One voice against rates
Unhappy lot: Residents of One World and One Sky condominium posing for a group picture in front of their commercial units in Bayan Baru, Penang.
RESIDENTS of the One World and One Sky condominium blocks in Bayan Baru, Penang, are disputing the annual property value (APV) fixed for their units by the Penang Municipal Council (MPPP).
One World chairman Brandon Oon, representing the owners of all 538 units of both blocks, said the APV of their units were very high compared to some other commercial units in the municipality.
Citing a commercial centre in Bukit Jambul as example, he said the APV there was just RM3,100 for a 730sq ft unit while theirs were between RM22,800 and RM28,000 for units which are from 1,160sq ft to 1,450sq ft in size.
Oon said the owners understood that their condominium units were classified as commercial units in a small-office-home-office (SOHO) development as the contracts they signed stated so.
He said they were willing to pay the assessment rates for such units but felt that the APV was unjustified.
“When our appeal to reduce the assessment rate was rejected, the only reason MPPP gave was that our homes are commercial units. We are looking forward to have a dialogue session with MPPP to get an explanation why the APV for our units are so high,” he told a press conference at the One World community hall yesterday.
Oon said the assessment rates fixed by the MPPP for their units were between RM2,350 and RM2,884.
Consumers Association of Penang (CAP) head of complaints Ravinder Singh, who was present, said the questions raised by the residents were valid.
MPPP Financial Management Committee alternate chairman Joseph Ng Soon Siang said he believed the residents would write in an official letter to the council for a dialogue session to review their case.
“We will look into the matter if we receive any letter. I must discuss with my colleagues before deciding on the issue as previously we had a dialogue session with them on Feb 14,” he said when contacted yesterday.
The council had, on March 27, announced that the appeal by the condominium residents to reduce their assessment rates had been rejected.
Source: StarProperty.my
Good example for commercial title CONDOMINIUM. SOHO. SOVO.
Jiak Lat Liao.
Few to come as the rest of commercial title CONDOMINIUM will getting their assessment fees after OC obtained.
Elite height is the next 1??? Commercial title…
Apv high means their property value is high. They should happy about that ma, no? They can flip at higher price. Show the avp to buyer and command a higher selling price.
those who were saying it’s valid to charge commercial unit with such high APV could start laughing now, when assessment fee of all properties across penang is being increased by 30%
It’s unfair to compare one world with bukit jambul lower value commercial units. They should pay for their high value commercial units. MPPJ ia doing their job right. Buyers should be have aware of high assessment rate of commercial units before sign s&p.
They knew it is commercial title and decided to buy the house. Now they want to have residential title assessment? Come on..
These type of thing is what we should see more often in malaysia.
This including oppose to any implication by the government. Voice out human rights .
As to whether it is justify, the accountant or authority shoud have the answer. Any argument must be valid and open. Open debate shoud be encourage as well.
@Farlim
Farlim,
What is your reason why these owner have to pay higher than BJ ?
Please justify
P/s. I do not own one world condo
Knowing that the water and electricity tariff will also be higher? Can request to reduce to the residential rate? It is unfair too as all the residential units on top are mean for residence, not commercial used.
is not the commercial title problem, residential title and commercial title only should different by around 50%. Let’s say d piazza pay rm500, then 1 world should pay rm800 the max if according to the assessment fee rate. This 1 already known by all commercial title owner. However the problem is that they charge rm2.4k for 1 world, while rm500 for d piazza? This does not make sense. I think PG cat government is prepare to increase the assessment fee for 200 to 300% averagely, which will affect all the residential properties… i don’t really understand why PG government wanted to burden the people? Increase by maybe 20-30% is reasonable for me, but not 200-300%…
http://www.mppp.gov.my/en/perkhidmatan-penilaian-harta this link is for those who are not sure on how the charges of assessment fee…
i see it as … “got money to buy but don’t want to maintain” …. Commercial title owners should have included that cost when they decided to buy …. or they can also convert their “homes” to SOHO …start a small business etc …. neighbours don’t have right to complain when they see alot of visitors walking in/out of an appartment ?
Go check the mppp assessment fee charges guys, before comment further…
@daniel
This is not about burdening the people. Assessment fee is a form of tax for the property that you own, and it’s calculation is based on a set of pre-determined formulas being used and agreed upon by the people for decades. Why need assessment fees? It’s simple, the council needs to build and maintain public facilities.
The yearly assessment rate is determined by taking the average rental for similar adjacent properties, and then apply a percentage to that (residential/commercial). The rate is not determined by someone at his whims and fancy. There is a fixed objective formula.
So, don’t get personal with the state lah!….:D
This formula is not standardize then… at least for now… with so huge gap between d piazza and 1 world…wait til they standardize next year… with water bill etc… for sure it is a burden… at least for me lo
The assessment rate for one world is based on commercial rental of one year in bayan baru. For a unit with 1400 square feet with rental RM28K per year… Approximate 1.9K per unit, it is fair rental using one world as office or home….. comparison should be done with suntech and others surrounding….
So d piazza can rent for only rm500???
Residential title rate should be 7.5% while commercial title should be 10.3%. There should not be such a huge gap…
I believe a lot of people didn’t see the truth, and not really aware of what is happening. The residence never object and accepted this is commercial title. The thing that not able to convice the residents is why CEO is charging at only RM330 for 700sqft? MPPP said they used SunTEch as benchmarking, Suntech was charged at RM16++ per sqft, One world n One sky is charged at RM17.3 per sqft. Hah, one world and one sky is compatable to Suntech? MSC office lot that rented to big giant company, even Jabatan Perdana Menteri? CEO office is much more lower class than one world n one sky, so that so cheap RM330 for 700sqft, RM3+ per sqft. Please take note how the method on how to calculate yearly assessment fees, if you never know then please dont simply comment. Please acknowledge that no matter residential lot or commercial lot, they are using potential rental rate to calculate assessment. D’Pizza is rented out at Rm1500 to RM1800 per month, but their assessment fee is only RM300. If you calculate base on 7.3% residential rate, they should be charged on RM1300 per year!! This is not a matter of commercial rate or residential rate. MPPP is very successful in using this to confuse the public. Don’t be happy like watching a show now, as this is not affecting you all. If you are aware, MPPP & MPSP already started this year to sampling send out survey forms to every taman to ask whether your property is rented out or own use, if rented out, how much? Do you what is the purpose of this survey, this is the evidence to increase your assessment fees!! Hopefully all the residents are not stupid until telling them the actual renting values! Again this survey form is sent out to all residential areas! Not commercial units!
commercial rental generally higher than those for residential purpose… hence, it’s fair that using avg rm 2k as monthly rental…
Yes, some of you might said padan muka, because they said your property can appreciate that high, so you should pay lah! Yes, of course no one can fault you saying that kind of words, this is so called country of freedom. But these kind of words are truly irresponsible in a sense of many of them bought for own stay! And please be aware PBA and TNB have converted the utility rate to residential, and YAB is the chairman of PBA. Very very funny! And EPF allowed withdrawal of EPF account for these 2 projects! For those didnt know the truth behind and kept on simply comments, and joked about other pains, you can continue to do that, but Law of Attraction, one day, this kind of feeling will happen to yourself!
One punya owners fell into hole, now they want to drag others people in as well. Well done.
One is newly OC commercial title building, so new assessment started with them, later other old commercial title buildings also might followed up too. But One people screaming not fair, must let other buildings kena ASAP as well.
People just dun understand what the penang gov trying to do… they thought only commercial title thats why the assessment fee is damn high. As i said, pls read the mppp tax rate between residential vs commercial title….next year after the assessment fee for residential title hike then will know lo… rm1.5k of assessment fee for d piazza example. Then d piazza n 1 world will gang up and continue the protest.
Penang government already prepare to revise all the AVP next year of u guys read news…
So for those who own any property in PG pls get prepare. Looking at the rate now they charge for 1 world, it will increase around 400%… case like in KL…
I only pay rm150 1 year for the current house that I’m staying. But if follow the new AVP… I expect to pay rm750. My house now monthly rental is around rm800 to rm900
haha, yes yes we want to drag the whole Penang people into the same hole, we wish we have that power! We will be so gratitude is we are granted that power! Stand aside and laugh now, this is our own problem, not Penang problem! Yes, it’s not other people problem, why worry, our MPPP very kind one! Dont believe what the residents said, they are too much, they are so rich so that they should pay so high! God bless, so how long you can laugh! there will a price to pay!! Time will proof to us the real truth, they are nothing better than the other side!
Looked at the comments in Penang Property Talk, MPPP is so successful to defend themselves! Go and read those irresponsible reading then you will know how powerful they are! Yes I was once very supportive to them also! I was one believe in teh wind of change, see how we get hitted now! You might say cool down, and you might laugh aiyo chun si again your temper…you might also say this is nothing …related to you, MPPP won’t charge your condo that high one! Yes, whatever written here could be a joke for laugh, could be just rubbish wasting time to bother, i even can tell you yes i am affortable to pay, why make noise, why? this is they thing bothering us, why ONLY us? The Breeza, rented at RM3k to RM4k per month, how much is their assessment fees at 7.3% residential rate, anyone can show me is they are charged at RM2628 minimumly, I can immediate present my apoloze to our dearest YAB, and MPPP. Krystal point, rent at minimum RM1800 above, for 1000sqft, if anyone can show us they are charged at 10.3% at least RM2k above, we keep our month shut! No more complaint! Mayang mall, rented at how much, and how much is the assessment fee, show us the proof! MPPP slogan ‘transparent’, this is bullshit!
Looked at the comments in Penang Property Talk, MPPP is so successful to defend themselves! Go and read those irresponsible reading then you will know how powerful they are! Yes I was once very supportive to them also! I was one believe in teh wind of change, see how we get hitted now! You might say cool down, and you might laugh aiyo chun si again your temper…you might also say this is nothing …related to you, MPPP won’t charge your condo that high one! Yes, whatever written here could be a joke for laugh, could be just rubbish wasting time to bother, i even can tell you yes i am affortable to pay, why make noise, why? this is they thing bothering us, why ONLY us? The Breeza, rented at RM3k to RM4k per month, how much is their assessment fees at 7.3% residential rate, anyone can show me is they are charged at RM2628 minimumly, I can immediate present my apologize to our dearest YAB, and MPPP. Krystal point, rent at minimum RM1800 above, for 1000sqft, if anyone can show us they are charged at 10.3% at least RM2k above, we keep our month shut! No more complaint! Mayang mall, rented at how much, and how much is the assessment fee, show us the proof! MPPP slogan ‘transparent’, this is bullshit!
thanks Daniel. For those talked big, able to tell how much is your house rental fair market value, and know how to calculate the amount! If you fully understand the method, you will know if they really use this method to charge you will foresee the paint that all of us are going to pay! I don’t have the power to drag you all into the same hole. MPPP does have the power, please remember this until next election!! Until we all see the truth! In Mandrin, we said all the crows same color-BLACK!天下乌鸦一般黑！！贪官污吏和霸权一样可怕!!
CS… no choice as of now coz didnt c better option for me to vote as of now…
Perhaps is differ beween commercial and Residential titles.
Well, with commercial title.. do you able to sell ur properties in a greater price? If yes, when ur properties is selling at sky high price, will u protest?
Sorry, newbie in property market.
When i plan to get a property for my own say. My frends keep remind me u not only paid the 10% deposite, stamp duty and legal but beware of the yearly cukai too as is calculated base on your property value.
Now i feel that buying a house is easy but maintaining it is difficult, execpt for those “gorenger”
*stay
Anyone know apart from The-1, which up coming projects would fall into the same commercial category?
@Abu
Elit Heights, Maritime Suites are those which completed project
The Promenade, Summerton, Arte S, Altus which are under construction…
Believe they are few on the mainland which I am not that familiar
Similarly, I also won’t consider buying a leasehold property because you never know what will happen. At the end of the day, paying so much money for a house that you don’t really own the land (which is what leasehold is for – you own the unit but not the land) sounds really risky to me. If the land owner decides to increase the rates, or even our government changes the rules and regulations, there is nothing you can do apart from paying, and this is very likely to happen because land will just get more and more expensive in the future. This is why in some countries (e.g. New Zealand), leasehold property is a lot cheaper than a similar freehold property because the tax rates is horrendous.
@SS
In penang the leasehold property is much more expensive than freehold due to location…
Just see Putra place, putra marine, sri pangkor, summer place, the spring, villa emas, gold coast, one world, one sky, the breeza…
how much they have appreciated comparing to freehold proj?even they have only 70-80 ++ yrs left?
@skysboyz
In Penang, there isn’t much difference between the prices of freehold and leasehold properties. I was trying to say, I personally won’t consider leasehold property because I will always worry that one day situation might change, which was what happen in New Zealand when I was studying there a few years ago. A 3 bedroom leasehold property in Auckland which was 600k became 3-400k because the land owner wanted to charge high rates for the land. It was ok when nothing happen, until that one day. And I personally don’t want to take this kind of risk. On the other hand, it might be ok, for example in the UK, leasehold property owners can apply to convert the lease to a long lease. So, it depends.
@SS
For leasehold project they are having some advantages over the freehold, after all it is personal preference & priority…
For Malaysia they have not lease expired cases as yet…let see how then..
@danielong
I agree with you. After the revision of new assessment rate, MPPP should consider changing the % difference for residential and commercial. Maybe 3% for residential and 15% for commercial would be justifiable so that residential would not be burdened while the shortfall can be made up from commercial. Same principal applied for water/TNB rates whereby most price increase would be absorbed by commercial users.
@DemoActP dun think it will work this way. If everything go to commercial, then at the end it will still go back to the consumer. And it will just create a not friendly environment for business. Reasonable charges should be applied to achieve win win situation
As per my understanding, the commercial status was due to the zoning by town planner years, years ago.
They have some sort of guideline for certain areas, populations, they need to allocate for commercial too to support the residential. I guessed at that point they may think of DS shophouse only……where got crazy people build highrise ( imagined in 1970s) in Bayan Lepas.
With recent super years, I guessed those “smart” developers are trying to copy KL style to blend in condo into the commercial blocks. For commercial unit, The SnP agreement also not standard and open for developers own “styles”
Actually if it is meant for commercial business purpose……in other words you can make money from it. eg doing some businesses (office, salon etc) and get better yield too. Hence authorities want to tax them more and be kinder to the public by offering lower rate for residential title. This is generally practice common sense in the world that business get tax higher from local council standpoint….i guessed.
BUT, too bad reality many are the common “rakyat” buyer for own stay.
Lesson learnt, why not consider buy residential title units which are lots in the Bayan Lepas market?
Anyhow, I am still hopeful this rate can be reduced across the board for my many friends who stay there.
Elite Heights, Summerton, Promenade, Arena, Golden Triangle, Setia Triangle, Sierra Residence, Garden Ville, Solaria Residence, Time Square, Southbay, All Season Park will subject to higher assessment rate due to commercial title? All of them are commercial suites just like The One right?
@Victor
Nope. SOme of them are residential title
@Victor
do you know which one? will this stated clearly in the snp?
APV UP! PBA UP! , more more UP is coming for penangest!!!
Can anyone provide the the appropriate assessment rate for one world which is under commercial title and leasehold? Look at the perspective on business using one world as SOHO (commercial usage). I believe it is not fair to compare it with buildings with residential title and freehold.
From my calculation even after the latest valuation. 1 world 1 rental is around rm1300 for an empty unit. Thus through multiply by 12 and using 10.3% charges. Assessment fee will be rm1.6k… I dun think the valuation should include furnish n reno… I know that mppp plan to hire henry butcher for the reevaluation next year. Maybe it already start to butcher:)
For those who dont understand my calculation. Pls google mppp cukai pintu tafsiran as im not able to post the link…
@danielong
One world is categorized as commercial building. You can check the Suntech rental price.
@Durian i calculated based on market price. quoted from MPPP website “2.0 Nilai Tahunan
Nilai Tahunan sesuatu pegangan, seperti ditafsirkan dalam Seksyen 2 Akta Kerajaan Tempatan, 1976, adalah anggaran sewa tahunan pegangan itu dapat diberi sewa dengan berpatutan kepada seseorang penyewa dengan anggapan pemilik membayar kos pembaikan, insurans dan perbelanjaan lain yang perlu untuk menyenggarakan pegangan itu.”
BTW, if you guys been to 1 world & suntech before, then u know suntech is a diff std compare to 1 world as a office. should compare to CEO probably. I been to these 3 places myself.
commercial title for residential use -> stupid idea,
residential title for commercial use -> smart idea.
please convert your unit for biz usage… or else just plain wasted..
For commercial title development, a higher plot ratio can be obtained, meaning developer can build more units on the same land area. Developer is the big winner here! Screw the stupid buyers!!
many of you still dont catch the point here, the point here is why double standard for commercial unit itself…MPPP not able to show facts & evidence..how much they charged Krystal Point, how much they charged Bayan Point, Mayang Mall and so on….yes, please go ahead and laugh now, someone has been told by them verbally next year they are going to revise entire Penang YA as they are out-dated calculation. Time will proof it self, from now to 2015 only 8 months apart!! Hopefully this is my last comments here! I better word harder to earn more money, rather than wasting time to battle with big giant like MPPP!! This city is sick!!
Anyway to know the assessment fees for those condo with commercial title before we sign the snp? There are too many condo above shoplots nowadays. I presume all of them are having commercial title. right?
Pls check with your lawyer. If your purchase property under residential title, the SnP will using housing development act as buyer and seller contract agreement. As far as I knew, all GSD Land projects are residential title and also Solaria Resident. To confirm better check with your lawyer or developer lawyer.
@cs
since we only have 8 months to go, i might as well get the most fun out of this.
I’ll let you in on a little secret here, i have a bungalow in pulau tikus (8000+sqft), guess how much is the assessment fee! RM400+ a year!!!! And you pay RM2000++ for your little shoebox??!!…Hahaha…..shit huh!! This world is really unfair!! HEY PKT GOV, WHAT ARE YOU GUYS DOING?? AREN’T YOU SUPPOSE TO MAKE THINGS FAIRER FOR EVERYONE?????
@SP
If it stated as commercial title in the snp, do we still bind by bank negara rule on max loan up to 70% for 3rd property?
no..it simply means their property value WILL DROP ..because nobody wants to buy such kind of property and pay high fees
@Kuntakinte
Commercial property is easier to change hand. No?
Have you check with yr banker,is it 70% 3rd property loan is talking about resident property only or any of properties such as commercial and land by Bank Negara regulation? As far as I knew, at this time of moment if you have car loan or credit card outstanding balance not clear up every month will be hard for you to get 90% loan from bank no matter is resident or commercial.
@SP
70% loan to value is applicable for residential property only.
I think you should write a letter to Penang Gov propose them to revise your assessment fee from 400+ per year to 40K + per year then it will be fair to everyone here.
Commercial title with Leasehold 77 years? Better make full use of this golden time and make some money out of the unit.
After 20 years, you will see the wave goes to other newly launch property.
And for leasehold, I did check with many friends from oversea, they understand that they only own that property for the period stated. Unlike Malaysian, they think leasehold = freehold.
@Victor
That is the grey zone. There are projects with commercial title for residential use, the bank actually use residential rule so 70% LTV is applied. However there are some bank actually willing to use commercial rule so 80-85% still ok. There are also projects different banks offer mix rule, e.g. mbb residential, pbb commercial.
Its a bunch a non-standardization here therefore state government need to call halt of such development in penang.
@SP
Haha…no need already lah. I’m sure Mr Brandon “Whiner” Oon is already calling his whiner gang to stage a protest on this!….:D
Before we go further, let’s all look at the project description during project launching….and then discuss further. From the description below, it suggests 1-sky being a serviced residence (got meh??, what service??) and corporate office (got meh??).
Next, 1-world, an intelligent office building (got meh??). Is this office or residential?
——————————————————
The One located on a 13.5 acre leasehold site at Bayan Lepas (Penang Cybercity), comprises smart serviced suites, corporate office suites, corporate retail units, terraced shophouses and bungalows. Besides commercial properties, The One would also house Malaysia’s first technology museum.
The One signifies a new era in intelligent buildings – the marriage of technology and building sciences will benefit the population immensely as this is Penang’s pioneering effort to join the growing number of high-tech buildings worldwide.
Phase 1, The 1-Square comprises 57 units of three-and-a-halfstorey bungalow shops and three-storey terrace shops, built around a central plaza offering 20ft-wide corridors.
The next phase being primed for launch is 1-Sky, a 29-storey tower offering serviced residences, corporate offices and 260,000 sq.ft. of retail space on the lower levels.
Other up-and-coming components are 1-World, a 23-storey intelligent office building with 260,000 sq.ft. of space; and 1-Zone, offering more corporate retail units and residential suites in a sixstorey block.
—————————————————————————–
As I am considering Elit, which also a commercial title, any idea is there any limit to the commercial usage?
Eg. Can the owner do mini restaurant, proper foot/body massage, beauty salon businesses?
I heard my friend said in normal residential strata property (Southbay case), management can even chase foreign workers renting.
Can Management do that to commercial title?
Anyone can help advice?
@tll
Banks are here to make money. If they can provide higher loan to value to eligible buyers, and not violate bank negara guideline, I don’t think they will want to self-limiting.
@pakhailang
I noticed that many of those condo above shophouses advertised similarly. Serviced suites, residential suites, serviced apartment. I wonder whether all of them are also come with commercial title.
@c
In Southbay case, the committee and majority of the owners wanted the foreign hostels out. As simple as that. I think if Elite is under commercial title, everybody can in and out. You can even turn it into a homestay if you want.
@Victor
Its true that banks are here to make money, but its also known that they always want to minimize the risk (or let the borrowers bear the risk instead).
I do know that OCBC doesn’t even provide loan to projects with commercial title. MBB and PBB do that but following residential rules. The rest such as RHB, they do apply commercial rule.
@c
For commercial titled properties, you can do whatever you want with it as long as it is legal and there’s no safety hazards.
However, most of these so-called “service suites” are not suitable for businesses that rely on foot traffic and visibility from public. Offices are ok. You can surely use it as residential, but please don’t make noise when you have to pay commercial rates for assessment. Same goes for TNB and PBA, by right, properties with commercial titles should not be granted residential rates.
The buyers should be aware the units are under commercial title. It can be use as SOHO or any legal business… Don’t complaint when you are aware of it 3 years ago….
@Victor
Thank you…..
In other words more freedom for commercial title owners?
In this case, even if we rent out to anyone (including foreign workers), committee/management CAN NOT stop owner because it is still legal, right?
oh yeah….let’s turn penang into a sex hub! 1-sky, 1-world, 1-sexhub!
Well this is the long term worst part…i wonder how much is the assessment(cukai pintu) for BM CITY, as this project is also bearing commercial title.
At penang 1,160sq ft to 1,450sq ft cost RM2,350 and RM2,884 per yr.
Good luck…
https://www.penangpropertytalk.com/2014/04/one-voice-against-rates/comment-page-1/#comment-216990
Last time I also consider wanna buy One1, One2, because the prices are much cheaper compare to other residential freehold condo, some more the location is superb. But I fully aware that the cukai pintu, water electricity could be problem in future, also this is SOHO, your neighbour any time can turn their unit into business. That’s why I passed.
i think penang government should review their approval status for residential suites under commercial title. This scheme only benefit the Developer & State Goverment. for those who has negative comments above , please think twice. My point here is 1) not all buyer are aware of high assessment rate and some has been misrepresented by the sales people. 2) Why MPPP/state gov imposed such rate where they know very well that this type of property design n structure is mean for residential. You can’t do biz with this type of layout & structure. 3) 99.9% buy it for the purposes of residential.
I don’t own one world or 1 sky but i think that 2,000++ is too much. MPPP should at least categorised the rate into for commercial( mall,shops, office ..) , residential suites under commercial title and residential.
@c
It is SOHO, you can setup any legal business and rent to whoever you want. Not sure your committee members will kacau you or not if you turn it into a foreigners hostel.
@tll
For 3rd residential purchase, you have no chance to get loan to value above 70%. For commercial title, the chance is there.
@Victor there is still a house rule to follow. im sure 99.9% of the owner will reject your idea to rent to foreigners la….Of course our society has some coward people…….but again you cant win the majority.
December 2013 news :
槟首长林冠英表示，如果槟州门牌税在2015年调高，希望人民可以体谅。
他说，虽然州政府不够钱用，但是州政府决定在2014年不调高门牌税，不过如果在2015年调高，希望大家可以体谅。
http://www.nanyang.com/node/586601?tid=510
@ooi
Technically, the developer and MPPP did not do anything wrong. The land was under commercial title, and MPPP approved the project for commercial usage, although physically it looks like a residential (is there any technical spec that differentiates commercial vs residential??).
In other words, can someone buy a commercial lorry for private use ? Use it to drive the children to school, go to work, and go for interstate holidays? Sure can. No law broken. Has the person who sold you the lorry broken any law ? Sure not! Has JPJ broken any law for issuing the license plate for your lorry? Dont think so. As long as you renew your lorry driver’s license, and keep paying lorry road tax, you’re fine. What’s the problem then?….:D
Now the problem is…….who the hell with a sane mind would do such a thing!!! So it comes back to the buyer. Why did 1-World & 1-Sky buyers bought the units for residential use knowing it’s commercial titled? WHY?WHY?TELL ME WHY?
@ooi
I don’t think MPPP should review their approval method as suggested by you. Instead, this should serve as a lesson to home buyers to use their brains when buying properties, and not to listen to agents/salesman/propertyguru blindly….:D
another fees people no aware is Strata title fees.
for One World/Sky 1st hand purchase at $400K, the Strata Title fees still manageable, but subsale at $700k, good luck to you when you pay for the transfer fees of Strata Title.
The Winner is Penang Government (Land Office) !
@AHM
no problem lah, for people who can afford a RM700k property, that is sap sap sui lah!
But then, when you go take a good look at the building, i feel sad for penangites, having to pay RM700k for this piece of shit!….:D
if u guys read the news, they are saying the AVP having problem… not commercial or residential rate…
@daniel
Is DPiazza commercial or residential?
@AHM
The stamp duty was paid as deed of assignment. When strata title issue need to pay only rm10 as stamp duty
The stamp duty is collected by stamping office- lhdn
@d
residential, i used that as reference because both building at the same area and rental is about the same. take note on the rental, so far 1 world rental is ~RM1.3k for an empty unit. that’s the market rate, not yet deduct the other maintenence fee. according to MPPP website, AVP should be calculated based on the rental minus all the fee that you need to maintain the units.
Owner seem to be desperate to rent it out at RM1.3K to cover installment while waiting for buyer to purchase…
@daniel
my friend, when it comes to residential, they only take adjacent residential units as reference. But when it comes to commercial, they will take commercial units (probably including the nearby suntech, mayang mall etc) as reference. so makes sense now? as for 1-world/sky rental, its still an on-going thing. they only take established data.
@TwoWorld
RM1.3k?? RM900 also got people want to rent out already lah. so many units in that area, there’s going to be a bloodbath.
@d
thats why the residents there wanted to protest lo… coz the rental really not so high as MPPP quoted. MPPP can’t simply reject their appeal by just saying that is commercial title then close case, without any valid reason and data. However i still thinking PG gov is throwing a stone into the water now, see how’s the response before fully revise on the AVP next year.
@daniel
Aiyo, again, when you buy a lorry, you must pay lorry road tax lah, you can’t be asking JPJ to charge you car road tax just because you only use it to drive your children to school right?
@daniel
Or you buy a 3000cc car, but expect JPJ to reduce your road tax just because you never drive faster than 50km/hr, makes sense?…:D
@d
I think most of the 1W & 1S buyers are first time buyer. Don’t talk about commercial & leasehold title, I think they can’t even distinguish what is residential and freehold title, and strata title, master title……
Those were attracted by the location and the cheap price that time. And their survey mainly focus on leasehold I believe. Then, the developer’s sales managed to avoid those problematic question (or failed to explained to buyer in all aspects, which I don’t think any developer’s sales will do). Plus, this is the first time than MPPP apply high charges on the AVP on commercial title residential property, and I believe sub-sequence commercial title project will face similar situation.
As the claim from the 1W & 1S owner that MPPP is going to revise the AVP for property with residential title as well, I am sure that this is not very true at least for near future. This is because my new residential property OC later than 1W & 1S, also RM300-400 only.
Next we should see what happen to Elite Height.
@daniel
The MPPP officer in charge might sympathize with the owners predicament, but he can’t and shouldn’t determine rates based on personal feelings. There is a system, a formula to follow.
Lot of ppl keep saying 1 world owners deserve this dilemma and feel happy while seeing others suffer, talk shxx somemore. Once MPPP get the updated rental information form all properties, and your so call RM300~400 assessment fee will be increased to 1k+.
The buyers should be aware the units are under commercial title. It can be use as SOHO or any legal business… Don’t complaint when you are aware of it 3 years ago…
For 300k++ purchase, don’t tell me purchaser weren’t aware of it.. follow blindly, ppl buy I buy mentality…thinking of buy low and sell high huh ?
No. Type of Property Area 1 (Urban) Area 2 (Rural)
1. Industrial 13.50% 13.50%
2. Commercial 10.30% 10.30%
3. Landed (Residential) 8.30% 8.30%
4. Strata (Residential) 7.50% 7.50%
5. Strata (Residential) – Low Cost (Residential) /Middle Class (Residential) 7.00% 7.00%
Percentage above is based on your property rental income after minus all the maintenance fee+insurance..etc. In short, nothing to do with properties’ price. Commercial title will be charged higher (10.3%) vs residential title (7.5%). As long as your RESIDENTIAL properties can rent ~1.5k RM a month, then u might need to pay RM 1K+ assessment fee.
@None
oh yeah….judgement day huh!!
@funny
Yeah, some are ignorant, some greedy, some stupid, maybe some just couldn’t resist those sexy salesgirls at property fairs.
My favourite is Zeon property. Super short skirt, barely enough to cover the panties, complimented by tight blouse and half loose buttons ready to dangerously “burst out” anytime while explaining the difference between commercial vs residential title to you at close proximity……:P~
I don’t understand why blame gov. It is written commercial in the purchase agreement. Seller agreed to it. 2nd buyer never check the rate 3 years back on the assessment fee. Seller also keep quiet regarding this matter. So I guess it is a lesson learnt. If everything you are not happy and gathered petitions…gov will change all the rules every time resident riot? Rules is rules.
@d
so what? I do not own 1 world property, just dun like those stupid ppl keep saying owners make wrong decision and deserve the high assessment fee. I believe lot of the 1 world owners have the ability to pay this 2k+ assessment fees. if i were 1 of the owner, i will do the same thing and make sure MPPP will charge those laughing morons accordingly as well.
I love short skirt sale girl, and i can afford to buy from them, so?
AVP only applied to commercial properties I guess.
Fully agree!
@Abu
It applies to all property. The percentage listed in none post is the rate applies to. Avp. What th concern frm the resident is unjustified avp which the commercial unit for 730 sqft was charged 3100 pa at 10.3pct similarly one sky is double the size should be charging at 6200 at 10 pct which is 600 per yr. this should b the formula and the gov doest follow the rules n gov tats y they protest
@d
Wow… Rental price RM900 sounds very depressed to me…. Not even can cover the installment and maintenance fee.
@sky
Anyone know how MPPP came out with RM28,000 APV for The One? I am sure it is not plug from the air.
Can not agree more than this!
Reading these comments, I see some people with the noble heart to try to understand , sympathize and even defend the people affected. Then there are some who gets a lot of pleasure in condemning people who are affected….stupid la, greedy la etc. This type of people laugh in their heart when someone falls. Much like school bullies who laugh and pick on the weaker ones in school. But, the sad truth is most bullies are nothing but highly low self esteemed people who can only feel good when someone fails, because they themselves have nothing to be happy about. Basic psychology. And, then there is one who boasts he has a bungalow (8000+ sq ft some more)…sure, sure…it is easy to claim anything in here when nothing can be verified. Even if he has one, which I highly doubt, maybe it is his grandfather’s house. People like this can claim a lot of thing, but have no substance to proof. Truly successful people are usually noble and magnanimous. Losers condemn to make themselves feel good.
My point is looking at this case, we should be noble enough to try to understand why this has happened. Find out more before you condemn. If mistakes were made, we should feel sorry for them, and hope they learn from it, after all no one wants to make mistakes on purpose. I do remember that government just announced they will freeze upcoming soho projects, so don’t you even wonder why? Maybe there is some validity in their argument?
@Abu
I believe this is the answer of the resident want to hear frm mppp.But there is no justification given by mppp what they claim is based on commercial title. Thats y the resident unsatisfied.
Hi Frozenpaw,
What? After reading all the comments, you still have no idea why the assessment is high? Well, some people do have comprehension problem, so I shall take up the noble effort of summarize it to you.
my friend, when it comes to residential, they only take adjacent residential units as reference. But when it comes to commercial, they will take commercial units (probably including the nearby suntech, mayang mall etc) as reference. so makes sense now? as for 1-world/sky rental, its still an on-going thing. they only take established data.
Not clear enough????…..:D
@rocket
D, so can u show me the rental of suntech or mayang mall rental for our reference to justify the avp for one world/ one sky. If u cant show pls stop bs
@sky
A quick check in Mudah shows that the asking rental for Suntech office lots is around RM1600/mth for ~600sqft. So if we do a linear factorization for 1-sky/world units which are about 1500sqft, that would be almost RM4000/mth….:)
Sir massage… massage sir… thai massage sir…
@None
@none agreed with you that d will received the price of his “black heart”
@rocket
Is mppp charging them 1920 pa for the unit? Is mppp charging based on the actual rental?
penang givernment is fair, even the MPPP is fair too. They are base on existing law to judge not jugde by croni. Resident shud be happy since value of property has gone up. just like u dhud feel happy if pay more tax. no point complaint, pls move on. happy and proud with your assessment.
i seems to be agreed
agree with rocket.
they shouldn’t take d-piazza compare with one world/one sky, as one is residential, one is commertial.
let say u buy a shop lot, u can use for doin bussiness and also for own stay. but u choose to stay, u cannot just tell MPPP that u r for own stay, and request for low rate as residential. if you rent it out the shop lot at 1k becuase u r desperate to rent out, you cannot just assume rental there is just 1k, and ask for AVP at 1k, because nearby shoplot can rent out 3k as valued by MPPP. rental is floating, each owner can rent out at the price they wish.
for residential unit, although MPPP value the residential unit rental at 1k, but owner also can rent out at 2k if got tenant willing to pay, this is willing sell, willing buy market.
i think the value for commertial at RM22,800 and RM28,000 is fair. rental 1.9k per month for commertial usage.
ppl are selfish.
when bank value the property at 400k, they can sell at 500k.
when mppp value the property rental at 1.9k, they want it to be valued at 1k.
@E
U R so WRONG. D own no property other than big mouth + black heart.
@rocket
Since u r so knowledgeable and informative. Can u pls elaborate what abt The new super condo next to old LC apartment, r they gonna have the same assessment? U think Penang govt will let this happens? I would rather believe that APV will be revised soon. And I am ready to pay 2x to 3x more, mine are residential, as this is rule and we need to abide to it. Just wish some of u dun moan later (provided if u really OWN property)
@ None, r u expect bmw road tax will be same as kancil?
car is based on engine CC, house is based on house type also, sure super condo/commertial unit pay higher than LC house.
massage sir….
@None
Compare one world with commercial buildings but not residential condo/apartment. Compare apple to apple but not banana…
U all missing the point. Base on calculation, Everyone of us suppose to pay 2x or 3x more on the assessment fee. No matter commercial or residential. We r paying less now because the so call APV have not reflected current market rental. Some how 1 world’s APV reflected and the damage is 2k+. What the owners demanding here is y r they not treated fairly. I personally do not think 1 world owner made any mistake by buying commercial property. Many of them jus t r like u and me, they r aware that fee will be higher compare with residential, but not such a big gap.
commertial title unit hv another option/advantage to use it as homestay/hotel, if 1.9k per month, translate to rm60 per day. it is fair value. you can’t deny that rental for commertial usage such as office/hotel will be higher. (use for own stay if ur personal preference)
but residential cannot be use as homestay/hotel purpose, resident can complain to management/authority if found such cases. this explain why rental valuation for residential shud be lower as limited usage.
@ spunit
Yes. Residential 7.5 perct vs commercial 10.3 perct. If we all follow this calculation, 1 world 2k+, dpiazza 1k+. My condo will kena close to 3k, but m paying 800 rm now.
@None
But I thought you said MPPP will adjust the rate Penang wide starting next year. So it will be fair by then, what’s the fuss then?
Halo
@nana
I dun have any problem, just beh tahan those keep condemning the owners, and act like they r smarter. By the way, I didn’t make any statement about adjusting the rate next yr. but seems like inevitable.
@None
Dpiazza is residential while one world is commercial. Obviously your comparison is wrong again.
Dear those tried to defense for one world n one sky, thanks a lot! But very sad to say when we are against MPPP on this issue, we seems like against not only whole Penangsite, but could be more people than we can imagine! No one will believe the truth behind this incident, and people will choose to believe what they wanted to believe! MPPP is perfect and work for rakyat in their heart! So I would like to urge all of you keep our energy for upcoming battle that we are going to face! No one is going to believe they are planning to revise entire Penang assessment fees, until it happens! We are a joke for majority of Penangsite now! But time will prove it! Even when it happened, still they will refuse to believe! Focus back to our life, focus back to those things we can control, earn more money, safeguard our money smartly! If we have what we should, even we lost this battle, one day, time will tell the truth! No point explain more when people refuse to understand! MPPP will make them understand by next year! haha, some will say u dun scare us! Cross our finger, perhaps we should be gratitude finally we are the first one to see the truth! I hope this incident inspires me to earn more money, and find more legal ways to escape from tax! Hopefully one day I dun have to be middle class that pay highest tax, yet get this kind of treatment! We save ourselves, in this moment, where no one listen to us!
@S
It was already being announced that the rate is going to increase next year…lets see how…perhaps some will not be affected as they are not property owner and know how to keep on shouting only
http://www.freemalaysiatoday.com/category/nation/2013/11/19/penang-to-increase-assessment-rates-in-2015/
btw some ppl r pretending to be smart by using different identification and pretend gaining many support frm others…
@ durian
Difference is abt 3 %. Read previous posting pls
@S
t was already being announced that the rate is going to increase next year…lets see how…perhaps some will not be affected as they are not property owner and know how to keep on shouting only
GEORGE TOWN: After the introduction of a 20% water surcharge, effective 2015 Penang property owners will also face another assessment rate hike.
The Penang Island Municipal Council (MPPP) has commenced its revaluation exercise on properties on the island to tabulate new revised assessment rates.
According to a senior executive councillor in charge of local government, traffic management and flood mitigation portfolios, Chow Kon Yeow, MPPP sent out more than 20,000 forms, last month.
He said some 274,000 commercial and residential owners on Penang island will be affected by the new rates in 14 months’ time.
Council revaluation and revision of assessment rates are conducted every five years and the last time this exercise was done for Penang was in 2005.
Chow said the Pakatan Rakyat government had deferred the exercise in 2010 and maintained the previous rates as it did not want to burden the rate payers.
The Seberang Perai Municipal Council (MPSP) concluded a similar revaluation exercise earlier this year.
Chow informed newsmen this afternoon that current assessment rates were between one and 13.5 percent, with residential properties ranging from seven and 10 percent.
The objective of the revaluation exercise is to update public information as well as setting new assessment rates based on annual property values.
Data collection will start in October and continue until early 2014. It will take another six to nine months before the state government is able to introduce a new revised valuation list.
The current state annual assessment rate collection is about RM150 million.
Assessment rate is tax imposed by the local council on all properties within its jurisdiction, it is based on the annual property value and percentage rates, it must be paid twice yearly.
Effective in September 2013, some 130,000 consumers in Penang were charged a 20 per cent surcharge on their water bill as part of the state’s effort to control water wastage.
There was no water tariff hike, but the Penang Water Supply Corporation (PBAPP) instead increased the water surcharge from 24 sen to 48 sen per 1,000 litres for usage above 35,000 litres, each month or 70,000 litres every two months. The surcharge is only applicable to domestic consumers.
The state currently has 461,000 domestic consumers and only 28 per cent of them will be affected by the increase in water surcharge.
Penang is said to have the lowest water tariff in Malaysia, at 31 sen per 1,000 litres. The national average stands at 66 sen per 1,000 litres.
btw some ppl r pretending to be smart by using different identification and pretend gaining many support frm others…
@S
I won’t be surprised if they adjust the rates. Since it is already happening in Selangor right? But let’s face it, with the increase in material and labour cost (as claimed by developers), we can’t expect MPPP to still provide the same level of service at current rates. Furthermore, with increased sophistication and requirements from Penang residents, MPPP should go one level up by now. That needs more money.
So for the time being, hang in there my 1-sky/world friends. We are with you, morally! …..:D
@None
Understand the valuation of assessment between commercial (lorry) and residential (car). Both are totally different in terms of valuation process… It’s just not that simple of 3% difference….
@ Rocket and those who are condemning
Can you explain why government has decided to freeze the SOHO projects? Obviously, there is a good reason behind it. For fun?
So, after all these hot comments, what is your point? These people deserve to be taught a big lesson? Is this your point?
@durian
Maybe this is the best time to enlighten us what r the valuation process differences between these 2? I have read the Anual value definition in the Municipal council of Penang, it just stated that ” Estimated annual rent at which the holding might reasonably be expected to let …”
Oh boy……mentally challenged!! No wonder even MPPP didn’t want to waste their time explainig further!!…:D
Honestly, it is obvious that the design of this building is for residential use. There is no facilities for commercial purpose and no logical sense to open a business in a condo, except maybe a private homestay? This phenomena also happened in KL, although they started earlier….now u see it everywhere.
The main issue should be the meaning of the title. What if a condo is built on land with agricultural title? Can we plant rubber, oil palm in our condo and do we pay agricultural assessment tax?
What if we build a real office tower on a residential land? Can we only stay in it and not do business?Do we pay residential assessment tax?
Now the land title seems like it is a just a name. I am confuse… Are you?
@Commercial_chaos
There is actually no confusion and chaos. It is very straight forward.
Town planners need to plan the city in an orderly manner. Example, you don’t want to have a chicken farm in Gurney Drive, you don’t want to have an office block right in the middle of a padi field, or you don’t want your apartment neighbour to suddenly convert their house into a karaoke lounge. Therefore the 3 main land titles, agri, commercial and residential.
So to answer your questions….
1. “What if a condo is built on land with agricultural title ? Can we plant rubber, oil palm in our condo” –> cannot, council won’t approve the building of condo on agri land.
2. “What if we build a real office tower on a residential land” –> cannot, council won’t approve the building of real office tower in residential land
Land title is not just a name, it dictates what you do with the property on it. The reason people are allowed to “residentially” live in commercial building is because it does no harm to the adjacent unit in terms of privacy and security, but you have to pay commercial assessment rates lah.
Simple and straight forward. Still confused?….:)
@Commercial_chaos
So just because you can use commercial as residential, doesn’t mean you can use residential as commercial.
Example, you can use a lorry to drive your girlfrend to work, but that doesn’t mean you can use your private car to transport bricks….:)
haiii…..if plan to eat chili, prepare to stand the spicy lah, why now only bising2, last time buy blindly or greedy to flip and buat tatau saje ke?
What makes it different from a regular apartment or condo is the fact that serviced apartments are built on commercial titles instead of residential land.
As the costs for commercial land are high, serviced apartment units are typically smaller.
In central region, you don’t buy a 1450sq ft commercial title service apartment, BIG built up units has never been popular here.
Buyers of commercial/service apartment also enjoy owning properties that have higher rental values due to the fact that these provide more services like housekeeping, laundry, and food and beverage. THUS calculation of rental fees by MPPP, local council based on commercial lot is Correct. BUT the thing is it is the market, Penang market rental yield is so low that makes no different by renting out the not so good quality D Piazza vs One World/Sky.
The purchaser initial purchase of 3xxk, entry price for such commercial/service suite is already low…so, now they are expecting treated same as residential.? Penangnites awareness towards commercial title is slow, hundreds thousand of hard earned money and long tenure years commitment to SPA housing loan, just admitted it is a bad purchase. MPPP shall not banned it and I don’t see why they banned SOHO type.
Increase the awareness please in social community…think twice before place your money for any purchase.
@f
shut ur big mouth & stay with ur parents for the rest of ur life lar. or try to learn something from all the posting so u may own a property in ur life time.
@None
Fully agreed
@None
Fully agreed
@S
Fully agreed with you
In fact, to counter speculation and property hoarding, MPPP should impose assessment fee + vacant fee (x10 the rate of assessment) across the board. Those whose names appear only once on the master list will get auto waiver for vacant fee, while the rest will have to pay it unless he can prove to MPPP that the house is currently being rented out or being occupied. While for those under company registration, there is no waiver even the name appears only once on the list, but can apply for waiver if the unit is occupied.
The biggest winners are obviously developers and Flippers.
Looking at positive angle, for genuine buyers still a winner, basically enjoyed the early portion of lower price and also lower installment now. Set aside RM200 from that savings into the assessment fund (pending the appeal to MPPP).
The one mostly affected are other NEW Commercial condo project, which already bought higher price now and later still pay extra.
For government (MPPP) to make a political decision, one of the factor is VOTES!
How many indeed Penang (rather Bayan Baru state seat) voters stay this project? if many still have not change IC, too bad la.
I don’t want to get into the topic on the political issue with EC here……but this can be your bargain chip with State IF there are huge “LOCAL” voters there.
Still not too late to change your IC and voting address?
@None,
sorry, at the moment i just can afford to own 3 properties, need to think how to own more if can….
wah! political intimidation! I hope MPPP is not run based on politics. Otherwise, the current PKT state gov is as useless as the one before…..:)
oi you people don’t come sabotage la. the title of the blog is “One voice against rates”. we must have ONE VOICE, how come so many different voice, tiu lei ah seng!
@cs
For your info, i am one of the Diazza owner.
We pay about RM500 assessment fee yearly because we’re residential title.
In the first place, you already know that one world, one sky is commercial title come with higher assessment fee and water/electric then why huu haa now?
have $$$ to buy but no money to pay for assessment fee is simply embarrassing.
because you all confident to buy and flip and now economic is bad and unable to flip and need to hold on to the unit. now come out in paper need to discuss.
what is there to discuss?
BJ complex is already old, more than 10 years project and you want your assessment comparable to their? wait for another 10 years lo.
kinda stupid come out in bunch and complain state government not fair.
@Nana
Ya it is supposed to be straight forward and there is always a reason for allowing this and not that or vice versa. But it is not. I would say it is the half past six policy implementations that created this chaos.
I guess this is a good lesson to learn .
It applies to leasehold properties. After 70 or 99 years be prepare for some extra fee. And please don’t complain if this happen because you make the decision
@daniel
the different in standard is the developer problem.
in the first place, 1 world is design as “home” under commercial title.
that why the standard is different.
But again why you buy and compare now and not before you buy?
@steve
what r u talking abt? how does high assessment fee associate with free/lease hold properties?
to be fair to the developer, the price for those “SUITES” were quite cheap with big sq feet. i think the price is around RM200 – 250 per sq feet compare to 400 per sq feet on similar residential properties at that time. Besides the developer offer DIBS and some units get other free gifts and free car park.
@sk king
shut up lar. u r paying 500 because MPPP not yet re-value ur property. u suppose to pay 1.2k yrly maybe. if i were u, i will treat 1 world owner nicely, hope they will not bring up Dpiazza when they have a chance to have dialog session with MPPP later.
Hahaha.. Eng kai.. Buy commercial property very siok hoh? Now want to complaint here complaint there like a big bunch of cry baby..
I agree with None. If want to re-value, then please revalue all the properties in bayan baru. Don’t just revalue one and the rest maintain same. Other properties also shot up in price.@None
@sk king
pls wait and see. I think you will shout when you get the pain but it is too late maybe…….let’s c
i think @None is not local people…..may be is angmokao…..can not tahan chili now…..
With great power comes great responsibility.
With commecial title comes great cost also…
Dont tell me you do not know when you bought a commercial title property?
Idiots..
Done is done, past is past…..If follow heart, please ban all NEW high rise development (except LMC, PRIMA ) on island side. Too much and too fast is not good, sometime speculative.
Let’s go Mainland, eg. Batu Kwan!
Frankly from experience in doing budgeting, we would factor in revenue and expenses (street lighting, salaries etc) .
Hence in this case our State already factor in the revenue stream including from Assessment.
Now u want them to POTONG revenue and don’t forget Pg don’t have oil, gas, kayu balak to offset the loss.
I meant “Temporarily” ban (till thorough study done)
You own freehold commercial suites next door is it?
@f
i m living in Penang island, wife and i own 4 properties here. we will need to pay ~10k a yr IF the MPPP revised APV. and i m blessed that none of my properties kena 2k+ assessment fee as of now. But it does not justify me to claim others stupid or eng kai. Bare in mind, our assessment fees are low is not because we are better or smarter, but because our properties’ APV still havent been revised yet. it will come, just the matter of time.
@kasim
I do agreed with you.
it seem that the 1sky and 1 world owner when sell unit higher price never complain but those cannot sell one keep on cry father cry mother.
even with revised assessment fee, we should pay too. Albeit the reasonable one.
@S
halo, you seem to miss the point…..
we are discussing why 1sky and 1world jump up and down and why their assessment fee so high compare to residential rather than discuss if there will be imminent increase of assessment fee…
it seem that the owner of these two “commercial suite” unable to fathom the high assessment fee. that why the come out in paper argue using 10 years+ building (BJ Complex) rather than compare apple with apple.
in first place they should have knew that this is coming. that why the “starting price” for those “suite” so cheap compare to the other project nearby.
One World & One Sky (OWOK) residents have the right to appeal the high assessment fee. No one has the right to mock them for doing this.
A few points that I would like to share:
1. MPPP did not violate any rules or bias towards One World & One Sky residents. The property is a commercial title project and the way they evaluate the APV is not the same as residential title properties. You can compare to BJ mall, Mayang mall, Suntech and etc but the fact is, it is not necessary you will be given the lowest assessment rate just because your unit is designed for residential and not suitable for business. But what if I have few units at the same floor and then renovate to combine all to become a single wide floor to run gym business? If you goto Mudah, people are advertising to rent easily upto RM1900. This means APV of ~RM20k is pretty close.
2. MPPP is using the rate below as their method of calculation and they did not charge OWOK residents any differently based on the land title category. If today MPPP gives OWOK a special waiver, imagine what will be the response of other business community? All will use OWOK as a case to challenge MPPP legally to lower down their assessment rates.
No. Type of Property Area 1 (Urban) Area 2 (Rural)
1. Industrial 13.50% 13.50%
2. Commercial 10.30% 10.30%
3. Landed (Residential) 8.30% 8.30%
4. Strata (Residential) 7.50% 7.50%
5. Strata (Residential) – Low Cost (Residential) /Middle Class (Residential) 7.00% 7.00%
3. The best way for OWOK to get lower rates is really to get an independent Valuation of the rental rates for OWOK after some time. Use this valuation to appeal to MPPP.
4. If this kind of SOHO property is getting popular in PG, new laws can be gazetted to create a new category of rate. But it should still be between commercial and residential rates. Maybe 9% :). OWOK commitee should work with MPPP and not goto war with them.
5. At the end of the day, the day we buy any property, we should know what we are going into and we can also upfront calculate the potential assessment rate we need to pay based on the land title and also rental rate of other properties within the area. I’m a buyer of BM city mall (commercial title) and I already upfront know what I’m heading too and the cost that I need to pay.
6. Finally, be happy with our choice. Live with it. Don’t get upset with other people says. Start planning with what you want to do with your newly bought property. The early bird catches the worms!
@c
Because of Penang don’t have natural resources, signal that state government to increase assessment fees is justifiable?
@ooi
for point 1# It is owner responsible to get and understand all the detail before sign the dotted line.
2# when you buy the unit, you are at least partial aware of commercial unit can be used of business purpose other than residential.
3# you can argue that i can buy one shoplot in BJ complex for residential and pay lower assessment fee rather than buy 1world and 1sky?
conclusion…owner do not understand the term “commercial” and after buy and cannot flip trying to blame state government trying to suck their blood. Read and understand…
that is important…then might as well blame Ideal, why didnt convert the commercial land to residential land??
The revision to all property, is only change the rate for 7.X% for residential to 10.X%. Not mentioned about the estimated annual rental. And the problem with 1W & 1S is the estimated annual rental. MPPP need to provide the details how they get 20 over thousands for this commercial property, while residential property is only less then 10K.
I am the owner of 1sky and the purchasing price is 300k++. The current market value has gone up to double than my purchasing price. Most of the flippers has sold their unit while oc obtained and most of the residents are for own stay. I do not see any point to argue with those trying to justify the high assessment rate as they are not the owner and they do not understand the real situation. Conclusion: we will continue to fight for our rights until mppp is able to give full details on the apv they set
@1sky
agreed
Ya. MPPP cannot simply hantam the number and ask people to swallow…
@Flipper
I can’t disagree with most of what you said. Very well presented, systematic, reasonable and practical.
But I do have reservation regarding your proposal for a new category for SOHO.
When you said SOHO is getting popular in PG, that is not entirely true in a way.
From a private residence point of view, who would want their neighbouring units to be used as an office, whereby you have all sorts of strangers walking in & out of the floor, then you loose your privacy.
From an office occupier point of view, you wouldn’t want to bump into housewives with bags of groceries, noisy children etc in the lift.
In that sense, from an occupier point of view, the needs for commercial and residential are always different, therefore not desirable to be mixed.
So what’s SOHO then? SOHO is just a term created by developers as a marketing trick!
Now, again, Flipper, when you said “SOHO is getting popular in PG”, I believe you were coming from an investor point of view. Judging by the number of units of SOHO sold in the last few years, I think SOHO can be qualified as “popular”.
But is the reason people buy SOHOs because the buyers really want to stay there? Is it because the buyers want to use it as office?
Or is it simply because the “imagination” of the buyers were “twisted” by smooth talking sales people in a bullish market filled with greed/jealousy/fear-of-being-left-out and a whole load of booking charts filled with stickers!!
And the incentive for developers to push SOHO is to maximize profit as they were able to build an unprecedented number of “residential” units on commercial land by increasing plot ratios, especially in a place like Penang whereby commercial office is hardly in demand.
Therefore, I do not think we need a SOHO category. Residential and commercial should always be separated!!!
But of course, if you don’t mind the lack of privacy, you can always use your “SOHO” unit as a residence. You have broken no law. But please don’t forget to pay your commercial assessment fees…..:)
@None
Why leasehold and commercial title properties are generally cheaper compare to freehold residential title ? There is a reason !!!!
No free lunch in this world , you get whatever you pay for.
This is a very good lesson for those bought SOHOs. And it is a very good lesson for the authority as well. They must have people with brains working in the relevant departments. They must think ahead of the developers/bulk-buyers/speculators. They must outsmart them in order to regulate them.
@Steve
Looks like you’re still stuck in the stone age. Gotto pickup that courage and stick your head out of that cave my friend!…:)
@1sky
I agreed with you and you have my supports. What others said is just a plain bullshit to me simply because it never happen to them.
this story teach us that never buy SOHO unit in future for own stay
Look back many years ago, SOHO property with commercial title was not so popular in pg, until Ideal did this and the units still can sell like hot-cakes, then this has set a bad example for other developers to follow, developers are money-oriented so they are more than happy because can squeez everything on a single piece of land, shoplots at bottom and condo at top. Pity also for those who have bought 1world/1sky have to pay high assessment fee, but now ‘nasi sudah jadi bubur’, pls accept the decision u made when signed the S&P, rather than compare the avp value with this properties and that properties by dragging other properties into the sea and demand MPPP change the law to suit ur need, better think of how to fully utilize ur commercial units to have higher return. There is no single law that can suite everyone’s need. Probably can consider turn it to homestay/massage house/papaya farmland……
In short, we should boycott to buy this kind of SOHO units fr any developers, if no demand, then there will be no supply from developers. This kind of property only make buyers suffer and developers make money.
@ooi
Bullshit or not you have to pay RM23k minimum. Now thats bull shit in your arse.
Come to shineville park. 1650sqft of emptiness with many empty souls surrounding the area at low assesment and APV. Thats simply awesome!
True. Where got people allow strangers walk in & out to their home one? Soho is a weird product.
@tt
Haha….weird??…When you see the buying frenzy during a property launching, you tend to get sucked into it and scramble to put your money on the weirdest thing ever!!…:D
@KaliKe
Don’t worry. After this sky high assessment fiasco. SOHO is not going to be attractive to own stay buyers…
I believe you cannot stop strangers to take the lift to your units right? Another -1 for SOHO for own stay.
If I am not mistaken, each commercial premise should also equip with fire extinguisher system and emergency exit. It is weird if use it for own stay. Maybe this is the real reason MPPP charge high rate because they need to check the system regularly… Extra work for them…
When buyers plan to buy the SOHO, developer’s salesperson only told u commercial titled APV rate only 2.8% higher compare to residential titled, most of buyers didn’t think twice and felt that 2.8% higher is acceptable. What the salesperson never tell u is that APV for commercial is x7 times higher than residential, e.g. 24k vs 3.4k. Make it 24k x 10.3%=rm2472 per year. In fact the APV for commercial property is all the while there, just that buyers discovered it late. So who should be blamed? the Developers? buyers themself? MPPP? U DECIDE BY YOURSELF!