Aerial view of Tanjung Bungah

Residents of Tanjung Bungah are concerned over a proposed high-density development, which is expected to cause traffic congestion in the area.

Desa Embun Emas (DEE) Apartments Council chairman George Lee said residents foresaw an additional 2,000 cars in the vicinity based on an estimation of two cars for each household.

“We are not against development but are merely concerned over the immense density of the proposed project. Such a project must be carried out responsibly.

“If the project is approved, surely, the existing roads will be barely adequate to cater to the increased number of vehicles belonging to the units.

“We hope the Penang Island City Council and state government will abide by the Penang State Structural Plan 2007, which states that there should not be more than 15 units per acre (0.40ha) within the Tanjung Bungah area,” he said during a press conference at the apartments community hall on Saturday.

Lee said at least two new roads leading to the main Tanjung Bungah road must be built before the actual construction of the proposed project.

He said that there should also be adequate buffer zone, at least 30m from the property of the affected residents, as well as a green lung and parks.

DEE council member Susan Siew said the residents just wanted their issues and concerns to be addressed before any approval is given to the proposed pro-ject.

“We want to know what is the state government’s policy on density and height of buildings in Tanjung Bungah and Penang island,” she said.

Tanjung Bungah assemblyman Teh Yee Cheu, who was also present, said he strongly opposed to the ‘height’ and density of the project.

“The residents here must let their voices be heard,” he said.

Source: StarProperty.my

Dream come true: All the first-time home owners posing for a group photo after casting their ballots at Wisma Penang Garden.

Some 50 first-time unit buyers went one step closer to their dream of home ownership at the M Summit Group’s Taman Ria and Ramah Pavilion balloting session in Penang.

At the event held at the group’s office in Wisma Penang Garden recently, the buyers for the projects in Teluk Kumbar came as early as 8.30am to cast bal-lots.

Taman Ria offers 17 storeys of 150 low-cost (LC) and 150 low medium-cost (LMC) flats while Ramah Pavilion is a two-tower apartment project consisting of 759 units in the Andira Tower and Barbarea Tower which are 39 and 36 stories respectively.

Network analyst P. Pathmase-karan, 33, was happy to finally obtain a RM79,000 LMC unit in Taman Ria.

“It is about time. I’ve waited for this for five years.

“I have my mum to thank as she was constantly running to the Penang Island City Council office to help me get my unit,” he said.

Father of three Tan Kok Tong, 39, waited for seven years to own a home.

He was relieved to finally obtain a Taman Ria LMC flat for his family.

“Previously, my family and I were staying with my parents in a rented house in Teluk Kumbar. Now, my children can have their own rooms,” he said.

M Summit Group managing director Datuk Albert Moh said 30% to 40% of units in Taman Ria had been taken up while Ramah Pavilion recorded a 30% take-up rate.

“Another 20% of applications for the Ramah Pavilion project is pending state approval.

“Piling work for the project will go into full swing soon.

“We have also started construction of the reinforced concrete bridge which will be the main access to the Ramah Pavilion project,” he said.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, who was also present at the balloting, said there had been an increase in people applying for affordable housing since November last year.

“In a mere 130 days, we have seen an increase of 28% in applicants for the RM200,000 affordable housing units.

“As for the RM300,000 units, we have seen a 61% increase in applications and there is a 42.5% increase for flats costing RM400,000.”

Source: StarProperty.my

by Charles Tan

When we look at the Penang’s market, we can see the real demand versus supply in real action. The reason I say so is because despite the property transactions declining, the prices of landed properties, especially within the island and especially only in that few hotspots continue to rise. Datuk Jerry Chan, the Real Estate and Housing Developers Association (Penang) said that prices of landed residential properties is rising and there are no signs of distress buyers yet. Land scarcity remains an issue and land prices are moving faster than property prices. Due to this, one can choose to pay EVER HIGHER for prime locations or move away.

Where are some of the ever higher places? According to CH Williams Talhar & Wong’s (WTW) in its 2015 Property Market report, prices of newly launched, landed residential properties in Penang continues to set new benchmark. Older residential units in established neighbourhoods such as Greenland is still very sought after despite the very high asking price. While he did not say but let me say that these more traditionally Penang areas are loved very much by Penangites. It is not necessarily the top choice for the migrants from other states who are working in Penang. For now, majority of landed residential properties are focussed in Seberang Perai due to the much lower land cost in comparison. According to National Property Information Centre, there are only a total of 36,795 units of landed residential in Penang. This simply meant if you own a landed property today, you will do just fine when you need to retire!

