Those who attended yesterday’s open session on the RM27 billion Penang Transport Master Plan were generally welcoming of the ambitious project.

They were, however, also concerned about the impact it could have on the homes and the environment.

The bulk of the questions raised were about the proposed master plan, which featured the construction of a light rail transit and monorail network and highways; and their alignments.

But some expressed fears that the solution to the state’s traffic woes could come at the price of the environment, including the beaches and the village homes, because the plan involved the reclamation of the sea off Permatang Damar Laut south of Penang island.

Thousands of acres will be reclaimed to build two or three islands, which some fear will cost them their homes and the livelihoods of the local fishing community.

“I am from Gertak Sanggul and it is a harmonious, over a century old settlement by the sea. I am worried that a development like this will ruin the old villages and force the people out,” said a woman, who identified herself as Miss Lim.

Another, who said his name was Ong, raised concerns about fisheries. “When they reclaimed land in Singapore, the reclamation killed the fish in the sea,” he said.

Local government, traffic management and flood mitigation exco Chow Kon Yeow said effort would be made to execute the plan with minimal impact on residences and the environment.

He said some homes would be affected by the alignments of the highways and rail system but promised that the state government would make the necessary arrangements if there were residents to be relocated.

“The natural beaches will be preserved and there will be new manmade beaches too,” he said during the session at the council town hall.

He said the preliminary plan for the reclaimed islands also included environmentally-friendly, public areas for the people, such as 5km of beach, a 25km coastal park, bike trails and 700 acres of green space.

Project manager and Gamuda executive director Szeto Wai Loong, who represented the masterplan’s project delivery partner, SRS Consortium Sdn Bhd, said local residents and fishermen would be engaged to speak their thoughts and concerns on the master plan next.

He said reclamation had proved technically viable and the next step was to conduct a detailed environmental impact assessment (DEIA).

“There will be studies on maritime, current and social impact. We will be going around talking to the people in the area to hear their views and concerns to see how we can accommodate them,” he said.

Penang Island City Councillor Dr Lim Mah Hui pointed out a discrepancy in the 030 population growth forecast.

He said Halcrow Consultants, one of the firms that prepared the masterplan, projected the Penang population to reach 2.5 million by then, but the Statistics Department had projected only 2 million.

He said the projected demand for transport should be carefully calculated and the project scaled down if the figure is found to be lower.

Mah Hui also told the state government that it should not look at the sea bed as a “bottomless pit”, as land reclamation came with serious and irreversible consequences.

This, he said, was seen in the Seri Tanjung Pinang I (STP1) reclamation project in Tanjung Tokong, which was now blamed for siltation on the nearby Gurney Drive coast.

“If we reclaim, then we must do it responsibly,” he said.

Mah Hui said he would also be cautious about building more roads in Penang, as that would increase the demand for private vehicles.

He said while promoting public transport, the state must also actively discourage people from using their own vehicles.

“We must have a policy that makes it expensive to use cars. If people want to drive in comfort, they should have to pay.

“If they want the Pan Island highway, it should not be given free. Users should be paying toll. I am sure people are not against toll, just cronyism.

“If the people have to pay toll to use the road, then perhaps we won’t need so much land (to finance the project),” he said, referring to the land swap arrangement wherein the proposed manmade islands would be auctioned off to pay for the projects in the masterplan.

Yan Lee of civil group Penang Awareness Chant Group asked for more details about the Pan Island Expressway, which would be running through hills to connect Tanjung Tokong in the north and the Penang International Airport in the south.

He also asked whether there were still plans reclaim land from a natural seagrass bed called the Middle Bank, off the coast of Jelutong, for a rail link between the island and the mainland.

Szeto said the Pan Island link alignment was not final as surveys were still being done, but the expressway connection would be integrated.

He also assured the people that the proposed road would cut across the Penang Municipal Park (Youth Park) via a flyover and would not affect the green lung.

On the Middle Bank, he said after checking with Penang Port, it was decided that the location was not suitable for reclamation because the sea there was busy with ships.

“As a result, we had to look further south of the island,” he said.

A blogger named Eric, who goes by the moniker Fire Dog online, said he supported the masterplan, adding that Penang should have introduced the LRT in the 1970s when it was becoming an industrialised state.

But he said he was concerned about where the sand for the reclamation would come from.

Szeto said the main source of sand was the sea between Penang and Perak, and not the hills of Penang.

At the end of the session, Chow assured the people that the projects would not take off without the approval of the federal authorities.

“If there is no approval, then it is no-go for the masterplan and also no payment for the project delivery partner.

“That will make this just an academic exercise in how to draw up a transport masterplan,” he said.

Chief Minister Lim Guan Eng said the application had already been submitted to the federal authorities for their consideration.

