The National Property Information Centre’s (Napic) property market snapshot for the first quarter of this year (Q1 2022) shows residential overhang has dropped marginally to 35,592 units valued at RM22.45 billion.

Last year, the volume of residential overhang reached an “all-time high” of 36,863 units valued at RM22.79 billion.

As of Q1 2022, high-rise units make up 58.1% of the residential overhang at 20,680 units. Terrace houses comprise 20.8% at 7,407 units, while other property types form the remaining 21.1% (7,505 units).

Johor has the highest residential overhang at 5,992 units, followed by Penang at 5,816 units and Selangor (5,215).

The bulk of overhang properties are priced below RM1 million. High-end properties, which make up 13.2% of the total overhang, amount to RM9.37 billion across 4,706 units.

This is followed closely by properties priced at RM500,000 to RM1 million, making up 28.7% of the total, valued at RM6.9 billion across 10,227 units.

As much as 28.5% (10,158 units valued at RM1.91 billion) are properties priced below RM300,000, which is within the housing ministry’s definition of affordable homes.

Serviced apartments

Serviced apartment overhang has also seen a negligible drop from 24,295 units in Q4 2021 to 24,050 units in the first quarter. However, the total value of serviced apartment overhang has remained stagnant at RM20.45 billion.

With 16,425 units, Johor leads the serviced apartment overhang by a drastic margin. Kuala Lumpur and Selangor take second and third spots, respectively, with 4,459 and 2,337 units.

A staggering 64.4% of the serviced apartment overhang consists of properties priced between RM500,000 and RM1 million. It carries a value of RM11.61 billion.

This is followed by properties priced above RM1 million, making up 23.8% with a volume of 5,720 units and value of RM7.75 billion.

Serviced apartments priced from RM300,000 to RM500,000 make up 9.3% of the total with RM150 million, while those priced below RM300,000 only comprise 2.5%.

The severity of the overall property overhang begs the question if a return of the Home Ownership Campaign and a more inviting Malaysia My Second Home programme is needed.

New supply

There were 2,936 units in residential new launches in Q1 2022, of which only 164 units (5.6%) have been taken up.

Some 90.5% (2,657 units) of new residential launches are landed properties, while 9.5% (279 units) are high-rises.

Johor saw the most launches with 604 units, followed by Melaka (562 units), Pahang (466), and Selangor (349).

Most of these launches (1,197 units) were for properties priced from RM300,001 to RM500,000, which make up 40.8% of the total.

This is followed by properties below RM300,000 at 32.9%, which amounts to 965 units; and those priced between RM500,001 and RM1 million at 21.8% (640 units).

Only 134 units (4.6%) are properties priced above RM1 million.

Source: FreeMalaysiaToday.com

The State Government intends to expand homeownership in Penang through ‘rent-to-own’ (RTO) which currently only involves Type A and Type B Affordable Housing (RMM).

State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said, the proposed plan that will be introduced in the near future is to help Penangites to own their first home.

“Previously, the RTO method was only for RMM Type A (low cost house at RM42,000) and RMM Type B (low medium cost house, RM72,500).

“Soon we (State Government) will expand to RMM Type C (starting from RM150,000 to RM300,000) which are two projects that have been identified to offer 44 units by RTO.

“And the priority for this latest category is for civil servants (and more details will be announced later),” he said at a press conference held via Facebook Live on 28 June 2022.

In the meantime, Jagdeep who is also a Board Member of LPNPP informed that the State Government will ensure an adequate supply of affordable housing for the people of Penang.

“This target is in line with the Penang Vision 2030 and I am confident we can achieve the target with the cooperation of all parties, including from LPNPP and stakeholders through public-private partnership (PPP),” he said.

It is understood that as of June 27, 2022, a total of 138,041 units or 62.8 percent of the target has been achieved which is currently in various stages of development. This amount also includes a target of 10 percent of the 220,000 units offered through the RTO financing method.

In a related development, Jagdeep also said that the State Government is currently waiting for feedback from the Ministry of Housing and Local Government regarding the development of the People’s Housing Project (PPR) in the state.

“The State Government has previously identified five sites (in five districts with a total size of 72.3 acres) for development of PPR.

“(And) we really hope that the Federal Government can help provide housing for the people in this state,” he exclaimed.

For the record, Penang only has 999 PPR units compared to a total of 114,652 units nationwide.

Source: Buletin Mutiara

Newly proposed mixed development by Puncakcity Development Sdn. Bhd. at Permatang Tinggi. Strategically located on approximately 46 acres of land near the intersection of Jalan Permatang Tinggi and Jalan Rozhan, adjacent to Usahajaya Light Industrial Park and Taman Perwira Indah. It’s just a mere minute drive to AEON Mall, and less than 30 minutes to both Penang bridges.

