Artist’s impression of Seri Tanjung Pinang phase two.

The development of Seri Tanjung Pinang (STP) phase two in the north-east coast of Tanjung Tokong here by Eastern & Oriental Bhd’s (E&O) unit, Tanjung Pinang Development Sdn Bhd has entered a critical phase with the company awaiting the endorsement of the state government for its proposed masterplan before it can proceed with the reclamation work.

Although the state had granted an in-principle approval to E&O for the masterplan in 2011, E&O still needs the state’s clearance for the masterplan before reclamation work of the STP phase two can proceed.

The STP phase two project will involve the reclamation of 760 acres of man-made islands and 131 acres of the Gurney Drive foreshore that will be handed over to the state government for infrastructure development of a new expressway, a new Gurney Drive Promenade, and a parallel linear park for public recreational purposes.

It will be the sequel to the 240-acre STP phase one and is expected to have a development horizon of 15 years.

Time is also of the essence as E&O’s concession agreement with the Penang state government to reclaim and develop the land is subject to the completion of the reclamation work by 2019 when the reclamation concession expires. Given that the reclamation for the more sizeable STP phase two will be done further offshore in deeper waters compared with the smaller STP phase one that is closer to shore, the project is expected to incur higher costs and take a longer time.

In a recent interview here, E&O managing director Datuk Terry Tham said the company had submitted applications to the state government with regard to the endorsement of the proposed STP phase two masterplan.

“We can start reclamation only after obtaining approval from the state government, which we hope to obtain by the fourth quarter of this year. Reclamation work is expected to commence thereafter and may take three to five years for full completion.

“We should be on track to meet the deadline for reclamation of 2019 as long as we comply with all requirements set by the regulatory authorities. Development can only start after reclamation work has been completed,” Tham told StarBiz.

The Department of Environment had on April 10 granted an approval in principle for the detailed environmental impact assessment (DEIA) study and conceptual masterplan of the STP phase two project, subject to compliance to conditions set out by the DOE to ensure the project is carried out in an environmentally responsible manner and is consistent with the prevailing regulatory framework.

Tham said E&O was ready to comply with all conditions set by the authorities, which included the necessary requirement of a DEIA study and its approval. “As a responsible developer, E&O has appointed local consultants familiar with local conditions and reputable international consultants with the experience and expertise of reclamation projects worldwide, to verify and help monitor that each stage of reclamation work is consistent with international standards, irrespective of whether it is imposed on us.

Penang chief minister Lim Guan Eng told StarBiz earlier this month that E&O would be given the approval by the Penang state government if it complied with all the technical and regulatory requirements for the project.

“If all the conditions are fulfilled by the developer, the state government will have to respect the sanctity of the agreement, otherwise it will have to pay compensation to the developer for non-compliance,” Lim explained.

If given the go-ahead, E&O will proceed to call for tender proposals for the reclamation work for STP phase two with the actual reclamation work expected to begin only early next year.

Source: StarProperty.my

Spectrum Garden, an upcoming gated and guarded housing scheme by First Harvard Sdn. Bhd. in Kota Permai, Bukit Mertajm. This development is strategically located next to Boon Teik primary school, will consists of 128 units of 3-storey terrace and 4 units of 3-storey bungalow houses.

This development is currently only open for preview. More details to be available upon launching.

Project Name : Spectrum Garden
Location : Kota Permai, Bukit Mertajam, Penang
Property Type : 3-storey Terrace & Bungalow
Land Tenure: Freehold
Total Units: 128 (Terrace), 4 (Bungalow)
Developer : First Harvard Sdn. Bhd. (Zuwen Bina)
Contact Number : 04-502 1172

Location Map:

The anticipated goods and services tax (GST) and the hike in the overnight policy rate (OPR) will impact housing affordability and sales, according to Maybank IB Research.

It said the benchmark OPR of 3% was expected to rise 50 bps (basis points) to 3.5% following the central bank’s monetary policy committee meeting in early July.

The report said a 50bps increase in the mortgage rate could lead to a 6.8% jump in monthly instalments based on a base lending rate (BLR) minus 2.4% for a 35-year loan.

“This would impact affordability and investment decisions for new purchases,” it said.

The report also said the housing affordability index has been trending down since 2009 due to hikes in the BLR to 6.6%. The BLR was set at 5.6% between 2009 and 2011. Other reasons for the index to trend downwards include the spike in property prices without a significant rise in income.

The report said that with most developers already doing GST-related repricing and recosting exercises ahead of the April 2015 timeline and the anticipated higher interest rates, the housing affordability index could decline further. This would lead to a decline in property sales.

“While developers will be able to pass on the upcoming GST to buyers of non-residential properties, they may have to absorb some of the GST impact for residential properties that were sold during/before 2013 and which remain uncompleted on April 2015.

“We believe a majority of the sales secured in the last one year have not taken into account the implementation of GST,” the analyst said.

Margins are also likely to compress in the coming period due to the offering of more noncash incentives to attract property buyers.

On top of that, the report said higher labour costs and higher transportation costs after last September’s fuel price hike were expected to eat into margins.

Malaysia’s high household debt amounted to RM854bil last year, accounting for 86.8% of nominal gross domestic product (GDP).
Maybank IB said investors felt Eco World Development might be the new leader for the property sector given the support by former S P Setia staff and its expansive land bank worth RM43bil in gross developmental value.

Meanwhile, Batu Kawan in Penang was introduced as a new property hotspot in Malaysia. It stands to benefit from the new second Penang bridge and better control on land supply from the state government.

“It is unlike Iskandar Malaysia, which relies on the bilateral relations between Malaysia and Singapore,” the research house said.

Maybank IB observed that the share price of land owners Tambun Indah, Malton and Global Oriental rose 14%, 19% and 24%, respectively, benefiting from interest in Batu Kawan.

Source: StarProperty.my

Spectrum Residence, an upcoming high-rise development by Sunshine Spectrum Sdn. Bhd. in Kota Permai, Bukit Mertajam. This 18-storey condominium will be built next to Beng Teik primary school, with easy access to many other amenities via Jalan Song Ban Kheng.

This project is currently only open for preview. More details to be available upon launching.

Project Name : Spectrum Residence
Location : Kota Permai, Bukit Mertajam, Penang
Property Type : Condominium
Land Tenure: Freehold
Total Units: 144
Developer : Sunshine Spectrum Sdn. Bhd. (Zuwen Bina)
Contact Number : 04-502 1172

Location Map:

Contributed by reader (18/02/2017)

Chang: (right): ‘We plan to preview the project in August 2014, which will attract a broad spectrum of buyers.’ EcoWorld executive director and CFO Heah Kok Boon is on the left.

Eco World Development Group Bhd plans to launch two residential and commercial property projects in Penang, with a gross development value (GDV) of RM1.26bil, in 2014 and 2015.

Group president and chief executive officer Datuk Chang Khim Wah told StarBiz that the projects, EcoTerraces and EcoMeadows, would be launched on the island and Seberang Prai, respectively.

The RM340mil EcoTerraces, comprising luxury landed homes, condominium units, and a private residents’ club, is sited on 5.26ha, about five minutes from Air Itam town in the northeast district.

“We plan to preview the project in August 2014, which will attract a broad spectrum of buyers, as the location has easy access to the airport and George Town,” he said.

On its other land-bank at Macalister Road and Anson Road junction on the island, Chang said the group did not have immediate plans to develop the site.

“Due to its unrivalled location, we plan to use it as our Penang Show Gallery to introduce our brand and development philosophy of creating world-class eco living,” Chang said.

Next year, Eco World will launch the RM920mil mixed development EcoMeadows scheme on 24.28ha in Bukit Tambun.

“Its freehold land status and location near the second link and adjacent to the North-South Highway gives it great potential to be developed as a mixed development project.

“We will be introducing both landed and strata properties supported by a mini mall, comprising shops and offices all designed in line with our Eco theme which emphasises sustainability and livability,” Chang said.

“Over time, we aim to build up our presence in Penang so that it will be able to consistently contribute around 10%-15% to total group’s sales. There will be terraces, superlinks, semi-detached units and condominiums for both of these projects,” he said, adding that the price of the properties would range from RM600,000 to RM3mil.

.On Seberang Prai as an alternative development site, Chang said the fact that there were so many developers interested in Seberang Perai is proof that the area was rapidly turning into a growth location.

“I am confident that if we concentrate on ensuring that our products stand the test of time, and we focus on delivering excellence, be it in service, product design or product quality, we will do well,” Chang added.

Chang said while there had been some slowdown at the start of the year, as a result of the cooling measures by Bank Negara, they expected the property market to regain momentum towards the latter part of the year as all participants were adjusting to the new realities of the market.

“The more challenging outlook has also caused developers to up their game and we expect new launches to showcase some good development concepts to attract buyers to continue to invest. With the completion and opening of the second Link, interest in mainland Penang has picked up significantly and we believe this will be the new hotspot for properties up north.

“Overall, we remain positive about the Penang property market which is supported by solid fundamentals of strong underlying demand, good economic prospects and continued job creation both on the island and the mainland,” he added.

Meanwhile, Henry Butcher Seberang Prai associate director Fook Tone Huat said that vacant land prices in Seberang Prai, especially those in South Seberang Prai where the second bridge is located, were now hovering around RM40-RM50 per sq ft, compared with RM8-RM9 per sq ft prior to the announcement of the second link project in 2006.

Source: StarProperty.my