MALAYSIAN Resources Corp Bhd (MRCB) says the Penang Sentral project in Butterworth, estimated to be worth over RM3 billion, will begin in 2013 after more than four years of delay.

Penang Sentral, an integrated mixed commercial development was expected to start in 2008 but works got delayed due to land acquisition matters. MRCB was awaiting federal government allocation to fund the public utility project.

It was then reported that Phase 1, comprising the integrated transportation hub with a retail component, worth an estimated RM400 million, would start in December 2010.

MRCB’s property division head of marketing Zamry Ibrahim said construction will begin next year and there would be some changes to the plan, like the incorporation of more green elements in the buildings.

“There is a lot of demand for energy efficient buildings from multi-national companies and local players. We will develop what is required by the market,” Zamry told Business Times in an interview recently.

The 9.6ha Penang Sentral will feature a transport terminal for ferries, buses, taxis, trains and a projected monorail station.

Zamry said the terminal will be integrated and surrounded with commercial, residential and retail components, similar to MRCB’s Kuala Lumpur Sentral integrated commercial hub in Brickfields.

The 28.8ha KL Sentral development, which started over eight years ago, currently comprises a transport hub for rail, buses and taxis, two hotels, a mall, and several residential and commercial towers.

Penang Sentral, which is part of the Northern Corridor Economic Region initiative, will be developed by MRCB and Pelaburan Hartanah Bumiputera Bhd.

The project is poised to be the catalyst of growth to rejuvenate the economy in the northern region.

It has been reported that Penang Sentral is expected to generate economic spill-over effects of over RM8 billion when it is completed in about 10 years.

It is also expected that with the completion of the KTMB electrified double tracking project, train service between Penang Sentral and KL Sentral will be shorten to three hours.

Source: Business Times

THE Penang Municipal Council (MPPP) has approved 14 projects under the 87 units per 0.404ha guideline since it came into effect in June, 2010.

State Local Government and Traffic Management Committee chairman Chow Kon Yeow said stringent measures had however been imposed on developers to build the increased density units.

“The guideline is not applicable in established housing areas, World Heritage Site, the area from Tanjung Bungah Hotel to Mar Vista, along Gurney Drive, the bordering areas of Air Putih constituency and Air Itam constituency and re-zoning area.

“The floor area for the guideline is also capped at about 1,400sq ft per unit and MPPP has also imposed a price control for 25% of the units,” he said in a press conference at the City Hall in Esplanade yesterday. `

Of the 25%, Chow said developers would have to sell 5% of the units at RM200,000 per unit, 15% at RM300,000 per unit and 5% at RM400,000 per unit.

He said if a developer wished to build under the new guideline, the company would have to build an additional 30% low-cost or low medium-cost units in the same district.

“Developers will also have to submit a traffic impact assessment (TIA) report for the respective projects,” he said.

Chow added that currently 109.26ha of land on Penang island was available for the building of units under the new guideline.

He said this worked out to 8,100 units at 30 units per 0.404ha and under the new guideline, 23,490 units could be built.

Council president Datuk Patahiyah Ismail, who was also present, said there would be no capped floor plan size if developers chose to build 30 units per 0.404ha.

“With the 87 units per 0.404ha guideline, we can in a way curb super condos and the issue of expensive prices,” she said.

In recent news reports, many Penangites questioned the need for the guideline as they were concerned that higher density may lead to social and environmental problems for the existing residents.

The 14 projects which have been approved are in Jalan C.Y. Choy,

Jalan Macalister, Jalan Seang Teik, Lorong Perak, Sungai Ara, Bukit Gambier (two projects), Lembah Permai, Jalan Jelutong (two projects), Jalan Paya Terubong, Jalan Perak, Jalan Tanjung Tokong and Jalan Pantai Jerejak.

Source: The Star

The Final Property Expo in Penang for 2012 held in conjunction with MEGA Home 2013 at PISA – last chance to catch the best buys in properties for 2012 in Penang.

MANY Penang Global City Centres (PGCC) may come up on Penang island following the raising of density for high-rise buildings, said a former Penang municipal councilor.

Teh Leong Meng, who is a Gerakan leader, said this would result in traffic congestion and transportation woes.

He said the Penang Municipal Council (MPPP) had in June 2010 raised the density to enable developers to build 87 units per 0.404ha or 120 units per 0.404ha if the project involves low-cost or low medium-cost units.

Previously, the density was 30 units per 0.404ha.

Teh said the former state administration did not approve the PGCC which was supposed to be built on Penang Turf Club grounds in Batu Gantong due to non- compliance with density requirements.

He said there was a proposal to build 40 blocks, each about 40-storey high at the site. There were also plans to build two five-star hotels.

“The project was scrapped due to strong opposition from the public. Traffic congestions will surely take place everywhere with the new guidelines,” he said during a forum on “Say No to 87 units Per Acre” at a hotel in Jalan Sultan Ahmad Shah here on Wednesday evening.

Teh was one of the three speakers at the forum. The other two were Penang Citizens’ Awareness Chant Group representative Prof Dr Jimmy Lim who is an architect and Yan Lee, a resident of Pykett Avenue.

State Local Government and Traffic Management Committee chairman Chow Kon Yeow had said that the density guidelines were still being fine-tuned.

Lim questioned whether an increased in development density would bring any social or environmental benefits to the people.

He added that development should be well thought and planned to complement the cultural norms of the place, lifestyle, tradition, culture, environment, heritage, trees and hills.

“Architecture is all about people. But Penang is fast becoming a messed-up city, with high-rise buildings taking place everywhere,” he said.

Citing an example, he said development could take place in the mould of Shanghai in China.

He said all the old architecture built by Russians, French, Germans and others were left intact and well preserved in Shanghai.

“The Government did not demolish such buildings in the old Shanghai to make way for development. Instead, all the crowded-skyscrapers were built in Pudong new area of Shanghai.

“This shows that the leaders have a vision.

“Similarly, the old city of George Town and its surrounding heritage buildings or bungalows should also be left untouched.

“The state government can have all its tall buildings built in other areas such as Bayan Baru,” he said.

Source: The Star

AT first thought, it might appear prudent to pay off a property loan as quickly and as soon as possible. However, is this really the wisest and smartest financial decision? Consider using cheaper home loans to grow your net worth. – LEE MUN WAI writes…

Home loans usually have lower interest rates than vehicle loans and other unsecured credit, because the use of a home as collateral reduces the lenders risk of financial loss.

People can refinance an existing loan and extract additional funds to pay off credit cards and other debts. Refinancing enables homeowners to lower their overall monthly payments or frees up funds for other purposes and simplify their lives by having to make just one payment.

Refinancing a RM1mil, 30-year loan from 7.5% to 6.5% would save more than RM240,000 in interest over the life of the loan, or more RM150,000 in today’s dollars given a present value discount of 3%, all other elements remaining equal. Despite market turmoil, interest rates remain at attractive levels.

Alternatively, consider investing the additional funds into solid, reputable investments (such as unit trusts,Amanah Saham Malaysia, real estate investment trusts, etc) that can potentially give you returns in excess of what your home loan is costing you.

If your home loan is costing you 5% but you can derive returns of 8% from your investments, you are growing your net worth by 3%!!

Start comparing loans from several different financial institutions before deciding and get information in writing.

Carefully consider your cashflow situation, if you have the income to handle your new refinanced home loan obligations, it might just be more prudent to refinance that house of yours and start growing your net worth. Seating your assets and start letting them work for you.

Source: The Star