The Real Estate and Housing Developers’ Association Malaysia (Rehda)’s immediate past president Datuk Ng Seing Liong has ruled out that house prices are increasing by double digits.

Reports of rising property prices are not reflective of the entire market situation as prices are increasing only in selected areas due to strong liquidity in the market, scarcity of land, and a mismatch between demand and supply, Ng said.
There is an increase in labour and construction costs but it is minimal and not reflected in existing housing projects.

“Construction cost has increased by between one and three per cent recently, but it is still negligible.

“The key here is a mismatch between demand and supply which is causing house prices to increase in some locations,” he said.

Ng was speaking to Business Times here yesterday after a briefing on the Malaysia Property Exposition (Mapex), which will be held at the Mid Valley Exhibition Centre from October 25
to 27.

Ng said there is strong demand for gated communities and the more affluent groups are willing to pay higher prices for such properties.

“Properties in gated communities can cost between 30 and 50 per cent more than basic houses because of value-added privileges.

This is where, I believe, there is a misconception that property prices are increasing,” he said.

Source: Business Times

Site identified: (From left) Wong, PDCP senior project manager Tan Yeow Song and architect Johnny Ooi checking out the project plans with other architects present during the press conference

THE tender to build 694 affordable high-rise units in Teluk Kumbar, Penang, is now open.

The project by Penang Develop-ment Corporation Properties Sdn Bhd (PDCP), which is the state government’s construction arm, is open to local contractors for bidding.

PDCP chairman Wong Hon Wai said the proposed site for the project was just directly opposite the Puspakom office in Teluk Kumbar.

He said the successful bidder would be required to build a low medium-cost (LMC) block with 346 units, a medium-cost block with 348 units, a seven-storey car park and seven shoplot units.

The deadline to submit tenders is noon on Oct 16.

Wong said work on the project was expected to start either at the end of this year or beginning of next year for completion in three years from commencement.

He said the LMC units would have a built-up area of 700sq ft while the size of the medium-cost units would be 850sq ft to 1,000sq ft, adding that the state government would announce the prices later.

It was, however, reported earlier that the units would be priced at RM72,000, RM200,000, RM300,000 and RM400,000.

The Teluk Kumbar project is one of the eight affordable housing projects that have been proposed by the state government.

For more information on the tender, call PDCP at 04-6340111.

Source: StarProperty.my

LED decorative lights and firework displays lighting up the second penang bridge during the Malaysia Day celebrations.

The second Penang bridge is scheduled to be completed on Nov 8 as agreed between the concessionaire, Jambatan Kedua Sdn Bhd (JKSB), and the Federal Government.

JKSB public relations and communications deputy manager Azizi Azizan said the bridge was initially expected to be completed in September, two months ahead of schedule, but the collapse of its ramp at the Batu Maung interchange on June 6 held it back.

To date, the bridge is 98% complete.

“Construction work at the Batu Maung interchange is expected to be completed on Oct 8,” he said.

He was speaking to reporters at the main navigational span of the bridge on Sunday night where 204 street lights along a 3km stretch were switched on to commemorate Malaysia Day.

Members of the media were also treated to a buffet meal on the bridge.

LED decorative lights along the side of the bridge, over a distance of 2.3km, were also switched on while a 10-minute fireworks display began at 10.45pm.

The RM4.5bil second bridge, spanning 24km with 16.9km over the sea, links Batu Kawan on the mainland with Batu Maung on the island.

Source: StarProperty.my

Pearl Harmoni, is strategically located in a self-contained Pearl City township of Simpang Ampat in Southern Seberang Perai. Surrounded by choices of learning institutions, supermarkets, shops, and other facilities. It is mere minutes drive to the North-South Highway, Penang Science Park and the Penang Second Link and Up-Coming Pearl City Mall.

Property Project : Pearl Harmoni
Location : Pearl City, Simpang Ampat, Penang
Property Type : 2-Storey Terrace
Land Area: 20′ x 61′ onwards
Built-up Area: 20′ x 40′(Type A) and 20’x 43′(Type B)
Tenure : Freehold
Developer : Tambun Indah

Group to launch various developments on 1,214ha land bank, focusing on Klang Valley, Johor and Penang

Eco World Development Sdn Bhd, a company set up by former directors and executives of S P Setia Bhd, is looking to launch projects with a gross development value (GDV) of RM30bil on 1,214ha of land.

Chief executive officer Datuk Chang Khim Wah said that at present, it was focusing on the Klang Valley, Johor and Penang.

“Up next, we would have two projects in Penang, two in the Klang Valley and four in the Iskandar region,” he told StarBiz.

On how the company managed to secure such a huge tract of land since it is a relatively new company, he attributed it to its major shareholders, Datuk Eddie Leong Kok Wah and Tan Sri Abdul Rashid Abdul Manaf, who have been in the industry for some time now.

In terms of land size, Eco World has 5.26ha in Air Itam, Penang Island; 24.28ha in Seberang Prai, Penang; 433ha in Semenyih, Selangor; 497.76ha in Tebrau, Johor; and 154.99ha in Senai, Johor.

Two of the projects to be first launched by the budding developer is a 109.27ha township development known as EcoBotanic in Nusajaya, Iskandar Malaysia, and a 4.05ha integrated mixed-use development known as EcoSky along Jalan Ipoh.

EcoBotanic, with a GDV of RM3bil, will be launched on Sept 22 and will comprise cluster homes and semi-detached houses.

One of the features of EcoBotanic is the preservation of the land’s original façade. Some 70% of the trees on the site have been preserved, with the development being built around them.

“We conserve most of the trees and retain the waterways. At the same time, we incorporate modern designs to the houses,” Chang said.

The house prices, which are estimated to begin from RM900,000 per unit for cluster units and RM1.6mil for semi-detached houses, all come gated and guarded besides offering infrastructure such as parks and Internet connection.

Meanwhile, the RM1.2bil EcoSky sits on a site bought from DRB-Hicom Bhd in April for RM69.92mil.

The mixed development will consist of 36 retail units and 940 high-rise residentials, with sizes measuring from 861 to 1,227 sq ft. Chang estimates the selling price for the units to range from RM600 to RM650 per sq ft.

According to him, 24% of the land would be reserved as green spaces and Eco World would also build a covered walkway to the commuter rail stations nearby. Interestingly, the company will arrange the leasing for the shop-owners after selling the commercial lots so as to have better control of the tenant mix.

“As there would only be limited units of shops, we want to do it as a balancing act so that we would have the right restaurants, banks and businesses,” he said, adding that if the tenant mix was done right, shop-owners would be able to secure above-average returns.

He, however, noted that Eco World would not be offering rental guarantees, and that the arrangement was an agreement with the owners of the commercial properties to give them the authority to choose the tenants.

The company had earlier on bought land totalling 249.4ha from DRB-Hicom for RM605mil. The other 248.39ha tract is situated in Tebrau, Johor.

Chang said the developer’s theme was “Creating Tomorrow and Beyond”, which would be achieved by incorporating eco elements into its products.

He said the launch of its EcoBotanic and EcoSky gallery, scheduled for Sept 22, would signify the birth of Eco World.

Separately, the company has inked a letter of intent with Salcon Bhd’s subsidiary to manage a mixed development that consists of a five-storey shopping complex and apartments.

Source: StarProperty.my