During an event to officiate the signing of the Sales and Purchase Agreements and balloting for Ramah Pavilion, Penang State Exco for Housing and Town & Country Planning, YB Jagdeep Singh Deo said that Penang State Government is giving top-priority to the provision of affordable housing to Penangites.

The State Government currently has 12 projects in the pipe-line which will see 22,545 units of low cost, low-medium cost and affordable housing units being built for Penangites. The details of the projects can be found in the link below:

Affordable Housing Projects & Location

The state driven ‘Mission Home-Possible’ programme, which is designed to educate the public of the existing projects and also to facilitate the registration of interested applicants for the said projects, which began last year, will continue in 2015 at the Bukit Bendera, Bukit Gelugor, Balik Pulau, Tasek Gelugor, Kepala Batas, Batu Kawan and Nibong Tebal parliamentary constituencies, according to the following schedule:

To make this programme more attractive, the Mission Home-Possible will now be extended to those 100% affordable housing projects by the private sector. An applicant can now choose to register for a particular project he or she is interested in. For those who are interested and qualified, the Penang State Government will be conducting an on-site registration exercise for the following projects by the private sector on the following dates:

1. Chelliah Park City
Location : Jalan SP Chelliah, DTL
Floor Size : 800 sqft (883 units), 900 sqft (165 units) and 1,000 sqft
(275 units)
Price : RM200,000.00 (800 sqft), RM300,000.00 (900 sqft),
RM400,000.00 (1,000 sqft)
On-site Registration Date : 14 February 2015
On-site Registration Venue : D’Piazza Mall, Jalan Mahsuri, Bandar Bayan Baru
Contact : Mr. John Khaw (04-630 7734 / 5)
Zubicon Sdn Bhd
70-3-16, D’Piazza Mall, Jalan Mahsuri
11900 Bandar Bayan Baru, Pulau Pinang

2. One Foresta
Location : Bayan Baru, DBD
Floor Size : 900 sqft (2,685 units)
Price : RM300,000.00 (900 sqft)
On-site Registration Date : 6 – 8 March 2015
On-site Registration Venue : Ideal Property Show Room, 71, Ideal @ The One, Jalan Mahsuri
Contact : Mr. Teh (04-645 6888)
Ideal Property Group
71, Ideal @ The One, Jalan Mahsuri
11950 Bayan Lepas, Pulau Pinang

3. Tri-Pinnacle
Location : Tanjung Tokong, DTL
Floor Size : 800 sqft (859 units)
Price : RM299,990.00 (800 sqft)
On-site Registration Date : 7 & 8 March 2015
On-site Registration Venue : G-Hotel, Persiaran Gurney Aspen Group Office
Contact : Andrea Lee (04-227 5000)
Aspen Group
17, Green Mansion, Jalan Birch
10250 Pulau Pinang

4. Ramah Pavillion
Location : Teluk Kumbar, DBD
Floor Size : 800 sqft (92 units), 950 sqft (154 units), 1,050 sqft (106 units), 1,150 (149 units), 1,250 (221 units), 1,350 (37 units)
Price : RM198,000.00 (800 sqft), RM268,000.00 (950 sqft), RM298,000.00 (1,050 sqft), RM328,000.00 (1,150 sqft), RM358,000.00 (1,250 sqft), RM398,000.00 (1,350 sqft)
On-site Registration Date & Venue :
7 & 8 February 2015 / 28 February & 1 March 2015 : Balik Pulau Market
11 – 13 February 2015 / 24 – 26 February 2015 : Bayan Baru Market
Contact : Mr. Moh (04-229 2232 / 04- 291 7921 / 04-291 7915)
M Summit Group
Unit 1, Tingkat 3, Wisma Penang Garden
No. 42, Jalan Sultan Ahmad Shah
10050 Pulau Pinang

Apart from the above dates, applicants may also register on normal working days at the site office of the said developers and the said developers will then forward the completed forms to the State Housing Department for vetting purposes in order to ascertain their eligibility.

Those who are interested in the above projects are encouraged to attend the respective roadshows on the dates as stipulated above, whereat officials from the State Housing Department will be present to register applicants specifically for the respective said projects and also to answer any queries the public may have on affordable housing projects. Please note that the registration is FREE OF CHARGE.

Applicants are advised to bring along the following documents to facilitate their registration:

• Photocopy of applicant’s identity card and their spouse
• Photocopy of certificate of marriage / sijil nikah / statutory declaration of marriage
• Photocopy of certificate of divorce or death certificate of spouse (if relevant)
• Photocopy of children / dependents’ identity card or birth certificate
• Confirmation letter of employer / photocopy of pay slip for both applicant and spouse
• Employee’s Provident Fund (KWSP) statement of applicant and spouse
• Letter of confirmation from KWSP if the applicant or spouse are not EPF contributors
• Statutory declaration of income for applicant and spouse (for those running their own business / working on their own)
• Photocopy of business registration certificate / trade license (for those running their own business)
• Form B of Income Tax (for those running their own business)
• Photocopy of OKU card (if relevant)
• Letter of confirmation by employer confirming residence of at least 5 years in Penang

The eligibility criteria for applicants for affordable housing, are as follows:-

• must be a Malaysian citizen
• born in Penang, working in Penang and a registered voter in Penang; or having resided in Penang for at least 5 years as at the date of application, and a registered voter in Penang
• 21 years old and above
• nett household income of not more than RM2,500 for low cost units
• nett household income of not more than RM3,500 for low medium cost units
• nett household income of not more than RM6,000 for affordable housing units under RM200,000
• nett household income of not more than RM8,000 for affordable housing units under RM300,000
• nett household income of not more than RM10,000 for affordable housing units under RM400,000
• for low and low medium cost units, the applicant must not have owned any property in Malaysia
• for affordable housing units, the applicant will be given priority if he or she does not own any property in Malaysia but if they have owned either a low or low medium cost unit, the applicant may still be considered

YB Jagdeep has also called upon more private developers to join in to ensure that there is enough affordable housing for all Penangites. He is also looking forward to the submission of the long awaited PR1MA affordable housing proposals.

Many are asking the question but so few know the answer,” quips Malaysian Institute of Estate Agents (MIEA) president Siva Shanker (pic) when asked about the impact of the GST on the housing sector.

He says he speaks for his entire fraternity of estate agents when he says they are “not 100% clear” how the GST is going to work.

“Over the last six months, I’ve attended four or five talks on the GST. Some were by accountants and one was from the (Finance) ministry but at the end of these one-and-a-half hour sessions, I was no closer to understanding what it all meant than when I first started.

“I haven’t yet met a person who can tell me with authority how it works. Everybody is wishy-washy. When I ask the accountants, they explain it but my opinion is that they are acting on theory.

“So how does it all affect the property market? We don’t know!”

Siva says that when other countries imposed the GST, there was a spike in property transactions and value in the quarter preceding the GST.

“Then the market found its own level again.”

Because he had no other data to go by, Siva says, he had previously thought this too would be the case for Malaysia – that from January to March there would be a spike in transactions in property and value as people rush to buy before the GST, much like how they would queue overnight to buy petrol before the price of petrol goes up.

“But I want to revise my own projection. I see there is so much doom and gloom for 2015 that I am convinced there won’t be a spike because the perception of gloom and doom has overridden the greed to acquire before the GST.

“How the market behaved in 2014 is pretty much the same as how it is going to behave in 2015, which means it is going to be a flat-ish market with no upward growth and no downward slide.”

Siva reveals that in 2011 and 2012, the market dropped by 4% and 5% while in 2012 to 2013, it went down by a whopping 10.9%. In 2014 it was a flat market but the figures of the second half of 2014 are not in yet.

In 2011 and 2012, he says, although the number of transactions went down, prices went up. And it was the same for 2012 and 2013.

“Transactions slowed three years in a row but prices were still going up.

“My opinion is that in 2015, the upward climb of prices has been arrested and the downward slide of transactions has slowed down. I feel the market will reach its equili­brium soon.”

For estate agents, the GST is no big deal because they have already been paying a 6% government service tax previously on their fee, he says.

“Now it is replaced with the Goods and Services Tax (GST) which is also at 6%. So for the average estate agent, life goes on without a little bump.”

For buyers, residential property is exempt from GST but commercial property is charged the standard 6%.

“It (the 6% for commercial property) doesn’t look like it’s going to go away. So people just have to bite the bullet and learn to pay for it.”

But Siva has questions about the sale of commercial property.

“If I sell you a shoplot for RM1mil, you have to pay 6% GST, which comes up to RM60,000. I am not sure who is the collection centre. I think it will be the lawyer who will collect that RM60,000 from you and remit it to the Customs Department.”

As for the estate agent, he would bill the owner of the property he just sold for a 2% commission on the sale price, which in the case of the RM1mil shoplot would come up to RM20,000, as well as 6% of that commission, which works out to RM1,200 for the GST.

“The agent collects the RM1,200 on behalf of the owner and sends it to the Customs Department.”

Siva also wonders what will happen to a residential property owned by a company if that company is sold.

“A lot of people own property but park it under a company for tax purposes or estate planning and other purposes.

“There is no GST on residential property but if I have a house worth RM6mil but say my company Siva Shanker Sdn Bhd owns it and I sell off my company for RM6mil.

“We think it’s no big deal. But the question is, does the sale of the company attract a 6% GST even though it is a residential house? I don’t know the answer to this question.”

Siva feels that with the bad things that have happened to Malaysia last year, like the MH370 and MH17 tragedies, and also the Indonesia AirAsia Flight QZ8501 crash, and the current economic uncertainties with petrol prices dropping and the ringgit depreciating, the implementation of the GST should be held back.

“We are taking too many hits at the same time. It would be a clever political move to consider suspending the GST for a while and implementing it next year or the year after.”

For now, he suggests that the Government cuts down its expenditure and rein in the wastages and excesses which are highlighted every year in the Auditor-General’s report.

Source: StarProperty.my

by Charles Tan

It was an event where the ‘winners’ were happy. Of course, in any event, if you are a winner you would be happy right? Well it was a balloting event at one affordable homes project in Penang. Project Name: Ramah Pavillion. The developer is M Summit Group. Total units available would be 759. (Considered high-density in Penang but in Greater KL I would think anything above 1,000 units would be considered high density) Location is Teluk Kumbar, Penang and there are 6 types of units available. Size is quite generous, up to 1,350sf which is what I would consider a good size for a family of up to 5. For prices vs sizes, please refer:

Six ‘winners’ were picked and announced. I am not sure why only 6 when there are 759 units available but perhaps this is because the event was only a start and if balloting was done for all 759 units, it may take a very long time? We shall have to wait for more info but you can see the happiness from the smiles. State Exco for Housing and Town & Country Planning, YB Jagdeep Singh Deo officiated the event and said that Penang state is being very transparent with all their affordable homes project. In fact he mentioned that the applicants can even specify the actual project that they want. Of course, after you have chosen and the unit is allocated, you cannot say I want to change unit.

The developer, M Summit said that they are happy to contribute to the state’s efforts on affordable homes and that the profit margin for these projects are low. In fact he said Teluk Kumbar is a great location because a new highway is coming up and should be completed next year. This is an upcoming location and the prices for these units are expected to easily go up 60%. It meant that the current RM398k units may go up to RM640k. RM640k for a 1,350sf unit is indeed a very equitable price. In fact these new affordable units are expected to stabilise the market so that prices do not move up so fast.

I think Penangites who qualify should quickly register without delay. The prices vs sizes stated plus the location is in island meant that this project would be pretty popular when compared to the affordable ones based in Batu Kawan in the future. Oh yeah, Ramah Pavilion will be completed in 2018 which is just 3 years away. Happy registering and wishing you luck in the balloting.

>> This opinion article comes courtesy of Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 12 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)

Knock, knock! Any “good” housing developers out there?

I am reluctant to use the words “good developers” as the words are not in my vocabulary. However, there are responsible ones and more are joining this category.

The qualities of a responsible developer are to be emulated, if you can find them.

The housing industry has come a long way since the advent of large-scale housing development in the late 50s and early 60s. The players in those times were bona fide entrepreneurs. Most probably, conscience ruled and pride in workmanship, timely delivery of quality and affordable houses were their hallmarks.

The present delivery system of “sell-then-build” through progressive payments is fraught with risks for the unsuspecting house buyers.

These second generation housing developers, “good” or bad, are used to the lucrative profits from the housing industry. This is so because the post-independence period has been a period of high population and economic growth. Hence, the demand for housing is ever increasing. In a sellers’ market, the buyers are always at a disadvantage. When greed is inversely proportionate to conscience among industry players, the situation can get very bad indeed.

We often hear of developers lamenting about the shortage of workers (legal or illegal, skill or inexperienced), shortage of building materials, complying with new laws or regulations that made it hard for them to complete their projects on time. At the same time, we also hear of projects making multi-million ringgit in profits for the developers and we do not see or hear news of housing developers retiring or quitting the business entirely.

This would mean that the housing development is still a lucrative business. In fact, more rookie developers are joining the arena because the sell-then-build system allows them to make money from people’s money.

It has become a ‘riskless venture’ where profits are guaranteed, and in the worst scenario, the government will mop up the abandoned housing project, befitting the adage: Profit Privatised, Losses Nationalised’

Enough of the bad ones, we at HBA do keep our ears opened for the qualities of responsible developers to be emulated. In the first place, how do buyers judge if their developers have been responsible? The construction industry is a unique field. It is one of a few professions where no formal education is required.

There is no formal award giving ceremony by buyers to tell the world their developers have been ‘good’ and responsible.

There are also some other things the responsible developers do that prove they have a passion for their profession. Here are some of the traits practised by responsible developers.

Attention to environment and existing neighbourhood

Responsible developers do not just depend on their buyers to pass the word around about their reputation. No new project is an island. There are existing neighbouring projects, trees etc. A responsible developer ensures the existing neighbourhood is not disturbed by their new development.

If there are complaints, such as cracks, a landslide and floods that the new construction is causing to the existing neighbours, they are quickly attended to. They also ensure that the existing roads are kept clean regularly from construction activities.

Amenities, facilitiesand infrastructure

Developers who provide adequate amenities and facilities like playgrounds, schools, markets, community halls and even police booths are not only fulfilling the obligations imposed by the local council but also their social responsibilities to society. These developers are commendable as good corporate citizens. It enhances their image too. There are also developers who invest and build infrastructure first prior to selling their houses.

Takes pride in quality and timely rectification

Whether low-cost or high-cost houses, chasing the developer to rectify shocking defects, bad workmanship is a nightmare to buyers who lose out while waiting for repair works.

Responsible developers do their own quality checks before handing over their products. Caring developers do practise the following before handing over their products:

• Adopt quality checks at all stages of construction, test and commissioned utility supplies;

• Clear and clean individual units and construction site of debris;

• Ensuring the Certificate of Compliance and Completion (CCC) is obtained with the handover of units;

• Retain a team of competent workers to do rectification promptly if there are complaints on defects.

• Keeping sufficient stock of products like floor tiles of the same quality and make.

Some developers even extend the mandatory defects liability period of 24 months. We have also heard of developers providing alternative lodgings for their buyers while waiting for defects to be corrected.

Timely delivery

Time is the essence of the contract of sale and purchase. Houses should be delivered within the time stipulated in the sale and purchase agreement ie within 24 months for ‘land and building’ and 36 months for ‘building intended for subdivision’. If, for whatever reason, there are delays, compensation should be paid immediately to buyers without second thoughts or finding devious ways to ‘short-change’ the buyers.

Responsible developers keep their buyers informed of delays and tell them of the next expected delivery date. Some buyers even told us of the extras they have received at delivery time, which surely endear them to the developers. These are some of the ‘welcome packs’ that they have received: useful gifts like a key box; warranties from paint companies, auto-gates, pest control, electrical appliances; certificates of treatment for termites / pest control; a certified copy of the CCC issued by the architect and certified copy of the building plans and plans that relate to electrical wiring and water piping so as to facilitate future renovation.

Interest charged

One clause in the sales contract states that the buyer is responsible for late payment interest. It is a common complaint by buyers that their developers would charge interest for late payment even though it is the fault of the end-financier or their lawyers doing the legal documentation. Responsible developers assist in ensuring that the documentations are in order and the buyer is not burdened with any late payment interest.

Joint Management Body (in stratified projects)

Responsible developers assist their buyers to form committees and be prepared for the formation of the management corporation. These developers realise that the projects they have developed will eventually pass to the owners to maintain and manage.

Encouraging community living

Developers who encourage forming of resident/ owners association are a welcome lot. Some even go to the extent of contributing monies for the formulation of buyers representative group for a meaningful channel to voice grievances. Some even provide meeting facilities and allocate a multipurpose room for the elected representative group.

Good communication

The line of communication should always be open between buyers and their developers:

• Keeping buyers informed of the ongoing projects and their products;

• Developers not to appear having shun away from their responsibility;

• Treating the buyers with respect as buyers can serve as their marketing tool. Show respect and you will gain respect;

• Transparency and accountability on monies collected;

• Providing regular accounting reports and budgets;

• Voicing of any grievances rather than through the media, which will bring adverse effect to the detriment of both parties.

Build first then sell

There is no step that can be more pronounced than for housing developers to adopt the absolute ‘built first then sell’ so that potential buyers can see for themselves the finished product before buying. We believe that in this way, most of the present day ailments afflicting the housing industry can be avoided and the housing industry will be a lot more orderly.

In the interim period, responsible developers have embarked on the Built then Sell (BTS) 10:90 concept where the buyers pays 10% and the balance of 90% to be paid upon completion of the house. They are already big names among developers that find the BTS 10:90 concept workable and feasible and are targeting to achieve the Government aspiration of making BTS 10:90

There are responsible developers whose names are synonymous with quality and trust. They are able to win over buyer’s confidence. Today, they have created their own brand names. No wonder some developers do not advertise, yet all their units are sold out even before the official launch.

Chang Kim Loong AMN is the secretary-general of the National House Buyers Association.

Source: StarProperty.my

Another proposed affordable housing by Paramount Solaris (Ideal Property Group?) in Bayan Lepas, Penang. This is going to be the second affordable housing in Bayan Lepas after One Foresta. It is strategically located next to Jalan Tun Dr. Awang, only a few minutes away from Penang International Airport.

The residential component comprises 4 blocks of 49-storey towers, to be developed in 2 parcels:

• Parcel 1: 2 blocks of 49-storey buildings (1,170 units)
• Parcel 2: 2 blocks of 49-storey buildings (1,149 units)

Each affordable unit comes with a standard built-up area of 850 sq.ft.

READ MORE ABOUT AFFORDABLE HOUSING:

• Eligibility and the requirement of buying affordable housing
• Full list of affordable housing in Penang

For registration details, you may refer to http://erumah.penang.gov.my/

Property Project: (Pending)
Location : Bayan Lepas, Penang
Property Type : Affordable housing, commercial & school
Land Tenure : Freehold
Built-up Area: 850 sq. ft.
Indicative Price : RM400,000 and below
Developer : Paramount Solaris (Ideal Property?)
[streetview width=”100%” height=”250px” lat=”5.307948″ lng=”100.26986599999998″ heading=”-22.42518052417132″ pitch=”-8.9079077538518″ zoom=”1″][/streetview]