Trehaus, a countryside luxury development at Bukit Jambul Indah by IJM Land, comprises limited units of Condo Villas and Semi-Detached Villas.  Perched on elevated ground and embraced by lush greenery, from the Tréhaus you can indulge in the exclusive feeling of having the world literally at your feet.

Property Project : Trehaus
Location : Bukit Jambul, Penang
Property Type : Condominium & Semi-Detached Villas
Total Units : 46 (Condo), 26 (Semi-Detached)
Indicative Price: RM1,400,000 onward
Developer : IJM Land

* This project was first posted in July 2012 *

Location Map:

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The Goods and Services Tax (GST) will only have an impact of between 0.5% and 2% on housing prices, assuming there is no change in supply and demand conditions, according to Customs Department GST director Datuk Subromaniam Tholasy.

Subromaniam said the worry that the GST would result in drastically higher property prices was unfounded.

“Assuming there is no change in market supply and demand, then the net impact is only between 0.5% and 2%. Developers’ margins are around 30% and this increase can be easily absorbed by them,” he told StarBiz in a recent interview.

Subromaniam said for housing, the biggest expense was due to land cost, which does not incur a 6% GST rate.

Currently, input materials have a 5% and 10% tax rate under the Sales and Service Tax (SST), such as floor tiles, pipes, fittings and paint.

“Even paint now has a 10% sales tax. But bear in mind, it’s not 10%. It’s 17% to 18% because of the cascading effect of the SST,” he explained, adding that the cascading effect referred to the hidden costs accrued down the supply chain.

He said once the GST came into effect, there would strictly be a 6% tax rate on such materials, resulting in some savings.

Subromaniam said what would be newly taxed under the GST would be materials such as cement, bricks and steel, as well as construction work by contractors.

He said that foreign labour, interest costs, government fees and staff salaries were zero-rated, meaning a 0% GST rate.

He said architectural, legal and professional services would remain status quo at 6%.

As for the 6% tax on the construction work by the contractors, Subromaniam said it would depend on whether developers outscourced the work.

“If the developer does it, then it does not incur any GST,” he said.

There are three types of tax categories under the GST – standard-rated, zero-rated and exempted.

Consumers only pay the 6% tax for the standard-rated category, while retailers, wholesalers and manufacturers are allowed to claim the GST incurred.

For the zero-rated category, retailers, wholesalers and manufacturers can recover their costs, but the consumer is taxed a 0% rate.

However, retailers are not allowed to claim back the GST incurred under the exempted category, while no GST will be imposed on the consumer.

Source: StarProperty.my

by Ken Lim

Interested know more about what is actually happening on the ground in Penang’s property market?

This webinar will covers the market analysis of the Penang residential housing sector and provide the insights about trends, price movement, demand and supply. It is based on the engagement in PenangPropertyTalk.com and the reports from NAPIC (National Property Information Centre).

During the webinar, you will learn about the overview of the Penang residential market trends, some of the top developments and hotspots.

Market Summary

• Overall property price stable quarter on quarter
• Value / Translation continues to be in the uptrends
• Consistent market growth in mainland
• 24,000 new condo supply in the Island by 2018.
• Gradual new housing supply for mainland
• RM600k – RM800k sweet spot in the next 3-5 years.
• Strong growth in SPT due to its good connectivity.

>> The market analysis in this webinar is purely personal view and opinion, backed by the data from NAPIC (National Property Information Centre) and more than 100,000 monthly visits in PenangPropertyTalk.com. Should you have any question or feedback, please do not hesitate to send them to ken@penangpropertytalk.com.

– Ken Lim
(Founder and Principal Reviewer, PenangPropertyTalk.com)

Full list of Penang's affordable housing projects

Commercial banks should be roped in to help the poor obtain loans for affordable housing.

Penang Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the Federal Government should have a ‘speedy’ solution to solve the high number of loan applications which are rejected.

Commenting on Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan’s statement recently that the idea of forming a Housing Bank was mooted at the National Council on Local Government meeting chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin on Sept 18, he said it could be a ‘laborious’ process to form such a bank as it would involve a lot of legal issues.

“While we welcome such a move, there is a need for immediate solution to the high rate of loan rejection, which is more than 60% and the commercial banks could be in the best position to help,” he said.

Jagdeep said it did not make sense to build affordable houses if most of the buyers could not obtain loans from banks.

“The state government is stringent in vetting house applications as only the deserving ones are given approval.

“However, if they do not get loans it defeats the purpose of building these affordable homes,” he told a press conference.

Banks, he said, could loosen certain conditions to help approve loan applications and the Federal Government could instruct the banks to do so as it is only a policy issue which could be effected sooner compared with the setting up of a Housing Bank.

Real Estate and Housing Developer Association Penang chairman Datuk Jerry Chan, who was present, said banks need not worry that house buyers could default on their loans as the affordable housing is offered to buyers at a ‘reduced’ rate compared with the market price.

“The house will definitely appreciate over time and banks need not conduct ‘forced sale’ during auction,” he said.

Source: StarProperty.my

by Charles Tan

I was in Penang last weekend for an important lunch. As I was driving past the second bridge, I noticed that the condition was exactly the same when I drove across it last month and two months before. There were very few cars on the bridge! Ok, what’s the significance of that? These days, you often hear about people talking about the potential of Batu Kawan. Thus, you may feel that it’s time to buy something and wait, perhaps just 3 years later, you will get huge returns. Based on three key criterias, you may be right. First one is the second bridge is ready, second one is, there are already huge integrated plans and third would be top developers are buying up huge tracts of land. So, it’s just a matter of time, right?

Well, add one more sign which I think is more relevant. Number of cars using the second bridge. Seriously, if the number of cars start to increase, you can be sure that there are more economic activities. Without any significant changes in the number of cars, I think the situation is still the same. Come on, Penang island may be expensive but for those who are working in Bayan Lepas, they may still choose Teluk Kumbar or even Balik Pulau over Batu Kawan at this moment. It takes more than just prices to lure buyers. The concept has to be very attractive. The developers should have a huge following which would enable them to price at a premium and thus have the ability to build something beyond the usual.

I read in a article that instead of Gated and Guarded, the trend is now moving towards Green, Gated and Guarded. Actually, Green is not considered a new trend. Balinese concept many years ago was already GREEN. Lots of trees, plants, flowers etc. For this concept to work in Penang island, be ready to admit you cannot afford one. However, I think this is a concept which is applicable, especially in huge integrated developments. Thus, mainland Penang may be the next place to carry this out. I await the first of such launches from a reputable developer. I sort of also know which developer would fulfill that criteria first.

>> 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 11 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)