A LAND valuation of RM1,200 per sq ft for 44.5ha of reclaimed land in Penang by the state government is being used as a point of reference for land transactions, claims the Real Estate and Housing Developers Association (Rehda).

The association’s Penang chairman Datuk Jerry Chan said yesterday land prices in the state are expected to rise next year.

This is partly due to the government’s move of pegging land value so high in relation to the swap deal with Consortium Zenith BUCG, the developer of the proposed RM6.3 billion undersea tunnel and three highways.

The deal involves land starting from Tanjung Tokong to the sea-fronting Persiaran Gurney, which has been tagged at RM1,200 per sq ft, since the state does not intend to pay the developer for the multi-billion ringgit projects.

Stating that the said deal will now be the yardstick for land owners and developers when fixing prices on their properties, Chan said: “If the state takes that kind of valuation, what do you think other land owners and developers will do?

“And remember that the project construction cost (RM6.3 billion) was from six months ago, which has not taken into account additional costs due to the higher electricity tariff and the goods and services tax (GST). If costs goes up, so will property prices,” he said at IJM Land Bhd’s office.

Present was IJM Land northern region general manager Toh Chin Leong.

Chan said while Penang can expect to see fewer property projects launched in 2014, prices will not come down.

This, he said, is because banks and investors are already cautious about the property market.

Penang is unlikely to see any property bubble as the property market remains healthy, he said.

“We, however, need time to determine how some of the measures imposed by the Federal Government via 2014 Budget and the state government will affect the market.”

Toh said property prices in Penang are on the rise due to various factors, including increased higher compliances cost, which has been increasing in the past four years.

“Cost contributions have increased three-fold as they now have to pay the government a default compensation of RM120,00 for each low-cost housing unit they did not incorporate into their project.

Developers also have to obtain a housing development licence by paying a deposit of three per cent of their project’s estimated cost to show they have sufficient financial ability to begin building properties.

Source: Business Times

SIXTH PROJECT IN STATE: Southbay East development on the mainland set to be completed within 4 years

MAH Sing Group Bhd is buying about 30.9ha of freehold land in mainland Penang for RM42.59 million for its new township, Southbay East, which has a potential gross development value (GDV) of RM400 million.

The developer said the land is acquired at RM12.80 per sq ft and that it will settle the payment within 18 months.

Southbay East is located 6.6km from the Jawi toll plaza on the North-South Expressway and about 7km from Taman Perindustrian Nibong Tebal.

Mah Sing group managing director and chief executive Tan Sri Leong Hoy Kum said this is the company’s sixth project in Penang and the first on the mainland.

Among its projects in the state are Icon Residence, Southbay City, Southbay Plaza and The Loft.

The new development will offer link houses, linked semi-detached houses, semi-detached houses, townhouses and shops. It is expected to be completed in three to four years.

“We have been building our brand in the state since 2007 and we want to heed the government’s call to build properties for the middle-income segment as these products are in short supply in Penang,” he said in a statement yesterday.

“We have found a piece of land that is rightly priced with good payment terms, and we aim to build houses that are rightly priced as well.”

Mah Sing’s projects in Penang will yield remaining unbilled sales of about RM3.8 billion, representing 13 per cent of the company’s RM28.78 billion GDV and unbilled sales.

Source: Business Times

The new housing rules from Feb 1, 2014 is to protect Penang from being adversely affected by a property bubble as well as to ensure that public housing and affordable housing are bought by genuine purchasers who are qualified first time buyers from lower and middle-income groups

The Penang state EXCO during its last meeting refined the new housing rules as follows:

1. Public Housing – Low Cost and Low Medium Cost Housing

All low cost homes (up to RM42,000) and low-medium cost homes (up to RM72,500) purchased can not be sold for 10 years. Those who wish to sell during the first 10 years must appeal to the state government and can only be sold to “listed buyers”. Listed buyers are those who have registered with the Housing Department of the state government and are certified as low income groups that are qualified to purchase low-cost or low-medium cost housing. This 10 year rule will cover all past and future purchases. The balloting of houses will be subject to oversight by an auditing firm.

2. Affordable Housing

Affordable housing is classified as houses which were initially purchased below RM400,000 on the island and RM250,000 on the mainland. Affordable housing purchased can not be sold for 5 years. Those who wish to sell during the first 5 years must appeal to the state government and can only be sold to “listed buyers”. Listed buyers are those who have registered with the Housing Department of the state government and are certified as middle-income groups that are qualified to purchase affordable housing. This 5 year rule will cover all past and future purchases. The balloting of houses will be subject to oversight by an auditing firm.

3. Purchases by Non-Citizens

Non-residents can only purchase properties in Penang in excess of RM1 million and for landed property on the island must exceed RM2 million. All purchases of properties by non-residents will be subject to a 3% levy on the transacted price from Feb 1, 2014. Exemptions are provided for purchases for industry purposes or for a purpose that promotes employment, education, human talent or promoting Penang as an international intelligent city.

4. 2% Levy on Property Purchased after Feb 1, 2014 Sold within 3 years

A 2% levy will be imposed on the seller for all property sold within 3 years from the date of the Sales & Purchase Agreement (SPA) signed from Feb 1,2014. In other words, this is not retrospective. Properties bought with the SPA signed before Feb 1,2014 will not be subject to this levy. Only properties bought with the SPA from Feb 1, 2014 will be subject to the 2% levy if sold within 3 years. This 2% levy is not applicable to affordable housing.

Preliminary discussions were held between some property players and house buyers but the state government is prepared for further discussions with all stakeholders.

Source: Bulletin Mutiara

KUALA LUMPUR, December 9th, 2013 – iMoney, the number one financial comparison website in Malaysia, will begin offering personalised mortgage consultancy services to consumers in Penang and Johor Bahru. This new expansion puts iMoney’s mortgage consulting business in five states, namely Kuala Lumpur, Selangor, Negeri Sembilan, Johor Bahru and Penang.

iMoney’s decision to widen its personalised mortgage service offering in Johor Bahru and Penang is in line with property demand trends in both the northern and southern cities. Now, with its experienced and qualified mortgage consultants, home loan applicants in these states will be able to experience hassle-free loan application.

This solves the biggest problem most people face when taking out a home loan, where it is still impossible to apply 100% via the internet, and meeting with different banks just to gather information remains a necessary step in the process. With iMoney and its in-house mortgage experts, consumers eliminate the need to meet and consult multiple banks, thus saving time and money.

iMoney also plans to make greater inroads as well as to deepen their service offerings to clients in these two states.

“iMoney is growing at a double digit growth rate every month, and while we’re already the largest source of financial products comparison in the region, we want to further accelerate our growth.

“When we started iMoney’s mortgage service offering, our team of consultants were only able to serve our customers in the Klang Valley, turning away hundreds of clients from Johor Bahru and Penang. We see the potential in these states and decided to expand the business by providing the full range of home-loan application services to other states in Malaysia,” said Lee Ching Wei, Group Chief Executive Officer of iMoney.

Penang and Johor Bahru are two of the most exciting property hubs in Malaysia, outside of the Klang Valley. iMoney aims to bring a best-in-class, home-loan application service to property buyers in these cities. With iMoney’s services, consumers are able to compare all home loans online, apply with multiple banks, and get quick response on all applications with no hassle.

About iMoney

iMoney is Asia’s leading financial product comparison website allowing consumers to compare home loans, personal loans, car insurance, credit cards, and deposit rates of any bank and to apply for the best online.

Founded in 2012 by Lee Ching Wei, iMoney has grown to be Malaysia’s number one financial services website (certified by Alexa Traffic Rank) and has a presence in Thailand, Philippines, Indonesia, Singapore and Hong Kong, where it holds market-leadership positions.

Today, iMoney Group generates more than a quarter million visitors each month.

For more information, visit http://www.iMoney.my or direct any enquiries to: hello@iMoney.my

Owners of affordable and low-cost homes in Penang will find it tougher to sell their properties as the state government plans to enforce strict rules to curb property speculation.

From Feb 1 next year, owners of affordable homes (bought for below RM400,000 on the island and RM250,000 on the mainland) would be barred from reselling their properties in the first five years of ownership.

Meanwhile, owners of public housing (low and low-medium cost units) bought for RM72,500 or less cannot sell their units for 10 years.

Chief Minister Lim Guan Eng said affordable and public housing owners who wished to sell their units during the moratorium would have to appeal to the state government, and if given the green light, could only sell to qualified “listed buyers” who were registered with the state housing department.

Lim said in a statement that the new rulings would cover past and future purchases.

The new regulations also stipulate that foreigners can only buy property valued at RM1mil or more, and the threshold is increased to RM2mil if it is a landed property on the island.

A three per cent levy would be imposed on properties bought by foreigners, but an exemption would be made if the property is for industrial use, or “promotes employment, education and human talent”, said Lim.

“A two per cent levy will be imposed on the seller, for all properties sold within three years from the date of the Sales & Purchase Agree­ment signed from Feb 1, 2014. Property bought with the SPA signed before Feb 1, 2014, will not be subject to this levy.

“This two per cent levy is not app­licable to affordable housing,” he said.

He said the new housing rules were announced during the tabling of the 2014 state budget at the state assembly sitting but was refined for clarity and certainty during the last Penang state exco meeting.

Meanwhile, Penang Real Estate Housing Developers Association (Rehda) chairman Datuk Jerry Chan said the new rules would limit the pool of property buyers as owners could only sell their units to “qualified buyers” registered with the state housing department.

He said the state government should clarify if this new restriction applied to private property as the change was too drastic.

“It is also not right to impose the new rule on past purchases as these restrictions were not there when purchasers bought the property at that time.

“The new rule will have an impact on the selling price of the property because of the reduced number of purchasers. Changes will have to be undertaken progressively to see the impact,” he said.

Source: StarProperty.my