GEORGE TOWN: The state government, stung by criticism over the Taman Manggis issue, has finally allocated a portion of land for a People’s Housing Project (PPR).

“We will be building 1,328 units of affordable housing on a 4.4ha plot of land with work expected to commence next year.

“The Penang Development Corporation (PDC) will implement the project and an open tender will be called soon,” said Chief Minister Lim Guan Eng at a press conference yesterday.

Lim hoped that the announcement would put the Taman Manggis issue to rest as the allocated land is much bigger than the 0.4ha site.

He also said 0.8ha (two acres) of the land had been set aside for the Federal Government’s PPR in Jalan S.P. Chelliah since Housing and Local Government Minister Datuk Seri Chor Chee Heung mentioned that PPRs need a minimum of two acres.

The state was criticised by Barisan Nasional over the sale of land in Taman Manggis at the Jalan Zainal Abidin/Lorong Selamat-Jalan Burma junction which was initially slated for a People’s Housing Project (PPR).

It was reported that a 30-storey building was proposed at the site by the Kuala Lumpur International Dental Centre but it was rejected by the Penang Municipal Council as the centre was unable to secure an operating licence from the Health Ministry.

On a separate matter, Lim took a swipe at MCA Youth chief Datuk Dr Wee Ka Siong for condemning the way the state government had transferred its debts to the Federal Government.

Lim said the state government had bargained with the Federal Government over the RM600mil in water supply loans, and this had resulted in a debt reduction from RM630mil in March 2008 to RM30mil in October last year.

Dr Wee had said the state had not earned the money but had pushed the debt over to the Federal Government.

“At least we drove a hard bargain to transfer the debts in the interest of Penangites,” Lim said in response.

Source: The Star

A HIGH-DENSITY and compact city form will be an ideal development pattern for Penang island as it is facing a shortage of land.

Penang Municipal Councillor Ng Chek Siang said Penang island was facing a shortage of land.

He said that forest reserves and hill land covered an estimated 52% of the island.

“Our current density/plot ratio is too low (1:5) compared to Singapore (1:12), Hong Kong (1:15) and Kuala Lumpur (1:10),” he said.

He said there were several advantages of having a high density and compact city form for the state.

“A compact city has population densities that are great enough to operate and maintain a sustainable public transport system,” he said during the Penang Municipal Council meeting held at the City Hall recently.

He said a compact city form could also create more efficient land use and would be more cost-effective in providing public services and facilities.

“In terms of transportation, Hong Kong has one of the lowest energy consumption per capita in the world.

“High density maximises the effectiveness of public transport while minimising the distance between the sites of day-to-day activities,” he said.

He added that it could also reduce energy and infrastructure costs.

“I also strongly recommend that plot ratio be used as a measure to determine the gross floor area in residential units per acre.

“It means that the developer can build smaller units and increase the affordable housing supply on the island to suit our future needs,” he said.

Source: The Star

BUTTERWORTH: Stop-work notices have been slapped against errant property developers who failed to abide by necessary guidelines and regulations, Chief Minis-ter Lim Guan Eng said.

He said between 2008 and 2011, the Penang Municipal Council (MPPP) issued 259 temporary stop-work notices on development projects on the island.

And between April 2008 and May this year, he said the Seberang Prai Municipal Council (MPSP) issued 11 similar notices on development projects on the mainland.

He said under the previous administration, only 38 stop-work notices were issued by the MPPP on projects on the island while no notices were issued by the MPSP on mainland projects between 2003 and March 2008.

“Under the present state government, the MPPP has issued stop-work notices seven times more than the previous administration over a four-year period.

“This shows that the state is serious about taking action against developers who do not abide by the law,” he said after opening the Taman Tunku Corporate So-cial Responsibility (CSR) beautification project in Seberang Jaya here yesterday.

Lim said the stop-work notices were later lifted when the developers took necessary action to comply with the related guidelines and regulations.

He said it was unfair to label all developers as errant or bad, adding that those who abided by the law and gave back to society through CSR projects should be praised.

Earlier in his speech, Lim said when the state co-operated with developers that carried out CSR projects, some newspapers had accused the state of being developer-friendly.

“Not all developers are evil-hearted. Those who are not good, the state will take action against them.

“But, those who do CSR, we have to praise them,” he said.

The RM470,000 Taman Tunku beautification project was jointly sponsored by Airmas Group of Companies, IJM Land Berhad, New Bob Group of Companies, Sunway City Berhad and Tambun Indah Land Berhad.

Members of the Surveyors, Plan-ners, Engineers, Architects and Developers Malaysia (SPEAD) organisation also chipped in.

Source: The Star

Villa Lagenda, strategically located along Jalan Song Ban Kheng, one of the fastest growing areas in Bukit Mertajam. This is a guarded residential development comprises limited unit of 3-storey semi-detached and bungalows.

Facilities include but not limited to private clubhouse, gym and swimming pools. This development is setting a new high for a semi-detached house at Bukit Mertajam with a seven digit selling price.

Project Name: Villa Lagenda
Location : Bukit Mertajam, Penang
Property Type : 3-Storey Semi-Detached & Bungalow
Land Tenure: Freehold
Total Units: 28 (Semi-detached), 31 (Bungalow)
Land Area: 37′ x 80′ (semi-d)
Built-up Area: 27′ x 43′ (semi-d)
Indicative Price (Semi-D): RM1,000,000 onwards
Indicative Price (Bungalow): RM 1,400,000 onwards
Developer : Starseries Development Sdn. Bhd.
Contact Number :  04-264 9911

Location Map:

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PETALING JAYA: Despite the overall gloom and doom in the global economy, a glut of condominiums and cooling measures by Bank Negara to deter speculation in the overall property market, the general observations on the ground indicate strong sales for certain segments of this market.

This underscores the fact that real estate continues to be a preferred investment choice in the current economic climate.

The latest report by Knight Frank Real estate highlights 1st half 2012 said there were five completions in the first six months of this year, bringing the total cumulative supply in Kuala Lumpur to 29,882 units.

Another five developments are expected to be completed in the second half this year. This will bring the cumulative supply to 31,163 units. These numbers cover the high-end condominium market priced RM500 per sq ft and above.

These new completions, coupled with existing supply and weak occupancy rates, are expected to put further pressure on the rental market.

The report also noted that smaller sized apartments and SoHo units were becoming a mainstay in the Kuala Lumpur condominium scene and the dual-key concept was steadily gaining acceptance and popularity among developers and purchasers.

These two over-riding trends in the high-rise residential sub-segment help add product diversity, it said.

Dual-key units comprise a studio apartment unit attached to an otherwise standard condominium unit. Such units come with two separate doors with one leading to the studio unit, and the other to the adjoining unit, bonded with a common foyer.

While there were multiple SoHo developments being launched, three dual-key concept residences entered the market and all three recorded good take-up rates, the report said.

The recent increase in the number of new launches offering smaller units in established locations and popular suburbs is driven by the scarcity of land and high land costs, as well as pressure for developers to keep end-pricing affordable. Although the units are small, on a per sq ft basis, the price will be higher than the larger units.

As for pricing, in the primary market as when buyers buy directly from the developers, the high-end condominium sector saw a slight drop in average asking prices in the city while the fringe and suburban areas generally demonstrated a stable trend.

Similarly, there was a notable decline in transacted prices in the city’s secondary market where buyers buy directly from owners instead of from developers. Projects located on the fringes of the city, however, saw more sales and leasing activities.

DTZ Research report for Kuala Lumpur Q2 2012: Resilience across all sectors said the overall residential market was “stable with average capital and rental values experiencing marginal increases.”

“The outlook is, however, more cautious as sentiment is clouded by both internal and external issues, including those of a political nature,” the DTZ report said, adding that the market was expected to experience a period of slower growth going forward.

In the office segment market, the market was relatively stable despite a spike in new supply.

Menara Felda will be the new corporate headquarters of Felda Land Development Authority which has just listed Felda Global Ventures Holdings in one the of biggest initial public offerings internationally for the year.

Menara Darusalam, a mixed development, will house the new Grand Hyatt Hotel. With several recently completed office buildings in the vicinity such as Menara Worldwide and Menara Prestige still filling up spaces, the new additions will add pressure on rents, DTZ report said.

Prime office rental rates remain stable and resilient at the moment, averaging RM6.23 per sq ft per month, while top tier offices are commanding about RM7.90 per sq ft per month, the report said.

“With a substantial pipeline of supply completing in the second half of this year and next year, rents are forecast to fall,” the report said.

Knight Frank said the cumulative supply of office space in the city stood at 47 million sq ft and will increase to 48.6 million sq ft with the completion of three new offices by the end of this year. The supply in the city fringes today stands at about 17.5 million sq ft. Some 4.1 million sq ft will be added to the fringes by the end of next year.

Source: The Star