Malaysia has been voted among the top 5 best places to retire based on the Annual Global Retirement Index for 2014 by International Living.

The index was compiled using input by International Living’s team of correspondents based in various cities and countries around the world, combining real-world data about climate, healthcare, cost of living, personal safety and other factors to draw up a comprehensive list of the so-called “best-bang-for-your-buck” retirement destinations on the planet.

Malaysia was listed as one of the top five retirement destinations, just behind Ecuador, Mexico and Panama – but ahead of all the Asian retirement destinations. Other Asian nations listed in the index but much behind Malaysia were Thailand, the Philippines and Vietnam.

But International Living administers a word of caution when it tells the potential retirees to take into account that “ultimately no list or formula can automatically deliver the best destination for you. Only you can decide that.

“Only you can assess your personal preferences, needs, budget and desires, and look at the options available to see which nation best suits your needs”.

Under the caption “Malaysia – Great Value for Money in a Cultural Melting Pot”, the index explains that every year, more and more expats wake up to the amazing opportunities Malaysia has to offer.

“The country has one of the most robust economies in Asia, and this is reflected in the consistently high standard of living available to locals and expats alike. It’s just one of many factors that led to it being ranked the highest Asian nation in this year’s index,” it says.

Quality of life in Malaysia is considered to be cost-efficient as well as excellent. In typical expat locations such as Kuala Lumpur and Penang, high-quality real estate is available for rent at a low cost.

“Why buy when you can rent a 1,600-square-foot apartment with a swimming pool for just US$850 a month?” the index asks.

One can truly savour a life of luxury here (in Malaysia) on a modest budget, the authors of the index explain.

“With your money going further, you can afford to treat yourself to the stunning array of local food – which mirrors Malaysia’s diverse cultural make-up. For as little as US$5, you can enjoy an excellent meal, with a bottle of wine setting you back the same price. The street food is similarly scrumptious and one of the true charms of Malaysian cuisine.”

International Living cites the example of New Yorker Thomas O’Neal who lives in Penang.

“I rent a 1,600-square-foot apartment with an amazing pool, just five minutes’ walk from the ritzy Gurney Plaza shopping mall,” O’Neal is quoted as saying.

“It costs me just US$850 a month. I don’t need a car, either, so I’m saving money left, right, and centre. I love the weather – 82 degrees Fahrenheit on average – and the ease of getting to Thailand, Cambodia, Vietnam, and Laos. When you combine that with a cost of living of US$1,500 per month, including my rent, it’s almost unbeatable.”

Malaysia makes a “perfect base from which you can explore the innumerable natural, historical, and cultural treasures that Southeast Asia has to offer. The proliferation of cheap Asian airlines in recent years has made it easier (and more affordable) than ever to explore Thailand, Indonesia, India, and Japan. In Malaysia, Asia is truly at your doorstep”.

Direct flights to the US are also available, so getting home for the holidays needn’t be a concern. Neither is Internet access, as every year high-speed Internet makes more and more inroads into the country. It is already widely and cheaply available in popular expat destinations like Kuala Lumpur and Penang.

As a throwback to the British colonial period, English is widely spoken by locals, making it all the easier to adjust and find your way around. And places like Penang have plenty of social occasions and festivities for you to enjoy, perfect opportunities to mingle with locals and expats alike.

Tourism Malaysia can make a strong pitch for Malaysia as an attractive tourism destination, particularly for the retiree population that can become an important source of revenue and have ripple effects on other sectors of Malaysia’s economy.

North American experts feel that Malaysia would do well to launch a campaign to highlight the facilities available in Malaysia for the retiree population.

“But Tourism Malaysia needs to take advantage of the index real fast. Strike while the iron is hot,” says George Richards, a travel agent, about the index on retirement destinations.

Source: Bernama

Effective 2 Jan 2015, the Base Rate will replace the Base Lending Rate (BLR) as the main reference rate for new retail floating rate loans.

Since the introduction of the BLR framework in 1983, the BLR has served as the main reference rate on retail floating rate loans in Malaysia. Since then, the determination and implementation of the BLR has evolved with the development of the financial sector. In the recent period, however, the BLR has become less relevant as a reference rate for loan pricing, as lending rates on new retail loans are being offered at substantial discounts to the BLR. The BLR also lacks transparency, which makes it difficult for consumers to make an informed decision.

The new Reference Rate Framework aims to provide a more transparent reference rate to enable better decision by consumers in making choices among the many loan products offered by financial institutions. The new reference rate will also better reflect changes in cost arising from monetary policy and market funding conditions, while encouraging greater discipline and efficiency among financial institutions in the pricing of retail financing products.

The Base Rate will be determined by the financial institutions’ benchmark cost of funds and the Statutory Reserve Requirement (SRR). Other components of loan pricing such as borrower credit risk, liquidity risk premium, operating costs and profit margin will be reflected in a spread above the Base Rate. This increases the visibility of the factors underlying changes to the Base Rate. The greater transparency in turn will enable more informed decision making by consumers. Under this cost-plus structure, spreads will always be positive as it would not be possible for financial institutions to offer lending rates below the reference rate. Financial institutions will be given the flexibility to determine their respective benchmark rates. The expected strong link between the Base Rate, market interest rates and the Overnight Policy Rate (OPR) will facilitate more complete adjustments to retail loan repayments when market interest rates adjust to an increase or decrease in the OPR.

The Base Rate will be used for new retail floating rate loans and the refinancing of existing loans extended from 2 January 2015 onwards. After the effective date, BLR-based loans prior to 2015 will continue to be referenced against the BLR. However, when a financial institution makes any adjustments to the Base Rate, a corresponding adjustment to the BLR will also be made. As such, financial institutions would be required to display both their Base Rate and BLR at all branches and websites.

The shift to the new Reference Rate Framework should have no impact on the effective lending rates charged to retail borrowers which are determined by various factors, including a financial institution’s assessment of a borrower’s credit standing, market funding rates and competitive considerations. It is also important to note that the changes do not represent a change in the Bank’s monetary policy stance.

The following is the Base Rates and Indicative Effective Lending Rates of Financial Institutions as at 2 January 2015:
Base Rate and Indicative Effective Lending Rates as at 02/01/2015 (PDF, 29KB)

Source: Bank Negara Malaysia

The Penang property sector is expected to see some challenges going forward. Real Estate and Housing Developers’ Association (Rehda, Penang) chairman Datuk Jerry Chan expects another 30% decline in property transactions in 2015 from the 30% drop recorded in 2014.

Chan says: “We expect to see little or no appreciation for high-end condominiums going forward. The mid-range high-rise properties with price tags of RM400,000 to RM500,000 are likely to see appreciation. We also expect to see lower demand for landed residential properties priced between RM3.5mil and RM5mil.”

Another indicator of the bumpy road ahead is the high rejection rate for housing loans, which according to Rehda Penang deputy chief Datuk Toh Chin Leong is 50% for some projects. “You don’t see this three years ago, but it has been happening for the last 18 months,” Toh says.

Notwithstanding the challenges predicted by the association, there are at least 10 residential addresses in Penang where prices have appreciated substantially since 2009, unaffected by the economic uncertainties.

Raine & Horne director Michael Geh says these addresses are not in the premier category, but are sought after because of their pricing, location and facilities.

“They have benefited from the new infrastructure, malls and other amenities that have mushroomed around them. Owners are not speculators and would not give them up unless the offer is good. This is another reason why these properties have appreciated rapidly,” Geh says.

On the island, the five addresses are Springfield Condominium in Sungai Ara, Krystal Suria in Bukit Jambul, Leisure Bay in Tanjung Tokong, Marina Tower in Relau.

In the south-west district, where the Penang International Airport is located, prices of Springfield Condominium, Krystal Suria, and Marina Tower have appreciated between 164% and 233% (see table)

In the north-east district, prices of Leisure Bayand Midlands Condo have appreciated by about 200%.

The second bridge project, announced in 2006, the construction of the Subterranean Penang International Convention and Exhibition Centre in Bayan Baru and the Penang Waterfront Convention Centre next to the Penang Bridge, have helped to boost prices. Both convention centres will be ready this year and 2017 respectively.

On the mainland in central Seberang Prai, the popular addresses are Taman Pauh in Permatang Pauh, Taman Sejahtera in Alma, Putra Bertam in Bertam, and Juru Indah in Juru. In North Seberang Prai, it is Taman Dahlia in Jalan Raja Uda.

Landed terraces in Taman Pauh, Taman Sejahtera, Putra Bertam and Juru Indah have risen between 43% and 60% since 2009.

The second bridge project linking Batu Kawan in South Seberang Prai and Batu Maung in the southern part of the island has driven up property prices located at both ends of the bridge.

Using 2006 as a benchmark, Geh says the price of vacant land has increased to between RM250 per sq ft (psf) and RM300 psf in Batu Maung from RM50 to RM60 psf. “Pricing depends on whether the land has been zoned for agriculture, commercial or residential use,” he says.

Prices for new two to three-storey terraces south of the island start from RM1.2mil, compared with about RM450,000 prior to 2006.

“New condominiums in similar locations are now priced at between RM700,000 and RM800,000, compared with between RM250,000 and RM300,000 prior to 2006, when the bridge was first announced,” he says.

Properties located in the prime locations of central Seberang Prai and south Seberang Prai have also increased significantly.

Henry Butcher Seberang Prai’s associate director Fook Tone Huat says vacant land in the area, especially those in south Seberang Prai where the second bridge is located, are between RM42 and RM60 psf, a huge jump from 2006’s RM8-RM9 psf.

Land prices in central and north Seberang Prai were then between RM20 and RM40 psf, compared with today’s range of between RM50 and RM120 psf. The increase in land prices has translated into higher property prices.

“New landed properties such as double-storey terraced units in south Seberang Prai are now priced between RM360,000 and RM450,000 compared with between RM150,000 and RM200,000 prior to 2006,” Fook says.

Double-storey terraces in prime locations in central and northern Seberang Prai have doubled, from RM200,000-RM270,000 to RM400,000-RM630,000.

“We are also seeing a number of life-style condominium projects being planned in Bukit Mertajam this year with prices between RM300 and RM350 psf,” Fook says.

As for the secondary or sub-sales market, double-storey terraces, depending on location, are priced between RM300,000 and RM600,000.

Aspen Group Holdings Sdn Bhd and PE Land Sdn Bhd’s plans to develop an Ikea store and the RM1bil Penang Designer Village, which also includes a RM200mil premium outlet respectively, will drive up prices further in Seberang Prai, especially those located near the second bridge.

Moving forward, Geh says south-west district properties will benefit from the state government’s plans to transform the Bayan Baru township into an international business process outsourcing (BPO) area. Two multi-storey blocks will replace the current Penang Development Corp headquarters. The 29 and 25-storey blocks will house retail and recreational facilities.

“In the north-east district, the opening of the Gurney Plaza and Gurney Paragon shopping malls respectively in 2001 and 2013 and the increase in food and beverage outlets in the Pulau Tikus and Tanjung Tokong neighbourhoods have boosted prices.

Eastern & Oriental Bhd’s plan to undertake RM25bil worth of residential and commercial projects for the second phase of Seri Tanjung Pinang over the next 20 years is another boon for the island. This involves reclaiming 307ha in Tanjung Tokong.

The first stage of land reclamation is expected to take about 30 months and the development of residential and commercial projects another 10 years. The gross development value is about RM8bil.

Source: StarProperty.my

Wishing you happy holiday and a prosperous 2015! With your continued support and contribution, PenangPropertyTalk.com has grown by 20% and attracted about 1.2 million visits in 2014.  While we are excited to publish more projects in 2015, let’s look back at the top 3 most viewed developments that was posted in 2014 and received the most traffic on this website.

1. Urban Suites (~17,559 views)

An upcoming mixed development by Cosmopolitan Homes Sdn Bhd, located within an established township of Jelutong, Penang. It is easily accessible via Dr Lim Chong Eu Expressway and surrounded by abundance of amenities. This development comprises a total of 802 service suites with unit size ranging from 630sq.ft. onwards.

