Asia Green Group’s affordable homes project, called The Zen, is progressing well and is expected to be ready by early next year, state Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said.

Jagdeep and several staff members from the Penang Housing Board, as well as architects and representatives from Asia Green, today visited the construction site at Persiaran Bayan Mutiara in Gelugor to monitor the progress of the project.

“I understand that this project is now 60 per cent completed, and is expected to be completed by February or March next year.

“It is understood that due to the Covid-19 pandemic, the construction industry was also badly affected, causing a standstill to many residential development projects in Penang.

“We have certainly made progress since the outbreak in 2020, and despite the adversities, it is good to witness that work at such affordable homes project is ongoing.

“As this is a mixed development project, there are also condominium units as well. But, as for the affordable ones, which measures 850sq ft per unit, I understand all 1,200 units have been sold out.

“The state would like to thank players from the private sector for materialising such projects for the benefits of Penangites.

“Having a shelter over our heads is a basic fundamental human right.

“The state will continue to deliver affordable homes so that no one is left behind when it comes to owning a home, especially for first-time home buyers,” Jagdeep said during his visit to The Zen at Persiaran Bayan Mutiara in Gelugor today.

Future owners of The Zen can enjoy facilities such as a swimming pool, recreational space and others.

Separately, Jagdeep said as of now, a total of 133,313 units of various affordable homes are in multiple stages as follows, 38,190 have been built, 19,640 being built and 74,956 to be built.

“We have reached about 60.6 per cent of our target of delivering 220,000 units by 2030,” he added.

“Out of the 220,000 units, I have instructed my staff at the Housing Board to make accessible 10 per cent of it under the Rent-To-Own scheme for individuals that meet the criteria set.

“There are many who still can’t afford to buy affordable homes, so this is one way of making sure everyone gets to own a home at the end of the day,” Jagdeep added.

Among those present during the visit were Penang Housing Board chief operational officer Mohd Fauzy Mohd Yusoff, chief business officer Fakhurrazi Ibnu Omar and Asia Green’s director Tan Li Mei.

Source: Buletin Mutiara

Works on the RM14mil Esplanade seawall upgrading are on schedule, with completion expected at the end of April.

Outlining the project works, Perunding YAA Sdn Bhd said it employed methods and construction materials that would “harmonise” with the qualities and heritage significance of the George Town World Unesco Heritage Site in Penang.

“The seawall will look simple in construction and relatively easy to maintain. It is also sufficiently traditional in appearance,” said its principal consultant Michael Yap.

“Most of the granite rocks used in the construction were quarried from nearby Penang Hill,” he added.

The seawall upgrading project involves a stretch of 460m from Medan Renong food court to the Royal Malaysian Naval Base.

It is one of 14 projects under the RM140mil North Seafront Masterplan that starts from Dewan Sri Pinang to Fort Cornwallis and the entrance to Swettenham Pier.

Yap said a terraced seawall near the Cenotaph Memorial was also being built, to bring the people closer to the sea.

“It is accessible during low tide and offers a direct view of the original seawall.

“Along the northwest section of the seawall, in front of the Medan Renong food court, there will be two stairways to give people direct access to the sea as well as the large boulders of the sloping revetment that are exposed during low tide,” he said.

Yap said an initial assessment of the seawall was carried out between December 2016 and January 2017 to evaluate the principal problems and general condition of the structure.

“The existing seawall in the area of study was built in varying sections and consisted of blocks of granite stones of different shapes and sizes.

“In some areas, brick masonry parapets were added at a later stage on top of the mass gravity wall to prevent wave running, splashing and overtopping of seawater.

“This form of seawall construction is common in this region.

“It is economical and an efficient form of sea defence, given that an exposed seafront in these coastal areas will be subject to considerable wave attack during rough sea conditions,” he elaborated.

Penang Island City Council (MBPP), which funded the project, said any infrastructure construction within a site that was rich in history, culture and heritage would present its own set of challenges and surprises.

MBPP secretary A. Rajendran said that among them were a number of social and traffic related issues such as temporary loss of public space during construction, the hoarding up of the food court, loss of parking spaces and partial rerouting of traffic.

“In addition, the project had to establish protective measures and the monitoring of possible damage to the historical buildings in the vicinity, such as the Royal Malaysian Navy building, City Hall and the Cenotaph Memorial.

“During the construction of this project, there was an unexpected discovery of five cannons and short range mortars dating back to the late 18th and early 19th centuries, as well as shells of detonated ammunition from various conflicts.

“The cannons have now been moved away from the site and are being restored by Universiti Sains Malaysia’s Archeology Department.

“The shells of the detonated bombs were found among the debris, which pointed to the war-time conflicts that occurred off the shores of George Town in the 20th century,” said Rajendran.

Penang local government committee chairman Jagdeep Singh Deo also did a site inspection of the project recently.

The project is supported by the George Town Conservation and Development Corporation (GTCDC), a partnership between the Penang government and Think City.

The corporation has been formed to spearhead the rejuvenation and restoration of select public assets in the heritage site.

It is meant to enhance the appeal and value of key monuments and public open spaces, and demonstrate the value of culture-based urban regeneration in creating a sustainable heritage city.

To date, among the 14 major initiatives completed are the restoration of Koh Seang Tatt Fountain Garden, improvements to Lebuh Light streetscape, upgrading of Esplanade field subsoil system and numerous planning documents produced to assist with the physical implementation.

