Penang state government has decided to build a RM4.8 billion elevated light rail transit (LRT) system in the state, rather than have a tram system, as part of the RM46 billion Penang Transport Master Plan (PTMP). This is to avoid associated costs of relocation of utilities, land acquisition and social problems related to construction.

Penang Chief Minister Lim Guan Eng (pictured) said the associated costs involving at-grade or street running trams would result in rows of shophouse having to be relocated, which would in turn affect the social fabric of the community.

“While the cost to build an elevated LRT is more expensive than an on-road tram system, but it has less environment and social impact,” he told a press conference here today.

The proposed 22km LRT system will operate between Weld Quay and the Penang International Airport. Under the PTMP, it will also feature a 20km Pan Island Link highway.

* Upcoming projects nearby Bayan Lepas LRT Line *

SRS Consortium Sdn Bhd project manager Szeto Wai Loong estimates that the cost of LRT construction per kilometer is RM220 million, compared with the RM80 million per km for the tram as proposed by Penang Forum, comprising a group of non-governmental organisations. SRS Consortium is the project delivery partner of PTMP.

He said the consortium’s proposal includes the construction of stations and the park-and-ride system, with minimal land acquisition. On the other hand, Penang Forum’s proposal involves at-grade or street running trams and does not include land acquisition.

On July 13, Penang Forum had revealed an alternative transport plan to PTMP, which took cognisance of the Halcrow study on alleviating traffic congestion, commissioned by the state in 2010.

Rebutting Penang Forum’s claims that the RM1.6 billion tram system is cheaper, faster and better, Szeto said the social impact and traffic congestion would be worse due to its on-road infrastructure.

He said Penang Forum relied heavily on the Halcrow study, which clearly stated that acquisition costs were not included.

SRS Consortium is a joint venture among Gamuda Bhd (60% stake), Ideal Property Development Sdn Bhd (20%) and Loh Phoy Yen Sdn Bhd (20%).

Meanwhile, Penang government and SRS Consortium will meet with the Land Public Transport Commission (SPAD) next month to expedite a “conditional approval” for the proposed elevated LRT project.

The consortium had targeted July to obtain the conditional approval, but it was delayed due to SPAD’s schedule.

“From the meeting, SPAD might want us to discuss and relook at the design. The process is still ongoing,” said Szeto.

On Aug 4, Gamuda had said the Penang government had extended the consortium’s letter of award till Feb 28, 2017. SRS received the initial letter of award on Aug 12 last year to implement the PTMP, comprising transport components and provide new reclamation sites.

Source: TheEdgeProperty.com.my

The immediate outlook of Penang’s property market will be challenging amid difficulties in the global and national economic environment, said property services firm Knight Frank Malaysia in its latest report.

In its Real Estate Highlights report, the firm noted that the total volume of transactions for all sectors in Penang for 2015 registered a drop of 15.6% against 2014 while total value, likewise, fell by 15%.

Of this, residential transactions — which comprised 70.9% of transactions — saw volume fall by 16.9% and value fall by 18.5%.

The residential sector is expected to soften and consolidate further on increasing supply and poorer take-up rates, said the report.

Zooming in on the luxury high-rise segment, Knight Frank Malaysia noted that there were not many transactions for units with built-ups from 3,500 sq ft to 6,000 sq ft in the subsale market in 1H2016.

Of the units that were sold, units at The Cove in Tanjong Bungah fetched RM446 psf and RM626 psf, while other units in the area were sold for up to RM793 psf, said the firm.

Meanwhile, smaller subsale units at Gurney Paragon fetched RM808 psf to RM1,150 psf while at the Quayside in Seri Tanjong Pinang, subsale units were sold for RM768 psf to RM1,138 psf.

Meanwhile, asking rents dipped from 2015, with larger units in Tanjong Bungah typically asking for RM1.10 psf to RM2.30 psf, although some landlords are still seeking RM2.80 psf to RM2.95 psf.

At Gurney Drive, asking rents for units with larger built-ups range from RM1.80 psf to RM2.60 psf, while most smaller units have asking rents of RM2.20 psf to RM2.90 psf, although some landlords are asking for RM3.50 psf to RM4.40 psf.

On the other hand, the Penang office market has plateaued with occupancies generally stable, despite the fact that there is no new incoming supply.

According to the report, the existing supply of office space (buldings with 10 storeys and above) on Penang Island remains at 2H2015’s level of 5.59 million sq ft.

The occupancy rates for the four prime office buildings monitored in George Town remain at 2H2015’s level, ranging from 80% to 100%.

Meanwhile, current asking rents for older buildings also remain at 2H2015’s rates, from RM2.80 psf to RM3 psf. However, rent at Hunza Tower, which is fully occupied, is RM3.50 psf.

Going forward, Knight Frank notes that landlords of secondary buildings are expecting pressure from tenants to suppress rental rates.

In Penang’s retail subsector, prime shopping malls are seeing ground floor retail lots command RM13 psf to over RM35 psf, depending on the mall, location and unit size.

Occupancy rates for the prime shopping malls on the island range from 80% to 98.5% while secondary shopping malls generally range from 70% to 90%.

Knight Frank Malaysia reckoned that prime malls are still performing well, but they will not be completely immune from the effects of the weak economy.

Hence, occupancies and rental rates will also come under downward pressure, while secondary malls will face even greater challenges.

Source: TheEdgeProeprty.com.my

A proposed mixed development by Ideal Green Resources (Ideal Property Group?) at Bayan Lepas, Penang. It is strategically along Jalan Sultan Azlan Shah, adjacent to Ideal Vision Park.   This development comprises six parcels, featuring a mixed of commercial and residential properties including affordable housing:

• Parcel A: 7-storey shop offices
• Parcel B: 40-storey low cost housing (596 units)
• Parcel C: 26-storey condominium (200 units)
• Parcel D: 50-storey condominium (708 units)
• Parcel E: 50-storey affordable housing (1,342 units)
• Parcel F: 50-storey condominium (975 units) and 3-storey shop offices (66 units)

This project is still pending for approval. Details to be available upon project launch.

Property Project : (to be confirmed)
Location : Bayan Lepas, Penang
Property Type : Mixed development
Built-up Area: 850 sq.ft. (affordable unit)
Indicative Price: (to be confirmed)
Developer: Ideal Green Resources (Ideal Property?)

Location Map:

We have published reports on the most active projects in Penang. Do you wondering how many of those pageviews are from foreign countries?

Singapore is the third highest source of visitors to PenangPropertyTalk.com after Penang and Kuala Lumpur, with more than 24,000 visits in second quarter of 2016, representing approximately 6% of the total visits. The diagram below shows the projects with highest pageviews came from Singapore in the past 90 days.

Given the fact that foreign nationals and Malaysian working in Singapore are not eligible for affordable housings, those projects are excluded from the top 20 list.

* Projects are ranked based on the pageviews recorded in Google Analytic web traffic report for PenangPropertyTalk.com, filtered by visitors from Singapore.

A proposed mixed development by Eureka Prima Sdn. Bhd. at Teluk Bahang. Strategically located along Jalan Teluk Bahang, about 1km away from Hard Rock Hotel and Tropical Spice Garden.

The upcoming development will features a mix of serviced apartments, shoplots and hotel, to be developed in multiple phases.

Phase 1:
40-storey building – 228 units of serviced apartments and 12 units of shoplots.

Phase 2:
38-storey building – 121 units of serviced apartments and 18 units of shoplots.

Phase 3:
31-storey building – 20 units of shoptlots and a 259-room hotel with 8 units of chalets.

This project is still pending for approval. Details to be available upon project launch.

Property Project : (to be confirmed)
Location : Teluk Bahang, Penang
Property Type : Mixed development
Total Units: 349(suites), 259 rooms (hotel), 50 (shoplots)
Built-up Area: (to be confirmed)
Indicative Price: (to be confirmed)
Developer: Eureka Prima Sdn. Bhd.

Location Map: