The property market in Penang is known as one of the most expensive in the country, with prices soaring over the years despite various cooling measures implemented by the authorities.

Recently, however, there have been signs of property prices stabilising and the state has even reported property overhang.

Since 2014, the Penang government has stepped up the development of affordable housing projects and imposed various measures in an attempt to keep property prices under control.

Among the prime locations in Penang are Gurney Drive, Tanjong Tokong and Batu Ferringhi, where properties are beyond the reach of locals as most of them are priced at above RM800 per square foot.

Factors that have contributed to the rise of Penang property prices include speculation, shortage of land on the island, an increase in the cost of building materials and the influx of foreign buyers, partly due to the weak ringgit.

State Housing, Town and Country Planning, and Local Government Committee chairman Jagdeep Singh Deo said since 2014, the state government had implemented various cooling measures to contain the property prices, which have gone up exorbitantly since 2008.

Moratorium

Among the measures implemented by the state government is the moratorium on the sale of houses. For low-cost and low medium-cost houses, the moratorium is 10 years, whereby the owners cannot sell their units within 10 years of purchase.

The moratorium on the sale of affordable homes costing below RM300,000 is five years. For higher priced houses, buyers cannot sell their property within three years of purchase or else they will be deemed as speculators and will need to pay a 2% approval fee.

“For foreign buyers, the state has imposed a few conditions. On Penang island, for instance, they cannot purchase landed properties priced at less than RM3 million and high-rise residential units costing less than RM1 million. On the mainland, they cannot buy landed properties less than RM1 million and high-rise units less than RM500,000.

“On top of that, foreign buyers are also subjected to a 3% approval fee,” Jagdeep said.

Property overhang

Following the various cooling measures implemented by the state government, there have been signs that Penang’s property prices are stabilising.

However, the authorities and developers are now facing another problem, namely property overhang which refers to built properties that have obtained the certificate of completion and compliance but remain unsold.

According to the National Property Information Centre, Penang had the highest number of overhang units in Malaysia last year with 4,903 units.

A study on property overhang carried out by the State Housing, Town and Country Planning, and Local Government Committee showed that out of the 4,903 overhang units, 2,600 were properties priced above RM500,000.

Real Estate and Housing Developers Association Penang branch chairman Toh Chin Leong, however, said property overhang was not a worrying sign as it could be due to the state’s soft property market over the last few years.

Restructuring process

Jagdeep, who is state assemblyman for Datuk Keramat, said the housing and local government ministry was currently restructuring its housing programmes following the change of federal government after the 14th general election on May 9.

He said during his last meeting with Housing and Local Government Minister Zuraida Kamaruddin, she gave her assurance that Penang would not be neglected when it came to housing matters.

Jagdeep said during his meeting with Zuraida, he was told that the various public housing programmes, which are currently handled by different ministries, may be placed under one roof in the housing and local government ministry for more efficient monitoring.

“This matter is still under discussion and the minister will make an announcement once a decision has been made,” he said.

He added that in Jelutong, two plots of land, each measuring 1.6 hectares, had been identified for PPR projects while a PR1MA project, involving 3,000 units, has been approved in Kampung Kastam at Jalan Bukit Gambir.

Source: Bernama

Sanctuary Row, a freehold commercial development at Permatang Sanctuary by IJM in Bukit Mertajam. Located along Jalan Santuari 2, right across the road from Sanctuary Villa. It is only 2km away from AEON Mall and Tesco Hypermarket, about 15-minute drive to Juru Auto-City and Penang Second Bridge.

This development will offer 24 units of double-storey shop offices, with standard built-up size of 3,024 sq.ft. Indicative price starts from RM850,000 onwards.

Other phases:

• Sanctuary Garden
• Sanctuary Villa
• Sanctuary Residence
• Sanctuary Ridge
• Sanctuary Village
• Sanctuary Terrace

Property Project : Sanctuary Row @ Permatang Sanctuary
Location : Permatang Tinggi, Bukit Mertajam, Penang
Property Type : 2-Storey shop offices
Tenure : Freehold
Land Area: 21′ x 72′
Built-up Area: 3,024 sq.ft. onwards
Total Units : 24
Indicative Price: RM850,000 onwards
Developer : IJM Land

SITE PROGRESS

SITE PROGRESS: Sanctuary Row (Oct 2024)

SITE PROGRESS: Sanctuary Row (Jun 2024)

SITE PROGRESS: Sanctuary Row (Mar 2024)

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.

Housing and Local Government Minister Zuraida Kamaruddin called on state governments to submit their respective lists of land that will be used to build affordable housing by the end of October.

“No land, no affordable housing,” she said at a press conference after the government-industry open dialogue on housing – Seeking True Value in the Property Market – organised by the Asian Strategy & Leadership Institute on Monday.

