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Land reclamation the only way to fund transport plans in Penang

Property News/ 31 December 2015 22 comments
PenangLRT (2)

Penang Transport Master Plan (PTMP).

No choice but to reclaim land to fund transport plans in Penang

Over the past seven years, the DAP-led Penang government has had to endure criticism from various quarters over many of the changes introduced in the state.

Among them are the proposed undersea tunnel and highway projects and more recently, the proposal to reclaim more than 1,200ha for two man-made islands off the southern coast of Penang island to finance the ambitious Penang Transport Master Plan (PTMP).

Such projects are not without controversy. When the undersea tunnel linking George Town and Butterworth was proposed, it was criticised by non-governmental organisations (NGOs) and environmentalists worried about the project’s impact on the sea.

The same concern has now been raised by NGOs and fishermen in the south, who fear the massive land reclamation will destroy fishing and breeding grounds for marine life, and cause pollution in the sea.

Chief minister Lim Guan Eng (pictured, below) said the Penang government had thought of other options but it has no power to borrow money or raise bonds to fund the master plan.

“When we have something of this scale, RM27 billion, we have no choice,” he told The Malaysian Insider recently.

The PTMP is a comprehensive plan to create an integrated transport system for Penang.

It includes a rail network with light rail transit (LRT) and monorail lines, cable cars, buses, water taxis, and ferries, apart from highways.

Meant to drive growth in Penang up to 2050, the master plan will cover the entire state, introducing monorail lines connecting the George Town city centre to Air Itam and Tanjung Tokong, trams in the city, an LRT from Komtar to the Penang International Airport in Bayan Lepas, and another LRT line across the sea to Butterworth on the mainland.

There will also be a rail line and bus services connecting the districts in Seberang Prai.

In addition, there is a proposed cable car project to link the island and the mainland, to be implemented and completed by 2018 by transport hub Penang Sentral builder Malaysian Resources Corp Bhd.

Lim said the cable cars, when ready, would ensure faster travel of 15 minutes across the sea, and offers a “romantic” spectacle, especially after dark when lit by LED lights.

Enthusiastic about the big plans in the pipeline, he said locals on the mainland and a majority of the state population would be supportive of the master plan.

“Are we going to get cold feet just because some people oppose it? It will be a question of how we trade-off, but we are willing to trade our popularity for the future. We are going for broke,” he said.

It is not the first time the DAP-led state government has pushed forward a mega-project on its own without any financial backing from the federal government.

In the run-up to the 2013 general election, the state proposed the ambitious undersea tunnel project and three highway projects which drew objections from NGOs.

Faced with criticism, Lim told voters before the elections not to vote for his administration if they rejected the tunnel.

The opposition coalition was returned for a second term with the highest popular vote recorded in the state at 68%, 10% more than in 2008.

“We expect the federal government to continue to discriminate and to slowly constrict us like a python.”

Penang, he said, was now choked with traffic because it was a popular tourism destination, which has caused overcrowding at the Penang International Airport.

“We were expected to reach 6.5 million in passenger arrival by 2020 but we reached that number this year. The airport is like a pasar malam (night market), but there are no plans by the federal government to expand it at the moment.

“So we have this problem, and we are choked with congestion and choked of funds. Are we going to twiddle our thumbs, sit down and wait to die?”

Of the two islands proposed to be reclaimed for the PTMP, one is planned for the future expansion of the Bayan Lepas free industrial zone and airport.

The other is proposed for housing and the state administration centre.

Lim said any reclamation must pass the detailed environment impact assessment (DEIA).

He also said the state was open to suggestions of alternatives.

Asked if such land reclamation and land swap deals were more favourable to developers than the people, hence the remark that the Penang Pakatan Harapan government was a “pro-developer” administration, Lim said things were done differently now.

He said the state government’s formula of swapping reclaimed land was different from its predecessor’s because the state would still be calling the shots.

“When the land is reclaimed, it will belong to the state, not the developer. We will auction off the land. Under the previous government, developers reclaimed and the land belonged to them.”

Lim said the “pro-developer” accusation was “all slander” and “typical cheap politicking”.

When Aspen Vision Land was mentioned as example of a developer seen to be close to the state, Lim said it finally brought in Swedish furniture giant IKEA to the state which Penang folk wanted for a long time.

“Aspen bosses are also involved in the FAP (Football Association of Penang), and the state wants to develop Penang football. So we work closely with them. Football is also very important.

“But we have our own KPI (key performance indicator). We do everything by open tenders.”

Lim said the state government could make special arrangements if a developer could bring in something of quality like a university or big business like IKEA.

Source: TheEdgeProperty.com.my

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Ramah Pavilion vs One Foresta

If you are buying your first home in the South-West district of Penang, you may be interested to find out how are these two affordable housing projects compared to each other.

Ramah Pavilion One Foresta
Developer M Summit Group Ideal Property Group
Location Teluk Kumbar Sungai Ara
Standard unit size 800 sq.ft. – 1,355 sq.ft. 900 sq.ft.
Price psf. RM247 – RM294 RM333
No. of carpark 1 1
Selling Price RM198,000 – RM398,000 RM300,000
Upgrade packages RM18,000 – RM25,000

  • 600mm X 600mm Porcelain Tiles
  • 4 Nos Inverter air-con points with copper piping
  • Plaster glass ceiling
  • 2 Nos Water Heater
  • MS Grille Door
  • 2 Nos Shower Screen & etc
  • Additional carpark for RM30,000

    (No feedback from developer)
    Development land size 8.78 acres 11 acres
    Land tenure Freehold Freehold
    Total units 759 2334
    Expected completion 2018 2019 (Estimated)
    Highest floor 38 40
    5 nearest schools
  • SJKC Yang Cheng (0.5km)
  • SMJK Heng Ee (7.0km)
  • SJKC Chong Cheng (9km)
  • SJKC Wen Khai (11km)
  • SMK Teluk Kumbar (3km)
  • Upcoming SJKC Shih Chung (0km)
  • Straits International School (3km)
  • SK Bayan Lepas (1km)
  • SMK Bayan Lepas (2km)
  • SK Mutiara Perdana (2km)
  • 5 nearest eateries
  • Khunthai Restaurant (3.5km)
  • Hai Boey Seafood (3.5km)
  • Hao You Seafood (2km)
  • Ayu Mee Udang (2km)
  • Bukit Genting Leisure Park & Restaurant (3.5km)
  • Bayan Cafe (1km)
  • Nasi Kandar Rahim (1km)
  • Teluk Kumbar Seafood (4km)
  • Khunthai (6km)
  • Sungai Ara Food Court (3km)
  • 5 nearest malls
  • Queensbay Mall (15km)
  • Giant Hypermarket (10.5km)
  • Sunshine Square (11km)
  • BJ Complex (11.5km)
  • Tesco Extra (14.5km)
  • Queensbay Mall (10km)
  • Sunshine Square (6km)
  • BJ Complex (8km)
  • Giant (5.5km)
  • Tesco (13km)
  • Web popularity (Past 90 days) 10,000 pageviews 19,000 pageviews
    Travelling to
    (off peak)

  • Penang Bridge
  • 2nd Bridge
  • Airport
  • Komtar
  • FTZ


  • 16km (26 minutes)
  • 12km (20 minutes)
  • 8km (16 minutes)
  • 23km (35 minutes)
  • 13km (22 minutes)


  • 11km (16 minutes)
  • 8km (14 minutes)
  • 3km (6 minutes)
  • 18km (22 minutes)
  • 7km (14 minutes)
  • Key highlights
    (by developer)
  • Low Density with 100% Affordable Homes only
  • Affordable price with condo unit size and condo facilities
  • Greenery landscape garden
  • Refreshing environment
  • Excellent scenery
  • (No feedback from developer)
    More about Ramah Pavilion More about One Foresta
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    Ewein To Acquire Land In Penang For RM162 Million

    Property News/ 29 December 2015 7 comments
    city-of-dreams

    Current project by Ewein – City of Dream

    Ewein Bhd’s (Ewein) unit, Ewein Zenith II Sdn Bhd, has inked a sale and purchase agreement (SPA) with Consortium Zenith BUCG Sdn Bhd (CZBUCG) to acquire a 1.79-hectare freehold land in Section 1, Bandar Tanjong Pinang, Penang for RM162 million.

    In a statement, Ewein said RM16.2 million would be deposited as refundable deposit upon the execution of the SPA.

    “The whole proposed acquisition shall be financed through a combination of internally-generated funds and bank borrowings.

    “The final composition of the funding will be determined by the management of Ewein Zenith II at a later stage, and this will depend on the cost of funding and cash requirements of the company’s business operations,” it said.

    Ewein Zenith II is a 60 per cent-owned subsidiary of Ewein Land Sdn Bhd, which in turn is a wholly-owned subsidiary of Ewein.

    The remaining 40 per cent is held by CZBUCG, a construction company that was awarded the works for major roads project and the third link (tunnel) project in Penang by the state government for RM6.3 billion.

    Ewein Deputy Chairman and Group Managing Director Datuk Ewe Swee Kheng said the land was strategic for the company’s future development, and located in a matured and established prime area for residential and commercial projects.

    “The proposed acquisition is expected to be completed in the first half of calendar year 2016,” he said.

    The company plans to embark on a residential and commercial property development on the land.

    Source: Bernama

    Tags:

    Projects worth RM41bil in Penang next year

    Property News/ 28 December 2015 No comments

    Rehda chan b2Five developers will undertake RM4.33bil in property projects in Penang next year despite a challenging year for the property market.

    The developers planned to price their mostly residential properties from between RM480,000 and RM3.3mil.

    The price range came on the heels of this year’s launches of between RM200,000 and RM400,000 in strategic locations.

    The developers would be shifting their focus to higher-priced residential properties.The condominium units in Bayan Lepas will be from 1,000 sq ft and priced from RM480,000 while three-storey houses with built-up of 5,300 sq ft will be priced at RM3.3mil in Seri Tanjung Pinang.

    The developers are IJM Land Bhd with gross development value (GDV) of RM415mil, Ideal Property Group (RM1.46bil GDV), Hunza Properties Bhd (RM600mil GDV), Eastern & Oriental Bhd (RM650mil GDV) and Mah Sing Group Bhd (RM1.2bil GDV).

    Real Estate & Housing Developers’ Association (Penang) chairman Datuk Jerry Chan told StarBiz that developers could be shifting their focus to properties priced from RM400,000 as there was a large supply of housing priced between RM200,000 and RM400,000 targeting first-time buyers.

    This did not mean that buyers have lost interest in affordable housing with built-up of 900 sq ft and priced from RM500 to RM600 per sq ft.

    Chan pointed out that developers would continue to build housing in the affordable range to leverage on the higher density for plots of land but there would be a gradual shift to the “non-affordable” range.

    He added that there would be fewer launches in 2016, due to the difficulties in obtaining bridging and end-financing loans from banks.

    Referring to the incoming supply of housing that were currently under construction, Chan said this would be spread over a five- to 10-year period, depending on market demand and the size of the schemes.

    The National Information Property Centre (Napic) report revealed that the state would see an incoming supply of 72,114 units into the market.

    According to the Napic report, the existing stock of houses in the state stood at 393,303, compared with 383,484 in the first half of 2014.

    “We still foresee the volume and value transactions of properties to contract in 2016. However, the contraction this time won’t be so sharp,” Chan said.

    Ideal executive chairman Datuk Alex Ooi said the group had developed 4,840 units of affordable projects on the island for the last two years.

    “We have sold about 60% of these properties. Moving ahead, the strategy is to move into the non-affordable range priced between RM400,000 and RM600,000.

    “Ideal Property still has around 300 acres of land bank on the island. We have some 25,000 units of properties planned for the land bank.

    “There are still 8,000 units of properties with more than RM4bil in GDV to be implemented over the next 10 years, priced between RM400,000 and RM600,000,” Ooi said.

    ‘Moderate to flat’ outlook

    Ooi expected property market conditions to be “moderate” to “flat” in the coming year.

    Mah Sing (North) senior general manager Law Wei Keong said the company had recently completed a survey on the preference of housing products in the country.

    “The study revealed that a majority of the 6,000 surveyed favoured houses priced in the range of RM500,000 to RM700,000,” he said.

    Of the RM2bil worth of housing projects launched in the country this year, about 16% were priced from RM1mil, while the remaining 84% are below RM1mil, according to Law.

    IJM Land senior general manager (north) Datuk Toh Chin Leong said despite the weak market sentiment, the company would continue to launch properties priced below RM800,000.

    “It will be a slow year for the property market in 2016,” Toh said.

    IJM Land’s pipeline of projects for next year in Penang included the RM232mil Waterside Residence in The Light Waterfront project next to Penang Bridge, the RM64.7mil Trehaus Condo Villa scheme in Bukit Jambul, and the RM118.4mil Senjayu Terrace project in Jawi, South Seberang Prai.

    The Trehaus and the Waterside Residences scheme would be launched in the second quarter of 2016, while the Senjayu Terrace would be introduced in late 2016.

    “The price of the three property schemes ranged between RM730,000 and RM1.3mil,” he said.

    Meanwhile, Ideal would be launching the RM460mil Forestville, RM600mil Queens Waterfront Residences, and RM400mil Camerlina, located in Bayan Lepas, priced between RM480,000 and RM800,000.

    “There is still growing need for mid-range houses that is reasonably priced, located within mature township, surrounded and supported by amenities such as schools with good accessibility, lower density with lifestyle concept,” he said.

    Eastern & Oriental will develop the recently launched RM482mil Tamarind and 50 units of terraced houses with a RM168mil GDV in Seri Tanjung Pinang.

    The Tamarind units, ranging between 1,000 sq ft and 1,770 sq ft, are priced around RM691,000 and RM1.16mil, while the terraced units, with built-up areas of 5,300 sq ft, are priced from RM3.3mil.

    Its general manager (marketing and sales) Christina Lau said the Tamarind was scheduled for completion in 2019.

    No date has been set for the completion of the 50-terraced properties.

    Mah Sing to unveil Ferringhi Residence 2

    Mah Sing will launch the RM735mil Ferringhi Residence 2, the RM350mil Icon Residence and an unnamed RM150mil project in Southbay City, Batu Maung.

    “We are targeting the Ferringhi Residence 2 launch in the first quarter,” Law said.

    The Ferringhi Residence 2 consists of three blocks offering 632 units with built-up areas from 1,208 sq ft to 2,910 sq ft, priced from RM775,265.

    Law said the pricing for the unnamed project would be below RM680 per sq ft.

    “The units have built-up areas of 750 sq ft to 1,000 sq ft,” he said.

    Meanwhile, Hunza will develop the RM600mil Alila 2 project in Tanjung Bungah, 270 units which have built up of between 1,900 sq ft and 3,300 sq ft, priced from RM775 per sq ft.

    “We will promote the 9.8acre project in Indonesia, Hong Kong, and Singapore early next year.

    “The key attractions are the size of the units, which are extremely scarce on the island nowadays,” group managing director Khor Siang Gin said.

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    Tri Pinnacle vs i-Santorini

    Affordable housing is no longer a new topic for potential home buyers. So many yet it could be so few that is suitable. Today, let’s take a stroll into comparing the two most popular affordable housing projects in the north east district of Penang Island. Both projects are located within the township of Tanjung Tokong, less than 3km apart.

    Tri Pinnacle i-Santorini
    Developer Aspen Group Ideal Property Group
    Location Mount Erskine Tanjung Pinang
    Standard unit size 800 sq.ft. 850 sq.ft.
    Price psf. RM374 RM353
    No. of carpark 1 1
    Selling Price RM299,000 RM300,000
    Upgrade packages RM399,000 for 2 carparks, fully renovated, IKEA furnishing and electrical appliances RM350,000 (2 car park, MS Grill door for main entrance, Air con piping)
    RM400,000 (2 car park, FREE legal fees & disbursement for SPA & Loan, additional yard area & points etc)
    Development land size 9.97 acres 9.975 acres
    Land tenure Freehold Leasehold
    Total units 859 2155
    Expected completion Dec 2018 2020
    Highest floor 45 49
    5 nearest schools
  • SRJK Peng Hwa
  • Penang Chinese Girls High School (3.5km)
  • Upland School (11km)
  • Sekolah Tinggi Phor Thay (3km)
  • TAR College University (4km)
  • Tenby International School (4km)
  • Penang Chinese Girls High School (4km)
  • Phor Tay Primary & High School (3km)
  • TAR College (4.5km)
  • Han Ming Primary School
  • 5 nearest eateries
  • James Foo (1km)
  • Fatty Loh Chicken Rice (1km)
  • Prima Tanjung Food Court (1.5km)
  • Charlie’s
  • Mount Erskine Food Court (1.5km)
  • Daorae Korean Restaurant (1km)
  • Old Town White Coffee (1.5km)
  • Pizza Hut (0.5km)
  • KFC (1km)
  • SOHO Bistro & Bar (1.5km)
  • 5 nearest malls
  • Gurney Plaza (3.5km)
  • Island Plaza (2.5km)
  • Tesco Sungai Pinang (2.5km)
  • Gurney Paragon (3.5km)
  • Straits Quay (3km)
  • Gurney Plaza (3.5km)
  • Island Plaza (1.5km)
  • Tesco Sungai Pinang (1km)
  • Gurney Paragon (3km)
  • Straits Quay (1.5km)
  • Web popularity (Past 90 days) 16,000 pageviews 20,000 pageviews
    Travelling to
    (off peak)

  • Penang Bridge
  • 2nd Bridge
  • Airport
  • Komtar
  • FTZ


  • 14km (20 minutes)
  • 22km (28 minutes)
  • 22km (30 minutes)
  • 8km (18 minutes)
  • 19km (26 minutes)


  • 14km (20 minutes)
  • 22km (28 minutes)
  • 22km (30 minutes)
  • 7km (16 minutes)
  • 19km (26 minutes)
  • Project highlights
    (by developer)
  • First private-initiated affordable housing project in Penang
  • Affordably priced condominium units with condo facilities
  • Land tenure: Freehold
  • Practical & family-friendly layout
  • Highly sought-after location in Tanjong Tokong
  • Fully renovated and furnished with IKEA furnishings and electrical appliances
  • Lowest density in terms of Affordable Home development
  • 100% affordable home with no mixture of low cost or low medium cost
  • Upscale neighbourhood
  • Walking distance to Tesco
  • Excellent accessibility
  • Excellent public amenities
  • Practical design and maximum utility of space
  • Wholesome living concept for the family and with open lush recreational spaces
  • More about Tri Pinnacle More about i-Santorini
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