The Penang government is at the tail end of reviewing contribution costs imposed on developers to bring down development costs so the savings are passed on to the public.

State Housing, Town and County Planning Committee chairman Jagdeep Singh Deo (pix) said discussions with the local government and relevant authorities were now on finalising the issue.

Using the infrastructure contribution as an example, he said a formula has been worked out adding that fixed rates were being considered for other types of contributions.

Jagdeep also refuted the suggestion contributions in Penang were the highest as some states were equal or higher but did not name them.

“If we cannot reduce them (contributions), we will not increase them and will look at other ways to cushion the impact on developers,” he said in a press conference today after attending the Penang International Property Conference.

Contribution costs are charges developers pay to local authorities in lieu of public amenities or low cost housing requirements.

Penang developers over the past years have raised concerns over increasing development costs, claiming the rise was due to contribution costs, among other factors.

On the proposal to impose rent control, Jagdeep said George Town World Heritage Inc (GTWHI) has been tasked with conducting surveys and workshops to gather feedback.

He said the state was not rushing into the matter and that the proposal was only at the preliminary stage.

He clarified the proposal was not to reintroduce prewar rates but to prevent rents from suddenly spiking by 200 to 300%.

“We will discuss the mechanics of it, what is the control in relation to the increase, all these things are up for discussion,” he said, adding the State Legal Adviser will be presenting the legal views on the issue to the Exco next week.

Source: TheSundaily.my

Penang is mulling a cap on rental hikes in pre-war buildings to 20% over a period of four to five years, in contrast with more exorbitant hikes of 100% to 200% observed in recent times, said Penang chief minister Lim Guan Eng at the Penang International Property (PIP) Summit conference today.

“We are not saying that the rental rates will be frozen… what we are saying is that you the landlords can increase your rent, but it must be increased based on the current market value. Not by 100% to 200%. That one cannot,” he said in his luncheon address.

Lim stressed that the policy is still being discussed and that the proposed rate is just a suggested rate, as the state is still at the early stages of researching the feasibility of introducing rental hike regulations.

“The state government has assigned the state executive councillor cum chairman, state housing committee, Jagdeep Singh Deo to facilitate on the legal aspect of the policy, while senior state executive councillor Chow Kon Yeow will handle and engage with the public for their feedback,” Lim said.

He stressed that the state government has to preserve the city’s living heritage — ie the families and hawkers occupying the inner city of George Town — to ensure that they are not forced to move out due owing to high rentals.

“We do not want the pre-war buildings to become an empty shell of a museum,” he added.

Lim hoped that stakeholders will express their support for this policy.

The defunct Rent Control Act 1966 had limited rents of buildings built before 1948, with some buildings being rented for as low as RM60.

The Act was repealed in 1997, and following a period of adjustment until 2000, rents increased to about RM500 per month.

However, following George Town’s inscription as a world heritage site, rents have soared to between RM3,000 and RM10,000.

Meanwhile, speaking on the outlook of the property market in Penang, Lim stressed that the people of Penang should continue to have confidence in the state.

“The policies under my leadership will continue. The projects which we have taken — may it be concerning the under sea bed tunnel or the Penang Transport Master Plan, will proceed,” Lim noted.

“When the market recovers, we Penang will bounce back quickly and better than other states. We see the property sector not as a speculative bubble, but instead, we will see a healthy and sustainable growth,” he concluded.

Source: TheEdgeProperty.com.my

IJM Land Bhd, the property development arm of IJM Corp Bhd, will be launching the Waterside Residence condominium project in Penang, with an estimated gross development value (GDV) of RM240 million, this October.

“The Waterside Residence is part of The Light Waterfront phase 2 which has a GDV of RM6.5 billion,” IJM Land managing director Edward Chong told TheEdgeProperty.com.

The 4.27-acre freehold condominium comprises 256 units of 2- and 3-bedroom units with built-up sizes of between 1,055 sq ft and 1,270 sq ft. The estimated selling price averages RM700 psf.

“Waterside Residence is situated next to a planned shopping mall and convention centre. We are targeting buyers who are looking for modern lifestyle homes,” Chong said.

Phase 2 of The Light Waterfront includes a proposed mall with a gross retail space of 1.5 million sq ft, thematic shops, a convention centre, two hotels offering a total of 750 rooms and an office tower.

“Registration of interest for the Waterside Residence is open currently. We are confident that it will be taken up quickly as it is very affordable.

* Find out more about Waterside Residence *

“In Penang, properties that are priced below RM1 million will be snapped up in no time. Not only that, many people are upgrading their homes from inland to the seaside, thus the Waterside Residence will be very attractive to them,” he said.

On the current economic slowdown, Chong argued that there is still room for property developers to thrive. However, he noted that the property segment is “definitely off its peak”.

“The fundamental of economics is that there will be ups and downs. And the property sector is a consumer sentiment-driven business, meaning it’s not so much about the demand.

“People will always buy property. The property segment has had a good run since 2009 up to about a year ago when we started to see the sector slow down a little but like I said, what goes up must come down,” he said.

“Yes, the current market is more challenging but the market is not dead. Because if you say it’s dead, you won’t see people at property fairs. To capture the market, a developer has to take in these three factors: pricing, product and location,” he added.

Chong believes that developers can thrive even in a slowdown. “It’s just that during downtime, you have to manoeuvre around the storm, after that you’ll be alright. There will always be another upcycle and you’ll have to be there when it arrives,” said Chong.

Source: TheEdgeProperty.com.my

Sunway Valley City, a proposed RM2.3bil integrated development by Sunway Property in Paya Terubong, Penang. It is strategically located on a 24 acres land along Jalan Paya Terubong, linked to Georgetown via Jalan Air Itam to the East, and linking to the FTZ area of Bayan Lepas and the Penang Bridge in the west through Jalan Relau.

The development will see a demolition of the existing Lee Rubbber factory, to be replaced by commercial, SOHO and high-rise residential units:

Phase 1: 24-storey commercial tower

• Shop offices(Level 1-7, 237 units)
• Office suites (Level 5-24, 205 units)

Phase 2: 2 block of 41-storey service residence

• Block A (368 units)
• Block B (368 units)

Phase 3: 29-storey commercial tower

• A mix of commercial floors, a private college, hotel and office suites.

Phase 4: 12-storey hospital

NOTE: This project plan is still pending for approval. More details to be available upon official launch.

Project Name : Sunway Valley City
Location : Paya Terubong, Penang
Property Type : Integrated development
Total Units: (to be confirmed)
Built-up Area: (to be confirmed)
Indicative Price: (to be confirmed)
Developer : Sunway Property

Location Map:

Sunway Bhd will launch RM5bil worth of properties in Penang over the next eight years.

Sunway Property Development Division (Malaysia and Singapore) managing director Sarena Cheah said about 40% of them were long-term investment projects, which include hospitals, colleges and hotels.

“We are submitting plans to the local authorities for a RM2.3bil integrated project planned for a 23-acre site in Paya Terubong on the island in the third quarter of 2016.

“Construction work is scheduled to start in the third quarter of 2017,” Cheah said after the ground-breaking ceremony of Sunway’s new headquarters for the northern region at Anson Road here. Also present was state executive councillor Chow Kon Yeow.

In Seberang Jaya, Sunway would add another 500,000 sq ft to the Sunway Carnival Mall.

“We are also planning a 150-bedroom hospital. Both the expansion of the mall and the development of the hospital will take place in 2017. There is a plan to expand the present 200-room Sunway Hotel in Seberang Jaya,” she added.

Cheah said although the property market is soft, it is necessary to plan properly now.

“We will concentrate our plans on the Klang Valley, Johor Baru and Penang. In Penang, Sunway Property has about 196 acres of undeveloped land bank,” she added.

Meanwhile, Cheah said Sunway Property is committed to adopt a sustainable design for its new two-storey regional office at Anson Road on a 20,000-sq-ft site.

“Sunway aims to obtain the Green Building Index certification for its office building, which will open in April 2017. We are pleased to finally reveal our plans for Sunway Property @ Anson to all Penangites.

“The office and sales gallery will provide a state-of-the-art facility that offers convenience and quality experience for our customers and visitors to better understand our integrated products across various regions in Malaysia,” she said.

Source: TheStar.com.my