The heritage property segment is still attracting strong interest from investors despite the softening of the overall property market in Penang.

The value of heritage properties has increased by about 37% to 157% per sq ft (psf) since 2008 due to investments made by Penangites staying overseas and by Singaporeans.

Depending on the location, size, and condition of the heritage properties, the present pricing on a psf basis ranges from RM550 per sq ft (psf) to RM1,800 psf, compared to between RM400 psf and RM700 psf in 2008.

According to the National Property Information Centre (Napic), a locally registered company, World Class Land Sdn Bhd, snapped up over 60 pre-war houses in George Town’s heritage areas for about RM122mil.

Raine & Horne Malaysia senior partner Michael Geh says the properties were sold between late 2013 and August 2015.

“The most expensive pre-war property, with a 1,363q ft land area and located in Chulia Street, was sold for over RM2,000 psf,” he says.

It is learnt that about RM30mil would be spent for restoring the properties, as the cost of restoration is about RM500,000 per unit.

The company also acquired a 30,000 sq ft of land in Magazine Road for about RM36.9mil. “This was the highest transaction for a vacant land in 2015, as the sale was transacted at RM1,250 psf,” Geh adds.

Geh says locals tend not to pay attention to the capital appreciation of heritage properties, although the value had risen substantially since 2008.

“They should invest because the supply of heritage properties is limited.

“There only some 3,853 units of such properties in George Town’s heritage core and buffer areas, according to George Town World Heritage Inc.

“Because the supply is limited, it is safe to invest, as the value would tend to rise than fall.

“I urged Penangites to acquire heritage properties for own use and enjoy the capital appreciation that would occur incrementally,” he says.

Because of the strong appreciation in the value of pre-war houses, the rental yield of such properties has remained unattractive.

In 2008, the rental of heritage properties, depending on the location, size, and condition of the heritage properties, ranged between RM1,000 and RM3,000, compared to the rental today which is between RM3,000 and RM8,000.

“Calculated on a yearly basis, the rental yield is not attractive.

“Today the yield is about 4.8%, compared to about 4.5% in 2008

“This shows that the value has appreciated faster than the rentals, as there is very little demand to rent properties in the state,” he says.

According to Geh, local investors should pay attention in particular to the heritage properties in the Prangin Market or Sia Boey area, as it has been earmarked for the location of the central LRT station on the island, which would boost the value of the properties in the area.

Meanwhile, the Malaysian Institute of Architects (PAM, Northern Chapter) chairman Datuk Lawrence Lim says the cost of restoring heritage properties has increased by about 40% since 2008.

“Today the cost to restore such houses ranged between RM150,000 and RM500,000 per unit.

“A simple restoration for a heritage property with a 2,000 sq ft built-up area can cost about RM150,000.

“It cost just RM50,000 to restore the roof of a heritage house,” he says.

Despite the increased in the cost of restoration, there are local investors who are still investing in heritage properties.

Lim, who is also East Design managing director, says the company was now undertaking restoration projects for heritage houses in Hong Kong Street and Magazine Road.

“We will be restoring the Koon Kee office building at Hong Kong Street, the manufacturer of Penang’s famous white coffee.

“The other project involves the restoration of 10 pre-war units in Magazine Road for commercial usage,” Lim says.

Datuk Ooi Sian Hian, who is also Ghee Hiang group executive chairman, says he will be restoring the heritage property of his family’s maternal grandparents at 123 Macalister Road.

The property, measuring 3,600 sq ft in built-up area, sitting on a 30,000 sq ft site, was built in the 19th century, and came under the ownership of Ooi’s maternal grandparents in the 1950s.

“We are getting local architects and architectural students through the assistance of PAM to come up with a suitable design concept to restore the property.

“It will be up to the architectural fraternity to decide on the appropriate design concept for the property.

“Whether it will be restored for commercial or residential usage will depend on their design.

“We plan to kick off the project in two year’s time,” Ooi says.

Ooi’s family has 10 properties at Prangin Lane, nine of which he will restore at a later date for commercial re-use.

“The properties have been passed down from the maternal grandparents.

“We want to wait and see what the market for restored heritage properties is like first, as there are already in the market many such restored heritage projects.

“We also want to wait for the state government’s Sia Boey project to be completed first, as the site has been earmarked for a LRT project hub,” he adds.

Ooi says he is submitting a plan to restore the tenth heritage terraced property located in Prangin Lane, which has a built-up area of 1,620q ft.

“We are naming it Jumpa@41PranginLane, which will be restored as a event centre for pop-up markets, seminars, stage plays, and culinary events,” he says.

Under Ghee Hiang, the group is now restoring its heritage property at 61 Beach Street, which has over 3,000q ft in built-up area.

“It is the Ghee Hiang Group’s Concept Lifestyle In-Store, which will be designed to accommodate a living heritage museum showcasing the history of the group’s history and tau sar pneah products and a lifestyle themed cafe,” he says.

Khoo Kongsi trustee Datuk Khoo Kay Hock says the clan association has restored 16 pre-war properties and had leased them to a hotel operator.

“The properties are undergoing interior refurbishment now, and scheduled for opening in the second half of 2016.

“About RM4mil was invested to restore the properties, which were completely restored two years,” he says.

According to George Town World Heritage Inc general manager Dr Ang Ming Chee, there are 3771 heritage properties in George Town belonging to category II.

“Category II properties are those residences and business premises that have existed for generations.

“They were built to support the traditional beliefs of the inhabitants and users.

“In the George Town’s World Heritage Site (WHS), there are 82 buildings, gateways, cemeteries, and sites categorised as Category 1.

“Category 1 buildings and monuments are important because they reflect the authenticity of the cultural landscape and therefore the outstanding universal values of the world heritage site (WHS),” she adds.

Source: TheStar.com.my

Penangites have generally given the thumbs up for the proposed RM27bil Penang Transport Master Plan (PTMP) and the Penang South Reclamation (PSR) projects, according to a state exco member.

State Local Government Committee chairman Chow Kon Yeow said the state government had received an overall positive response after nearly nine months of proactively reaching out torelevant stakeholders for feedback on the two projects.

He said that from the 14briefings held todate, 13 garnered resounding support for theprojects.

He said the engagement sessions were conducted at severallocations across the state,involving audiences fromgovernment agencies, business associations, professional bodies, non-governmental organisations, the media and members of the public.

“Based on the overall positive response, Penangites welcome the implementation of the projects which are expected to mitigate the worsening traffic congestion in Penang, provide more affordable housing and create sustainable economic growth.

“However, the fishermencommunity in the south coast remain concerned on the proposed reclamation as they are worried it could impact their income,” Chow told a press conference in Komtar on Friday.

Among the components of the PTMP are trams, monorail, light rail transit lines, e-bus, bus rapid transit, a pan-island expressway, a catamaran system and a RM100mil highway interchange upgrading project.

Three islands, of 930ha, 566ha and 323ha in size, are proposed to be created off the south of Penang island under the PSR to fund the PTMP.

Chow said project consultants appointed to carry out the Detailed Environmental Impact Assessment (DEIA), Heritage Impact Assessment and Fisheries Impact Assessment studies had also concurrently carried out focus group discussions and case interviews with stakeholders along the Bayan Lepas LRT and Pan Island Link (PIL) 1 Highway alignments and the affected fishing villages.

“So far, a total of 44 groupdiscussions and case interviews were held and the overall response has been favourable.

“Complementing theengagement efforts, the appointed Project Delivery Partner (PDP) of the PTMP, SRS Consortium, had also been actively engaging various stakeholders on behalf of the state government.

“The PDP has todate conducted 220 engagement briefings involving different audiences for the PTMP, PSR and the fishing community,” Chow said.

He said measures proposed to help the fishing community include building four new fisherman wharves and jetties at Permatang Damar Laut, Teluk Kumbar, Sungai Batu and Gertak Sanggul, and setting up of a one-stop service centre withamenities to cater for boat repairs, among other functions.

“One of the main objectives in engaging the fishing community is to understand the concerns of the fishermen, and to develop appropriate measures to minimise theprojects’ impact on them.

“While more engagement and briefingsessions will be held in the coming months, job registration forms were shared with local fishermen and residents from affectedvillages who will be prioritised for suitable job openings when the projects commence.

“Some fishermen have expressed interest, and we hope more will register soon as some of the works start as early as 2017. This is one way to ensure stable income for the fishermen in the coming years,” Chow said.

He said SRS Consortium was exploring collaboration avenues with a vocational college to provide relevant courses catered for the respective job openings for fishermen who require training and skills enhancement.

“Those who complete their courses will be certified by the college and will be able to work either for the Bayan Lepas LRT, PIL 1 Highway or PSR project.

“In line with the state’s commitment to provide a highly livable environment and quality housing for the entire income spectrum, a total of 24,000 units of affordable homes will be built on the future reclaimed lands.

“The proposed reclaimed land under the PSR project will offer affordable housing for lower income groups, including eligiblefishermen. The PDP will submit the railway scheme for the Bayan Lepas LRT by next month to the Land Public Transport Commission, with conditional approval expected by June,” he added.

Chow also said the DEIA study for the Bayan Lepas LRT was expected to becompleted and submitted to the Department of Environment by mid-2016, after which a three-month public display process willfollow.

“Those who did not manage to attend previous engagements will be able to share their views and comments during this period.

“More engagements with business groups, NGOs, the media and local residents will be held in the coming months.

“The state government will be launching the official PTMP website by the end of the month which would serve as a one-stop information source and to assist the public to obtain latest updates on the transport master plan,” he added.

Source: TheStar.com.my

Get the chance to pick your Eco Bloom condominium unit at the EcoWorld Property Showcase in Queensbay Mall, Penang.

From now till Sunday, thosewho register for this English-style condominium priced from RM400,000 will get priority in choosing the unit they desire.

The showcase which was launched on Saturday at the mall, saw weekend shoppers milling around to view the scale model of Eco Bloom.

EcoWorld general manager (northern region) Khoo Teck Chong said the condominiums were within the 59-acred Eco Meadows in Bukit Tambun on the mainland.

“The single tower project has 490 units, split into two wings.

“Its 4.8 acre tract also houses 23 exclusive two-storey shoplots whichis a retail strip for residents andvisitors,” he said.

He added that visitors can also check out the company’s Eco Terraces development which is located in Paya Terubong on the island.

EcoWorld marketing head Pui Kim Siew said the exhibition is open daily from 10.30am to 10.30pm.

The company is also doing a survey of what young home buyers wanted in terms of facilities.

“We try to reach out to youngbuyers to find out what type offacilities they want for their residential property.

“It is part of our ongoing marketing survey,” she added, highlighting a proposal for an in-house car wash centre.

Property guru Ahyat Ishak will conduct a commercial investment sharing session at 2pm on Sunday.

The session is open to the public and admission is free.

Details, call 04-5102255.

Source: TheStar.com.my

A newly proposed low-density development by Asiamas Housing at Jelutong, Penang. It is strategically located along Jalan Slim, just a stone’s throw away from Setia Sky Ville development scheme by SP Setia.

The proposed development comprises 4 unit of 2-storey shop offices and a gated & guarded housing scheme with 22 unit of 3-storey terrace houses.

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

Project Name : (to be confirmed)
Location : Jelutong, Penang
Property Type : Residential & shop offices
Built-up Area: (to be confirmed)
Total Units: 22 (3-storey terrace), 4 (2-storey shop office)
Developer : Asiamas Housing Sdn. Bhd.

Location Map:

Sunway Bhd introduced special offerings under its Sunway Property Certainty Campaign yesterday, which includes financial assistance.

The campaign – which will offer guaranteed loans, deferred payment plans and a voluntary exit plan – covers all Sunway projects in Malaysia from today until Sept 31.

“We are still seeing demand for good and well-located properties in the market. People are looking to upgrade, invest and own a home in a well-planned environment,” said Sunway Malaysia and Singapore property development division managing director Sarena Cheah (pictured).

“However, with the uncertain times now, the timing of people’s commitment in properties is something of great concern,” she added.

Sunway’s property portfolio covers mid-to-high-end properties in the Klang Valley, Penang, Ipoh and Johor. The developer also has a presence in Singapore and China.

It will launch Sunway Geo Residences 3 – which has a gross development value (GDV) of RM420 million – next month, and plans to launch Brook Residences (RM200 million GDV) in Mont’Kiara and new phases in Sunway Gandaria (RM200 million GDV) in Bangi.

According to Sunway Integrated Properties Sdn Bhd marketing and sales general manager Gerard Yuen, the guaranteed loan scheme is a 12:88 plan, with Sunway providing financing of up to 88% of the property price from its internal funds.

The loan will have a fixed interest rate based on a commercial basis.

He said to qualify for the loans, applicants must be above 18 years old and not bankrupt, among other things. The loans are available to both Malaysians and foreigners.

“For homebuyers who meet the basic criteria, we are happy to assist them by providing a certainty package, enabling them to own their dream home with a greater sense of comfort,” said Yuen.

“We are not trying to play the bank’s role, we just want to assist those who want to buy a Sunway unit but are having temporary financial difficulties,” he stressed.

Meanwhile, the deferred payment scheme offers zero payment for a period of 12 or 24 months following a deposit of 3% or 6%.

The voluntary exit plan allows buyers to withdraw from the sale and purchase agreement owing to unforeseen circumstances such as loss of employment.

Source: TheEdgeProperty.com.my