rooms in the property during the scheme’s tenure.

The financing limit for a property is up to 90% of the value of the property.

Notably, the eligible properties under this scheme are valued at not more than RM500,000 at point of primary offering.

They are completed residential properties located within Malaysia with valid certificate of completion and compliance and valid and effective legal title with no encumbrances attached.

As for the property crowdfunding (PCF) operator, the platform must be registered with a recognised market operator and have a minimum shareholders’ fund of RM10 million, of which RM5 million must be set aside and maintained in a segregated account at all times.

The RM5 million set aside shall only be used for the purpose of ensuring and facilitating the exit certainty.

Source:  EdgeProp.my

 

 

Categories: Property News Tags:

More national housing affordability initiatives needed

May 17th, 2019 No comments

pguru-surveyWhile Malaysians are satisfied overall with government approaches to bring affordable property to the people, the majority still feel that a more targeted approach could be taken to address this pressing gap in the property market, according to the PropertyGuru Consumer Sentiment Survey H2 2018.

The sentiment comes amid widespread perceptions that property prices remain high in the country, with unfavourable market timing, and lack of capital and good financial options also cited as challenges by property seekers.

PropertyGuru Malaysia country manager Sheldon Fernandez said in 1Q 2013, 93% of participants in the PropertyGuru Consumer Sentiment Survey expressed dissatisfaction with housing initiatives available at the time.

“This has decreased to 63% in the recent H2 2018 survey, with satisfaction rising from 7% to 22% over a similar timeframe. These movements reflect increasing confidence in public sector initiatives over the past few years, with Malaysians wanting the government to up the ante in their initiatives to provide more affordable national housing for the masses,” said Fernandez in a statement.

According to the survey, actual uptake of national affordable housing programmes is low, despite demand for such initiatives. Only 19% of survey participants applied for the 1Malaysia People’s Housing (PR1MA) scheme, for example.

Participation rates ranged from 4%–9% for other initiatives such as Rumah Selangorku, the Federal Territories Affordable Housing Project, My First Home Scheme, 1Malaysia Civil Servants Housing and MyHome.

In fact, 41% of respondents reflected that they were not qualified to apply for such national housing initiatives.

“A large segment of home seekers is either not qualified, or unaware about existing affordable housing initiatives. That has deterred them from applying for or even considering these options.

“Another challenge is the lack of consensus on what exactly constitutes affordable housing itself. Baseline prices vary from location to location. That being said, the majority (nearly eight out of 10) of respondents considered properties in the RM300,000 to RM500,000 range to be on the affordable spectrum,” added Fernandez.

At the heart of the affordability debate are property prices which have rocketed skywards in recent years, with 76% of Malaysians anticipating continued price increases in the next six months, indicating prevailing negative price sentiment in the market.

Regardless of price movements, household income in Malaysia has failed to rise commensurate with costs. This has caused many to cite unfavourable timing and market conditions as a factor in their property decisions.

“Our survey found that more than half (51%) of respondents had resorted to withdrawing their Employees Provident Fund savings at least once to purchase properties. 67% of Malaysians have a budget of RM500,000 or less for property purchases,” said Fernandez.

This is supported by recent Bank Negara Malaysia reports, which found that 61% of loans approved in 2018 were undertaken for properties below RM500,000. In total, banks distributed RM133 billion in home financing to some 350,000 borrowers during that year.

Given income stagnation in the country, the younger generation has been particularly hard hit by property financing issues. More than 70% of home seekers under 29 years of age, for example, see prevailing interest rates in Malaysia as excessively high.

Further challenges for home buyers seeking financing include unfamiliarity with the paperwork involved, unfavourable credit histories, unstable sources of income and other outstanding debts that contribute towards high debt-service ratios in the country, such as car loans, personal loans and outstanding credit card debts.

To address loan rejections, PropertyGuru recently introduced Home Loan Pre-Approval to increase their chances of getting a loan. It empowers home seekers to know for sure how much they can borrow from their bank, even before they apply for a loan. Once they know their qualified loan amount, which is 99.9% accurate, they are immediately matched with homes they are pre-approved for, giving them instant access to preferential rates by bank partners.

“Looking at the bigger picture in terms of market appetite, we continue to see Johor, Penang, Kuala Lumpur and Selangor as primary contributors to transactions in 2018, with 75% of loans approved undertaken for properties in these areas,” said Fernandez.

Asking prices generally trended downwards or sideways in Q1 2019, as the market adjusts to larger economic tides. However, the Johor, Penang and Kuala Lumpur markets registered marginal quarter-on-quarter increases of up to 0.5%, in line with their role as key focuses of national development.

Source: TheSunDaily.my

 

Categories: Property News Tags:

Orange Industrial Park

May 15th, 2019 No comments

orange-industrial-park

Orange Industrial Park, an light industrial park development by Tah Wah Group at Chain Ferry, Butterworth. Located near prime industrial areas in Prai, adjacent to Southern Pipe Industry (M) Sdn. Bhd. It is easily accessible via Jalan Chain Ferry, about 15 minutes drive from Penang Bridge.

This development will see the construction of 38 double-storey semi-detached factories and a double-storey detached unit. Each unit has a standard built-up area of at least 4,750 sq.ft. with a minimum land area of 8,020 sq.ft.

Project Name: Orange Industrial Park
Location : Butterworth
Property Type : Light industrial park
Built-up Area: 4,750 sq.ft. onwards
Total Units: 38 (semi-detached), 1 (detached)
Indicative Price: (to be confirmed)
Developer: Tah Wah Group

Register your interest here

*By submitting this Form, you hereby agree to our PDPA Consent Clause.
(This information may be used by the developer or their appointed agent to initiate follow-up communications with you on the project.)

Location Map: