Property prices in Seberang Perai are still within an affordable range of between RM250,000 and RM500,000 for double-storey terrace homes.

Over a million residents here will be affected if the goods and services tax (GST) is imposed on management fees for apartments and condominiums, said Penang Chief Minister Lim Guan Eng.

He said all management and maintenance fees for buildings with strata titles, including low- and low-medium cost flats, will rise by 6 per cent if the consumption tax is imposed.

Lim said there are a total 235,932 stratified units in Penang and at five people per household, this translates to more than one million people living in these units.

“This works up to almost 60 per cent of the population of Penang will be affected by this,” he said in a press conference at his office today.

He reminded Putrajaya that most people buy flats, especially low- and low-medium cost units, because they could not afford landed properties.

Lim said the group will be further penalised over those living on landed properties who need not pay such fees.

“The government should exempt GST on management fees of stratified developments,” he said, saying his administration will appeal to Putrajaya for the exemption.

Penang Real Estate and Housing Developers’ Association (Rehda) chairman Datuk Jerry Chan said the maintenance and management fees collected by management corporations of stratified properties were meant to pay for upkeep of the properties and not for profit.

He also noted that such joint-management bodies already faced difficulty in collections and arrears.

“This will only put a heavier strain on the management funds that are used mainly for maintenance of common property,” Chan said.

Late last month, several real estate related non-governmental organisations (NGOS), submitted a petition to the prime minister for management corporations of stratified developments to be exempted from GST.

Deputy Finance Minister Datuk Chua Tee Yong on Wednesday said the federal government is considering the requests.

Source: The Sun Daily

The Penang transport Master Plan is set to improve accessibility and spur further gains in the state’s vibrant property market, according to AmResearch.

Major construction and property players with projects in Penang are set to be major beneficiaries of the state government’s RM27bil transport masterplan.

The Penang Transport Master Plan (PTMP) is set to improve accessibility and spur further gains in its vibrant property market, said AmResearch in a report yesterday, adding that the Government’s various initiatives would create significant infrastructure opportunities for Malaysian contractors.

“Indeed, the spotlight will turn to the balance RM20bil of major infrastructure works being lined up within Penang over the next 25 years.”

The research house pointed out that the first component – the RM6.3bil Penang undersea tunnel project – was awarded to the Zenith-BUCG Consortium last October, with feasibility studies and detailed design works to be completed by end-2015.

“The state government’s preferred approach is to appoint a project delivery partner (PDP) to co-ordinate the entire project. The request for proposals have attracted about 50 suitors to-date and will close next February.

“This will be quickly followed by the contract award in six months’ time (by the third quarter of 2015), as physical work on the PTMP is scheduled to start by 2016.”

Given the huge financial and technical requirements, AmResearch is of the view that the bidders will likely form consortiums to strengthen their chances, which include tie-ups with international contractors of repute.

“Among the pack, we believe Gamuda Bhd has the upper hand over its rivals.”

The research house said Gamuda already possessed the necessary track record in handling mass rapid transit (MRT) jobs.

“It is the PDP and tunnelling contractor for the Klang Valley MRT Line 1, and was recently appointed as the PDP for the MRT Line 2 as well.”

AmResearch added that Gamuda had the balance sheet strength and relevant expertise in handling tunnelling works, such as the Klang Valley MRT 1, Kaohsiung MRT and SMART Tunnel.

Malaysian Resources Corp Bhd, the research house said, was another beneficiary. “Its proposed Penang Sentral development (approved by the state government in September) is set to be the main transport hub for Penang and the northern region of Peninsular Malaysia.

“Phase 1, with a gross development value (GDV) of RM512mil, consists of a transport hub, terminal and retail mall.

“While not directly under the PTMP, Penang Sentral certainly complements the state government’s transport improvement agenda. This suggests more upside to the entire project’s initial GDV estimate of RM2bil.”

The imminent roll-out of the masterplan is also a timely boost for IJM Land Bhd’s “The Lights” in Jelutong, as it moves to launch the commercial components under Phase 2, which has a GDV of over RM6bil, said AmResearch.

While the opening of the Second Penang Bridge in March is expected to bode well for the remaining phases of Mah Sing Group Bhd’s Southbay City, which has a GDV of around RM2.7bil.

Source: StarProperty.my

Rehda Penang chairman Datuk Jerry Chan Fook Sing says developers in Penang are facing high land prices.

Penang property developers will adopt a “wait-and-see” approach in rolling out new property projects next year in view of various factors, including rising power costs, fuel subsidy cuts and house buyers’ cautious stance.

The Real Estate and Housing Developers Association (Rehda) has expressed concern over bureaucratic red tape involved in obtaining developers’ licences and advertising permits for new launches, in addition to being saddled with rising construction and compliance costs.

Rehda Penang chairman Datuk Jerry Chan yesterday said Penang developers have to contend with not only making the biggest contribution to infrastructure, drainage and non-delivery of low- and low-medium cost homes, but also of high land costs, especially on Penang island.

“Since August, the issuance of advertising permits for new launches is taking longer than two weeks and run up to more than two months, while plans for fire safety now have to be vetted by the Ministry of Housing and Local Government as opposed to local council previously,” he said.

Also present was IJM Land northern region general manager Datuk Toh Chin Leong.

“We are cautious and will launch our new projects accordingly next year as house buyers appear to be cautious and there is still confusion over the effects of property prices once the Goods and Services Tax is implemented,” said Toh.

Chan said Rehda is disappointed with the lack of incentives for private developers to build affordable housing and the lack of measures to lift the soft property market since cooling measures were introduced in 2014 Budget.

“The 50 per cent stamp duty exemption for properties up to RM500,000 until December 31 2016 will help ease home ownership cost. However, full exemption would be more helpful for the first time buyers in view of property prices, particularly in Penang, Johor and the Klang Valley.”

He said apart from having to fork out the higher charges for property development in Penang compared with the rest of the country, developers are faced with high land prices.

“With these kind of costs, it is tough for property prices here to come down and the future trend for low-cost and low-medium cost housing would be to make them smaller,” Chan noted.

He expressed Rehda’s concerns over the availability of financing for affordable homes in Penang.

“We do not want a situation where affordable houses are built and buyers are unable to purchase them if financing does not come through.”

Chan said some projects have started work and will be completed in three years.

“Rehda shares the government’s vision and mission of providing adequate, quality and affordable housing for the people. One of the ways is reviewing residential property plot ratio guidelines further to allow developers to bring down the cost of building, thus provide more affordable housing for the people of Penang,” he said.

Source: New Straits Times Online

Senjayu @ Jawi, an upcoming 70-acre mixed development by IJM Land in Jawi, mainland Penang. Strategically located next to the entry point of the Jawi toll, about 12 minutes drive to the south of Penang Second Bridge.

The residential component of this development consists of:

• Phase 1: Senjayu Terrace – 2-storey terrace (298 units)
• Phase 2: Senjayu Residences- 2-storey semi-detached (156 units)
• Phase 3: Senjayu Skyhomes – Condominium (392 units)
• Phase 4: Senjayu Residences II – 2-storey semi-detached (85 units)

The launch date is yet to be fixed. More details to be available upon project launch.

Project Name : Senjayu @ Jawi
Location : Jawi/Nibong Tebal, Penang
Property Type : Mixed Development
Indicative Price: RM 480,000 onwards (Phase 1)
Land Tenure: Freehold
Developer : IJM Land

Location Map:

The Tamarind, a 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 33-storey towers of service apartments.

Project Name: The Tamarind
Location : Seri Tanjung Pinang, Penang
Property Type : Executive Apartments
Tenure : Freehold
Total Units: 1,104 (To be confirmed)
Built-up Area: 1,042 sq.ft. onwards
Indicative Price: RM 600,000 onwards
Developer : E&O Property Development
Estimated Completion : 2019

Location Map:

Contributed by reader (Update 18/07/15)

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