From all these reports, one thing is for sure. In Penang, island side remains a great prospect. Within the island, the landed property is even more valuable. If that location is an established one, then that property has now become a hot asset. The simple conclusion for those who just cannot accept high-rise developments and must stay in landed property in an established neighbourhood within Penang island? Be prepared, with lots of money. Happy buying or keeping one today.

>> This opinion article comes courtesy of my friend, Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 12 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)

E&O’s latest executive apartment, The Tamarind, continues to hog the limelight as the most popular project of the month. An increased of 20% in page views compared to the previous month. However, it is likely to trend downward going forward as the remaining units are slowly being snatched up by home buyers and investors.

1. The Tamarind
2. One Foresta
3. Ramah Pavilion
4. Chelliah Park City
5. TRI Pinnacle
6. The Signature
7. i-Santorini Affordable
8. The Starhill Garden
9. Setia Sky Vista
10. Zoo Road Condo

Half of the top ten list are dominated by affordable housing projects with One Foresta being the most popular one. This project is gaining a lot of traction lately because of their active marketing activities and the balloting of unit has also started. The announcement of the new Shih Chung primary school which is located just right next to One Foresta has also attracted further interest in this project.

To know more about the current and upcoming affordable housing projects and location, below is the page that you should not missed out:

Affordable Housing Projects & Location

Just in case you are interested to know, the affordable housing project page has been viewed more than 43,000 times last month.

Despite various real estate professional and government bodies has reported slow down in property market, Penang’s property buying sentiments continue showing a persistent uptrend since January this year. Below are the total monthly visits recorded at PenangPropertyTalk.com for the past 3 months.

Visits = The total number of times this website is visited each month.
On average, there are around 2-3 page views per visit

>> PREVIOUS MONTH: 10 Most Popular Projects in February 2015

The housing industry remains uncertain on how to implement the Goods and Services Tax (GST) that takes effect from today, property developers and real estate agents have said.

Malaysian Institute of Estate Agents (MIEA) president Siva Shanker said he and many other real estate agents do not know whether GST will have to be paid if someone were to buy or sell a shophouse, for example.

“If I [were] to sell a shophouse to a client and I cannot even advise him whether he’s going to be paying GST or not, what good am I as a consultant?” Siva told Malay Mail Online in a recent interview ahead of the new tax.

Siva also noted that a panel of accountants at a convention he had attended in early March said they did not know if the GST would affect a property signed for before the April 1 implementation date of the tax, if the purchase was only completed after that date.

The Real Estate and Housing Developers Association (Rehda) echoed Siva’s frustration with the ambiguity surrounding the implementation of the broad based consumption tax in the housing industry.

Rehda secretariat Karen Siow said players in the housing industry at different stages of the supply chain are still unsure what portion of the GST that they pay to the government can be claimed back.

“The industry is still facing ambiguity and uncertainty,” Siow told Malay Mail Online ahead of the tax rollout.

“[People] don’t really know what’s claimable and what’s not,” she added.

Siow said Rehda has submitted numerous proposals to the government in an attempt to clarify things, including recommendations to zero-rate houses priced below RM500,000 and to abolish stamp duty on property transactions.

“Regrettably, we have yet to receive any official reply,” she said, noting that Rehda has had discussions with the Customs Department and the Urban Wellbeing, Housing and Local Government Ministry.

Siva also complained about the government’s lack of engagement on the GST, saying the Customs Department has done little to resolve the numerous uncertainties.

“I really don’t think they did very much,” he said.

“I remember going to one seminar organised by the board of valuers where somebody from the Customs Department came and gave us a talk for an hour and a half maybe. But I remember at the end of the hour and a half being even more confused than when I first went in there. Subsequently, I think every other initiative that I’ve gone to on GST was organised by private entities or individuals,” the real estate agent added.

Rehda official Siow said Rehda estimates house prices to rise by 2.6 per cent after the GST comes into effect on April 1 at a flat rate of 6 per cent.

She noted that building material suppliers may increase prices because their cash flow is restricted, as they have to pay GST to the Customs Department at the time of supply before receiving payment from their customers.

Siow also said the GST will raise the cost of legal fees, sales and purchase agreements and bank loans, noting that such costs will eventually be borne by property buyers.

Developers will not be able to absorb these costs, she maintained, as they are already struggling with the rising costs of doing business.

Detractors argue that the GST is “regressive” and that the broad based consumption tax takes a larger percentage of income from those in the low-income groups than from high-income earners.

Economists, however, view the GST favourably, saying that it is necessary to broaden the tax base, but cautioned the government to cut wastages and leakages at the same time to improve the country’s finances.

Source: The Malay Mail Online