SP Setia plans more projects in Penang
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
I wonder that this statement:
” properties priced between RM600 per sq ft and RM700 per sq ft are in demand as they are still affordable for Penangites,”
Does it valid?
As long as still got people buy, then it is valid. Selling rate slow? If no people buy, they wont put this price. A lot of engineers here sure scream not valid, well, that is your own problem.
pengsan.
As matter of fact, 600per sq ft – 700 per sq ft is not considered affordable.
RM600psft and above – what???
RM500psft is a bit more expensive
RM400psft is expensive
RM300psft is affordable
affordability refers to absolute value, not per sft. since they have done market survey, they might have a chance.
developer will build 600sf unit, 600psf= 360k only, below 400k in island consider affordable
after 5 years, 1000psf, developer will build 400sf unit consider affordable
i think agent statement is valid, as 李嘉诚旗下长江实业开发的最小18平方米的“蚁屋.
I guess all their new strategy like someone comment above. if 600 sf X 600 = 360k, a lot people will say “cheap” and immediatly make a queue there…(if in prime location).
Nowadays, new family consist of 2 to 3 person only. 2 rooms is enough for those youngster. upgrade to next house only plan in next stage when financial issue resolved.
@waterfish
you are right, don’t buy house, rental is cheap, use the money to buy SPSetia or PBBank share..
Buildings are on the rise, trees are down the drain…
Occupancy rate is low, is this really sustainable over time….. 600 sq apartment or flat for 360k is not worth it either…. systematic way of migrating islanders to mainland…pearl of the orient will become land for the rich….
don’t get yourself foolish if you think 600ps ft – 700ps ft is considered cheap, maybe you may think it is cheaper because It could within your budget, besides, people tends to do comparison in property price with SGP or Hong kong vs MYS, please remember, it is not apple to apple comparison, the right way of measurement toward this, should be using the local property price against household income.
Mr sp is smiling confidently. Sg ara will b the beautiful congested little town. Spice will b the next star for 15 years. Penang housing price will b stagnant for years b4 it shoot up for bubble, probably some correction in condo like our neighbour. For own stay, get one, u won’t regret. For investment, hold back n see first, no hurry.
Headlines about how Spore & HK managed to reverse housing price…….and what has our state done? colluding with private developers to push up property price it seems??
———————————————————————————————-
HK Popping Housing Bubbles London Can’t Handle
“….Prompted by concerns over potential property bubbles and affordability for the middle class, the govs of the two Asian cities have been reining in home prices by imposing measures including mortgage caps, taxes on property flippers, and levies on foreign buyers as high as 15 percent….. ”
“….While such actions may seem contradictory to the cities’ stated free-market principles, “affordable housing is part of the legitimacy of any gov, and gov has a role to play in intervening in the market in periods where there are extraordinary circumstances,” said Michael Klibaner, who heads Greater China research at real estate firm Jones Lang LaSalle Inc. in HK….”
Sky Vista locates deeply inside Relau 600psft, Sky 8 at SPI hilltop 700pft, Peak at Sg Nibong should be 800psft liao..
@satay
i think you are mislead.
The truth is BNM and demand that controls prices.
If the Banks don’t loan so freely, people won’t be able to buy so many and prices won’t go up so quickly.
Besides land is limited on this island.
Not to mention inflation is at large with GST around the corner.
So many factors.
hong kong with 18 sq meter flat
http://archinect.com/news/article/104789294/asia-s-richest-man-is-building-hong-kong-apartments-barely-bigger-than-a-prison-cell
goverment already plan for affordable housings..no?
Future child will have ways to cope with the rising everything. See how we manage to get few properties each and u will know.
So let the developer does their work, they had done their homework and they are ready to challenge the market for such demand. So why fuss over? Let the market flows and when it is overflowing, it will bounce back and correct itselves.
Kind of agree with Kent. The “market” will make correction by itself in the future. Look back in history during year 2000 after economy crisis, many developers close shop, many people bankrupt and lots of properties on lelong, interest rate hike, then came the market correction and price fell back to the affordable level, and the kids by that time can start to buy house, and buy more houses and start another round of goreng again. so, no worry for the kids.