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)

An artist impression of The Coastal @ Southbay City

Mah Sing Group Bhd which will be launching a new project in Penang, namely The Coastal, on Oct 4 in conjunction with its 20th anniversary celebrations, is keen to expand its land bank in the northern state.

Mah Sing Properties Sdn Bhd chief operating officer (COO) Teh Heng Chong said the company is aggressively looking for land in Penang both on the island or the mainland.

He said the company needed to plan ahead but conceded getting what they wanted in the state was challenging.

“We are still looking for something sizable in Penang,” he said in a press conference yesterday.

Mah Sing reportedly has a land bank totaling 1,574.2ha with a potential gross development value (GDV) and unbilled sales of RM66billion.

Earlier, Teh had given a media preview of their latest project in Batu Maung here known as “The Coastal”.

He said the mixed development would have residential, commercial and retail components in two towers.

The RM275 million GDV project comprised a 31-storey residential tower with 100 units and the 25-storey professional tower having 156 units. The development is expected to be completed by 2018 while the professional units would be launched this Saturday (Oct 4).

He expressed his confidence the project would do well since their market research showed demand for smaller units with unit sizes starting at 53 sq metres.

“Prices begin from RM581,800 onward,” he said adding the professional units were suitable for small offices and entrepreneurs.

Source: The Sun Daily

Malaysian Resources Corporation Bhd (MRCB) has received the nod from the Penang authorities to proceed with construction of the much-awaited transport terminal in the Penang Sentral project.

The RM230 million terminal forms the first phase of the RM2.3 billion integrated Penang Sentral project in Butterworth and is targeted for completion by the end of 2017.

The terminal will be sited on 2.83ha and will connect Penang’s ferry, bus, rail and taxi services, with infrastructure also in place for any other potential public transport service.

“MRCB obtained the development order and building plan approval last month,” said a source, adding that test piling works are being carried out at the project site.

It is learnt that a new temporary bus terminal will be ready by the end of next month to replace the existing one, which will be demolished to facilitate construction work.

Penang Sentral, launched in 2007, is designed to be a mixed-use commercial development and the largest integrated transport hub in the northern region.

It is being developed by MRCB arm Penang Sentral Sdn Bhd.

Subsequent phases will include residential and commercial units, including a hotel and shopping mall.

The terminal is expected to accommodate 180,000 commuters daily, although the first two years of its opening will likely only see about 80,000 commuters a day.

“MRCB will ensure that the transport terminal is completed before it proceeds with its commercial activities,” added the source.

Source: New Straits Times Online