This mixed development comprises a mix of shop offices, light industrial factories, serviced residences and hotel. It will be developed in several phases:

• Phase 1: 1, 2 & 3-storey shop offices (130 units)
• Phase 2: 3-storey car park with shoplots
• Phase 3: 3-storey commercial complex
• Phase 4: 3-storey detached shop office (2 units)
• Phase 5: 3-storey detached shop office and 2-storey light industrial factories (16 units)
• Phase 6: 32-storey serviced residence (420 units)
• Phase 7: 20-storey hotel and serviced suites

The project is still pending approval, more details to be available upon official launch.

Project Name: (to be confirmed)
Location : Permatang Tinggi
Property Type : Mixed development
Built-up Size: (to be confirmed)
Land Tenure : (to be confirmed)
Indicative Price : (to be confirmed)
Developer: Puncakcity Development Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

About Urban Suites

A commercial property development by Aspen Vintage Sdn. Bhd. (Cosmopolitan Homes) in the established township of Jelutong.  It is easily accessible via Tun Dr Lim Chong Eu Expressway and surrounded by abundance of amenities. Urban Suites comprises two 42- storey towers, featuring 596 units of commercial suites.

Find out more about Urban Suites

Smith + Nephew, a leading global medical technology company, has officially opened its much-anticipated, high-technology manufacturing facility in Batu Kawan Industrial Park (BKIP) today.

The new plant is located at Persiaran Cassia Selatan 8 in BKIP.

Smith + Nephew Malaysia site leader and managing director Mark Arthun said the new plant is the company’s first manufacturing facility in Penang and Southeast Asia.

“The 250,000sq ft facility, at a cost of about US$50 million, will primarily support the company’s orthopaedics franchise which has been growing strongly in the Asia Pacific region.

“This is an incredible and exciting project for us because we believe that Penang is strategically located as a manufacturing hub. And Penang’s location enables us to further expand our operations.

“The new manufacturing facility is expected to create up to 800 jobs in the next five years, with available positions in various departments such as engineering, supply chain, quality human resources, finance, logistics and many more.

“And from the 800 new jobs to be created, only a small number will be expats because we want the facility here to be managed by the locals.

“We are very grateful for the strong support from the Federal Government, Penang government and all the relevant agencies.

“We look forward to working with all of you to achieve great success,” Mark said in his speech at the opening ceremony today.

Chief Minister Chow Kon Yeow, who graced the ceremony, said Penang is excited and proud to welcome the presence of Smith + Nephew here.

“We are excited and proud to welcome Smith + Nephew, a leading MedTech (medical technology) company that designs technology to take the limits off living.

“My sincerest congratulations to the Smith + Nephew team and all those involved for their dedication and hard work in achieving this milestone.

“With global revenues of US$5.2 billion in 2021, Smith + Nephew is among the 30 largest medical device firms in the world.

“It is a leading global MedTech company that specialises in orthopaedics, sports medicine, ear, nose, throat and advanced wound management sub-segments,” he said.

Chow said the medical device segment, driven by innovation and cutting-edge technologies, is a critical and fast-growing segment within the healthcare industry.

“It is estimated that by 2023, the Asia Pacific MedTech market will exceed that of the European Union (EU) and become the second-largest in the world.

“Consequently, a plethora of industry leaders hope to establish manufacturing facilities in Asia to meet the rapidly growing demand, with Penang being one of the preferred locations.

“Dubbed as the Silicon Valley of the East, Penang (thanks to its robust industrial ecosystem) not only enables the state to accelerate breakthroughs in the electrical and electronics (E&E) industry but further entrench its position as a medical device hub in the region.

“I am proud to note that Penang has the highest concentrations of medical technology companies in Malaysia and Southeast Asia,” he said.

“With Smith + Nephew’s investment, it is expected to create 800 high-value jobs in the coming years. This will further enrich the local community in skills and opportunities in manufacturing, engineering and supply chain.

“Celebrating the 50th anniversary of Penang’s industrialisation, the state government through InvestPenang and other relevant state machinery is committed to providing unwavering support to the investors, while pledging to hold sustainability as one of its key priorities to unleash greater potential for the next 50 years and beyond.

“Once again, my sincerest congratulations to Smith + Nephew on the new facility,” said Chow.

Also present during the opening ceremony were state Entrepreneurial Development, Trade and Industry Committee chairman Datuk Abdul Halim Hussain, Bukit Tambun assemblyman Goh Choon Aik, InvestPenang chief executive officer Datuk Loo Lee Lian and Chief Minister’s special investment adviser Datuk Seri Lee Kah Choon.

Founded in Hull, United Kingdom, in 1856, Smith + Nephew currently operates in more than 100 countries and specialises in surgical implants and advanced wound care products.

Source: Buletin Mutiara