He said even though it was early days yet, the state government wished to keep the people informed and find out what they think.

Source: TheEdgeProperty.com.my

The slowdown in the current property sector has seen transactions, be it primary or secondary, winding down within the Klang Valley this year.

Unfortunately, the situation in other prime markets, such as Johor and Penang, has been less than stellar this year – with industry specialists predicting it could take a while for the glut to recover.

Johor-based KGV International Property Consultants (M) Sdn Bhd director Samuel Tan Wee Cheng says 2015 has been a challenging one for the Johor property market.

“It has had to undergo various adjustments such as the goods and services tax (GST), loan approvals, ringgit depreciation and above all, a sense of uncertainty due to the state of economy both nationally and globally.

Landserve (Johor) Sdn Bhd executive director Wee Soon Chit says he expects the uncertainty in the property market to continue into next year due to the weak economic condition.

“The property market is rather weak. This coincides with the traditional holiday/festive season from end-November to February. Less people are likely to commit themselves during this period, but we foresee stronger interests on properties in the second quarter of next year.”

On the bright side, Wee says the weaker ringgit has definitely made property prices comparatively cheaper for Singaporeans and other foreigners.

“While the weaker ringgit appears to attract more crossings into Johor Baru for food and grocery shopping, it may not necessarily benefit the property sector here.

“The slowdown in the property market, the concern about the general economy and oversupply situation, however, makes them more cautious about property investment here.”

Additionally, Wee says the weaker ringgit benefits Malaysians who work in Singapore.

“This group contributed to significant demand for properties and we expect them to continue to form the bulk of the property purchases.”

Tan, meanwhile, feels that with the volatility of the ringgit, Singaporeans will be cautious with any investments in Johor.

He adds that developers are holding on to their prices now, despite rising construction costs and GST.

“Ultimately market forces will determine the selling prices.”

Commenting on the residential sub-sector in Johor, Tan says there has been an oversupply of high-rise properties, but points out that demand for units are still popular in selective areas.

“Prices of landed properties are too high for the younger generation. Serviced apartments of about 900 sq ft, priced at RM500 per sq ft or thereabouts are still within their means.

Wee concurs that high-rise residential sub-sector in Johor has been affected this year.

“Concern about an oversupply situation as well as occupancy issues have seriously impacted demand for this sector. The presence of giant developers from China like R&F Properties, Greenland and Country Gardens developing huge waterfront projects certainly have also caused concerns.

“It is a buyer’s market now and some of the developers are said to be willing to give up to 20% price discount – especially on the high-end products.”

The landed residential sub-sector, naturally, has performed better than the high-rise sub-sector, says Wee.

“This sector is comparatively doing better than the non-landed sector but there is also pressure on the pricing.

“No significant drop in prices yet but lower demand means more pressure on prices. We expect prices to ease slightly but not as high as those in the non-landed sector.”

He says higher interest rates and borrowing costs will certainly have a negative impact on property buying.

Tan concurs that while transactions within the low-rise property sub-sector has performed better – it is however more expensive.

“Over the next few years, these will be developed further away from the city with a ‘no frills’ design. They will be smaller but more affordable.”

He says the deluxe-type properties priced at RM500,000 will continue to attract buyers who purchase for their own.

“These investors are generally more resilient to market changes and will see property investment as a hedge against inflation or simply a means to upgrade their lifestyle.

“In the immediate term, it will have an impact as borrowing cost will be higher. However, if this is factored in over a longer period, people will still buy as housing is a need, not a want. It is a question of adjusting to this changing landscape.”

The situation in Penang

Raine & Horne Malaysia senior partner Michael Geh says that in Penang the residential property market has contracted by almost half since its peak in 2011.

“The market recorded total transactions of 9,667 in the last quarter of 2011 which is the highest number of transactions in the past four years before it saw a drastic drop of about 48.47% in the first quarter of 2012 to only 4,981 transactions.

“The corresponding value of transactions also dropped from RM2.27bil in the fourth quarter of 2011 to RM1.5mil in the first quarter of 2012.”

Geh says the market was a lot more volatile in 2012.

“In the second quarter, the transactions increased by about 38.68% to 6,908 transactions valued at RM1.92bil in the second quarter. It dropped slightly to 6,398 transactions in the third quarter. The market plunged again by 22.17% or to 4,979 transactions in the last quarter.

“The market continued to contract in 2013 where transactions dropped slightly by 786 transactions to 4,193 transactions (with a total value of RM1.55bil) in the first quarter and it remained stable with slight increases throughout the year bringing the total transactions to 17,700 units with a total value of RM7.1bil for the year.”

According to Geh, high-end high-rise units are selling well in good prime locations.

“Landed residential units seem to hold their values because of scarcity of land on the island. In butterworth the price of landed is strong,” he says.

This year, Geh says the Penang market contracted by about 26.17% to 3,834 transactions worth a total RM1.55bil compared to the last quarter of 2014.

“If compared to the same quarter of last year, the market also saw a contraction of about 10.65% or a by 457 transactions.

“In the second quarter of this year, the market improved slightly from the first quarter by only 75 transactions to 3,909 units with a value of only RM1.59bil. When compared to the second quarter of 2014, the market contracted by 17.39% or by 823 transactions.”

Geh also believes that the contraction in the market in Penang could also be due to the strict loan requirements with lesser loan approvals.

“The drastic catalyst for the penang property market is 2016 would be how the market will react to the announced Public Transportation Plan. LRT station site’s proximity areas will see existing values remaining steady and even soar with optimism of ease in moving around the island.

Penang Bridge catalyst

According to C H Williams Talhar & Wong’s (WTW) Property Market Report 2015, overall, landed residential developments are focusing on Seberang Perai due to the availability of lands with a comparatively lower land cost as compared to Penang Island.

“In Penang Island, 985 units of landed residential came into the market in 2014. The construction and completion of the Second Penang Bridge has been a catalyst for new developments in the southern region of Penang Island.

“The existing supply in North-East district is slightly ahead of South-west district (namely 51% of existing supplies in north-east district and 49% in south-west district).”

Citing the National Property Information Centre, existing supply of landed residential was 141,599 units of which 104,804 units (74%) are in Seberang Perai and 36,795 units (26%) in Penang Island.

“Scarcity of land in Penang has driven up land cost and snowballing into the hike of prices for newly launched projects. As a result, sales in the primary market showed signs of slowing down compared to 2013.

“In the secondary market, prices have generally remained stable or increased slightly from last year, backed by the fixed land supply.”

Although more attractive and relatively affordable condominiums are being launched in the market, landed residential properties remained the preferred choice of accommodation for Penang residents, WTW says.

“The prices of newly-launched houses continue rising unabated to new benchmark levels. Older residential units in established and growing neighbourhoods such as Greenlane remained highly sought-after despite higher asking prices.

“The steep hike in prices is expected to taper off in the near future with more choices of new housing accommodation entering the market.”

Existing supply of high rise residential in Penang State, meanwhile, according to WTW, is about 46,000 units with a majority of the units located within the North-east District (67.6%).

“Several newly completed projects in 2014 include One Tanjung, Summerton, Light Collection II, The Peak, Maritime Suites, Golden

Triangle, Elite Avenue and Elite Heights. New launches in 2014 have been less compared to previous year.

“The condominium market in Penang continued to be the most active property sector in Penang with a large number of projects launched and under construction. However, due to the various cooling measures implemented, challenging economic outlook and weakening sentiment, most of the surveyed newly launched projects received slackening response compared to previous years.”

With more choices of new housing accommodation entering the market, the steep hike in prices over the last few years, has tapered off, says WTW.

“Yields have been compressed as increase in rentals have been much slower than capital prices.”

Source: TheStar.com.my

A project previously known as The Presidence at Jalan Baru. Picture is for illustration only.

Property developer Hua Yang Bhd is proposing a mixed development with an estimated gross development value (GDV) of RM311 million in Seberang Prai, Penang, which will comprise 480 units of serviced apartments, 148 units of condominium, and 16 units of two-storey shops (previously known as The Presidence along Jalan Baru).

In a filing with Bursa Malaysia today, it was revealed that the plan will first involve Hua Yang acquiring G Land Development Sdn Bhd, a company based in Bukit Mertajam, Penang, for RM16.55 million.

On completion of the acquisition, G Land, as a wholly-owned unit of Hua Yang, will then acquire from GIM Standard Development Sdn Bhd, also based in Penang, six parcels of freehold land measuring 8.59 acres for RM25 million, cash. The net book value of the land is RM7.98 million.

The directors of GIM Standard are Khor Chong Hai, Khor Chong Guan and Ng Siew Hui. The land parcels, located 3km from the Penang bridge, will be developed into the proposed mixed development.

The purchase price for the tracts was arrived at on a willing buyer willing seller basis, after considering the development potential of the parcels and comparing the properties with the market value of matured properties around the area, said Hua Yang. No formal valuation was commissioned.

To effect the first acquisition, Hua Yang has entered into a conditional shares sales agreement with Phuah Cheng Peng and Ng Kok Kheng today to acquire the entire stake in G Land.

Hua Yang said it is still preliminary to ascertain the total development cost of the mixed project, the expected commencement date of the development, and the expected profits to be derived from the development of the property.

But it noted that the development cost of the property will be funded by internally generated funds.

It added that the acquisitions are in line with the Hua Yang Group’s objective to expand into mainland Penang, and is expected to contribute positively to its future earnings.

Its board expects the proposed acquisition to be completed by the fourth quarter of the financial year ending March 31, 2016.

Hua Yang shares closed down 2 sen or 1.04% today at RM1.91, with a market capitalisation of RM504.24 million.

Source: TheEdgeMarkets.com

The Penang government has relaxed the ownership eligibility for affordable housing in the state.

State Housing Committee chairman Jagdeep Singh said 30% of the units in an all-affordable housing project can be purchased on the open market without government vetting.

He however said these units were priced 10% higher while those located in the Northeast District (where George Town is) will be 20% more.

He said the monies derived from such sales will be returned to the state “in kind” through housing units of the project to be sold to those eligible or via a rent-to-own scheme.

He noted that the state was engaged in constructing two all-affordable housing projects while the private sector had nine such projects currently with 8,375 units on offer.

“All these developments will enjoy the loosening of requirements to ensure such projects are implemented without delay,” he said in a press conference today.

Price-controlled housing options in Penang comprise low-cost units at RM42,000, low-medium cost units at RM72,500 and RM150,000.

Affordable housing units are priced at RM200,000, RM300,000 and RM400,000 and come with a minimum size and amenities requirement.

On another housing issue, Jagdeep said the 4,178 civil servants in Penang will be given priority for affordable housing units.

He said the administration made the decision as there was no information regarding the status of 1Malaysia Housing Projects (PR1MA) and 1Malaysia Civil Servants Housing (PPA1M) units in the state from the federal government.

He said the state government was not informed if any such projects were to be built in Penang adding a letter seeking information from the Urban Well-being, Housing and Local Government Ministry was sent on Nov 23.

Source: TheSunDaily.my

Residents who are fed up with traffic congestion on the island want the proposed Bayan Lepas Light Rail Transit (LRT) and the Pan Island Link (PIL) highway to be implemented as soon as possible to ease the daily gridlock.

Those living in high-density and lower-income areas in Jelutong, Gelugor, Bayan Lepas and Permatang Damar Laut say that the situation has gotten really bad in the last five years, and worse after the Second Penang Bridge was opened last year.

“We have no alternative public transport during morning and evening peak hours, and the buses are irregular. We have no choice but to drive our vehicles, but the roads are so congested between 7am-9am and 4.30pm-7.30pm on weekdays,” said fisherman Azhar bin Yusof, 54.

“We don’t know where and who to channel our frustration. We really want the authorities to look into this,” said Azhar who is on the committee of the Kampung Tepi Laut fishermen’s association in the Permatang Damar Laut area.

He said the residents were hopeful that work could start soon on the LRT and PIL, the first components of the Penang Transport Master Plan (PTMP).

Ung Looi Hoon, 44, who operates a stationery shop in the Macallum Street area, said: “I have been living here all my life and have been running my own business here for the last 25 years. The traffic has gone from bad to worse over time.

“If a new public transport plan is introduced, I will of course support it. Knowing that traffic will be worse during construction period, I will still support it because it will only be good for us in the future,” he added.

SRS Consortium which is the Project Delivery Partner of the PTMP, together with the state government, gave a media briefing last Friday on the proposed corridors of the LRT and the PIL highway, and the means for its funding. Comments and feedback from Penangites on the project, especially from the low-income areas, have been supportive.

SRS Consortium project director Szeto Wai Loong said that once the relevant approvals were in place, construction of the proposed 20km Bayan Lepas LRT would be able to kick off in 2018, while work on the 20km PIL highway would begin in 2017.

Both projects will take six years to complete. The Bayan Lepas LRT will form the future rail backbone of Penang’s public transport system.

It will provide an alternative form of public transport for Penangites at key commercial and employment hubs, including George Town, the Sungai Nibong bus terminal, Uni­ver­siti Sains Malaysia, Penang International Airport and the Bayan Lepas Free Industrial Zone.

It will also serve the transport needs of high-density low-income areas such as Jelutong, Gelugor and Bayan Lepas.

“The proposed LRT will cater for a targeted ridership of 500,000 out of the 750,000 population of Penang island,” said Szeto.

“It will cater for peak-hour transport demand and help reduce congestion on the Tun Dr Lim Chong Eu Expressway,” he said, adding that the LRT service would be complemented by a comprehensive feeder bus system at each station to significantly improve connectivity.

With the proposed plan, Penangites will be able to enjoy the convenience of the PIL highway which can reduce journey time from the Second Penang Bridge to Gurney Drive to only 15 minutes, instead of the usual 45 minutes via the Tun Dr Lim Chong Eu Expressway.

“I hope the authorities will look into our plight of having to face daily congestion which sometimes takes hours from end-to-end. And we have been enduring this situation for years,” said Azhar.

Source: TheStar.com.my