2. TRI Pinnacle (~14,957 views)

Affordable homes located at Jalan Persiaran Halia 3, Mount Erskine which will be the first of its kind that create a high quality affordable housing development and help to enhance the surrounding area to provide the residents with a well conceptualized, modern, airy environment to live, relax and work!

3. Bukit Residence (~13,055 views)

A gated and guarded residential development by Tambun Indah in Bukit Mertajam, Penang. This gated scheme is strategically located next to the bustling Jalan Song Ban Kheng, in close proximity to schools, eateries and markets. This project comprises 122 units of 2 & 3-storey terrace houses with price ranging from RM500,000 onwards.
 

2015 Watch List

Other than the top 3 above, here are a few projects which have attracted a respectable degree of interest from the readers in the past two months. The trends is likely to continue into 2015.

1. The Tamarind

Freehold executive apartments by E&O Property at Seri Tanjung Pinang, Penang. Located along Jalan Seri Tanjung Pinang 1, within walking distance to Straits Quay and Tesco. It is also well connected by strategic access roads to many amenities including schools, medical centres and shopping malls. This development comprises two 34-storey towers of service apartments.

2. Mont Residence

High-rise residential development by VST Group in Mount Erskine, Penang. It is strategically located along Jalan Mount Erskine, within a short 5-minute drive down to the well developed zone of Fettes Park, Tanjung Tokong, Seri Tanjung Pinang and Gurney Drive. This development comprises 2 block of 38-storey tower that houses a total of 473 condominium units.

3. i-Santorini @ Tanjung Pinang

A modern greek island concept resort condominiums ideally located in Tanjung Pinang, Penang. The Project comprising 4 blocks of high rise condominiums. The condominium units come with built up area ranging from 900-1,300sq.ft. to enjoy the finest panaromic Andaman seaview. There are few type of designed layout with choices of 2 & 3 bedrooms.

4. Ramah Pavilion

Affordable housing development by M Summit Group in Teluk Kumbar, Penang. It is located next to Puspakom Teluk Kumbar, a mere minutes drive from Teluk Kumbar town center via Jalan Teluk Kumbar. This development comprises 759 affordable units in two blocks of 36 & 38-storey building. It will also comes with wide range of facilities, which includes swimming pools, sky gym, jacuzzi, children water slides, barbecue area and more.

5. Taman Tasek Harmoni

Mixed development by Loyal Greenworld Sdn. Bhd. along Jalan Tasek in Simpang Ampat, Penang. It is adjacent to Pearl City by Tambun Indah, just a short drive away from Simpang Ampat town center. The residential phase of this development comprises 73 units of 2-storey terrace and 12 units of 2-storey semi-detach houses. Selling price starts from RM378,000 onwards.

READ MORE: Penang Property Outlook 2015

DNP Land Sdn Bhd senior general manager Tan (centre) discussing with its staff on the company’s new commercial project in Alma, Bukit Mertajam.

Kuala Lumpur and Penang-based developers will launch approximately more than RM1.418bil worth of residential properties in Seberang Prai in 2015, a year in which the property market is expected to perform badly.

The developers launching the projects are Wing Tai Malaysia Bhd (RM300mil GDV), Tambun Indah Land Bhd (RM469.6mil), IJM Land Bhd (RM379mil), and Sunway Bhd (RM70mil).

The projects are located in the prime locations of Central Seberang Prai and South Seberang Prai, where land and property prices have increased significantly since 2006, just before the announcement of the second bridge project in late 2006.

Henry Butcher Seberang Prai’s associate director Fook Tone Huat says the prices of vacant land in the area, especially in south Seberang Prai where the second bridge is located, are now hovering between RM42 and RM60 per sq ft, a huge jump from 2006’s RM8 to RM9 per sq ft.

Land prices in Central and North Seberang Prai were then between RM20 to RM40 per sq ft, compared with today’s range of between RM50 and RM120 per sq ft.

The increase in land prices has translated into higher property prices.

“New landed properties such as double-storey terraced units in South Seberang Prai are now priced between RM360,000 and RM450,000 compared with between RM150,000 and RM200,000 prior to 2006,” said Fook.

