The National House Buyers Association (HBA) has urged the federal government to address the issue of abandoned housing projects in its plans for the housing sector in Malaysia.

Speaking to FMT, HBA secretary-general Chang Kim Loong said the best way to do this was to implement the system of build-then-sell 10:90 (BTS 10:90), which it had proposed to the previous administration for several years.

Under the BTS 10:90 system, house buyers only pay the initial downpayment of 10% when booking a house and make no further payments until vacant possession of the property is delivered to them.

“Aside from being an eyesore, abandoned projects cause hardship to house buyers who need to continue with their monthly bank instalments for housing loans.

“The BTS 10:90 is a far safer mode of home delivery system and the new federal government should implement it without further delay.

“Compel the housing industry to adopt the system as we believe it will drastically, if not totally, eliminate cases of housing projects being abandoned,” he said.

Last November, then-urban wellbeing, housing and local government minister Noh Omar revealed that 253 abandoned private housing projects had been registered in Peninsular Malaysia since 2009.

This, he said, involved 64,290 residential units, of which 43,537 units had been sold.

Chang said HBA was hopeful and excited about the future, as PH’s election manifesto contained many promises which would benefit the public and house buyers.

He said these included pledges to build one million affordable homes across two terms, tax incentives for companies which focused on affordable housing, widening rent-to-own schemes and the setting up of a National Affordable Housing Council, chaired by the prime minister, to bring together various agencies and coordinate matters related to affordable housing.

“HBA also fully supports any measures to reform the 1Malaysia People’s Housing Scheme (PR1MA) as it has deviated from its original and noble aspirations to provide affordable housing.”

He said under PR1MA’s present partnership with private developers, only 50% of the allocated land area was reserved for affordable homes. The balance was reserved for commercial and lifestyle properties.

Source: Free Malaysia Today 

On the night of 9 May 2018, a new Malaysia was born. Automatically, one very critical thought transpired in my mind. The property market in Penang will most likely have its reformation and almost guaranteed to have a facelift.

For almost a decade, Penang has been aiming high, with many creative and innovative plans focusing to upgrade various sectors and its infrastructure to the next level. However, many plans hit roadblocks and some developments struggled to move on. Many ideas were either on hold or took longer time to proceed.

Instead of a dark, vague and a future that’s full of uncertainties, the future of Penang has suddenly transformed, turned so bright that we can now see “a light at the end of the tunnel”. Penang had always been independent working on developments with minimum support from federal government. Yet, Penang is able to prosper and is named as one of the richest states in Malaysia. What more, now with the new Malaysia, equitable support is expected from federal government!

Penang Transport Master Plan, which comprises LRT, undersea tunnel and highways were some of the state development projects which Penangites have doubts with. We often wonder if these plans will ever materialize as there were just one roadblock arising after another. May 9th marked the day where Penang will have a new chapter in urbanization and it will only promise a better future in the Penang property market.

Getting approval for advertising permits and developer licenses (APDL) from federal government has always been one area that slows down the property development in Penang. Some affordable housing projects in Penang were affected. Moving forward, the APDL approval process for projects in Penang is expected to improve and the biggest benefit will route to the developers and home buyers as the transaction can be sealed within reasonable timeframe.

Affordable housing to remain as one of the key focus in Penang. Now with assistance from Federal Government, coupled with several improvement plan in the pipeline that involves construction process, financing, simplifying administrative processes, incentives, and introducing rent-to-own schemes. The aim is to keep homes within the reach of the majority of first time home buyers, making home ownership easier and more affordable for Penangites.

With new Malaysia, property in Penang is guaranteed for a better and brighter future. Penang will now open a new chapter! New Penang is coming soon! Thank you to the new Malaysia!

– Ken Lim
(Founder, PenangPropertyTalk.com)

* Article by Freemen *

The property market hit a low point last year where prices were dropping and transaction volume was low. While transaction volume fell, the value of the property did not; thus contributing to a market slowdown.

Businessmen and investors are holding back in their investments as well because of this.

But why?

There is not much certainty in the market and many are holding out in hope that things will take a firmer direction once the elections outcome is determined.

Despite whoever party wins the election, certain policies will undoubtly change. Therefore, they don’t want to invest with the risk that policies will change to those that are not beneficial to them throw their money into the river- The same goes for investors.

There are many factors that contribute to it. For one, loan approval rate is very low.

