A proposed mixed residential development by Palmex Industries Sdn. Bhd. (a subsidiary of IOI Properties) in Sungai Ara, Penang. Located along Changkat Sungai Ara 2/A (map shows approximate location), just a stone’s throw away from Setia Pinnacle by SP Setia. This development comprises the following components:
3-storey bungalow (1 unit)
3-storey semi-detached (6 units)
32-storey luxury condominium (198 units)
The condominium will consists of a 5-level multi-story car park with recreational area and facilities located at level 1, 6 & 32.
This project is still pending for approval. Details to be available upon project launch.
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Property Project : (to be confirmed) Location : Sungai Ara, Penang Property Type : Landed and condominium Tenure : Freehold Indicative Price: (to be confirmed) Total Units : 1 (bungalow), 6 (semi-detached), 198 (condo) Developer : Palmex Industries Sdn. Bhd.
There are 47 residential projects in Penang with a gross development value of over RM10bil still waiting for the advertising permit and developer licence (APDL) to be released by the Urban Wellbeing, Housing, and Local Government Ministry.
Penang Master Builders & Materials Dealers Association (PMBBMDA) president Datuk Lim Kai Seng said that without the APDL, the developers could not advertise and sell their units.
“If they can’t sell yet, the developers will delay starting construction work, impacting the construction industry.
“In fact since the delay in APDL’s issuance to developers started a year ago, the building and material supply industry has been affected,” he said during the recent PMBBMDA 138th anniversary celebration.
The celebration was launched by state Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow.
Kai Seng said that usually the APDL would be issued within a month after the application.
“Since last year, developers have been waiting several months for it.
“Early this year, there were 87 residential projects in Penang without the APDL.
“Now the number has gone down to 47,” he said.
The PMBBMDA also seeks from the state government job opportunities to be generated by the implementation of the Penang Transport Master Plan.
“In view of the numerous mega projects coming up over the next few years in Penang, we are appealing to Chief Minister Lim Guan Eng to consider allocating certain jobs for local contractors and building materials suppliers.
“We assure him that our members have the necessary contractors and expertise to undertake some of the mega project contracts,” Kai Seng said.
He added that Bank Negara should relax the current stringent loan policy for first-time home buyers.
“Bank Negara should consider allowing banks to provide 100% financing for first-time buyers of affordable homes,” Kai Seng said.
He added that in early 2016, the Penang Island City Council and the Seberang Prai Municipal Council would use the WhatsApp Messenger for monitoring projects through mobile phones.
“This application will enable the council to monitor our construction works more efficiently through photos or videos taken on site.”
Kai Seng also said the Federal Government would adopt the Quality Assessment System in Construction or QLASSIC to measure the quality of workmanship in the construction industry in 2018.
“The QLASSIC is one of the initiatives under the Construction Industry Transformation Programme to improve the construction industry by 2020.
“It’s a method to evaluate the quality of workmanship in construction work,” he said.
Quick chat: (From right) Jagdeep, investPenang general manager Loo Lee Lian, exco member Phee Boon Poh, Penang Chinese Chamber of Commerce vice-president Datuk Finn Choong and Rehda Penang deputy chairman Datuk Toh Chin Leong sharing a light moment after the press conference.
The Penang government has finalised the application procedure and criteria for employees with talent and skills in Penang to own affordable housing units in the state.
State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said investPenang proposed that the Selection Process Enhance-ment Committee waive the requirement that employees from other states had to have a minimum of five years’ working experience in Penang to qualify for affordable housing.
“The committee has agreed to this as long as the other criteria are met.
“Successful applicants must, however, undertake to work in Penang for a minimum of five years from the date of the handover of keys to their housing unit,” Jagdeep Singh told a press conference at his office in Komtar on Tuesday.
An eligible applicant must also be a registered voter in Penang.
“The applicants must be Malaysians, have not owned any house before and have a maximum household income of not more than RM10,000 per month,” he said.
He said the talent and skills category was launched on Monday after the criteria and application procedure were finalised.
investPenang general manager Loo Lee Lian said applicants for this category must be a degree or diploma holder from a government-recognised institute of higher learning.
They must also have at least two years of working experience, and be employed by companies registered and operating in Penang.
Several representatives from Real Estate & Housing Developers’ Association Penang, Penang Chinese Chamber of Commerce, Penang Indian Chamber of Commerce, Federation of Malaysian Manufacturers Penang branch and others were present at the press conference.
For details, call investPenang at 04-6468833 or state Housing Department at 04-6505241.
They must meet the affordability criteria to avoid debt burden
First-time home buyers should ensure they meet the affordability criteria before buying a home to avoid taking on a debt burden they cannot handle.
Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said banks had provided individuals “many flexible ways” for them to meet the affordability requirements.
“They must, and if they can, demonstrate even if they are sole proprietors and they are not employed in any organisation or corporation that they can prove that they have met the affordability criteria in many different ways. Banks have given that flexibility.
