To bring an overwhelming crowd to attend a property event is usually the toughest task for any organizers. However, Penang Property Talk have recently made a breakthrough and had proven to live up to its name as being the most popular property portal in Penang.

With the website and social media followers of more than 100,000, we have achieved yet another prominent milestone during the Penang Property Convention held recently. This yearly property convention is the biggest property event in Penang. A total of more than 600 pax registered for the event, a record-breaking number with an effort of publicity via the Penang Property Talk platform. We have spent zero fund on marketing budget for this event and yet it successfully caught the attention of many genuine buyers, property investors and property agents.

The exclusive event that took place on 29th September 2018 at Vistana Hotel Penang saw the attendance from all over the state. Attendees had the opportunity to learn the latest Penang’s property market trends, including its unique demographic and property market zoning. In-depth analysis on Penang’s future growth, accessibilities and public transportation in Penang were shared. Several other property experts also offered their take on purchasing property the right way and minimizing risk.

Compared to the previous year, the turn-up rate has marked an increase of more than 20%. Developers who participated in the event took the opportunity to showcase their projects in the hall and had their chance to promote their projects on the stage for at least 10 minutes.

Despite a slow market, the developers were cheered with an extremely encouraging response during the event. It was beyond expectation when genuine leads were generated and some even sign-up on the spot.

Mah Sing presented Ferringhi Residences II, a luxury condominium located just a stone’s throw away from the famous tourist belt of Batu Ferringhi beach. Offering 632 residential units in three blocks of 4, 10 and 32 storeys.

MTT featured their latest 6.5-acre commercial development at Botanica.CT in Balik Pulau. The development is located at the intersection of Jalan Sungai Rusa and Jalan Sungai Air Putih. It’s within 10 minutes walking distance from Prince of Wales Island International School, about 5 minutes drive to Balik Pulau town centre.

Paramount Property showcased Suasana @ Utropolis, which is the second phase of their Utropolis development at Batu Kawan. It is situated next to the upcoming KDU University College, about 5 minutes walk to Design Village outlet mall. The upcoming IKEA store is only 2km away.

Datum Jelatek, despite its projects located at KL, it had managed to close a few deals on that day.

With this successful record and a new milestone achieved, Penang Property Talk is again set to bring the biggest property event to the next level. Stay tuned and see you again in 2019.

The federal government will build a new Sekolah Jenis Kebangsaan Cina or SJK(C) in Batu Kawan costing between RM8mil and RM10mil.

Deputy Education Minister Teo Nie Ching said the school, to be built on a 2.43ha plot provided by the Penang Development Corpo­ration (PDC), is expected to be ready in 2021.

She said they would either provide a new operating licence for the school or relocate SJK(C) Kuang Yu in Kuala Muda to the site.

She said there would be 24 classrooms, with 35 pupils in each class.

“There is already a Sekolah Menengah Kebangsaan (SMK) and a Sekolah Kebangsaan (SK),” she told reporters at the PDC office in Bandar Cassia after a site visit on Sunday.

Teo said upon completion, the new school could take in 840 pupils.

“The site is suitable for a new school as there will be a big space for the pupils to carry out their activities,” she said.

Present were Penang Chief Minister Chow Kon Yeow, PDC deputy general manager II Mohd Bazid Abd Kahar, Penang Education Department director Jamil Mohamed, Bukit Tambun assemblyman Goh Choon Aik, Chinese and Mission Schools Affairs Coordinating Committee secretary Sim Phoi Yong and its committee members.

Also present were SJK(C) Kuang Yu headmistress Lee Kha Luang, school board of directors chairman Bu Theng Uu and its committee.

In his speech, Chow said the state government and the PDC would assist the ministry in building the school.

Source: TheStar.com.my

S P Setia, well-known for its signature eco-themed townships in the central region of Malaysia, has once again embarked on the next exciting chapter in their development plans by bringing their award-winning concept to Bertam, located at the Northern Seberang Perai. Setia Fontaines queueing up in the pipeline of S P Setia, will ultimately be proclaimed as the largest township development in Penang. Spanning across a 1,675-acre land, it has an estimated gross development value of RM13.05 billion, to be developed over the next 20 years. A total of 10,000 units modern homes have been planned, set in a nature-inspired environment with 100 acres of greeneries and a man-made lake.

Setia Fontaines is probably best described as a replicate of Setia Alam – a similarly themed development at Shah Alam, is now fast rising as one of the most sought-after addresses in Klang Valley. The project which was first launched in 2004 by S P Setia started from a large tract of oil palm plantation with little to no amenities and transformed into an international award-winning integrated and self-contained township with nature-inspired sanctuaries. Setia Alam is where the wholesome, back-to-nature ambiance is perfectly complemented by bustling amenities and modern facilities.

Setia Alam homes have increased almost 200% in its price since first launch in 2004. The first phase of its 2-storey terrace house which was priced at RM240k is now selling more than RM640k in the secondary market. With the rapid growth of commercial activities in Setia Alam, the shop offices have even appreciated more than 300% in price after 14 years. Setia Fontaines is no doubt has the potential to see similar success as Setia Alam.

Growth in Setia Alam

As a matter of fact, Setia Fontaines is not only set in the similar environment of Setia Alam but with more perks! It is strategically located within the Butterworth-Sungai Petani growth corridor, next to Bertam Perdana and has good accessibility from the North-South Highway via the Bertam Interchange. It is only 15 minutes from Butterworth and about 20 minutes from Penang Bridge.

Complemented by abundant of existing amenities and facilities, including schools, banks, hospitals, malls and even a golf resort. There are also at least five tertiary education institutions located within a 5km radius, with a ready catchment of several thousands of students and educators.