Data from a study done by the Real Estate and Housing Developers Association (Rehda), found that more than 50 per cent of affordable housing loan applications had been rejected by banks – leading to the sluggish property markets we’ve been experiencing in recent years.

Many buyers that have already bought property are struggling to gear it positively. And these are mostly seasoned investors, people that have invested once or twice in their portfolio.

It helps to provide a full financial statement as required by the bank- a 3-6 months payslip, list of assets and liabilities, two years of income tax forms, etc. However, as different banks have their own way to calculate risk and quota differently, there’s still a chance your loan will not be approved.

Nowadays, people can’t afford RM3,000 rental every month. Houses should be priced within RM150,000 and RM350,000 to be considered under the affordable housing segment.

According to the National Property Information Centre (Napic), less than 30% of new housing developments were priced below RM250,000 in 2015 and 2016.

So how to solve the issue?

Of course, we all hope that the elections will bring a conclusion to this property bubble and make up for the slow pace we’ve had last year.

But to achieve this, we need your cooperation too.

The market can’t take off if both buyers and developers don’t do their part to stay on top on things and take action.

Therefore, we’re offering you an opportunity to attend Property Investment Masterclass to help you know when to make your move post-elections and still profit all the same!

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Date: 19^th May 2018
Location: The Northam Hotel

But wait, there’s more- We’re offering a Buy 1 Free 1 promotion for the FIRST 15 PEOPLE who sign up for the workshop!

If you are voting, you know how important it is to stay updated on the state of the country, especially during this time of change. So wait no longer and sign up now!

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– Michael Tan

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An artist’s impression showing where the tunnel project will start on the island.

Funding options for pending mega projects here may see a change now that Pakatan Harapan is the Federal Government.

There is even a possibility that the proposed Penang Undersea Tunnel will be made toll-free to mirror the pre-election promise of making Penang Bridge toll-free.

Incoming Chief Minister Chow Kon Yeow said the state would relook the funding options for projects such as the Penang Transport Master Plan (PTMP).

“If the Federal Government is willing to support us, of course, we will look at alternative funding options. But right now, it is too premature to say,” he said here yesterday.

He was responding to a question whether Penangites could expect federal funding for the PTMP instead of sticking to the planned method of reclaiming islands off the south of Penang island.

Penang Undersea Tunnel project contractor, Consortium Zenith Construction senior executive director Datuk Lee Chee Hoe, said he welcomed the possibility of alternative funding instead of getting reclaimed land as payment in kind.

“We are willing to accept it. We need to talk to the new chief minister and get instructions.

“We are also ready to make the tunnel toll-free because the state had promised to make Penang Bridge toll-free if Pakatan wins.

“If Chow wants it, we will work on it,” he said.

Initially, the proposed tunnel was to follow the toll rate of the second link, the Sultan Abdul Halim Mu’ad­zam Shah Bridge.

Former chief minister Lim Guan Eng had pledged to abolish the Penang Bridge toll collection, which had been extended until 2038.

Lee said he also expected the construction of the three paired roads, which were part of the tunnel project, to begin soon “since everything was in order and just waiting for federal approval”.

The three paired roads had already been paid for with a combination of existing and reclaimed land.

Szeto Wai Leong, the project director of SRS Consortium, the project delivery partner of PTMP, welcomed the possibility of federal funding.

The state was prepared to grant the reclamation of two new islands – 930ha and 566ha – in the south to fund PTMP.

“With federal funding, things will move quickly,” he said.

SRS Consortium is a subsidiary of Gamuda, which is also the project delivery partner of the KL-Singapore High Speed Rail project worth about RM40bil.

Source: TheStar.com.my

Marina Residences, a low density development by Malvest Group at Butterworth Penang. Strategically located between Jalan Kampung Gajah and Butterworth Outer Ring Road, next to Vista Perdana apartment. It’s only about 3km away from the upcoming Penang Sentral.

This development comprises a 12-storey condominium offering 57 residential units with panoramic of Penang Island. There will be also 8 units of 3-storey semi-detached houses.

More details to be available during official launch.

Property Project : Marina Residences (Formerly known as Island View Residences)
Location : Butterworth, Penang
Property Type : Condominium and semi-detached
Total Unit: 57 (condo), 8 (semi-detached)
Built-up Area: (to be confirmed)
Indicative Price: (to be confirmed)
Developer: Malvest Group

Location Map: