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UPCOMING: Sungai Ara / Palmex Industries Sdn. Bhd.

Sungai Ara/ 5 March 2016 19 comments

upcoming-palmex-industries

Another proposed high-rise development by Palmex Industries Sdn. Bhd. in Sungai Ara, Penang. It is located off Persiaran Kelicap, next to the company’s ongoing Stramax Residences gated and guarded housing scheme.

This development comprises two blocks of 35-storey condominium with 320 residential units.

More details to be available upon project launch.

Project Name : (to be confirmed)
Location : Sungai Ara, Penang
Property Type : Condominium
Total Units: 320
Land Tenure: Freehold
Indicative Price : (to be confirmed)
Developer : Palmex Industries Sdn. Bhd. (IOI Properties)

Register your interest here

(This information will be used to keep you updated on the project and future development.)
*By submitting this Form, you hereby agree to our PDPA Consent Clause.

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Maximum 35-year mortgage more than enough

Property News/ 4 March 2016 1 comment

Bank Negara Malaysia (BNM) said a maximum loan tenure of 35 years is “more than sufficient” for borrowers to settle their housing loan by their retirement age.

It said increasing the loan tenure will further add to the cost of financing without significant improvements in the affordability of the borrowers’ monthly instalments.

In July 2013, the central bank capped the maximum loan tenure at 35 years for the purchase of residential and non-residential properties as part of its responsible financing measures.

In a statement yesterday, BNM said for a new borrower who takes a loan of RM42,000 for 35 years at 4.65% per year and can get 90% margin of financing, the equated monthly instalment (EMI) will be RM182.42. If the loan tenure is extended to 40 years, the EMI would be RM173.60. This means an additional cost of RM8.82 per month.

Bank-Negara

 

The total cost of financing for 35 years, meanwhile, stands at RM76,616.40. Choosing a longer tenure loan of 40 years will result in an additional cost of RM6,711.60 to a total cost of financing of RM83,328.

Recognising that the overall economic slowdown may impact housing affordability, BNM said it has been engaging the various state authorities in the issue of financing for affordable homes. The government is forecasting the Malaysian economy to grow between 4% and 4.5% this year, down from an earlier forecast of between 4% and 5%.

“The central bank, together with the state governments and the banking industry, is working to align the criteria used in approving house financing and improving the affordability of the applicants,” BNM said.

The central bank also said it is important for borrowers to disclose accurate material information about their financial position, including their credit history, when applying for house financing to ensure objective assessment by financial institutions.

“The assessment by banks on borrowers is partly to assist [the latter] in ensuring that they have the capacity to service the loan throughout its tenure. The assessment takes into account the applicant’s income after statutory deductions, expenditure on necessities and all debt obligations from banks and non-bank lenders.

“This is to ensure that borrowers can continue to service their obligations, have sufficient financial buffers for living expenses, and are able to protect themselves against rising costs and unexpected adverse events, including the foreclosure of homes,” it added.

BNM also advised borrowers to compare housing loan packages offered by various financial institutions for the best price. “Some banks have introduced housing loan products such as first home schemes for specific target markets, including young married couples, youths and low-income groups.”

The central bank also pointed to the Credit Counselling and Debt Management Agency, which it said has been providing advice to applicants to rationalise their debt levels and educate them on prudent financial management.

For those who do not have the capacity to own a house, BNM said they may consider the option to rent.

Source: TheEdgeProperty.com.my

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Positive views on Penang’s land reclamation

Property News/ 4 March 2016 2 comments

land-reclamationDue to the shortage of resources in the state, it is only rational for the state government to use reclaimed land to finance the infrastructure projects, according to two key business organisations in Penang.

Real Estate & Housing Developers Association (Rehda) Penang chairman Datuk Jerry Chan said it was the only currency available as the yearly revenue of the state could not pay for such infrastructure projects.

“The justification is that the reclamation works and the infrastructure projects will generate jobs and business for Penangites, offsetting some of the negative consequences of the reclamation.

“The state government should look into other ways for the affected fishermen to generate an income from fish farming activities.

“Lacking funds and ready land bank should not be used as an excuse to stunt Penang’s economic growth,” he said.

Chan spoke recently in response to the implementation of the Penang Transport Master Plan (PTMP), which would see the development of a light rail transit (LRT) system on the island and the Pan Island Link Highway, deemed to be high-priority projects under the PTMP.

Financing the projects under PTMP would involve reclaiming two man-made islands, located near Permatang Damar Laut and Teluk Kumbar, spanning 930ha and 566ha.

The PTMP has raised concerns from certain quarters, particularly from fisherfolk.

The PTMP is a result of the request for proposal (RFP) called by the state government after the Transport Master Plan Strategy Report was unveiled in 2013. The strategy report has recommended plans till 2030, estimated to cost RM27bil.

The original plan was put up with inputs from AJC Planning Consultants Sdn Bhd, Halcrow Consultants Sdn Bhd and Singapore Cruise Centre.

Penang Chinese Chamber of Commerce (PCCC) president Datuk Seri Choot Ewe Seng said the state government needed to resolve the traffic congestion problems as soon as possible, as every minute or hour spent trapped in a traffic jam was a loss in economic terms.

“The business community and the public can only benefit from the project. The advantages will outweigh the cost of reclamation.

“However, the state government must ensure that the cost of riding the LRT is minimal and not a burden to the people,” Choot said.

Property valuation and management company CA Lim & Co principal Lim Chien Aun said the state government should set up a fund using the proceeds raised from selling the reclaimed lands to subsidise the maintenance costs of the proposed infrastructure of the PTMP inclusive of the LRT.

“Otherwise the cost of maintaining the LRT would have to fall on Penangites.

“The LRT qualifies as a state project as reclaimed land owned by the state will be auctioned off to fund its implementation,” Chien Aun added.

However, not all are in favour of the move to use reclaimed land to fund infrastructure projects.

Penang Island City Council councillor Dr Lim Mah Hui said the PTMP was planned till 2065. “The plan overestimates the population growth in Penang, compared with the Department of Statistics population projection.”

Lim said the PTMP focus should not be on building roads and tunnels to move cars, but on moving people through public transport.

“The original TMP Strategy Report envisaged 60% to be spent on roads and tunnels and 40% on public transport. This priority should be reversed with public transport accounting for at least 70% to 80% of the total budget,” he said.

Lim said there were faster and cheaper ways of reducing traffic congestions that had been successfully practised in other countries.

“For example, Penang’s traffic congestions are mainly concentrated during peak hours. These can be reduced considerably by imposing charges on vehicles entering the city during peak hours,” he said.

Meanwhile, state local government, traffic, and flood mitigation committee chairman Chow Kon Yeow said the rapid growth of towns such as Batu Kawan, Butterworth and Seberang Jaya would boost Penang’s population and the demand for an integrated transportation system.

“The Department of Statistics projects a population of 1.86 million for Penang by 2030, the anticipated higher number of 2.45 million people by that year (as projected in the plan) was derived by applying the same average annual population growth rate of 2.3% (which was recorded in the period of 2010-2020),” he said.

Chow said before the move to charge motorists entering the city during peak hours or ’congestion pricing’ could be implemented, there must be an  effective public transport system in place.

“Singapore for example only enforced electronic road pricing (ERP, an electronic toll collection scheme for congestion pricing) in 1998 after building its first MRT line in 1982,” he added.

The PTMP proposes seven public transport lines for the island and the mainland, including two LRTs, three monorails, heritage tram and bus rapid transit, which adds up to a total of 151km of public transport network.

“There are eight highways, including the undersea tunnel, planned under the highway network, in addition to several local road enhancements in Seberang Perai, which adds up to 71.5km of highways and roads proposed under the PTMP,” Chow said.

Source: TheStar.com.my

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Proposed Penang LRT routes and stations

Property News/ 2 March 2016 12 comments

TMP (1)REHDA Penang (Real Estate and Housing Developers’ Association) members led by Chairman, Datuk Jerry Chan were in Komtar for a Transport Master Plan (TMP) briefing on 26 Feb .

Chan congratulates the Penang state for coming up with a workable plan. He said, “It is a good plan. There is procedure and there is principle. The TMP will take Penang forward to accommodate its population growth, economy growth, improve living and can alleviate congestion.”

“In fact, this should have been done 20 years ago. Now, there is a plan to work out how to pay for these works. Therefore, we see something more concrete and a tangible means to pay for the project.”

* Detailed map of Bayan Lepas LRT stations *

The session was conducted by the Project Delivery Partner, SRS Consortium and was chaired by exco member for Local Government, Traffic Management & Flood Mitigation Chow Kon Yeow and other exco members Jagdeep Singh Deo and Lim Hock Seng.

REHDA members also had the opportunity to have the first hand view of several slides which show the proposed LRT lines and stations on the Penang island and the mainland.

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Prioritise high-density areas for LRT

Property News/ 29 February 2016 No comments

LRT-priority-given-to-high-density-areaThe proposed Penang LRT should go through more high-density areas, said Real Estate & Housing Developers Association Malaysia (Rehda) Penang branch deputy chairman Datuk Toh Chin Leong.

He said this was to ensure that the mega project would not run at a loss.

“Priority should be given to areas like Bandar Baru Air Itam or Queens-bay,” he said at a question-and- answer session after a briefing on the RM27bil Penang Transport Master Plan (PTMP) for Rehda at Komtar on Friday.

Earlier, PTMP project delivery partner SRS Consortium delivered a presentation on the plan which included seven public transport lines.

They are Bayan Lepas LRT; Air Itam monorail; Tanjung Tokong monorail; a tramline in George Town; Georgetown (The Light)-Butterworth (Penang Sentral)-Sg Nyiur LRT; Raja Uda-Sg Nyiur-Bukit Mertajam-Permatang Tinggi monorail; and Permatang Tinggi-Batu Kawan bus rapid transit.

SRS director Szeto Wai Loong said the state government would choose the LRT operator in an open tender.

To a question from Penang Rehda chairman Jerry Chan about acquisitions of private property and cemeteries for the project, Szeto said a few farm houses would be affected in the area where the Bayan Lepas LRT would be built.

He also said SRS and Malaysia Airports Holdings Bhd were looking into the expansion of the Penang airport, with the matter currently in the early stages of discussion.

Chan had said priority must be given to the expansion of the airport to accommodate the growing number of passengers.

Szeto said the detailed environ- mental impact assessment studies for the Bayan Lepas LRT and south coast reclamation were ongoing.

He added that the studies were expected to be completed and submitted to the Department of Environment by the end of this June.

Source: TheStar.com.my

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