Artist's impression of Ivory's mixed-development project in Tanjung Tokong.

The Penang property scene, which has seen prices soaring to new levels in the last two years, will see new affordable properties with a gross development value (GDV) of RM4.7bil entering the market in prime locations over the next three years.

Besides the pricing, which ranges between RM300,000 and RM650,000 depending on location, other attractions of these properties are their size, which ranges between 850 sq ft and 1,000 sq ft, and the facilities provided.

Raine & Horne director Michael Geh said the pricing was in response to the slower pace of property market impacted by the high rejection rate of housing loans.

Developers planning such new properties include Eastern & Oriental Bhd (E&O), Boon Siew Group (BSG), Tambun Indah Land Bhd and Ideal Property Group, which owns Ideal United Bintang Bhd and Ideal Sun City Bhd.

Ideal accounts for about 68% or RM3.2bil GDV of such projects that are slated for launch next year. The projects of the other three developers make up the remaining GDV.

Ideal is developing 6,508 condominium units in different locations over the next three years.

There are two categories – those priced between RM300,000 and RM400,000 and those priced at RM450,000, according to executive chairman Datuk Alex Ooi.

Condominium projects are currently priced at RM550 per sq ft onwards in Bayan Baru and Bayan Lepas, and RM1,300 per sq ft onwards for those in Gurney Drive and Tanjung Tokong.

Ooi said the attractive pricing would ensure that quality homes with decent built-up areas and facilities in prime and strategic areas fell within the disposable income range of house buyers.

“In Tanjung Tokong, we plan to launch, on a 9.9-acre leasehold site, 900 sq ft condominiums priced at RM450,000 in 2015 or 2016.

“We provide facilities such as pools, indoor and outdoor gymnasiums, a rest pavilion, a dining pavilion, a barbecue corner, a jogging track and a reflexology path,” he said.

New condominiums in the Tanjung Tokong area are priced between RM700 and RM1,300 per sq ft.

Ideal’s other projects are in Bayan Lepas, Sungai Ara and Balik Pulau.

Ooi said the group would kick off with the One Foresta project in Bayan Lepas next year.

“Subsequently, we will launch two more projects, in Bayan Lepas and Balik Pulau, over the next three years.

“The condominiums are priced between RM300,000 and RM400,000 and are equipped with a wide range of facilities.

“The units have built-up areas of 900 sq ft and 1,000 sq ft,” he said.

In Seri Tanjung Pinang in Tanjung Tokong, E&O is registering interested buyers for its Tamarind high-rise project, aimed at young professionals.

Located within the Seri Tanjung Pinang development, it is learnt that the Tamarind project will be competitively priced.

Each of the 1,042 sq ft units will have three bedrooms and two bathrooms. E&O’s condominium projects in Seri Tanjung Pinang are currently priced at RM1,100 to RM1,300 per sq ft.

BSG plans to launch 1,000 condominium units with 850 sq ft built-up in Tanjung Bungah in mid-2015.

The indicative pricing per unit is below RM400 per sq ft, according to a BSG spokesperson.

In Seberang Prai, Tambun Indah will launch 1,106 units of landed and high-rise properties with a GDV of RM469.6mil in its Pearl City mixed-development scheme next year.

The residential properties comprise double-storey terrace, townhouse, double-storey semi-detached and bungalow units.

Tambun Indah executive director Teh Theng Theng said that to ensure the properties were within reach of house buyers, the pricing would be lower than that of a similar range of properties in the other strategic locations of Seberang Prai.

Ivory Properties Group Bhd executive chairman Datuk Low Eng Hock said the group was now working towards providing affordable homes to cater to young adults and newly-wed couples by providing smaller units to suit their budget.

“Currently, we are in the planning stage of offering such units in the Batu Ferringhi area.

“Our current projects such as The Wave and Penang WorldCity are still affordably priced from RM700 and RM800 per sq ft onwards, respectively,” Low added.

Source: StarProperty.my

by Charles Tan

In Penang, the electronics sector is a very important sector for property market. The reason I say so is because more often than not a lot of these manufacturing companies would hire engineers as well as other functions to support operations and these are the potential buyers of properties. This is especially so when these professionals got married to each other and thus, the combined income allows them to support the property market for the above RM500,000 properties. That’s one key reason why many of these high-rise properties which are not above RM650,000 are normally well sought after. In fact, when you ask around, a lot of these engineers who are just reaching 30-35 are still without a property to their name. Of course whether they buy or not depends on individual preference and the property prices because even these professionals could not buy if the property prices becomes totally unaffordable.

According to a recent report in an English daily, the electronics industry in Penang will have a very good first quarter of 2015. This is despite the fact that the first quarter is normally a slower period. For 2014, the electronics segment which covers the industrial electronic components, flex-circuited, printed circuit boards (PCB) and PCB Assembly (PCBA products) would be announcing better results compared to 2013. For 2015, the growth would continue with the following products which are becoming popular in the market. They include wearable smart devices, portable health equipment, light-emitting-diode (LED) automotive lighting, energy-saving home appliances, box-built medical and touch-screen display products. I think we can identify some of these products easily as we can see them being used or sold in many places.

Of course, as usual, when there are good news there are also the downside. What if there’s a slowdown in the industry? Well, truth is, all these companies that are reporting better results would just have to continue understand their business and their industry and keep themselves up to date with the latest needs from the market. A more pertinent question to the property market vibrancy would be how many of these companies are moving up the value chain and hiring even more engineers instead of labour intensive which is going to be too competitive in the near future anyway. There’s really no way that Malaysia can compete with much bigger countries on this account. For now, I think the support from the electronics sector to the Penang property market is very strong and it is very much related. If the whole electronics sector go down, it will definitely have a bearing on the Penang property market’s continuous growth. For the engineers, keep up the great work.

>> This opinion article comes courtesy of Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 11 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)

Setia Sky Hill, strategically located within the established township of Sungai Nibong, Penang. This development comprises 2 blocks of residential towers with 341 condo units. Featuring a tension swimming pool which morphs into a 4-storey high waterfall as an entrance statement into the development. The facade is varied from floor to floor and unit to unit creating an illusion of randomness to its appearance.

More details to be available upon project launch.

NOTE: These information was posted since 2012. The final design may be different.

Property Project : Setia Sky Hill (was known as The Peak)
Location : Sungai Nibong, Penang
Property Type : Condominium
Tenure: Freehold
Total Units : 341
Developer : SP Setia

Location Map:

[streetview width=”100%” height=”250px” lat=”5.334785″ lng=”100.29876200000001″ heading=”-141.15410026016204″ pitch=”5.562160117183826″ zoom=”1″][/streetview]

Marginal increase: (From left) MPPP Land Administration deputy director Cheong Chee Hong, Ang, Chow, Maimunah and MPSP secretary Rozali Mohamud showing the new assessment rates for next year.

Penangites will have to pay more in assessment next year.

State Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow said the Penang Municipal Council (MPPP) and Seberang Prai Municipal Council (MPSP) would impose an increase of between 0.5% and 4.45% based on the type of properties.

“We have not increased the rates for the last 10 years since 2005.

Many local councils in the country have revised their Valuation Lists and imposed higher assessment rates this year.

“We have been receiving requests for an increase since 2009. We approved a marginal increase only after a lengthy discussion with the two councils because we do not want to burden the ratepayers,” he said during a press conference in Komtar yesterday.

He said the state, however, had rejected the request by the two local councils for a review of the Valuation List pursuant to Section 137(3) of the Local Government Act 1976.

He added that the new increase would bring in additional revenue which was necessary to meet higher operational costs, provide better services to the people and improve basic amenities in the state.

MPSP president Datuk Maimunah Mohd Sharif said the new rates would help boost their income by RM20.49mil next year.

“Currently our income from assessment rates is RM137.7mil,” she said.

Maimunah said the rates for kampung houses and properties owned by societies or associations would remain the same.

“For low-cost flats and houses under the Kilat scheme, the rate will be 0.5% more.

“For landed properties, flats (excluding low-cost flats) and development lands, the hike is 1% while commercial, light industry and agro-based industry properties will cost 1.25% more.

“The three golf courses on the mainland will have to pay 4.35% more,” she said.

MPPP secretary Ang Aing Thye said that there would be no hike in the assessment rates for properties owned by societies, associations and kongsi.

“The rate for the low and low medium-cost flats will see a hike of 0.5% from the current 7% to 7.5%.

This means that 83% of the owners will pay less than RM10 more from next year. For landed properties, apartments and condominiums, and development land in both districts on the island, the increment is 1%, while the assessment rates for commercial, industrial and hotels will increase by 1.25%.

“The rate for the golf course and turf club will increase by 4.45%,” he said.

He said MPPP expected an increase of revenue from RM160.438mil to RM180.9mil.

On an unrelated issue, Chow said that he would issue a directive to MPPP and MPSP today to take strict enforcement against cars parked illegally.

A report was lodged on MPPP Watch’s Facebook page that Chief Minister Lim Guan Eng’s official car, PG1 was spotted parked on the bicycle lane in front of the Hin Bus Depot in Jalan Gurdwara.

Source: StarProperty.my

by Charles Tan

Which is the most unaffordable property market in the world today? Hong Kong. Who said so? US-based Demographia based on their survey. According to them, Hong Kong’s median hoe price was more than $S4.02 million compared to the median income which was only HK$270,000. Few weeks ago, Malaysia was said to be severely unaffordable at 5.5 times. (Median income to median house price). For Hong Kong, this is nearly 15 times. How should we label them? If you think due to this, Hong Kong is poised for a bubble bursting, think again. According to real estate professor Eddie Hui Chi-man of Polytechnic University, property prices would continue to increase for the next 2 years because new housing supply will not increase significantly until 2016. This is based on statistical numbers. He said, ‘It’s impossible for salary income to catch up.’ One key reason was because the government did not increase the land supply and the Home Ownership Scheme for flats was only restarted in October 2011, after a 9-year absense.

How expensive is expensive? Well, in Hong Kong, due to the extreme high prices, the new flats being ordered these days can be as small as 160sf!! Yes, 160sf. Demographia said for housing to be affordable, the house prices must not exceed three times the median salary. Anything higher needs intervention from the government with respect to the land supply, infrastructure planning, provisioning and financing. I think this is already being done actively by Singapore via its HDB programme. In terms of success? Well, perhaps due to this, Singapore’s median home price is still at 5.1 times versus gross annual median household income. Without the intervention, perhaps Singapore would be closer to what Hong Kong is experiencing?

Personally, it’s not hard to understand when the population is increasing and the land size remain small, the prices go up. However, another reason why prices go up may also because of the sudden increase in demand while supply did not increase fast enough. Thus, when supply catches up, the prices would stay stagnant or even decrease. However, when it is not an island why do house prices increase? The main reason is thus the popularity of a certain area versus others. It’s not even necessary be close to the city centre! Just that feeling when you are driving in your neighbourhood. Thus, it’s much harder to control these ‘emotions’. That’s why prices will continue to increase for popular areas even when more affordable units are built. In fact it will increase until everyone who can afford them has bought one unit somehow or somewhere else. We shall see. Happy buying, OBJECTIVELY.

>> This opinion article comes courtesy of Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 11 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)