Double-storey terraces in prime locations in Central and Northern Seberang Prai have doubled from RM200,000-RM270,000 range to RM400,000-RM630,000.

“We are also seeing a number of life-style condominium projects being planned in Bukit Mertajam this year with new units priced at around RM300 to 350 per sq ft,” sFook says.

As for the secondary or sub-sales market, double-storey terraced houses have a wide price range of between RM300,000 and RM600,000, depending on location.

Landed properties in the sub-sales segment command the best pricing in Bukit Mertajam and Butterworth town.

Wing Tai’s projects are in Alma, a prime residential neighbourhood in Central Seberang Prai, comprising high-rise serviced suites, terraced, and semi-detached properties that are priced from over RM400,000 for serviced suites and RM600,000 to over RM1mil for landed properties.

The projects planned for launching via Wing Tai’s subsidiary, DNP Land, next year are Mahkota Impian Service Suites, BM Utama Phase 5 and Jesselton Hills Phase 3, which has a collective RM300mil GDV.

IJM Land projects, Permatang Sanctuary and Senjayu, totalling RM379mil GDV are in Alma and Jawi, South Seberang Prai, which will be launched from mid-2015 onwards.

In Alma, the projects are semi-detached and detached properties priced from RM600,000 onwards, while in Jawi, the projects comprise terraced, semi-detached, priced respectively from RM480,000 and RM620,000 onwards.

Sunway’s RM70mil condominium project, to be launched in the first half of 2015, is located strategically in the older section of Bukit Mertajam town, Central Seberang Prai.

Tambun Indah Land Bhd will launch in 2015 1,106 units landed and high-rise properties with a RM469.6mil GDV for its Pearl City mixed-development scheme in Simpang Ampat, South Seberang Prai a stone’s throw away from the second bridge.

Fook said there won’t be much price appreciation expected due to cautious market sentiment and stringent financing policies.

“The volume of transactions is unlikely to improve, but property prices are expected to remain high for those residential cum commercial schemes at popular areas such as Butterworth, Bukit Mertajam and Simpang Ampat neighbourhoods.

“For the residential segment, the trend of development would shift towards high-rises in view of high land cost especially in Central Seberang Prai,” he said.

On whether a price war would erupt in Seberang Prai, DNP Land (North) general manager KC Tan said the property prices Seberang Prai is unlikely to undergo correction, as developers had to factor the higher land cost, additional infrastructural development and compliance charges that needed to be paid to the state government.

“We don’t expect substantial increases in pricing in 2015, as most developers will try to cap the prices at reasonable levels to generate better sales,” Tan said.

Moving ahead, Tan said developers might resort to building smaller size houses to cushion the hike in land cost and development charges.

“In this way, they could cap the price of properties within the affordable range,” he said.

As properties within the range of RM400,000 to RM700,000 is easier to be absorbed in the market, more high-rise properties within the RM400,000 to RM600,000 range would be introduced in Seberang Prai, according to Tan.

Meanwhile, Sunway senior general manager Tan Hun Beng said the group’s launches were targeted at those with a monthly household income of over RM10,000.

“Your income need to fall around this range in order to secure a housing loan these days, given the stringent guidelines nowadays.

“The rejection rate of housing loans is over 50% nowadays.

“The demand for properties will always come from those with the disposable income who want to find a home in a secured, clean, and green environment.

“As there is always such demand, it is difficult to foresee the prices of properties dropping substantially in the future,” he added.

According to the Penang Institute (PI), some 40% of the Penang population are in the middle-income category earning between RM3,500 and RM7,100.

Under the new loan conditions from banks, which take into account a person’s net income and other commitments, this middle-income group is eligible to take up loans for properties priced between RM130,000 and RM245,000.

Meanwhile, Rehda Penang deputy chief Datuk Toh Chin Leong said for some projects, the rejection rate of housing loans was as high as 50%.

“It is very common nowadays for developers to return the deposit payment when the loan facility is turned down.

“This is something you don’t see happening three years ago, but started to happen more and more often in past 18 months,” Toh said.

Source: StarProperty.my