Being easily accessible via federal roads and highways, Setia Fontaines is within 30 minutes drive from all matured townships in Penang mainland, Sungai Petani and Kulim. Well connected to an estimated total population of over 1 million within the region. Besides, the proposed Penang 3rd Link and Sky Cab will render commuting to and from Penang Island a breeze.

Today, more than 55 percent of Penang population lived in the mainland. The share of population living in the island has shrunk moderately over the years. This is mainly attributed to the relocation of people from island to the mainland for cheaper houses and employment opportunities. The trend is likely to sustain and it is expected to strongly influence the nature of demand for housing in the coming years.

Setia Fontaines master plan featuring the prominent eco-friendly concept is undeniably an ideal township for those eyeing for a bigger family capacity with a healthier and greener living lifestyle.

RELATED ARTICLES:

• Untapped Potential of Northern Seberang Perai
• City Centre Business Hub – Business @ Setia Fontaines

LOCATION MAP

Work on the RM545mil Jalan Bukit Kukus paired road project has hit a snag even before the construction mishap in Jalan Tun Sardon.

The completion date on the project, an alternative road linking Lebuhraya Thean Teik in Bandar Baru Air Itam to Lebuh Bukit Jambul, will be delayed by a year till mid-2020 due to unforeseen obstacles during construction.

State Works, Utilities and Flood Mitigation committee chairman Zairil Khir Johari, in describing the project as “very complicated”, said it was constructed by three parties as a cost-saving measure.

“The Penang Island City Council (MBPP) will construct 2.8km of the stretch, while PLB Land Sdn Bhd and Geo Valley Sdn Bhd will construct the remaining 1.4km and 0.7km respectively,” he said.

“The project is 69% done and to be completed by early 2020.

“PLB Land faced issues with big rocks and boulders. The RM150mil section has progressed 36% and scheduled for mid-2020,” he said.

Zairil said that Geo Valley faced legal issues as the residents affected by their section of the project took up matters with the Appeals Board and the case was pending.

The RM120mil stretch by Geo Valley is now 18% completed.

“Once PLB and Geo Valley complete their portions, we will connect them accordingly,” he said.

It was earlier reported that the contractor of the 600m elevated road project linking Jalan Bukit Kukus to Jalan Tun Sardon was issued with a stop-work order.

The order came after a mishap on the site where 14 concrete beams measuring 25m fell onto a slope in Jalan Tun Sardon on Thursday. No injuries were reported.

It is learnt that a crane operator accidentally knocked down one of the beams laid on the ground, causing others to fall onto the slope.

Paya Terubong assemblyman Yeoh Soon Hin hopes that there will be no further delays.

“About 60,000 vehicles use Jalan Paya Terubong daily to get to Bayan Lepas, and traffic congestion is bad during peak hours.

“I hope the project will be completed safely according to specifications and on schedule for the people to use,” he said.

Once the alternative route is completed, traffic is expected to see a reduction of at least 30%.

The new link will comprise a dual carriageway with a bicycle lane, walkway and LED street lights.

A small waterfall on the hill will also be retained and construction would go around the waterfall.

Last month, MBPP mayor Datuk Yew Tung Seang said the construction on the paired road would take up RM44.2mil of the council’s budget next year.

Source: TheStar.com.my

By Charles Tan

This is an interesting view from a property industry observer about the property prices here in Malaysia. The full article is in edgeprop.my (Titled: Developers must cut profits to lower property prices). Basically, in order to reduce the price of properties, the developers must cut their profit margins. “This is the only component of development costs that a developer can control,” they told The Edge Malaysia. The reasoning is that many public-listed property developers are currently enjoying FAT profit margins exceeding even 20 percent. One example given was that of KEN Holdings Bhd with a net profit margin of 45.86% in its financial year ended Dec 31, 2017 (FY17) and 47% in the first half of its FY18. It showed a net profit that almost doubled from 29.9% in FY16 due to the completion of KEN Rimba Condominium 1 in the KEN Rimba township in Seksyen 16, Shah Alam.

Article also quoted the recent news about our Finance Minister Lim Guan Eng who had urged developers to lower property prices as the Sales and Service Tax as exemptions from the tax on certain building services and materials are expected to reduce property development costs, failing which the waiver may be reviewed. Earlier article here: SST exemption may not be permanent, IF Analysts however expect the exemption to only result in 3% cost savings.This is an amount which is insufficient to rectify the current imbalances in the property market. “Developers are looking at cost savings of 1% to 3% from the tax exemption as some of the items are now taxed at a higher rate than under the previous tax system while others are exempted.” “It [affordability of homes] is a structural issue that cannot be solved just by giving tax exemptions on construction,” said an analyst at a local investment bank who covers property development companies. Full article in Edgeprop.my.

Image source: Edgeprop.my

Image shows some latest numbers from listed developers in Malaysia. Generally the profit margins are in double digits except for a few developers. I personally do not think the profit margin on an overall basis is a good gauge on whether the property developers should reduce prices. As a buyer, of course I would prefer the developers to reduce their prices but let’s understand that the profit margins stated are not based on a project by project basis but more of a period under review. It may also not be a good reflection unless the developer is only a pure developer and has just one project and has no other businesses. Perhaps someone could study what’s the actual profit margin by project basis for a much clearer understanding instead? A high density affordable project for example may have a lower profit margin per unit but may still be contributing a substantial number to the company while one smaller project may have a higher profit margin but this does not mean it can cover the losses from other less popular projects for example. Hopefully more good news for the market will be coming soon.

Charles Tan – the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 15 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)