The Miller, an upcoming light industrial park by Island Landcap Development Sdn. Bhd. at Bukit Minyak. Strategically located next to Jalan Permatang Tinggi, with easy access to the neighboring industrial area. This is development comprises 28 units of 3-storey semi-detached  and 9 units of detached factories.

Property Project : The Miller
Location : Bukit Minyak, Penang
Property Type : SME factory
Total Units: 28 (semi-detached), 9 (detached)
Tenure : Freehold
Developer : Island Landcap Development Sdn. Bhd. 

Location Map:

To be transformed: Filepic of the Jelutong landfill which is currently taking in only construction and demolition waste and marine clay. A new site for the disposal of the waste has been proposed.

The 21.44ha Jelutong landfill, which has been in operation for the last 20 years, will be rehabilitated by the state to make the land suitable for mixed integrated development.

The Penang government has called for request for proposal for the safe rehabilitation and development of the Jelutong dumpsite and proposal for a new site for the landfill, which is currently taking in only construction and demolition (C & D) waste and marine clay.

Domestic waste is still being sent to Pulau Burung on the mainland.

The closing date for the RFP is Sept 14.

State Local Government, Traffic Management and Flood Mitigation Project Committee chairman Chow Kon Yeow said that the successful bidder would be required to undertake an action plan to resolve dumpsite peat fires as well as to undertake rehabilitation/remediation work to make the landfill suitable for development.

“The bidder is also required to propose and procure new sites, which should be on the island, for the disposal of C & D waste and marine clay,” said Chow at a press conference in Komtar yesterday.

He said a mixed integrated development on the site would only be allowed after the completion of the rehabilitation process and the dumpsite is deemed fit.

He said the Penang Develop-ment Corporation (PDC), which undertook a two-year study to determine if the place could be developed, has received positive feedback from the consultants.

“But any successful bidder will have to conduct a more in-depth study including coming out with a comprehensive geo-technical report,” he added.

Chow also said the proposed development must take into consideration a proposed project nearby and the existing road network around the site and the master plan must incorporate a tentative connectivity to both.

The present market value of the site is RM500 per sq ft (0.09m), which puts the land price at more than RM107mil.

On the proposal for a new site, Chow said it would only be for the disposal of C & D waste and marine clay and it would have to be approved by the Penang Municipal Council.

He said the new place should have a minimum life cycle of 20 years, a 150m buffer zone from residential areas and must not go through housing schemes or villages.

“The company which gets the tender must surrender the new dumpsite to the state free of charge, as in exchange, it gets to rehabilitate and develop the Jelutong landfill.

“The new dumpsite need not be the same size as the present landfill, as it is only for C & D waste,” he said.

Interested bidders are required to propose the project schedule for the whole development to the state government for consideration. The schedule should not exceed more than 15 years.

Tenders will be open from March 12 to Sept 14, and bidders can submit their proposal to PDC at Bangunan Tun Dr Lim Chong Eu, No 1, Pesiaran Mahsuri, Bandar Bayan Baru, 11909 Bayan Lepas, Penang.

Source: StarProperty.my

Middleton, strategically located along Changkat Minden Jalan 1 in the established township of Minden Heights, Penang. This is a low density high-rise development by BSG Property, comprises 2 blocks of 26-storey skyscrapers with 220 residential units. Only 5 units per floor with built-up size ranging from 1,400 sq.ft. onwards.

Property Project : Middleton
Location : Minden Heights, Gelugor, Penang
Property Type : Condominium
Tenure : Freehold
Built-up Area: 1,400 sq.ft.
Total Units: 220
Developer : BSG Property

Location Map:

Datuk Lim Hock San

The introduction of the 6% Goods and Services Tax (GST) in April will be the biggest agenda for the property market this year and will pose a challenge for property developers.

“The implementation of GST come April 1 will present a challenge in terms of inflation, but it’s just a matter of adjusting and doing right by the market. For example, while residential properties will be exempted from GST, it does not mean that the cost of supplying these properties, namely constructing, developing and selling, will be free from GST as developers will still have to pay this tax on nearly all areas involved, especially materials, to construct a home,” said Trinity Group Sdn Bhd managing director Datuk Neoh Soo Keat.

Property prices are expected to rise due to cost-push inflation factors such as shortage of workers following more construction projects and infrastructure works that are currently ongoing, while cost of construction materials may rise after the implementation of GST.

“Once GST has been implemented, cost of doing business will increase for property developers. Property players will have to brace themselves for greater competition in terms of product offerings and pricing, targeting buyers and financing facilities. This will lead to property developers putting in more investments into product development and marketing innovation to stay ahead of the competition.

“Developers should not raise their property prices arbitrarily for fear of pricing themselves out of the competition,” he told SunBiz.

LBS Bina Group Bhd managing director Datuk Seri Lim Hock San concurs, adding that the implementation of GST has created an uncertain sentiment in the property market.

“There are bound to be some buyers who will wait on the sidelines pending the implementation of GST. However, we remain optimistic about the Malaysian property sector this year, with more transactions expected in the affordable housing segment following the incentives announced in Budget 2015,” he told SunBiz.

