Full list of Penang's affordable housing projects

Commercial banks should be roped in to help the poor obtain loans for affordable housing.

Penang Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the Federal Government should have a ‘speedy’ solution to solve the high number of loan applications which are rejected.

Commenting on Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan’s statement recently that the idea of forming a Housing Bank was mooted at the National Council on Local Government meeting chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin on Sept 18, he said it could be a ‘laborious’ process to form such a bank as it would involve a lot of legal issues.

“While we welcome such a move, there is a need for immediate solution to the high rate of loan rejection, which is more than 60% and the commercial banks could be in the best position to help,” he said.

Jagdeep said it did not make sense to build affordable houses if most of the buyers could not obtain loans from banks.

“The state government is stringent in vetting house applications as only the deserving ones are given approval.

“However, if they do not get loans it defeats the purpose of building these affordable homes,” he told a press conference.

Banks, he said, could loosen certain conditions to help approve loan applications and the Federal Government could instruct the banks to do so as it is only a policy issue which could be effected sooner compared with the setting up of a Housing Bank.

Real Estate and Housing Developer Association Penang chairman Datuk Jerry Chan, who was present, said banks need not worry that house buyers could default on their loans as the affordable housing is offered to buyers at a ‘reduced’ rate compared with the market price.

“The house will definitely appreciate over time and banks need not conduct ‘forced sale’ during auction,” he said.

Source: StarProperty.my

by Charles Tan

I was in Penang last weekend for an important lunch. As I was driving past the second bridge, I noticed that the condition was exactly the same when I drove across it last month and two months before. There were very few cars on the bridge! Ok, what’s the significance of that? These days, you often hear about people talking about the potential of Batu Kawan. Thus, you may feel that it’s time to buy something and wait, perhaps just 3 years later, you will get huge returns. Based on three key criterias, you may be right. First one is the second bridge is ready, second one is, there are already huge integrated plans and third would be top developers are buying up huge tracts of land. So, it’s just a matter of time, right?

Well, add one more sign which I think is more relevant. Number of cars using the second bridge. Seriously, if the number of cars start to increase, you can be sure that there are more economic activities. Without any significant changes in the number of cars, I think the situation is still the same. Come on, Penang island may be expensive but for those who are working in Bayan Lepas, they may still choose Teluk Kumbar or even Balik Pulau over Batu Kawan at this moment. It takes more than just prices to lure buyers. The concept has to be very attractive. The developers should have a huge following which would enable them to price at a premium and thus have the ability to build something beyond the usual.

I read in a article that instead of Gated and Guarded, the trend is now moving towards Green, Gated and Guarded. Actually, Green is not considered a new trend. Balinese concept many years ago was already GREEN. Lots of trees, plants, flowers etc. For this concept to work in Penang island, be ready to admit you cannot afford one. However, I think this is a concept which is applicable, especially in huge integrated developments. Thus, mainland Penang may be the next place to carry this out. I await the first of such launches from a reputable developer. I sort of also know which developer would fulfill that criteria first.

>> 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)

An artist impression of The Coastal @ Southbay City

Mah Sing Group Bhd which will be launching a new project in Penang, namely The Coastal, on Oct 4 in conjunction with its 20th anniversary celebrations, is keen to expand its land bank in the northern state.

Mah Sing Properties Sdn Bhd chief operating officer (COO) Teh Heng Chong said the company is aggressively looking for land in Penang both on the island or the mainland.

He said the company needed to plan ahead but conceded getting what they wanted in the state was challenging.

“We are still looking for something sizable in Penang,” he said in a press conference yesterday.

Mah Sing reportedly has a land bank totaling 1,574.2ha with a potential gross development value (GDV) and unbilled sales of RM66billion.

Earlier, Teh had given a media preview of their latest project in Batu Maung here known as “The Coastal”.

He said the mixed development would have residential, commercial and retail components in two towers.

The RM275 million GDV project comprised a 31-storey residential tower with 100 units and the 25-storey professional tower having 156 units. The development is expected to be completed by 2018 while the professional units would be launched this Saturday (Oct 4).

He expressed his confidence the project would do well since their market research showed demand for smaller units with unit sizes starting at 53 sq metres.

“Prices begin from RM581,800 onward,” he said adding the professional units were suitable for small offices and entrepreneurs.

Source: The Sun Daily

Malaysian Resources Corporation Bhd (MRCB) has received the nod from the Penang authorities to proceed with construction of the much-awaited transport terminal in the Penang Sentral project.

The RM230 million terminal forms the first phase of the RM2.3 billion integrated Penang Sentral project in Butterworth and is targeted for completion by the end of 2017.

The terminal will be sited on 2.83ha and will connect Penang’s ferry, bus, rail and taxi services, with infrastructure also in place for any other potential public transport service.

“MRCB obtained the development order and building plan approval last month,” said a source, adding that test piling works are being carried out at the project site.

It is learnt that a new temporary bus terminal will be ready by the end of next month to replace the existing one, which will be demolished to facilitate construction work.

Penang Sentral, launched in 2007, is designed to be a mixed-use commercial development and the largest integrated transport hub in the northern region.

It is being developed by MRCB arm Penang Sentral Sdn Bhd.

Subsequent phases will include residential and commercial units, including a hotel and shopping mall.

The terminal is expected to accommodate 180,000 commuters daily, although the first two years of its opening will likely only see about 80,000 commuters a day.

“MRCB will ensure that the transport terminal is completed before it proceeds with its commercial activities,” added the source.

Source: New Straits Times Online

Fact-finding: Visitors making enquiries on the projects offered by the various developers taking part in Mapex 2014 at the SPICE in Relau, Penang.

Some 20,000 visitors made their way to the Malaysia Property Exhibition (Mapex) 2014 at the Subterranean Penang International Convention and Exhibition Centre (SPICE) in Relau, Penang, in search of their dream home.

From landed properties to high-rise units, the Mapex City 2014 showcased projects by reliable developers with prices which ranged from RM346,000 to RM15mil.

Event organising chairman Ng Chin-U said the three-day exhibition held from last Friday to Sunday saw developers generating RM48mil worth of sales.

It was the second Mapex this year. The first, which was held during Chinese New Year in February at the G Hotel Penang, saw about 30,000 visitors and a total sales of RM130mil recorded.

Ng said buyers might be adopting the wait-and-see approach as the Budget 2015 was just around the corner.

“The cooling-off measures on the property market may be one of the factors as well, as generally buyers are more careful,” he said.

Cooling-off measures include 70% loan policy for third property purchases, requiring the housing loan limits calculated based on net income instead of gross and loan tenure reduced from 45 years to 35 years.

Ng added that those who missed the exhibition this time around could look forward to next year’s Mapex, which is scheduled to be held during Chinese New Year in February.

Organised by the Real Estate and Housing Developers’ Association (Rehda) and Henry Butcher Malaysia (Penang), the exhibition was participated by a total of 16 exhibitors who took up 30 booths.

Penang Chief Minister Lim Guan Eng who opened the exhibition on Saturday, urged Bank Negara to reinstate the developers interest-bearing scheme (DIBS) for first-time buyers as well as increase and extend the scheme by Syarikat Jaminan Kredit Perumahan (SJKP) to buyers of affordable homes costing from RM72,500 up to RM400,000.

“Ever since DIBS was abolished, many first-time buyers of affordable housing could not obtain bank loans to buy their own homes.

“Up to 70% of the housing loan applications for low-cost and low medium-cost homes have been rejected by private banks,” he said.

He added that legal fees should be part of the DIBS package and stamp duty should be waived to lower the initial entry cost for first-time home buyers.

Rehda Penang chairman Datuk Jerry Chan said the exhibition was largely focused on Penang properties.

He said Rehda Penang had been trying to help first-time house buyers.

Besides that, Chan said that during the recent Mapex, organisers donated RM50,000 to six charitable organisations namely DHome Mental Health Association, The Salvation Army Penang Children’s Home, Grace Harmony Home, Children Protection Society , Penang Cheshire Home and St Nicholas Home Penang.

Also present during the opening were state Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, state Agriculture and Agro-based Industry, Rural Development and Health Committee chairman Dr Afif Bahardin, state Religious Affairs Committee chairman Datuk Abdul Malik Abul Kassim and state Tourism Committee chairman Danny Law.

The developers who took part in the exhibition were Eco World Development Sdn Bhd, SP Setia Bhd Group, IJM Properties Sdn Bhd, Asas Mutiara Sdn Bhd, Chong Company Sdn Bhd, Sunway Grand Sdn Bhd, BSG Property, Ivory Properties Group Bhd, Ideal Property Group, Airmas Group, Tambun Indah Land Bhd, Tropicana Macalister Avenue (Penang) Sdn Bhd, MTT Properties & Development Sdn Bhd, Palmex Industries Sdn Bhd, Inspirasi Elit Sdn Bhd and Plenitude Bayu Sdn Bhd.

Source: StarProperty.my