She said state governments, developers and the federal government need to meet each other half-way to resolve the long-running affordable housing issue.

Negri Sembilan, Perak and Penang have handed their respective location lists where they propose these units can be built.

The ideal land size should be 10 acres or larger. So far, the smallest acreage submitted for development is 2.7 acres.

Because land is a state matter, the strategy is for the states to put forward the locations — provide the land — and the federal government to help develop these locations.

She said the federal government is in the final stages of discussions with infrastructure utility companies and authorities like electricity, water and communications to fund these utilities.

“If these were to be borne by developers, it will only add to the end price of the house,“ she said. The plan is to reduce compliance costs, she added.

Affordable projects will be built under the federal government‘s National Affordable Housing Council, which will be a subset of the National Housing Council.

Zuraida also said that under the proposed plan, which will be unveiled later, units developed in the cities will not be sold but be rented out. The federal government will help subsidise the development of these units in the city and rent them out.

“We will not sell but rent (these units out). This will help to strengthen the rental market in the city,” Zuraida said.

The open dialogue with real estate stakeholders included various heads of agencies and associations related to the property industry, World Bank and National Property Information Centre officials.

This was the first time the housing minister was holding an open dialogue with real estate personnel to help resolve the long-running affordable housing issue.

Affordable units which are managed by the government are separate from units under the rent-to-own (RTO) scheme, which also comes under the federal government affordable housing proposal.

Under this RTO scheme, there will be a review of income every five years, Zuraida said.

More details will be made known later, she added.

She also proposed that the affordable units in the Klang Valley and major cities be priced about RM300,000 and those in smaller towns be priced lower. Rental will also be higher in the urban centres, she said.

On using Bandar Malaysia for affordable housing, she said there are proposals to carve out a certain portion for affordable housing to be developed there.

“We will not monetise it but build these units for rental purposes,” she said in response to questions from the floor, adding that affordable units must have ready infrastructure like transport and amenities.

As for financing issues which are being ironed out with the Finance Ministry and Bank Negara for the purchase of affordable housing, Zuraida highlighted some possibilities, which include extending housing loans from 35 to 40 years, tweaking the interest rates and giving 100% loans.

Participants also urged the ministry to review the bumiputra quota system and consider housing needs instead of according to race.

Source: TheStar.com.my

Picture for illustration only

Waterstone, a residential development by Taman Sri Bungah Sdn. Bhd. (a subsidiary of BSG Property) at Tanjung Bungah, Penang. Located off Jalan Loh Poh Heng, right next to Hillview Garden. It is only a mere minutes drive to Tunku Abdul Rahman University College.

The first phase of this development will see the construction of 45-storey condominium, featuring two high-rise tower blocks with 365 residential units and 8-level multi-storey carpark.

The project is still in its planning stage and pending for approval. More details to be available upon project launch.

Project Name : Waterstone
Location : Tanjung Bungah, Penang
Property Type : Residential
Total Units: 365
Built-up Size: 1,226 to 2,118 sq.ft.
Land Tenure: (to be confirmed)
Indicative Price: RM1,100,000 onwards
Developer: Taman Sri Bungah Sdn. Bhd. (BSG Property)

Location Map:

The Department of Environment (DOE) has approved the construction of the three-paired highways across the island.

State exco for Public Infrastructure Zairil Khir Johari said the DOE has approved the Environmental Impact Assessment (EIA) report with 59 additional conditions attached.

In a joint press conference with the delivery partner – Consortium Zenith Construction Sdn Bhd, Zairil said the contractor has to abide by the terms and conditions and the state will also monitor the progress of construction work.

The conditions involve building additional mitigation measures such as drainage, including a storm tunnel to mitigate the intensity of rainfall.

Zairil said the DOE has instructed Zenith to be mindful of the climate change phenomenon in terms of rainfall and water flow.

Additional remedial measures were also imposed on erosion, hillslope stability, explosions, waste management, and an environmental audit.

The three paired highways are the Tanjung Bungah to Teluk Bahang (10.53km) route, the Air Itam to Tun Dr Lim Chong Eu Expressway route (5.7km), and from Gurney Drive to the Tun Dr Lim Chong Eu Expressway (4.075km).

Penang will commence with the second phase (Air Itam to the Expressway) first; by the first quarter of next year, with the total completion for the three roads scheduled within the next six to nine years.

Zairil said the EIA has compelled Zenith to offer an alternative traffic route during the construction period.

He said the state was prepared to engage with any quarters, who continue to have misgivings about the project.

Essentially, the roads would reduce travelling time between Tanjung Bungah to the touristy belt of Batu Ferringhi and to allow people to travel from Gurney Drive to the Bayan Lepas International Airport within 20 minutes.

Source: TheSundaily.my