“We foresee overall steady demand for mass market properties in 2015, mainly for mid-range properties ranging below RM500,000, driven by increased demand from first-time home buyers, upgraders, new household formation and various government incentives to spur home ownership,” he said.

On the buyer’s side, Neoh foresees home buyers and investors trying to complete transactions before April 1, with most property buyers opting for second-hand properties until the full impact of the GST is known.

However, commercial properties may experience a slow down as incomplete properties will also be taxed.

“We envisage that the third quarter of the year will pick up due to price adjustment and public acceptance of GST.

Projects with strategic location and easy access to public transport and major highways coupled with good facilities and amenities will still be the preferred choice.

“We anticipate that the delivery system and pending approvals from authorities will improve in various areas in order to cut down on holding cost of developers,” he said.

Despite the anticipated challenges, Trinity Group still foresees a positive year for the group with the various launches in its pipeline.

“We just celebrated our 10th anniversary and we will be launching two new properties this year, in Sg. Besi (March) and Mont Kiara (July),” said Neoh, adding that the group aims to expand its presence further both in the domestic and international markets.

“We are partnering with Sunway Group, Oxley Holdings and Macau Glory for a big scale project in Xuan Cheng, China; we will develop a few parcels of residential projects under the big umbrella project.

“We’ve also purchased parcels of land on Bukit Antarabangsa and near Matrade area where we will be developing residential and integrated developments. Similar to all our award winning projects in the past, these two projects will also host a range of innovative designs that will set it apart from other projects in the area,” he said.

Neoh said the group’s key goal this year is to expand its business presence by moving closer to the city centre and forming joint ventures on big projects with reputable companies, similar to what it is doing in China.

“We already have our eyes set on a few things, which will be announced once everything is confirmed. We will continue to expand our landbank by leveraging on the current market situation whereby land would be available at a relatively cheaper price,” he added.

Meanwhile, it is business as usual for LBS Bina whose pipeline of launches this year comprise mostly of properties below the RM500,000 mark.

“In view of the market sentiment, about 60% to 70% of our planned launches for this year are priced below RM500,000. Homebuyers can also expect more diverse offerings from us in key areas such as the Klang Valley, Cameron Highlands, Johor and Pahang,” said Lim.

He said some of the projects it will be busy with this year include Bandar Saujana Putra, Cameron Centrum, Bandar Putera Indah and Sinaran Mahkota.

Source: TheSunDaily.my

The Malaysian Institute of Estate Agents (MIEA) wants the Royal Malaysian Customs Department to clarify Goods and Services Tax (GST) requirements and issues within the secondary property market and how it will affect the investment community.

“Members have been complaining to us that nobody seems to know very much about GST. It is a situation where it is neither here nor there. There’s been some focus on developers and how it affects properties. There’s a lot of news reports where Real Estate & Housing Developers’ Association Malaysia (Rehda) and other developers have said that property prices are expected to go up 3% to 4% in the grand scheme of things once GST is imposed. But nobody has done any analysis or survey on how property prices are going to be affected in the secondary market,” MIEA president Siva Shanker told reporters at a press briefing yesterday.

“We’re talking about how it is going to affect secondary properties, how is it going to affect the individual owner who only has one shoplot, one office lot or one factory to sell. If you are not a property player and you don’t own multiple properties, you’re probably not equipped to answer any of these questions. How do you pay, how much do you pay, when do you pay, who do you pay to, at which point do you pay? There are so many questions and nobody has answers,” he added.

KP Bose Sdn Bhd tax consultant KP Bose Dasan, who was at the briefing organised by MIEA, said the guidelines from customs has not taken into account the investment community and does not provide a clear guideline for them.

“If I own a shoplot worth RM2 million, should I register? I’m renting it out now for RM100,000 per year, am I subject to GST? No, because the rent does not reach threshold of RM500,000 per year. If want to sell it? Do I collect GST from the buyer if the selling price is more than RM500,000?” he questioned.

Bose said all countries that have implemented GST have made it very clear, with four elements that have to be met before one is subjected to GST namely, the goods or service has to be a taxable supply, it must be made in the country, it must be in the course of business and the business or owner must be registered for GST in order to collect GST.

“We should have a clear idea from customs, whether as an investor owning a commercial property that’s worth more than RM500,000, do I have to register and at which point do I register? When I sell my property? When my property rental exceeds RM500,000? Or now that I have held it as an investment, it is not a business asset so when I sell it, it is a capital disposal and not subject to GST. All countries have worked on this idea. We need a clear guideline,” he added.

Bose said a lot of sales have been aborted because buyers are holding back while investors are unsure on whether to collect GST or not. He said Customs should clarify this to avoid damaging the property market.

“The government wants the revenue, so they should make it easy to follow. GST should be straight forward. What we want is a guideline for the secondary market. For developers and contractors there are no problems, it is all clear,” he added.

Siva said to date, Customs have had sessions with property developers but have not engaged MIEA. He said the issues have to be clarified before April 1 as it is affecting the market.

Source: TheSunDaily.my