Rep: Freeze high-rise projects and draft plan to address problems

Voicing their fears: (From left) Residents You Von, Dr N. Nagappan, Hooi Wing Chuen, Tan Hong Haw and Low Lee May having a discussion before the hearing.

AN assemblyman has called for a freeze in the approval of high-rise projects in Gurney Drive, Penang.

Pulau Tikus assemblyman Yap Soo Huey said the state government and the Penang Island City Council (MBPP) should withhold approval for high-rise projects there and come up with a masterplan for the entire Gurney Drive area to address existing needs and problems.

She said further development of the area should be withheld until a comprehensive study was conducted.

“Results of the study should be given adequate recognition and used to design a masterplan that makes full use of the proposed 40.47ha to be reclaimed under the Seri Tanjung Pinang Phase Two project,” she told reporters outside the Penang Appeals Board’s conference hall in Komtar yesterday.

Yap was there to attend the hearing of an appeal filed by some residents of Tingkat Kelawei and Jalan Kelawei against the decision by MBPP’s Development Planning Department to grant planning permission for a 20-storey high-rise project in the area.

Tingkat Kelawei resident Hooi You Von, 53, said another high-rise in the area would worsen the traffic situation in the neighbourhood which was already congested with vehicles.

Hooi, who held a press conference on Thursday together with some other residents, including those from Sunrise Tower, said the development would be on a small plot measuring only 1,353sq m.

Sunrise Tower resident Kuldeep Singh, 49, said he was not even notified of the high-rise project although it was located just beside his apartment block.

Eddy Ch’ng, 65, another resident of Tingkat Kelawei, said the council had sent only a letter to notify a few residents on Sept 3 last year.

“The letter stated that planning approval was given by the council on Sept 10, 2013,” Ch’ng said.

Yap said proper planning was vital if the state planned to turn Gurney Drive into the next Central Business District.

“There are new developments even though existing serious problems in Gurney Drive have yet to be resolved,” she said.

“Many restaurants and hawker centres along Gurney Drive are actually operating from residential plots,” she added.

She said the area suffered from severe traffic congestion including the service road leading to Sunrise Tower and a lack of parking space.

Yap said an increase of population and density in the area would further burden the drainage system as flashfloods were already occurring there.

She also said residents living near longtime establishment Corner Club had received notice about an impending project involving relocation of the club and subsequent development of a 41-storey hotel on the site.

She added that the residents were against the project. - The Star

Legality of Tanjung Bungah land reclamation questioned

GEORGE TOWN: Tanjung Bungah assemblyman Teh Yee Cheu has questioned the legality of a Request for Proposal (RFP) by the Penang Development Corporation (PDC) to allow reclamation of land along the Tanjung Bungah coastline.

"The RFP, issued on April 15, which will close on May 15, calls for interested bidders to develop a marina and supporting coastal and marine tourism facilities with the marina having at least 200 to 400 berths for yachts.

"They will be allowed to reclaim not more than 8.94ha of land for commercial purposes. The ecosystem and coastlines in the surrounding area could be affected," he said after a protest against reclamation in Tanjung Bungah Sunday.

Teh claimed the gazetted Penang Structure Plan only acknowledged the existing reclaimed 1.21ha plot of land dubbed the "sore thumb" and does not allow any new reclamation.

He added the "sore thumb" had been a long-standing issue since 1999.

"Non-governmental organisations managed to stop further reclamation by the developer in 2006 as it was illegal."

Teh said residents in the area had always wanted the reclaimed land to be turned into a coastal park.

"In June 2007 when the former government gazetted the Penang Structure Plan, the piece of reclaimed land was included with a plan to build a marina.

"After 2008, we requested the state government to de-gazette it to become a coastal park. Subsequently, in 2009, 2010, and 2011, during the state assembly, I requested for a coastal park and the then environmental exco agreed to it and a couple of press statements stating that it would be a coastal park was released," he said.

Teh added that the residents were waiting for it to be gazetted as a park, but there had been no news nor a concrete reply in subsequent state assemblies when asked.

"We do not want anymore reclamation on this part of the island. We want to urge the authorities not to be lobbied by developers for commercial interests," he said. - The Star

Seberang Prai fast rising

THE Penang state government is working on expanding the development of Batu Kawan, so that it can tap into the new infrastructure of South Seberang Prai.

According to investPenang director Datuk Lee Kah Choon, there were 6,000 acres of land available for development in Batu Kawan with the second bridge and new roads in the area servicing the needs of new development projects there.

Lee said the state government had earmarked a 1,500-acre site south of the second Penang Bridge for industrial development.

“North of the industrial site, another 2,000 acres is set for mixed-development projects, and residential and eco-tourism developments will take up two adjoining 1,000-acre sites.

“About 60% of the site earmarked for industrial estate has been taken up by local and foreign companies. The Aspen Vision City (AVC), which includes the Ikea store project, the Penang International Technology Park (PITP) and the RM1bil Penang Designer Village, will be located in the mixed-development site. 

“Meanwhile, a golf course and a theme park are being planned for the eco-tourism site,” he revealed, adding that some 12,000 affordable high-rise units would be developed on a 200-acre site for the residential component.

With all this, Sebarang Prai is expected to become the choice investment destination for mega-scale commercial projects in the northern region. 

As it is, the mainland has for the past one year, attracted investments from Aspen Group Holdings Sdn Bhd, PE Land Sdn Bhd’s and Temasek.

All set: investPenang director Datuk Lee Kah Choon showing the location of the industrial sites in Batu Kawan, Penang. 

The Aspen Group is investing RM8bil into the AVC mixed-development scheme, while PE Land is planning its RM1bil Penang Designer Village.

The AVC, located on a 99.1ha site, comprises hotels, a mini-banking district, residential properties, healthcare facilities, and international schools, while the Penang Designer Village will accommodate a RM200mil premier shopping outlet, a 300-room international hotel, and F&B outlets on a 16.2ha site.

Last year, Temasek signed an agreement with the Penang Development Corporation to develop the Penang International Technology Park (PITP) in Batu Kawan. More recently, the Belleview Group announced plans for a RM2.5bil mixed-development project, which will include the largest shopping mall in the northern region.

Certainly, the new second bridge connecting Batu Kawan in South Seberang Prai to Batu Maung on the island has helped channel interest from investors to Seberang Prai. In addition, a steady hike in commercial property prices since 2011 has captured the attention of investors.

Henry Butcher Seberang Prai senior manager Fook Tone Huat said the sub-sale price of commercial property had increased between 50% and 100% since 2011, depending on the location.

All upside: Aspen CEO Murly says the value of the AVC project will be enhanced by the Ikea shopping mall that is being planned next to it.

“The three-storey shop offices in Bandar Sunway in Seberang Jaya has increased to RM600psf from RM300psf in 2011. Similar properties in Bandar Perda are now priced at RM330psf compared to RM200 in 2011, while in Jalan Raja Uda, the price is RM380psf compared to RM260 four years ago. In Bukit Mertajam, the three-storey shop offices are now priced at RM300psf compared to RM200 in 2011.

“The price of new commercial properties in good locations of Seberang Prai are around RM3,800psf compared to the subsale price of about RM300 to RM380psf,” Fook said.

According to Fook, about 80% of shop offices in Seberang Prai are occupied, leaving the overhang figure insignificant. He said prices of shop offices might increase by about 5% this year due to the GST. This could cause a slight drop in commercial property transaction volume in Seberang Prai.

The transaction for commercial properties in Seberang Prai in 2014 is projected to have been between 1,100 and 1,200 units at a value of RM560mil, according to Fook. Up to the third quarter of 2014, there were 923 units transacted at RM426mil.

Strong demand for three-storey shop offices is reflected by good bookings seen at the Verve project by Aspen.

“Since February 2015, the Verve project, comprising 441 units, is already 75% booked. The units are priced between RM380psf to RM520psf,” Fook said.

Aspen chief executive officer Datuk M. Murly says the Verve, on a 35-acre freehold land, is the largest gated and guarded commercial precinct developed in Penang. 

On AVC, Murly says the value of the project will be enhanced by the Ikea shopping mall that is being planned next to it. The first phase of AVC is scheduled for completion in 2018, and the whole project in 2025.

“Our strategy for AVC is to build the commercial components first to create a demand for the residential properties that will be attractively priced. There will be workers who would want to stay close to where they work. The objective is to develop Batu Kawan in such a manner that it mirrors the vibrancy of the island,” Murly said.

On its RM2.5bil integrated development project, Belleview Group managing director Datuk Sonny Ho says the scheme would be located on a 8ha site.

“The shopping mall, the largest in the north, will have a 1.2mil sq ft of built-up area. There will also be a four-star hotel, an Olympic-sized skating rink, a 20-screen cineplex and a high-rise residential lifestyle condominium component with 978 units,” he added. - The Star

Residents’ wish for Malay village in development plan comes true

Targeted for change: An aerial view of Kampung Tanjung Tokong in Penang.

THE crusade by Kampung Tanjung Tokong Residents’ Association to develop a Malay living heritage village in their area has finally borne fruit.

Association chairman Mohd Salleh Yahaya, 60, said UDA Holdings Bhd had agreed to build 14 traditional Penang Malay houses in the redevelopment of Tanjung Tokong, Penang.

He said the association had been calling for 20 years for a heritage village to be built in Kampung Tanjung Tokong.

In a letter to the association signed by UDA Holdings group managing director Ahmad Abu Bakar, UDA agreed to provide the Phase 4B site for the proposed Malay heritage village.

“We thank the association for their proposed concept of a Malay heritage village zone.

“UDA will consider and refine the component, building design and architectural features proposed by the association to achieve the heritage village concept.

“The overall layout plan for the development of the heritage village has been approved by the state executive council and State Planning Committee that is chaired by Chief Minister Lim Guan Eng,” Ahmad said.

His letter also gave the commitment that Masjid Tuan Guru and Masjid Karwa would be upgraded and a two-storey religious school near Masjid Tuan Guru would be built.

It also stated that a public market and a hawkers’ site next to Masjid Tuan Guru would be incorporated under Phase 4C. 

“We also commit ourselves to building comfortable apartments for residents who were relocated to make way for Phase 4A,” said Ahmad.

Since 2008, 288 out of the 294 families in the village had to make way for the redevelopment’s Phase 4A project.

They are now staying in transit homes provided by UDA.

“Construction works at Phase 4A are going smoothly and the phase is expected to be completed in 24 months,” Ahmad said.

Mohd Salleh hoped that the rights to the 14 traditional units would be assigned to the Kampung Tanjung Tokong Residents’ Asso-ciation and Tanjung Tokong Village Security and Development Committee (JKKK).

“We also proposed that the traditional houses be managed by a committee chaired by the association chairman,” he told a press conference at the Madrasah Al Taqwa in Tanjung Tokong yesterday.

“The committee members should comprise of the Tanjung Bungah assemblyman as the patron, Tanjung Tokong JKKK chairman, Kelab Setia Tanjung Tokong chairman, Tanjung Tokong mosque imam, and a representative from UDA, among others.”

Mohd Salleh said the association also wanted a memorandum of understanding to be signed between the association and UDA to ensure the smooth construction of the traditional houses. 

Also present were the villagers’ counsel Jason Ong Khan Lee and former Balik Pulau MP Yusmadi Yusoff. - The Star

Stop converting hill reserve land to residential areas, say groups

The development that has taken place in the hills around the Air Itam area. – Pic supplied, April 20, 2015.The conversion of hill reserve land to residential zones in Penang has raised the ire of the Consumers’ Association of Penang (CAP) and Sahabat Alam Malaysia (SAM).

The two groups have expressed disappointment with the Penang State Planning Committee (SPC), chaired by Chief Minister Lim Guan Eng, for agreeing to the land conversion.

"The state is not respecting the sanctity of the hills and other natural resources in Penang by pushing for colossal development on the island," president of CAP and SAM, S.M. Mohamed Idris, said in a statement.

Idris said Bukit Relau, or popularly known as “Botak Hill” due to its bald hill top, was not the only gazetted hill land which had been converted for housing development.

"Among others, there have been cases of conversion in Sungai Ara, Paya Terubong, Sungai Batu near Bayan Lepas and the hill range at Bukit Gambier which have been similarly affected, he said

Recently an assemblyman took the state government to task for approving a 51-storey high-rise project on a hillslope near the Tunku Abdul Rahman University College in Tanjung Bungah.

CAP and SAM have been calling for development to be restricted in hill zones because the ecosystems in the hills are particularly fragile and play important roles in sustaining life.

"The highlands are environmentally sensitive and important water catchment areas. They are particularly vulnerable to soil erosion due to their steep slopes and the heavy rainfall that we have been experiencing lately will increase incidences of soil erosion and floods.

"Sadly, the Penang government comes up with more new infrastructure projects such as the newly proposed Light Rail Transit project, new expressways, the undersea tunnel and the latest ludicrous proposal of a 3km mainland-to-island cable car project.

"Now the Chief Minister backtracks and says the proposed Sky Cab is a tourism product, not a public transport system.  Do we even need these expensive projects and are they feasible or economically viable?" asked Idris.

Idris accused the state government of "living in a dreamland" if they think that such mega projects would be feasible for the island, especially since there had been no study on the island’s carrying capacity.

"Wouldn’t a bus rapid transit system with dedicated bus lanes and giving importance to pedestrians and cyclists serve the purpose of moving people?

"Is the government even thinking of the cumulative environmental impacts and socio-economic impacts due to the displacement of people living around the affected areas?

"Several reclamation projects such as the Seri Tanjung Pinang 2 in Tanjung Tokong and along south-east coast of the island will also threaten the livelihood of coastal fishermen due to loss of fishing area," Idris said.

He added that in the pursuit of iconic development, the state government had failed to preserve the natural heritage of the island.

"We call upon the state government to stop converting gazetted hill land for other development purposes. The state should be vying to be 'Greenest Island City on Earth' and not 'Concrete Island'," Idris said in the statement. –The Malaysian Insider

IJM Corp to buy Penang land for RM402.8 million

IJM Corp Bhd has bought the remaining shares in its joint venture (JV), Aura Hebat Sdn Bhd (AHSB), from partner Perennial Penang Pte Ltd, for an undisclosed amount. AHSB is in the midst of acquiring a 32.76-acre parcel of land located within IJM Corp’s existing The Light Waterfront development in Penang.

In a filing with Bursa Malaysia today, IJM Corp said The Light Waterfront Sdn Bhd – a wholly-owned subsidiary of IJM Properties Sdn Bhd which in turn is a wholly-owned unit of IJM Corp through IJM Land Bhd – had today acquired one share representing a 50% stake in AHSB.

"AHSB will acquire the land from Jelutong Development Sdn Bhd – an 80%-owned subsidiary of IJM Properties – for RM402.8 million cash, subject to among others, the receipt of documents of title to the property from the relevant Penang authorities," said the group.

The land will be developed into a large scale integrated waterfront mixed-use development comprising a shopping mall and thematic shops, residential towers, an office tower, two hotels and a convention centre, with a total gross floor area of about 4.1 million sq ft.

The Light Waterfront development is an integrated project, spreading across 152 acres of land located on the eastern coast of Penang island.

IJM Corp shares declined 10 sen or 1.34% to RM7.38 today, giving it a market capitalisation of RM13.33 billion. – The Edge Markets, April 21, 2015.

See Hup sells three parcels of land in Prai for RM17.6m

KUALA LUMPUR (April 20): See Hup Consolidated Bhd's wholly-owned unit See Hup Transport Sdn Bhd has entered into a conditional sale and purchase agreement with Loh Gim Ean Holdings Sdn Bhd (LGE) for the proposed disposal of three adjoining lots of development land in Seberang Prai, Penang for RM17.6 million cash.

The three plots of freehold land measure a total of 146,143 square feet.  

"The land is presently being used as a lorry depot and truck servicing area. With the proposed disposal, See Hup Transport will move its lorry depot and truck servicing to a new depot and service area," said See Hup (fundamental: 0.75; valuation: 0.9) in a Bursa Malaysia filing this evening.

The disposal consideration of RM17.56 million represents a premium of about 46.33% to the market value of the land of RM12 million — based on the valuation report dated April 10, 2015 by Messrs Knight Frank Malaysia Sdn Bhd.

The proposed disposal is expected to result in a gain on disposal of RM12.22 million, based on the audited net book value of the land of about RM5.08 million as at March 31, 2014.  

Meanwhile, LGE entered into a sale and purchase agreement with T.T. Trading Sdn Bhd to purchase two lots of land (TT Trading land) measuring 72,113 square feet for RM10.8 million cash. 

"The proposed disposal will enable the See Hup Group to unlock its capital resources from being tied up in long term assets. The land which is presently being used as lorry depot and truck servicing by the See Hup Group, is land-locked and access is only available through the TT Trading land with the proposed disposal," said See Hup in its filing.   

See Hup's share price closed unchanged at RM1.10 today, for a market capitalisation of RM56.25 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

LRT, cable car to solve Penang’s transport woes

The proposed LRT line will connect Komtar to the Penang International Airport. – The Malaysian Insider file pic, April 16, 2015.Penang is going ahead with a RM4.5 billion light rail transit (LRT) project as part of the solutions to the state's public transport problems, The Star reported today.

The 17.5km elevated LRT line is expected to connect Komtar, the state's tallest building, and the Penang International Airport.

Apart from the LRT project, a 3km cable car system known as the Sky Cab is also being planned to link the Penang Sentral transport hub in Butterworth on the mainland and Gat Lebuh Noordin in George Town on the island, the report said.

Construction for the LRT project is expected to begin next year while the Sky Cab project is scheduled to take off in 2018.

The LRT project will form part of the much-awaited RM27 billion Penang Transport Master Plan (PTMP) which also includes a 25km expressway linking Bayan Leppas and Tanjung Bungah.

Citing sources, The Star report said Gamuda Bhd, IJM Corp Bhd and a Chinese company have been shortlisted for the projects.

Penang Local Government Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow had said in an interview that the LRT line – which will be supported by a revamped stage bus system and trams – would be a priority, with completion expected in five to six years.

The Star report said in return for their role in helping the state to realise its transport master plan, the Chinese company would get to reclaim about 566ha in Seberang Prai, of which 161.8ha is located near the North Butterworth Container Terminal and 404ha near Bagan.

Chow said some of the projects would be under the purview of the federal govermnment.

Meanwhile, Penang Chief Minister Lim Guan Eng expects the Sky Cab project to be operational in three years, The Star reported.

"The Penang Sky Cab project is in advanced exploratory stage and if everything goes according to the technical specifications, we should be able to go on board in 2018.

"This project is an initiative of the state government and Penang Sentral to provide a reliable route from the mainland to the island," he was quoted as saying.

