SP Setia plans more projects in Penang

July 30th, 2014 28 comments

SP Setia's general manager Khoo Teck Chong told StarBiz that over the last couple of years, the pricing of properties in Penang, on the island in particular, had grown out of proportion with the income levels of the population.

SP Setia Bhd plans to build more varieties of affordable houses over the next five years on Penang island that are within the income levels of Penangites.

Its general manager Khoo Teck Chong told StarBiz that over the last couple of years, the pricing of properties in Penang, on the island in particular, had grown out of proportion with the income levels of the population.

“Due to the stringent loan policies of banks, it has become even more difficult to sell high-end properties,” he said.

In the south-west district, Khoo said the group had about 63 acres which would be used for the development of properties priced within the RM600-RM700 per sq ft range.

“Next year we plan to develop the RM350mil Sky Vista, comprising 426 condominium units, priced at about RM600 per sq ft, which is the current pricing in the market for the properties in the south-west district.

“In 2016, we will introduce the RM350mil Sky 8 and RM150mil Sky Peak projects in Sungai Ara and Sungai Nibong respectively in the south-west district.

“Our feedback shows that properties priced between RM600 per sq ft and RM700 per sq ft are in demand as they are still affordable for Penangites,” he said.

Khoo said the last couple of years had seen the group launching high-end properties in prime locations that were priced from RM1mil onwards.

“Thus, there is a shift in our strategy moving ahead,” he added.

Khoo said the group was targeting to achieve about RM200mil in sales from Penang for the financial year 2014 ending Oct 31.

“We have so far roped in about RM150mil in sales, which is very close to the target.

“This target is down from the RM300mil achieved last financial year. We are lowering our expectation because of the softening property market which started late last year in the country,” he added.

Meanwhile, Eco World Development Bhd chief operating officer Datuk S. Rajoo said the group’s strategy was to focus on landed residential properties in the central, south and northern region.

“We are focusing on strata-titled super-linked properties with built-up of 3,600 sq ft, which were still in demand in the country.

“In Penang, we will launch the RM350mil Eco Terrraces project, comprising strata-titled linked villas with built-up area of 3,600 sq ft in Paya Terubong at the end of this year.

“This is a very unique project as conventional landed strata-titled projects comprised small size linked properties,” he added.

Source: StarProperty.my

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Worry not over leasehold property

July 28th, 2014 13 comments

Owning a leasehold property should not be a concern for first-time housebuyers if they intend to stay there.

Lawyer Chris Tan says chances are high that these buyers will ‘upgrade’ by moving into a bigger house in the next 10 years.

He said houseowners could just renew the lease by paying a certain amount of premium.

“Rather than worry about the leasehold status, housebuyers should instead be concerned over the ‘longevity’ of the building structure.

“Do you know that a building structure by Malaysian standards can only last for 60 years?

“If a building structure is of bad quality and meant to be taken down for reconstruction after 50 years, then what’s the difference between owning a leasehold and freehold property?

“The key here is, nothing is built to last forever. All housebuyers will still have to pool in the resources to rebuild the place if it has to be demolished.

“Don’t let it hamper your decision making,” said Tan, who is the founder and managing partner of Chur Associates during his talk ‘My First Home Seminar’ at G Hotel.

Tan was touching on the topic ‘Back to Basic: Watch What You Sign, Housebuyers’.

While acknowledging that purchasing a freehold property was still the wise move, Tan said there were other aspects which should be looked into. Among them was the lifelong payment for the service charges.

He added that most people were still hopeful that their properties could be passed on from one generation to another.

“The world is evolving rapidly. The amenities and facilities of a building might not be suitable in 20 years to come.

“For example, buildings built 20 years ago won’t have fibre-optics for Internet connection. Some even do not come with air-conditioning.

“But today, we can’t live without it.

“So, you can just forget about leaving behind a ‘legacy’ (houses) for your children. Your house probably won’t be up-to-date for them when they grow up.

“They will find their own home,” he said.

Tan added that one must be aware over the documents they signed after purchasing a house.

“Buying a home is a lifelong commitment. Never take it lightly.

“You will be signing a lot of documents. It is very important to know what you get yourself into.

“Try to get your lawyer to explain to you on clauses which you do not understand,” he said.

Another speaker Timothy Law, in his topic ‘Better Late than Never in Owning Your First Property’, said first time homebuyers could always source for information online in securing their ideal homes.

“With just a click on the mouse, one can easily find their dream homes via online.

“Once you know about your choice, you must act fast.

“Otherwise, it will remain just one of the items on your unfulfilled wish lists.

“Once you get your research done, the next step is, you must leverage on the experts around you to close the deal.

“Networking is the key here.

“You can always seek advice from lawyers, property agents and bankers,” he said.

GM Training Academy chief executive officer and founder Michael Yeoh said first-time housebuyers would have difficulties securing a 100% loan from banks although such a package existed.

He lamented that Bank Negara had failed to look into the plight of the lower income group in getting affordable homes.

According to Yeoh, those buying houses priced between RM100,000 and RM400,000 could actually secure 100% loan financing from the banks.

He said the banks would finance 90% of the loan, while Cagamas Holdings Sdn Bhd, the national mortgage corporation, would finance the remaining 10%.

“But to my knowledge, it is almost impossible to secure the loans.

“We are happy with the policy introduced by Bank Negara but the problem is, the mechanism to safeguard it, is not there,” he said in his talk ‘Financing for First Home Buyers’.

Source: StarProperty.my

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Developers want incentives too

July 28th, 2014 No comments

Housing concerns: Visitors listening attentively to the Penang Property Outlook talk by Raine & Horne Malaysia senior partner Michael Geh at Star Property Fair 2014 in G Hotel.

The state government should look into allowing special privileges for developers involved in affordable projects to pay preferential premium and levies to the state authorities.

Raine & Horne Malaysia senior partner Michael Geh said this would further enhance the smooth delivery of affordable housing projects in the state.

“There will be more incentives for them to build more affordable houses priced between RM200,000 and RM400,000 in Penang,” he said.

Geh spoke at a Penang Property Outlook talk at the Star Property Fair 2014 at G Hotel yesterday.

“The state should also fast-track the approval process for affordable schemes, as this would ensure that there is ample supply of affordable houses in the market.

“The conversion cost for land used for affordable projects should also remain low and affordable. Currently, conversion cost is 15% of the land value, which is on the high side,” Geh said.

He also said that the state should introduce balloting for bank qualified housebuyers to reduce speculation.

“The balloting process will also deter syndicates from obtaining under-counter money to sell affordable houses in the black market,” Geh said.

On the current property market, Geh said sales from developers for the past six months had slowed by about 50%.

“This is due to the high rejection rates of bank loans for properties priced from RM500,000 onwards. There are also fewer launches in the past half year as developers are holding back new projects, due to the stringent loan policies,” he said.

On property prices, the new products coming into the market were expected to be priced at around RM700 per sq ft, about 20% to 30% lower than the market price.

In an earlier talk, Zeon Properties chief executive officer Leon Lee shared about how infrastructure affected property prices.

“Infrastructure plays a vital role in determining a property’s value, as first class infrastructure would attract first class businesses and first class jobs.”

Lee said Penang has also experienced an increase in property prices after the announcement of an undersea tunnel project and construction of new highways on the island.

On Thursday, Rei Group of Companies co-founder and chief executive officer Dr Daniele Gambero said Iskandar Malaysia has a very sustainable property market due to its properly planned economic growth.

He said each of the five flagships of Iskandar Malaysia defined a few specific economic drivers such as financial district, heritage, central business district, and partial tourism.

He added that with the availability of properly developed infrastructure, Iskandar Malaysia was growing and becoming a sustainable metropolis of international standard.

“Everybody around the world is calling Iskandar Malaysia the Shenzen of Malaysia and Singapore and it is undoubtedly so,” he said during his talk titled ‘Iskandar Malaysia: The Way Forward’.

Numerologist Marinah Ng Wai Leng also provided an insight into how the science of numbers could help people become successful.

Source: StarProperty.my

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The Prime Residence

July 25th, 2014 22 comments

The Prime Residence, strategically located along Jalan Paya Terubong, opposite Alpine Tower in Relau. This is a 25-storey residential tower by Universal Class Sdn. Bhd. It comprises 76 condo units with standard unit size of 1,410 sq.ft.

This development comes with a sustainable vertical garden and the building is designed to face south, avoiding evening sun’s heat. It also has a wide range facilities which includes but not limited to an indoor swimming pool, BBQ area, gymnasium, pool desk and etc.

Property Project : The Prime Residence
Location : Relau, Penang
Property Type : Condominium
Built-up Area: 1,410 sq.ft. onwards
Total Units :
Indicative Price : RM600,000 onwards
Developer : Universal Class Sdn. Bhd.
Contact No.: +604-640 7730

Location Map:

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Penang embarks on RM27b transport masterplan with MRT, trams, water cabs

July 25th, 2014 No comments

Penang Chief Minister Lim Guan Eng (3rd right) said the state’s transport master plan will integrate both land and sea networks, including an MRT system, to link the island and mainland.

Penang is looking for a partner to roll out its massive RM27 billion transport master plan that will integrate both land and sea networks, including an MRT system, to link both the island and mainland halves of the state.

The state will call an open tender from August 15 to December 16 for the project, which it hopes to start next year and complete it by 2030.

“The Penang state government intends to achieve for both Penang Island and Seberang Perai a well-defined and fully connected road network and dispersal system and a well-integrated and sustainable public transport systems (both land and sea mode).

“In other words, this will combine buses, trams, MRT and water taxis,” Chief Minister Lim Guan Eng told reporters here today.

He said the proposal to appoint a project delivery partner (PDP) is based on the recommendations in the Penang Transport Master Plan.

The PDP will be fully responsible for the delivery of commissioned public transport systems to the state government.

“They must meet all the requirements of the federal government, existing laws and relevant authorities,” Lim said.

Those bidding can form a consortium or a joint venture with local companies to submit their tender.

The paid-up capital or shareholders’ fund of the lead company should not be less than RM500 million.

The tenderer must also have a track record of at least two large scale projects with a minimum value of RM500 million in the last five years and at least one highway or public transport project in the last 10 years.

“The state government will consider proposals by the tenderers in regards to funding or business models by way of land swap with development potentials,” Lim said.

The master transport plan encompasses both the mainland and the island for an integrated and holistic public transport system that combines buses, trams, MRT and water taxies.

Source: The Malay Mail Online

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