Developers’ focus shifts with Second Penang Bridge

2nd Link, 2nd Penang Bridge, Batu Kawan, Juru, Taman Cendana Indah, Residency@Cendana

 

DESPITE a softening property market on Penang island and Seberang Prai, Kuala Lumpur and Penang-based developers will be undertaking projects to the tune of RM4.56bil this year, a check with various developers show.
The island, however, is seeing fewer residential property launches due to land shortage, higher land cost and a challenging property market environment. Nevertheless, Raine & Horne director Michael Geh says the gross development value (GDV) of the projects launched on the island this year will still be higher.
Of this RM4.56bil, about RM1.86bil will be residential and commercial projects planned in Seberang Prai, while the remaining RM2.7bil will be on the island.
Although in value terms the island will have a lion’s share, much of the focus is expected to be on Seberang Prai, located on Peninsular Malaysia.

To a large degree, the focus on Seberang Prai has been triggered by the announcement of the second bridge by Malaysia’s fifth prime minister and Penangite Tun Abdullah Ahmad Badawi in the Ninth Malaysia Plan in August 2006. Since then, property prices in Seberang Prai and on the island have risen significantly. One can consider 2006 as the watershed where Seberang Prai is concerned.
The opening of the RM4.5bil second Penang bridge on March 1 is also expected to spur a second wave of interest.
The connectivity is expected to boost retail, for a start. There are plans to develop a RM200mil premium retail outlet known as Penang Designer Village and an integrated shopping mall which will be anchored by an IKEA store in Seberang Prai.
PE Land Sdn Bhd will undertake the Penang Designer Village, while the integrated shopping mall with residential components will be developed by Aspen-Ikano.
Residential development is also expected to improve with the entry of big players into that area in terms of style and design.
Last December, Mah Sing Group Bhd acquired 30.9ha in Jawi, comprising 20 pieces of prime freehold contiguous land, for RM400mil. Its group managing director and chief executive Tan Sri Leong Hoy Kum says the group plans to introduce an integrated township called Southbay East.

Leong says the township is currently at the planning stage. He says the freehold township located just 6.6km from the Jawi toll plaza on the North-South Expressway is expected to attract those who work and live in Southbay East’s immediate surroundings. The property developer is proposing linked homes, semi-detached units and town houses. There will also be a club-house.
But land prices may become an issue. Henry Butcher Seberang Prai’s associate director Fook Tone Huat says vacant land prices in the area, especially those in south Seberang Prai where the second bridge is located, are now hovering between RM40 and 50 per sq ft, a huge jump from 2006’s RM8-RM9 per sq ft.
Land prices in Central and North Seberang Prai were then between RM20 to RM40 per sq ft, compared with today’s range of between RM50 and RM100 per sq ft. The increase in land prices has translated into higher property prices.
“New landed properties such as double-storey terraced units in South Seberang Prai are now priced between RM350,000 and RM400,000 compared with between RM150,000 and RM200,000 prior to 2006,” Fook says.
Double-storey terraces in prime locations in Central and Northern Seberang Prai have doubled from RM200,000-RM270,000 range to RM400,000-RM600,000.
“We are also seeing a lot of life-style condominium projects being planned in Bukit Mertajam this year with new units priced at at around RM300 per sq ft,” Fook says.
As for the secondary or sub-sales market, double-storey terraced houses have a wide price range of between RM250,000 and RM500,000, depending on location.
Landed properties in the sub-sales segment command the best pricing in Bukit Mertajam and Butterworth town.
Despite the interest in Seberang Prai, Fook expects the volume of property transactions to soften this year, due largely to the difficulty in obtaining housing loans.

“There will definitely be fewer transactions this year compared with about 12,000 registered for 2013.
“Since January, we have seen fewer enquiries for primary and secondary market properties as the rejection rate of housing loans is currently at about 60%. Property prices are expected to remain more or less the same as last year,” Fook adds.
Real Estate and Housing Developers’ Association (REHDA, Penang) chairman Datuk Jerry Chan says due to the tightening of bank loans, he expects the volume of property transactions to decline by about 30% this year.
“The overall transacted value will also fall by about 20%,” he says. Raine & Horne’s Michael Geh expects properties in the secondary segment to remain stable, while those in the primary market might soften slightly.
“There will definitely be a dip in the volume of transactions, due to the stringent loan conditions,” Geh says.
Despite issues about buyers getting the margin of financing they would like to have, this does not seem to have deterred developers from entering the Seberang Prai market in a fairly big way.
DNP Land, which is part of Singapore’s Wing Tai group, will be developing a RM250mil condomonium project known as Bukit Mertajam Mahkota and the RM550mil Jesselton Hills landed property scheme in Bukit Mertajam, located in Central Seberang Prai. Tambun Indah Land Bhd is also planning RM616mil worth of landed property launches for Bukit Mertajam and Pearl City in Simpang Ampat, south Seberang Prai.
DNP Land (North) general manager K.C. Tan says the Bukit Mertajam Mahkota project will be the town’s first high-end condominium development. As for Jesselton Hills in Alma, it will have 200 units of semi-detached and terraced houses.
“The projects are strategically located between the first and second bridges, and is close to Jalan Song Ban Kheng, a prime residential district. They are also surrounded by the Prai and Bukit Minyak Industrial Parks and Penang Science Park.
“We expect buyers from Kedah, especially from Kulim High Tech Park, as Bukit Mertajam is the main connecting point between Penang and Kedah,” Tan says.
IJM Land, known for its Penang island Light project, is also launching RM236.5mil worth of properties comprising double-storey houses in Jawi, south Seberang Prai, and double-storey linked bungalows in Bukit Mertajam, central Seberang Prai. One of Kuala Lumpur’s heavyweight, Sunway Bhd is also planning to launch some RM150mil worth of residential and commercial projects for the second phase of Sunway Wellesley in Seberang Prai, a mixed-development project in Bukit Mertajam, at the end of this month, while the RM60mil third phase, comprising resort condominiums, will kick off in October.
Sunway Bhd general manager Tan Hun Beng says the group will be launching more properties in Seberang Prai as the lower land prices there has allowed the group to price its properties affordably. In June this year, Sunway will launch the RM80mil Sunway Cassia third phase, double-storey semi-detached and three-storey terraced houses, in Batu Maung, in Seberang Prai.
The focus on Seberang Prai, by no means, mean that there is less interest on the island. In fact, property prices have grown by leaps and bounds the last several years. This year, however, will see less launches of landed units, due largely to land shortage and high prices.
Raine & Horne Malaysia director Michael Geh says the price of vacant land has increased to around RM250 to RM300 per sq ft in Batu Maung in the southern part of the island, where the second bridge is located, from about RM50 to RM60 per sq ft prior to 2006. This effectively means that in just eight years, land prices have increased by 400%.
However, Geh also says land prices depend on what the land is being zoned for, whether it is agriculture, commercial or residential usage. This increase in land prices coupled with other factors have resulted in higher property prices.
New two- and three-storey terraced houses on Penang island now cost about RM1.2mil in the south of the island, compared with about RM450,000 prior to 2006.
“New condominiums in similar locations are now priced at RM700,000-RM800,000, compared with RM250,000-RM300,000 prior to the second-bridge announcement in 2006. In the prime locations of the north-east districts such as Tanjung Bungah, Tanjung Tokong, and Pulau Tikus, new lifestyle high-rise units start from RM800,000 onwards, doubled what it used to be in 2006,” Geh says.
How sustainable are these prices? The reponse to launches will be an indication.
Eastern & Oriental Bhd will be launching its RM800mil Andaman Edition 18 East condominium scheme on the island in the first half of this year. IJM Land will introduce its RM125mil Trehaus@Bukit Jambul. This comprises condominium villas and semi-detached villas, and a yet-to-be-named medium and low-medium cost project, which has a RM177mil GDV, in the fourth quarter of this year.
S P Setia will launch in the second half the RM300mil Setia Sky Vista, a condominium project, in Relau.
These launches will be keenly watched.

Source: StarProperties.my

TM UNIFI registration for Residence of Tmn Cendana Indah

Good Morning to my fellow neighbours of Tmn Cendana Indah. Recently I come to notice that Lorong Cendana Indah 3 and Lorong Cendana Indah 4 's residence have not get the TM UNIFI coverage yet as of today. Please do correct me if I am wrong.

While Lorong Cendana Indah 1 and Lorong Cendana Indah 2 have received their coverage since middle of last year (2013). This puzzle me at first but soon realized that we as residence need to register to TM UNIFI. We need to let TM knows that we are interested in fixing the TM UNIFI and hopefully that will speed up the connection of TM UNIFI for those of us staying in Lrg Cendana Indah 3 and Lrg Cendana Indah 4.

So I am urging my neighbours that are staying in Lrg Cendana Indah 3 and Lrg Cendana Indah 4 to quickly go to the nearest TM shop for registration. Similarly for those who intent to move in either this year or next year to do the same.  Thank you and have a nice day.

Attached below is a simple sketch showing the status of TM UNIFI coverage in Tmn Cendana Indah.

Tmn Cendana Indah, TM UNIFI, UNIFI Coverage, Residency@Cendana

Penang Science Park @ Juru Side

Juru Penang Science Park, Tambun Penang Science Park, Taman Cendana Indah

Last Saturday I took my mountain bike for a ride to Tambun Stadium and Pulau Aman Jeti. On my way back, I explored to Penang Science Park of Tambun side. As I ride passed Ibiden, I noticed the bridge construction has been completed. Ready to be use.

The land marked by the rough yellow square was cleared and now it is ready for infrastructure. The new Penang Science Park of Juru side. Currently the red dotted line can be cross by only mountain bike and motorcycle.

I am not too sure where the actual road will exit? Either near to Juru Height or opposite Taman Cendana Permai as per my drawing above.

Please do check out the above route during the weekend.
Stay tune for more !

Property deals drop, value of transactions rise, prices may rise

KUALA LUMPUR: Property transactions dropped in the first nine months of last year, said the Valuation and Property Services Department, confirming observations by real estate professionals that the market is slowing down.
Although the number of transactions was lower, there was an upward trajectory in value, an indication of rising prices.
The department’s deputy director-general Faizan Abdul Rahman said the residential sub-sector, which accounted for about 64% of the total property transactions, saw a 14% drop from a year earlier, with average house prices exceeding RM300,000.
Faizan was speaking at the 7th Malaysian Property Summit 2014 organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants yesterday.
Faizan said the commercial sub-sector saw a drop of 22.3%, compared with the previous year.
The industrial, agricultural and development sub-sectors saw reductions of about 20%, 13.6% and 8.3%, respectively.
The total number of transactions for the first nine months fell to 280,820 valued at almost RM106bil, compared with 328,692 in 2012 worth RM107bil.
Transactions in 2010 surpassed the RM100bil mark as a result of an extremely buoyant market, which started in 2009. It has been on an upward trajectory since then.

On the effect of the various tightening measures, organising chairman Choy Yue Kwong said they would curb excessive speculation.
Choy, who is Rahim and Co (Selangor) Sdn Bhd managing director, said the measures would discourage speculators from using bank loans to finance their purchases.
“The curbs are slowly taking effect. The measures will have a significant impact on speculation, especially speculators who depend on bank loans,” he said.
Choy added that the real property gains tax (RPGT), however, will have little effect on curbing speculative activities in the market.
He said the RPGT should have been introduced earlier when house prices were lowerand prices had appreciated faster, resulting in higher profit margins.
Prices had skyrocketed now, squeezing profit margins and rendering the RPGT less effective, he added.
CH Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen, meanwhile, said there was a mismatch between the demand for real estate and supply.
“There is an oversupply of high-end residential property in the market. Prices have gone up too much over the last few years. What people really need is affordably priced lower-to-mid-range housing,” said Foo.
“Developers will be pressured to cater to this market segment that is most in need. Having said that, the bright side is that the market is expected to stabilise with more realistic prices over the year.”

Source: Starproperty.my

Second Penang bridge expected to open in February

The second Penang bridge, which is now 99.9% completed, is expected to be opened to the public in February, said Works Minister Datuk Fadillah Yusof.

“Only the construction of two toll plazas in Batu Kawan – one at the Bandar Cassia interchange and the other at the interchange connecting to the North-South Expressway (NSE) – is yet to be completed.

“Upon completion, the 28-booth toll plaza in Bandar Cassia will be the largest in the country,” he told a press conference at the China Harbour Engineering Co Ltd (M) Sdn Bhd office in Batu Maung here.

Currently, the Sungai Besi toll plaza is the largest one in the country with over 18 lanes.

The Bandar Cassia toll plaza (PB2X Toll Plaza) will be managed by Jambatan Kedua Sdn Bhd. NSE operator PLUS Expressway Bhd will operate the other one (PLUS Toll Plaza).

“The PB2X Toll Plaza is meant for motorists who are not using the NSE, especially the locals who want to commute to the island from the Batu Kawan area. After the construction is done, we have to integrate the system with other highways such as the NSE,” Fadillah said.

He added that the bridge would be opened to the public only after it met requirements set by the Malaysian Highway Authority.

On talk that toll rates would be increased next year, he said they were subject to review every three to five years and added that the toll rates for the bridge were still at the negotiation stage.

“We have a total of 29 tolled highways in the country and the concession agreements vary.

“For example, the NSE is due to be reviewed in 2016,” he said, adding that a few highway tolls would be reviewed next year and the incremental rate would depend on the Federal Government, which would take into account its financial position and the people’s economic situation.

The second Penang bridge, spanning 24km with 16.9km over the sea, is expected to ease at least 25% of traffic congestion on Penang Bridge.

Source: StarProperty.my

New rules may burden Penang homeowners looking to sell

GEORGE TOWN: 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

Hunza plans 3 projects with GDV of RM1.4b over 4 years

Copied from The Sun Daily which were posted on 28 August 2013 - 08:25pm.

GEORGE TOWN (Aug 28, 2013): Hunza Properties Bhd plans to launch three projects with a combined gross development value (GDV) of RM1.4 billion over the next four years, said its executive chairman Datuk Khor Teng Tong.
He said the three projects – which will be Hunza's focus for the coming years – include an integrated development on 14.9ha in Juru worth RM700 million in GDV; Alila II, a high-rise green building project (RM500 million GDV) and Bandar Putra Bertam in Kepala Batas (RM200 million GDV).
"The planning ratio at Juru is expected to be 75% for high-rise residential and 25% for commercial (held by Hunza)," he told reporters after announcing the group's financial results ended June 30, 2013 here today.
He said the integrated development in Juru would feature a four-star hotel, hypermarket and recreational facilities covering about 500,000 sq ft (about 46,451 sq m), which will be owned and managed by Hunza.
The group plans to submit the proposal to the relevant authorities by September or October this year, he added.
Khor said the hotel with about 300 rooms is expected to be another revenue stream for the group after its premier lifestyle shopping mall Gurney Paragon Mall, which opened on July 23 this year.
On Alila II, Khor said the project, comprising two tower blocks of high-end condominiums sited on the Alila in Tanjung Bungah, is likely to be launched soon as it is currently awaiting final approval from the relevant authorities.
For the RM200 million GDV in Kepala Batas, he said it would be the remaining phases after the 128 double-storey semi-detached houses of Phase 3 launched in May 2012 are completed and fully sold.
"Phase 3, featuring 173 double-storey terrace houses launched in the third quarter of financial year 2013, has to date achieved more than 50% sales," he added.
On Hunza's multi-billion ringgit integrated development in Bayan Baru, Khor said the group hopes to start the project in 2016 with earthworks for the low-cost units for the resettlement of the squatters in progress.
Asked to comment on the possibility of increasing the real property gains tax (RPGT) to stabilise the prices of houses, Khor said: "I don't agree that the government always changes its policies."
"More houses should instead be built if supply was short to stabilise the prices, while changing the policies would affect the industry's growth," he said. – Bernama