Lim said while the south side of the island had the first and second bridges connecting it to the mainland, on the north side there was only the ferry service.

"We feel that one more form of travel will decrease the dependence on automobiles," The Star quoted him as saying.

Lim said the Sky Cab would take about 15 minutes each way and would be able to cater up to 1,000 passengers per hour per direction.

Penang Sentral property and retail division senior vice-president Shireen Mohd Iqbal said the cable car would be 90m above sea level with 50m between each pylon and eight or nine towers spaced about 500m apart.

"An observatory tower is also being considered," The Star quoted him as saying.

The Penang Sentral Cable Car Station will be located next to the Penang Sentral Transportation Hub, which includes the Sultan Abdul Halim ferry terminal.

Penang Sentral will then become a travel hub offering taxi, bus, rail, ferry and Sky Cab service. – The Malaysian Insider

Eco World's RM1bil 190ha mega deal, set to be big player in Penang

The group will sign the sale and purchase agreement with PDC at a later date, but it is learnt that the award would be handed out next week in a ceremony to be attended by Eco World chairman Tan Sri Liew Kee Sin(pic).

GEORGE TOWN: Eco World Development Group Bhd will ink a deal next week with the Penang Development Corp (PDC) to purchase 190.2ha in Batu Kawan and in the process become a major property developer in the state.

Sources said Eco World, which was the only bidder for the land, would pay about RM1bil or RM50 per sq ft for the 190.2ha.

The group will sign the sale and purchase agreement with PDC at a later date, but it is learnt that the award would be handed out next week in a ceremony to be attended by Eco World chairman Tan Sri Liew Kee Sin. 

According to sources, Eco World is planning a major township development on the 190.2ha that is estimated to have a gross development value of RM10bil and is expected to last several years. 

“Eco World is paying over RM50 per sq ft for the leasehold land that will have a development density of 60 units per acre. Eco World will use 60.7ha for the development of the golf course and the remainder for a mixed-development project comprising 60% residential and 40% commercial properties,” sources said.

Eco World will develop a waterfront city overlooking the island, a shopping mall, hotels and serviced condominiums for the site.

The purchase of the land will be the second parcel in Batu Kawan for Eco World. It already owns 24.28ha in the area on which it plans to launch an RM920mil mixed development called EcoMeadows, comprising 50% residential and 50% commercial components, in the second half of the year.

The initial commercial phase of EcoMeadows is expected to be launched in the third quarter of the year.

Another of Eco World’s projects – EcoTerraces located in Paya Terubong – is a low-density, luxury condominium project conceptualised to showcase a stunning landscape of cascading pools and abundant greenery, priced at RM800 per sq ft. 

The residential phase of EcoMeadows comprises 3-storey terraces in a guarded and gated scheme in Batu Kawan, priced at between RM700,000 and RM800,000 per unit.

The residential and commercial projects in Seberang Prai will be boosted by the state government’s plan to expand the development of Batu Kawan. 

Since PDC put up the 190.2ha for sale, only Eco World was prepared to participate in the exercise. The developer is known for its township development and has so far been able to price its products at a premium compared to its peers.

PDC has some 8,000 acres that is available for development in Batu Kawan. 

investPenang director Datuk Lee Kah Choon had said in an earlier interview that stripping out some 2,000 acres from the gross 8,000 acres for infrastructure development, PDC was still left with a net 6,000 acres for industrial, mixed development, residential and eco-tourism projects.

Henry Butcher Seberang Prai senior manager Fook Tone Huat said that depending on the location, the sub-sale price of commercial property had increased between 50% and 100% since 2011.

The 3-storey shop offices in Bandar Sunway in Seberang Jaya have increased to RM600 per sq ft from RM300 per sq ft in 2011.

Since the announcement of the second bridge in 2006, property prices in Seberang Prai and on the island have surged significantly.

The price of vacant land in the area, especially in south Seberang Prai where Batu Kawan and the second bridge are located, is now hovering between RM40 and RM50 per sq ft, a huge jump from the RM8-RM9 per-sq-ft range in 2006, according to Fook.

Land prices in central and north Seberang Prai are now within the range of RM50-RM100 per sq ft, compared with RM20-RM40 per sq ft then. - The Star

Going bald again over hillslope project

Controversial issue: Teh explaining the project’s planning permission to reporters at his service centre in Tanjung Bungah, Penang.

GEORGE TOWN: A DAP assemblyman has taken the state government to task again for approving a 51-storey high-rise project on a hillslope near the Tunku Abdul Rahman University College.

Tanjung Bungah representative Teh Yee Cheu, who shaved his head bald in protest, claimed that parties responsible for approving the project were taking advantage of the Penang Structure Plan 2007 which was currently pending review by the state authorities.

“Under the Town and Country Planning Act 1976, the plan must be reviewed every five years.

“There is an ongoing dispute whether Tanjung Bungah is located in the Primary Development Corridor or Secondary Development Corridor of the Penang Structure Plan. 

“Because of this overlapping grey area, developers have this kind of room to push for high-rise and high density projects,” he told a press conference at his service centre in Jalan Osman Bin Abdul Rahman in Tanjung Bungah yesterday.

Teh also shaved his head in January to protest the lack of remedial work at the hilltop of Bukit Relau, which was illegally cleared between April 24 and May 8 last year.

He said the Penang Structure Plan should be finalised before the Penang Island City Council (MBPP) further approves any other high-rise or high-density projects in the constituency.

“What is the point of approving the projects and then asking the developer to reduce the height or number of units, or amend the plan?” he asked.

Teh was responding to news report last week that the MBPP would hold discussions with the developer of the project to reduce the number of levels of the building due to concerns voiced by residents in the area. 

He also believed that there were currently four other applications of high-rise projects in Tanjung Bungah.

Tanjung Bungah Residents Asso-ciation’s former president Datuk Dr Leong Yueh Kwong said there was an urgent need for a review of the development control guideline.

“The regulation development control guidelines have not been reviewed for more than 30 years. 

“If you don’t have that, there will be all kinds of high-rise and high density developments without the proper infrastructure in the area, affecting privacy, parking, infrastructure, utilities and so forth,” he said. - The Star

Cable car planned between Penang Island and mainland

GEORGE TOWN: A ‘Penang Sky Cab’ cable car system connecting Penang Sentral in Butterworth to Gat Lebuh Noordin in the island is expected to be completed in 2018. 

Penang Chief Minister Lim Guan Eng (pic) said on Wednesday that the project was an initiative of the state government and Penang Sentral, and which was discussed from last year and was in advanced exploratory stage at present.

“It will provide an aerial link from the mainland to the island and decrease the dependence on automobiles.

“The 3km link is expected to take around 15 minutes travel time. It will be able to cater to 1,000 passengers per hour per direction.

“It will provide an alternative form of travel in an easier, faster and more comfortable way.

‘With the implementation, Penang Sentral will become a five-in-one travel hub offering from taxi, buses, train, ferry and Sky Cab services,” he said at a press conference at Komtar here.

Penang Sentral property and retail division senior vice-president said the Penang Sentral Cable Car Station would be located next to the Penang Sentral Transportation Hub.

“The total cost of the project is still being calculated and will be revealed soon,” she said. - The Star

Ewein rises on RM1b Penang property project prospect

KUALA LUMPUR (April 13): Ewein Bhd ( Financial Dashboard) rose as much 1.5 sen or 2.5% to 61.5 sen following news the group was eyeing its second property project in Penang. The Edge Financial Daily (Edge FD) reported today the project at Bandar Tanjong Pinang would have a gross development value of RM1 billion.

At 11.38am, Ewein (fundamental: 1.1; valuation: 1.4) shares pared gains at 61 sen with 814,400 shares done. At 61 sen, Ewein has a market value of RM128.65 million.

Edge FD, quoting Ewein managing director Datuk Ewe Swee Kheng, reported that the group was eyeing another tract for development within Bandar Tanjong Pinang. Consortium Zenith BUCG Sdn Bhd is the owner of the land.

Ewe said Ewein had high hopes of being chosen to develop the 1.7ha (4.29 acres) land because of its current joint venture with Consortium Zenith BUCG.

Ewein in collaboration with Consortium Zenith BUCG is developing luxury serviced apartments on a 1.5ha (3.67 acre) freehold land in Bandar Tanjong Pinang.

The project is valued at RM800 million.

Bandar Tanjong Pinang entails 44ha (110 acres) of reclaimed land at Tanjung Pinang. The reclaimed land was given to Consortium Zenith BUCG by the Penang state government as compensation for the construction of the RM6.3 billion Penang Undersea Tunnel. - The Edge Market

Ewein obtains nod for RM800m project on Penang island

KUALA LUMPUR: Ewein Bhd has obtained the approval from the Penang City Council for its subsidiary’s project on Penang island which will have a gross development value of RM800mil.

It said on Tuesday the building plans for the proposed development, which would be at Bandar Tanjong Pinang, had been approved

“The GDV of this proposed development is approximately RM800mil,” it said.

Ewein said the proposed development was expected to start in the second half of 2015 and was expected to contribute positively to its results in the coming years.

The parcel of land for the development was alienated to Ewein Zenith Sdn Bhd on Feb 17. Ewein Zenith is a 60% subsidiary of Ewein. - The Star

Unit owners not required to pay for extras

OWNERS of affordable housing under the state government will not be forced to purchase extra parking bays for cars or take up renovation packages by the developers.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said affordable housing units come with a parking bay each.

“There are projects with additional parking spaces for sale but these developers have no right to force unit owners to purchase the extra space or take up their renovation offers.

“Let me be extremely clear on this, it has to be on a willing-buyer-willing-seller basis,” he told a press conference after flagging off a vintage car tour at the Esplanade yesterday.

He said he was told by Komtar assemblyman Teh Lai Heng that a Chinese daily’s column which was posted on Facebook had attracted comments from some readers claiming that developers would force house owners to purchase extra parking spaces and renovation packages.

Jagdeep said the purpose of the state in offering affordable housing was for more people to be able to own their own home, not to add an extra burden or deter people from buying the unit.

“There’s no such thing as forcing the owner to buy extra parking or sign up for renovation work with the developers,” he said.

He added that his office had yet to receive any complaints from buyers on the matter but urged those who faced such pro-blems to lodge their complaint with him.

Affordable housing units in Penang are priced from RM200,000 to RM400,000. - The Star

Road project aimed at shortening routes and reducing jams

Sorting out details: (From left) Chew, Wong and contractors discussing the road realignment and expansion at the project site.

THREE roads in Air Itam, Penang, are being realigned and expanded by a developer carrying out a mixed development project in the area.

Air Itam assemblyman Wong Hon Wai said the realignment and expansion of Jalan Pisang Embun, Jalan Pisang Rastali and Jalan Pisang Berangan were part of the requirements imposed by the Penang Municipal Council.

The developer’s technical officer Chew Kwong Weng explained that the three two-way tarred roads were all currently about 5m in width.

“Jalan Pisang Embun, Jalan Pisang Rastali and Jalan Pisang Berangan will be expanded to 20.1m, 12.2m and 15.2m respectively.

“The total length of the three roads is about 3km,” he said at the site yesterday.

Wong said the road realignment and expansion project started in January and was expected to be completed by the end of next year.

“This project will be beneficial for all residents in Air Itam, especially those living near the three roads,” he said.

He added that the expansion was timely as it would provide a shorter route to the proposed 4.6km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass.

He said traffic congestion in the area was expected to be reduced as well when the project was completed.

Wong also said a new drainage system would be built from SMK Air Itam to Sungai Dondang in Air Itam.

“This drain will help disperse rainwater when there is a downpour in Air Itam which usually causes a flashflood,” he said.

Earlier, Wong handed two computers and five sets of stone tables and chairs worth a total of about RM8,000 to SJK(C) Sin Kang in Air Itam. 

The money to buy the items was from his constituency allocation. - The Star

City & Country: Exciting year ahead for residential market

THE new year started off on a positive note for Penang homebuyers, says Raine & Horne International Zaki + Partners director Michael Geh. Since the state government announced specific guidelines on Sept 13 last year to encourage the building of affordable houses, there has been “greater advocacy” and more approvals of such projects, Geh says in presenting The Edge/Raine & Horne International Zaki + Partners Penang Housing Property Monitor for 4Q2014.

The guidelines provide for three types of affordable homes: a RM200,000 unit with a built-up of 750 sq ft; RM300,000 unit of 850 sq ft; and RM400,000 house of 900 sq ft. A developer that wishes to build affordable houses will be exempted from the quota to build low or low medium cost units while development charges will be reduced to RM5 psf.

 This bodes well for those looking to buy their first home in Penang, Geh says. From his research, he has found that Malaysia’s demographics is currently onion shaped, with the majority of the population within the 30-year-old range. This group, he notes, can only afford to pay for a house priced at about RM350,000.

“I have found that in the last five years, there has been immense pent-up demand for houses priced below RM350,000. This year is exciting because in the last two years, at every property exhibition, house buyers couldn’t  buy anything as the properties were priced out of their range,” he says. Sales activity for affordable housing, he adds, will grow exponentially this year.

 More developers in Penang are listening to the market and offering affordable houses below RM400,000. Among them is MSummit Group, which launched Ramah Pavilion, an affordable apartment project in Teluk Kumbar, on Jan 31. Ballots for the units — with built-ups of 800 to 1,355 sq ft and priced from RM198,000 to RM398,000 — were held for eligible applicants who had registered with the state government.

Another developer, Ideal Property Group, is awaiting approval to build over 5,000 units of affordable houses in the Relau/Sungai Ara areas, says Geh. There is also Aspen Group Holdings Sdn Bhd’s affordable high-rise project Tri Pinnacle, in Mount Erskine, Tanjung Tokong.

It’s not only developers that have been provided plenty of incentives to jump on the bandwagon, landowners too are encouraged to develop affordable homes on their land, says Geh. As a result, moving forward, he believes the affordable house market will stay active.

 Meanwhile, Geh highlights some hot spots for home owners to consider, among them, inner city George Town, within the Unesco Heritage Zone. Others include Bayan Lepas, including Bayan Baru, which is near the Penang International Airport, as well as Tanjung Tokong, which is within the vicinity of E&O Bhd’s Sri Tanjung Pinang development. On the mainland, Batu Kawan is popular thanks to its proximity to the Sultan Abdul Halim Muadzam Shah Bridge, or second Penang Bridge.

Market activity is mostly driven by domestic demand, says Geh. Moreover, many Penangites who are working abroad are buying homes in the state.

While the affordable housing sector is going strong, the same cannot be said for other property types. The Malaysian Insider had reported on Feb 12 that developers are feeling the pinch as state contributions have been increased. “[House] prices are still up due to rising costs faced by developers,” Real Estate Housing and Developers’ Association (Rehda) Penang chairman Datuk Jerry Chan had said in a press conference.

State infrastructure contributions have been raised of late. For instance, developers need to pay RM15 psf on the gross development area prior to development, while drainage contribution and conversion fee amounts have increased by 100% since 2013, Geh notes.

 However, he believes that “the market should be allowed to work itself out as the Penang property market is undergoing many changes at the moment”.

Geh sees the positive outlook for the last quarter of 2014 following through to the new year. “I saw optimism in the market as affordable housing projects were approved [in 4Q] and this year, they will be sold. This is a marked difference from all other quarters of 2014, where there was negativity and hopelessness in the air as house prices were simply beyond homebuyers’ purchasing range.”

House price breakdown

While areas surveyed in the monitor shows prices have risen from a year ago, Geh notes that they are plateauing now. He believes sales activities will slow, with a slight rise for premium houses priced above RM700,000.

The average price of 1-storey terraced houses in Seberang Perai Tengah on the mainland gained 20%, rising to RM200,000 from RM160,000 year on year, while on the island, houses in Green Lane and Jelutong rose 16.67% to RM780,000 from RM650,000.

For this house type, every area surveyed showed no price growth quarter-on-quarter except for the mainland. In Seberang Perai Tengah, prices rose 10% from RM180,000, Seberang Perai Selatan saw a 6.25% increase to RM160,000 from RM150,000, and Seberang Perai Utara, a jump of 5.56% to RM180,000 from RM170,000.

For 2-storey terraced houses, Seberang Perai Selatan gained 21.43% y-o-y to RM280,000 from RM220,000. The next highest gainer was Sungai Nibong, where homes rose 20% to RM1.1 million from RM880,000, followed by Sungai Ara, up 16.67% to RM900,000 from RM750,000. Q-o-q, most areas saw modest gains. In Seberang Perai Selatan, prices rose 10.71% from RM250,000, followed by Sungai Nibong with a 9.09% increase from RM1 million.

As for 2-storey semi-detached houses, the top gainers y-o-y were Island Park houses, which rose 14% to RM2 million from RM1.72 million. Sungai Ara homes posted a increase of 11.11% to RM1.35 million from RM1.2 million. Houses in Minden Heights rose 10% to RM1.5 million from RM1.35 million. Q-o-q, all houses in this category showed no change or modest price growth.

Moving on to 2-storey detached houses, the biggest gainers were Island Glades and Green Lane with both seeing a rise of 28.57%. In Island Glades, prices rose to RM2.8 million from RM2 million, while Green Lane units hit RM3.5 million from RM2.5 million. In Minden Heights, prices were up 20% to RM3.5 million from RM2.8 million. Q-o-q, only houses in Tanjung Tokong (12.5%) and Minden Heights (5.71%) showed price growth.

In the 3-bedroom flat sector, units in Relau rose 15.38% to RM260,000 from RM220,000. Other areas seeing price growth were Bandar Baru Air Itam (5.26%) and Green Lane (3.13%). Other areas remained unchanged. Q-o-q, only flats in Bandar Baru Air Itam (5.26%) and Relau (3.85%) saw a slight increase while others showed no change.

For 3-bedroom condominiums, all areas surveyed showed price growth. Units in Tanjung Tokong advanced the most, by 22.41% to RM580,000 from RM450,000. In Pulau Tikus, prices rose 17.24% to RM580,000 from RM480,000, while in Tanjung Bungah, prices shot up 16.67% to RM600,000 from RM500,000. Q-o-q, some areas showed modest growth while others remained unchanged.

In the rental market, flats and condomiuns saw no change in rental rates y-o-y and q-o-q. Other property types revealed varied results, with some areas showing marginal growth while other remained unchanged.

Geh says it is currently a tenants market as there is enough choice for renters to be selective. Furthermore, yields have dropped because market values have risen.

 The Penang residential property market looks to get a boost thanks to the affordable house supply that will come onto the market in a few years. How this will change the property landscape is yet to be seen but for now, the pent-up housing demands of young Malaysians is finding an outlet.

This article first appeared in City & Country, The Edge Malaysia Weekly, on February 23 - 29, 2015.