Source: TheStar.com.my

Real estate has traditionally been viewed as a safe investment asset with powerful inflation hedging capability compared to other assets such as stocks and bonds. However, the current pandemic-induced economic weakness is testing such a perception.

This is because the rampant house price growth since the coronavirus outbreak has put the residential property market at risk as when the housing bubble bursts, the likely ensuing panic sale will cause a drastic fall in prices, leading to the crash of the housing market, which can have detrimental effects on the entire economy.

Thus, it is imperative for real estate investors and would-be house buyers to understand the hedging abilities of Malaysian housing properties against inflation, so as to minimise their exposure to such risks in their portfolio.

Perhaps a simple descriptive statistic in nature focusing on correlation analysis of the annual data series of residential real estate returns and inflation rate can shed light on the asset’s inflation-hedging capability.

A perfect inflation hedge would have a correlation close to +1.00, indicating that both the tested variables increase proportionally at the same time; a correlation of -1.00 would indicate the exact opposite.

In general, a correlation of +0.22 is found throughout the period of 1990-2020. While this is rather low to qualify for a perfect inflation hedge, a positive correlation should indicate that returns gain from property investment will counterbalance, at least partially, a rise in inflation.

By applying the rolling window approach to investigate the behavioural changes in correlation throughout the studied period – where the time series are examined with a smaller five-year-interval perspective in order to control for the possible structural changes in the economy, and this period is then moved one year forward at a time – one can find that correlation is not only increasingly positive, but even reaches to its highest ever level at +0.86 around 2020 (chart).

This shows that while house prices have been moderating in recent years, a fall in inflation with a larger pace has, instead, led to an increasing synchronised trend between investment returns and inflation, making real estate a rather good hedge against inflation, albeit imperfect. From here, one can expect that real returns from real estate are not adversely affected by inflation.

Even if it does not perform as a complete hedge, with house prices growing much higher than inflation in the long run, coupled with its instant responses in the short run during inflationary pressure, housing could still be a valuable investment asset.

Having said that, the traits of real estate investments described above are powerful only if there is no oversupply in the market. This is because housing markets are more susceptible to supply excesses. Even if inflation is high and may push up house prices, an oversupply of houses in the local markets will inevitably bring down prices, as power shifts to tenants who can negotiate favourable terms no matter what the inflation environment might be.

– This article is contributed by MKH Bhd manager of product research and development Dr Foo Chee Hung.

Source: TheSunDaily.my

A proposed GBS Cybercentre by Penang Development Corporation and waterfront mixed development at Bayan Lepas. Strategically located at the coastal area of Free Industrial Zone 4, just a stone’s throw away from Penang Second Bridge. It is aimed to bring business and leisure together with “live, work & play” concept, where it will be a convenient place to live, a suitable place to work, and an exciting place to enjoy.

The GBS Cybercentre will comprise three 12-storey office blocks, featuring a total of 66,960sqm office area. However, now it is only in its conceptual stage.

This project was showcased as part of Penang’s GBS landscape during the recent Expo 2020 Dubai.

Proposed location:

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.

More Malaysian millennials are beginning to dip their toes into the property market and become prospective buyers. With their limited budget, only affordable properties are within their grasp. Horror stories of impulse buys and hidden costs aside, are high maintenance fees scaring them off.

With tight budgets, millennials generally prioritise pricing for their starter home, therefore, a high maintenance fee is a big no-no. While many prospective buyers understand the necessity of a maintenance fee, safety and security are the primary reasons they are willing to pay a maintenance fee.

“It is important when it is well maintained, it provides a better and safer place. However, the cooperation in paying it from all the owners is important too,” said a counsellor who wished to be identified as Amber.

While it is true that more millennials are buying property as their jobs stabilise, their willingness to pay for high maintenance fees vary. And depending on the type of property they are seeking, the affordability range is also wide.

According to Khazanah Research Institute (KRI), the price range for an affordable home for 46% of the country’s residential properties range from RM100,000 to RM400,000.

Most look for the lowest maintenance fees as this is a monthly expenditure but this amount has a positive correlation to the number and type of amenities they would like to have.

“They like it but can they actually afford to buy it?” Rahim and Co International Sdn Bhd research director Sulaiman Saheh pointed out in the recent 30th National Real Estate Convention.

Millennials are known to have a strong preference for lifestyle-oriented property, but millennial respondents who were asked about their preference are looking for cleanliness, distance to their workplace and the feel of the area.

Sulaiman similarly noted that young working adults prioritise convenience more than older generations, preferring property that is transit-oriented and in a good location, being close to their workplaces or in urban environments.

Facilities such as a swimming pool and gymnasium are considered luxury expenses to young buyers. They would rather rent and leave the maintenance fee to the owner.

The general sentiment is that they should save up for their ideal property, instead of making a rash purchase.

Unaffordable housing is making people choose between saving and renting, noted Sulaiman.

Being in the working stage of their lives, millennials are forced to think economically. They are beginning to prioritise location and convenience over luxury and special features.

When asked if they were willing to budge on paying more maintenance fees for additional features, the answer is a resounding: No.

Naturally, those who have access to a larger income are more willing to pay for higher maintenance fees. These millennials buy to invest and are more willing to spend more.

“Usually people around my age who own or plan to buy are either funded by their parents or they are planning to marry,” said line producer Koh Xin Yu.

Others are hoping for the government to offer more subsidies and developers to offer more discounts before they commit to buying, she said.

Source: StarProperty.my