“It’s worse when somebody buys a house and in the end, he or she is not able to have the basic needs because of the debt burden they have taken on,” she said on the sidelines of the Malaysia-OECD High-Level Global Symposium.
She added that it was worse if the first-time home buyer was not able to service the loan in the end. “The house will be repossessed and they can end up in bankruptcy. We certainly don’t want that to happen,” she said.
There have been increasing calls for the central bank to ease the stringent lending policy, especially for first-time home buyers. This is in efforts to reduce the rising number of unsold properties in Malaysia.
National House Buyers Association honorary secretary-general Chang Kim Loong had earlier told StarBiz that Bank Negara could allow a directive for banks to provide 100% financing for first-time house buyers, subject to conditions.
At the moment, property financing for first-time home buyers was based on a case-to-case basis.
However, Zeti said that Bank Negara had always had more flexible policies for first-time home buyers. “What we want is to ensure that the measures we have taken is that houses remain affordable for such first-time home buyers. Therefore, the loan-to-value ratio for first-time home buyers is different,” she said.
Meanwhile, she also said the redemption by foreign investors of maturing Malaysian Government Securities would not impact the country’s foreign reserves.
“No, it won’t impact our foreign reserves because the bonds are ringgit-denominated instruments,” she said.
Malaysia’s domestic institutional investors would support the bond market if there should be a sell-off by foreign investors, she added.
Market talk is that foreign investors might decide not to reinvest, following the expiry of some RM11bil worth of the Government bonds.
“We have our own domestic institutional investors like the Employees Provident Fund, Permodalan Nasional Bhd and Lembaga Tabung Haji. Also, the insurance industry is a major player in the bond market. So, our own institutional investors will step in to purchase these bonds.
“So, we don’t expect any collapse in our bond market,” Zeti said.
She added that the country’s financial system was able to intermediate inflows and outflows very well.
The outflows during the global financial crisis in 2008 and 2009 were much more significant, and Malaysia was able to intermediate those flows, she said.
Property developer Eco World Development Group Bhd is seeking shareholders’ approval for its multi-million ringgit mixed project in Penang.
The company issued a circular to Bursa Malaysia detailing two land parcels totalling 449.64 acres in Batu Kawan, which it is acquiring and plans to develop for a total consideration of RM796.27mil.
To recap, Eco World had in April received a letter of award from Penang Development Corp (PDC) to undertake the projects.
The projects comprise a 299.64-acre leasehold development – Eco Marina – which it is acquiring and developing into a mixed development of RM730.93mil, as well as the leasing of a 150-acre parcel as an international standard golf course with a minimum of 18 holes and a club house, for a 30-year period with an option to renew for a further 30 years for RM65.34mil.
This brings the total consideration for both sites to RM796.27mil.
Eco World said the total consideration for the 299.64 acres and 150 acres took into consideration the development potential and prospects of the land parcels in view of their strategic location being close to the Second Penang Bridge.
It added that both lease and purchase consideration were derived based on RM56 per sq ft (psf) and RM10 psf, respectively, based on the estimated land area of both parcels.
“There is also the potential gross development value of about RM10bil to be generated from the proposed Eco Marina Development based on management’s estimates.
“This is seconded by the market value of properties surrounding the land parcels from the sale of similar properties that were transacted recently as well as the asking prices of similar properties in the neighbourhood,” Eco World said.
Although the development parcel and the lease parcel were to be purchased and leased separately, both land parcels were to be viewed as one single parcel as both developments were “complementary to one another and inter-linked”.
Meanwhile, the company said it was in the midst of preparing the masterplan and layout plan for the land parcels for submission to the relevant authorities.
The immediate neighbourhood of the land parcels comprised the ongoing developments of the Batu Kawan Industrial Park on the south side of the road leading into the Second Penang Bridge, the residential Crescentia Park development as well as the Stadium Batu Kawan.
Nearby commercial developments include the Ikea store and shopping mall, Penang Designer Village and KDU University College campus, all of which are located within Batu Kawan.
The Eco Marina project has been targeted for a first-half 2016 launch and development will be carried out over the next 10 years.
The project will strengthen the developer’s presence in Penang since opening its first sales gallery in Macalister Road last year.
While expecting the remainder of the year to be challenging, the company’s board is confident of achieving its sales target of RM3bil for the current financial year as there would still be “demand for good quality products in the right location”.
The company said it would continue to invest in innovative campaigns to further raise EcoWorld’s brand profile and actively promote its 10 ongoing projects.
Shares of Eco World fell 1 sen to RM1.39 yesterday, settling at a midway point from a recent low of RM1.20 on Aug 28 and RM1.60 in mid-September.
There are 47 residential projects in Penang with a gross development value of over RM10bil still waiting for the advertising permit and developer licence (APDL) to be released by the Urban Wellbeing, Housing, and Local Government Ministry.
They must meet the affordability criteria to avoid debt burden
