Looking at the Penang property market, all property transactions in the state saw fluctuations throughout the whole 2014 before it dipped in 2015. The first quarter of 2014 recorded a total 6,416 transactions (valued at RM3.78 billion). It increased to 6,513 transactions valued at RM3.44 billion in the second quarter. It dropped to 5,757 transactions valued at RM3.15 billion in the third quarter and increased to 6,865 transactions valued at RM3.40 billion in the fourth quarter.

The number of transactions dropped to 5,637 units (RM3.58 billion) in the first quarter of 2015 before it continues to drop to 5,564 transactions (RM2.84 billion) and 5,060 transactions (RM2.39 billion) in the second and third quarter respectively

If we look at residential property transactions, particularly the primary and secondary market, the secondary market also leads the overall residential property market. In the first half of 2014, a total 1,841 primary properties were transacted as opposed to 7,182 secondary properties, bringing the total residential properties transacted to 9,023 units value at RM3.77 billion. The second half of 2014 saw a slight increase in the primary market to 2,254 units while the secondary market remains at 7,133 units. The total value of transactions for the second half of 2014 was RM3.81 billion.

Geh noted that the unnatural withholding of Advertising Permit and Developers Licence (APDL) has also affected the primary market in the first half of 2015 to see the drop in transactions for the market to 1,418 units valued at RM0.59 billion out of a total 7,743 units being the total (valued at a total RM3.14 billion) transacted.

The secondary market saw 6,325 units transacted with estimated value of RM2.55 billion.

This year also saw the approvals of development plans for over 7,000 units of affordably priced housing hovering at prices between RM300,000 and RM400,000.

“This augers well for a market where the primary market of 1,200 sq ft apartments are selling at RM700,000 to RM800,000 in 2014 just the year before,” he said.

He said 2016 will see a plethora of affordable apartments available in the market and awaiting APDL to be obtained.

Once the APDL is issued, then the due process of Sales & Purchase Agreements can be signed and the end financing process for the purchases can begin.

He pointed out that such a large number of units available for sale in the market will drive the overall index prices down.

“We expect to see about 7,600 transactions for the second half of 2015 with a value of RM3.7 billion and making the total 2015 transaction to 6.8 Billion,” Geh said.

As for the first half of 2016, he forecasted that Penang will see a total 7,500 residential units transacted worth of RM2.7 billion. He forecasted that the primary market will record about 1,200 transactions with the estimated value of RM500 million while the number of secondary property transactions will hover at 6,300 units with a total transaction value of RM2.2 billion for the first half of 2016.

*Micheal Geh is a Chartered Surveyor & International Real Estate Agent. He is a member of the Financial Planning Association of Malaysia with the Certified Financial Planner designation; National Association of Realtors USA with the Certified International Property Specialist designation; and a Board Member of FIABCI, the International Real Estate Federation. He is also a senior partner of Raine & Horne International Zaki + Partners Sdn Bhd.

The Real Estate and Housing Developers’ Associa-tion (Rehda) Penang has been urged to play a bigger role in helping local developers obtain the advertising permit and developer licence (APDL) for their projects.

It was reported in The Star that 47 out of 81 applications for the licence for state government and private projects submitted from August 2014 had yet to be approved.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said Rehda should pursue the matter with the Federal Government and if necessary, file a law suit.

“Treat it as a test case and if you win, I’m sure the Federal Govern-ment will issue the APDLs because it does not want to be burdened with lawsuits and legal costs.

“The state can only make its views known,” he told a press conference in Jalan Kuantan yesterday.

Rehda (Penang) chairman Datuk Jerry Chan when contacted said they could not sue at the branch level and he did not agree to such a drastic step.

“Anyway, the matter has been brought up to Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan by our national president and myself in November.

“He has agreed to approve some of the applications which we brought up to him,” he said,

Chan added that the Federal Government was not happy with the state over some of its projects that were not approved.

“It is up to the state and Federal Government to resolve the matter and it is unfair that the private sector has been penalised for this.”

On a related matter, Jagdeep announced that most of the APDL for the state government’s affordable housing project in Jalan SP Chelliah had been approved.

“We’ve obtained the APDLs for the RM200,000 and RM300,000 affordable housing and RM72,500 low medium-cost projects. We’re just waiting for the APDL for the RM400,000 affordable housing.”

He suggested that the property developers’ association, and not just Rehda, come up with a property fair for affordable housing.

“I’m going to organise an affordable housing property fair for the first time soon because out of nearly 70,000 residential property transactions from 2012 till last year, 80% were in the affordable housing range,” he said.

Source: TheStar.com.my

Let us have a comparison between apple and orange. If you have a budget of about RM700,000 to RM800,000, which of these two projects would you buy?

Eco Meadows offers an exclusive landed living in a less branded location while Skyridge Garden suggests a condominium living in a glamorous island.

	Eco Meadows	Skyridge Garden
Developer	Eco World	OHM Group
Location	Simpang Ampat	Mount Erskine
Property Type	Landed (2-storey terrace)	Condominium
Standard unit size	2,206 sq.ft. – 2,786 sq.ft.	1,450 sq.ft. & 2,335 sq.ft.
Price psf.	RM340.00 psf. onward	RM490 psf. onward
No. of carpark	2	2
Selling Price	RM743,000 onward	RM712,000 onward
Development land size	30.28 acres	7 acres (estimated)
Land tenure	Freehold	Freehold
Total units	375	486
Expected completion	2018	2019 (Estimated)
Highest floor	N/A	40
5 nearest schools	Sekolah Kebangsaan Taman Merak (1km) GEMS International School (5km) SMK Simpang Ampat (3km) SRJK(C) Keng Koon (3km) SRJK(C) Boon Beng (5.5km)	SRJK Peng Hwa Penang Chinese Girls High School (3.5km) Upland School (11km) Sekolah Tinggi Phor Thay (3km) TAR College University (4km)
5 nearest malls/eateries	Tesco Alma (8km) Aeon Jusco Bukit Mertajam (8km) Juru Autocity (11km) Sunway Carnival (20.5km) Pearl City Business Park (5km)	Gurney Plaza (3.5km) Island Plaza (2.5km) Tesco Sungai Pinang (2.5km) Gurney Paragon (3.5km) Straits Quay (3km)
Web popularity (Past 90 days)	5,400 pageviews	8,600 pageviews
Travelling to (off peak) Penang Bridge 2nd Bridge Airport Komtar FTZ	16km (18 minutes) 12km (14 minutes) 35km (35 minutes) 32km (35 minutes) 31km (30 minutes)	14km (20 minutes) 22km (28 minutes) 22km (30 minutes) 8km (18 minutes) 19km (26 minutes)
Key highlights (by developer)	Architectural language of Neo-Royalty which reflects the timeless beauty of England’s most beloved royal homes where owners will be greeted by the breath-taking Long Waters state-of-the-art Grand Entrance Tree Boulevard Landscape Roundabout The Royal Meadows manicured gardens the majestic Meadows Town Hall	(No feedback from developer)
	More about Eco Meadows	More about Skyridge Garden

Penang has received its first two Perumahan Rakyat 1Malaysia (PR1MA) applications to undertake affordable housing projects involving 2,600 units.

The applications are for a project in Batu Ferringhi (1,520 units) and another in Kampung Kastam, Bukit Gelugor (1,124 units).

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the applications were received last month.

“Like any other development projects in the state, these two projects will need to meet the technical requirements before getting the green light.

“If the projects are in compliance with all the conditions, the soonest they can be referred to the State Planning Council for approval is March,” he said in his keynote address at the Penang Property Summit at the Subterranean Penang International Convention and Exhibition Centre (SPICE) yesterday.

Meanwhile, Jagdeep said Penang had also seen an adjustment in the property market with an increase in the number of affordable houses.

“From 2012 up to the first half of 2015, 79% of 67,119 transactions for residential property are for affordable housing.

“It is clear that affordable housing is the way forward in the residential property sector,” he said.

Jagdeep added that about 4,500 units of affordable housing were expected to be delivered from this year and 2018.

Jagdeep added that the state government would look into improving the implemented 3% approval fee for purchase of property by foreigners.

The fee was introduced as a cooling measure to control the rise of property prices.

“The measure appeared not to have any impact on foreigners buying Penang property.

“The record from 2014 showed 177 transactions totalling more than RM10mil in approval fees charged.

“Last year, there was an increase to 211 transactions, worth more than RM12mil in approval fees.

“This might possibly be due to the recent depreciation of the ringgit,” he said.

Chief Minister Lim Guan Eng said the Penang Island City Council’s Gross Development Value for approvals of construction projects was RM3,565,075,900 in 2014.

“For the first half of last year, the figure was RM1,981,540,000.

“This shows that the construction industry is still recording strong growth in Penang despite the economic downturn in the country,” said Lim.

Event director Ong Ban Seang said about 20,000 visitors were expected for the three-day summit held until tomorrow.

“We have even brought in some developers showcasing property from Selangor and even China,” he said.

The event is open from 11am to 8pm. Admission is free.

Source: TheStar.com.my

Eco Marina, an upcoming gated and guarded landed development by Eco World, located in the northern part of Batu Kawan. The masterplan of this development comprises a 150-acre waterfront and international standard golf course with homes offering stunning views of the sea and golfing greens. Potentially become one of the most sought after residential and commercial addresses in Penang.

The estimated GDV is approximately RM10.0 billion over a development period of approximately 10 years. The first phase, slated for launch in 2016, will debut a resort-inspired zero-lot bungalows sitting on hill slopes with unobstructed sea views overlooking Penang bridge and the island.

More details to be available upon official launch.

Property Project : Eco Marina
Location : Batu Kawan, Penang
Property Type : Mixed development
Total Units: (to be confirmed)
Built-up Area: (to be confirmed)
Indicative Price: (to be confirmed)
Developer : Eco World

Location Map: