Accessibility is key for hotspots

REAL estate in a number of developing areas in the Klang Valley has risen in popularity despite the economic uncertainties in recent years.

Although there were many successful launches with units snapped up within a weekend or two, they did not indicate the growth of a developing hotspot, says C H Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen.

There had been instances of people buying on “herd instinct” similar to the stock market, where prices were already too high or when sales were driven by rumours or market manipulation. 

“Sometimes, the market activity is due to genuine market forces but it is difficult to be certain,” he says. “Rather, it is the fundamentals that drive the upcoming of real estate in an area.”

PA International Property Consultants (KL) Sdn Bhd head of agency Wendy Tong points to infrastructure development as a key factor in bolstering property growth. “Developments near the upcoming light rail transit (LRT) and mass rapid transit (MRT) lines are likely to comprise stratified residential and smaller mixed-use components,” she says. “As accessibility is a big issue for buyers and investors, the mantra seems to be to choose properties where train stations and highways are built,” Malaysian Institute of Estate Agents president Siva Shankar says.

However, there are exceptions to the general “rule”, he adds, where some hotspots do not seem to be location-driven. “We have seen many locations that were previously perceived as “disconnected”, such as Bangsar South - previously Kampung Kerinchi - but developers have transformed it into an urban and lively locale. This has changed perceptions as to its attractiveness as a hotspot,” he says. 

Foo says well-planned developments will be self-sustaining as they are developed with a clear and solid objective. 

Foo says such localities will sell fast with facilities and amenities such as education, healthcare, leisure, entertainment and security.

In the residential market, with affordability being a key factor, more developments continue to trend towards smaller units – keeping the quantum pricing competitive to appeal to a wider target market of purchasers and investors, Tong says. “With more land bank activities in the fringe or upcoming suburbs due to land scarcity in the city, we expect to see more property launches – particularly landed residential schemes – in new areas at the fringe of the Klang Valley,” she says. Property consultants expect better performance in the secondary market. “Buyers are expected to turn to the secondary market for bargains on choice locations with immediate rental yields,” Tong says. - The Star

Challenging times in Penang

THE Penang property sector is expected to see some challenges going forward. Real Estate and Housing Developers’ Association (Rehda, Penang) chairman Datuk Jerry Chan expects another 30% decline in property transactions in 2015 from the 30% drop recorded in 2014. 

Chan says: “We expect to see little or no appreciation for high-end condominiums going forward. The mid-range high-rise properties with price tags of RM400,000 to RM500,000 are likely to see appreciation. We also expect to see lower demand for landed residential properties priced between RM3.5mil and RM5mil.” 

Another indicator of the bumpy road ahead is the high rejection rate for housing loans, which according to Rehda Penang deputy chief Datuk Toh Chin Leong is 50% for some projects. “You don’t see this three years ago, but it has been happening for the last 18 months,” Toh says.

Notwithstanding the challenges predicted by the association, there are at least 10 residential addresses in Penang where prices have appreciated substantially since 2009, unaffected by the economic uncertainties. 

Raine & Horne director Michael Geh says these addresses are not in the premier category, but are sought after because of their pricing, location and facilities.

“They have benefited from the new infrastructure, malls and other amenities that have mushroomed around them. Owners are not speculators and would not give them up unless the offer is good. This is another reason why these properties have appreciated rapidly,” Geh says.

On the island, the five addresses are Springfield Condominium in Sungai Ara, Krystal Suria in Bukit Jambul, Leisure Bay in Tanjung Tokong, Marina Tower in Relau.

In the south-west district, where the Penang International Airport is located, prices of Springfield Condominium, Krystal Suria, and Marina Tower have appreciated between 164% and 233% (see table)

In the north-east district, prices of Leisure Bayand Midlands Condo have appreciated by about 200%. 

The second bridge project, announced in 2006, the construction of the Subterranean Penang International Convention and Exhibition Centre in Bayan Baru and the Penang Waterfront Convention Centre next to the Penang Bridge, have helped to boost prices. Both convention centres will be ready this year and 2017 respectively.

On the mainland in central Seberang Prai, the popular addresses are Taman Pauh in Permatang Pauh, Taman Sejahtera in Alma, Putra Bertam in Bertam, and Juru Indah in Juru. In North Seberang Prai, it is Taman Dahlia in Jalan Raja Uda.

Landed terraces in Taman Pauh, Taman Sejahtera, Putra Bertam and Juru Indah have risen between 43% and 60% since 2009.

The second bridge project linking Batu Kawan in South Seberang Prai and Batu Maung in the southern part of the island has driven up property prices located at both ends of the bridge.

Using 2006 as a benchmark, Geh says the price of vacant land has increased to between RM250 per sq ft (psf) and RM300 psf in Batu Maung from RM50 to RM60 psf. “Pricing depends on whether the land has been zoned for agriculture, commercial or residential use,” he says.

Prices for new two to three-storey terraces south of the island start from RM1.2mil, compared with about RM450,000 prior to 2006.

“New condominiums in similar locations are now priced at between RM700,000 and RM800,000, compared with between RM250,000 and RM300,000 prior to 2006, when the bridge was first announced,” he says.

Properties located in the prime locations of central Seberang Prai and south Seberang Prai have also increased significantly.

Henry Butcher Seberang Prai’s associate director Fook Tone Huat says vacant land in the area, especially those in south Seberang Prai where the second bridge is located, are between RM42 and RM60 psf, a huge jump from 2006’s RM8-RM9 psf.

Land prices in central and north Seberang Prai were then between RM20 and RM40 psf, compared with today’s range of between RM50 and RM120 psf. The increase in land prices has translated into higher property prices.

“New landed properties such as double-storey terraced units in south Seberang Prai are now priced between RM360,000 and RM450,000 compared with between RM150,000 and RM200,000 prior to 2006,” Fook says.

Double-storey terraces in prime locations in central and northern Seberang Prai have doubled, from RM200,000-RM270,000 to RM400,000-RM630,000.

“We are also seeing a number of life-style condominium projects being planned in Bukit Mertajam this year with prices between RM300 and RM350 psf,” Fook says.

As for the secondary or sub-sales market, double-storey terraces, depending on location, are priced between RM300,000 and RM600,000.

Aspen Group Holdings Sdn Bhd and PE Land Sdn Bhd’s plans to develop an Ikea store and the RM1bil Penang Designer Village, which also includes a RM200mil premium outlet respectively, will drive up prices further in Seberang Prai, especially those located near the second bridge.

Moving forward, Geh says south-west district properties will benefit from the state government’s plans to transform the Bayan Baru township into an international business process outsourcing (BPO) area. Two multi-storey blocks will replace the current Penang Development Corp headquarters. The 29 and 25-storey blocks will house retail and recreational facilities.

“In the north-east district, the opening of the Gurney Plaza and Gurney Paragon shopping malls respectively in 2001 and 2013 and the increase in food and beverage outlets in the Pulau Tikus and Tanjung Tokong neighbourhoods have boosted prices.

Eastern & Oriental Bhd’s plan to undertake RM25bil worth of residential and commercial projects for the second phase of Seri Tanjung Pinang over the next 20 years is another boon for the island. This involves reclaiming 307ha in Tanjung Tokong.

The first stage of land reclamation is expected to take about 30 months and the development of residential and commercial projects another 10 years. The gross development value is about RM8bil. - The Star

Developer unveils large luxury villas in Sungai Buloh

New addition: A rendering of the Park Manor development located in the award-winning Sierramas residential estate.

TAN & Tan Developments Bhd recently announced the launch of its family-focused development called Park Manor. 

Located in the award-winning Sierramas residential estate in Sungai Buloh, Selangor, Park Manor comprises 41 villas provide residents a private urban oasis nestled among lush greenery and beautifully landscaped gardens. 

These homes are the largest that Tan & Tan has built in Sierramas. 

Designed to accommodate today’s modern family and their evolving needs, Park Manor offers elegant five to six bedrooms, three storey family homes with built up areas of between 5,000 sq ft and 7,000 sq ft. Buyers have the option to pick three designs, each benefiting from generous and well-proportioned living, dining and kitchen areas on the ground floor, as well as spacious bedrooms with en suite bathrooms upstairs. 

Additionally, each upper floor boasts ample common areas that can be used as family or hobby rooms.

A home that accommodates the whole family, each villa also has an annex, which is wheelchair accessible from the main house, containing the guest or parent’s suite. With a covered porch for three to four cars and a home lift within the villa to facilitate travel between the three floors, Park Manor caters to the varied and evolving needs of today’s modern family.

Tan & Tan head of sales and marketing Fern Chong said, “Park Manor is the latest addition to the exclusive Sierramas community, offering residents large family sized homes in a gated and guarded development. With direct access to the city, close proximity to a wide range of amenities, and with selling prices ranging from RM4mil to RM5.2mil, we expect to see strong interest from local buyers and residents in the Sungai Buloh vicinity.” 

Park Manor features a design concept rooted in sustainability. In addition to each unit having its own water harvesting system for the irrigation of their private garden, each villa benefits from bright, natural lighting as well as ventilation, allowing for a comfortable living space and lower energy consumption.

Complementing the greenery and private meandering foot paths, are common facilities for residents to enjoy. These include a beautifully landscaped jogging path, a clubhouse, children’s wading pool, as well as an infinity edge lap pool and lounge deck.

The Park Manor show house is open from 10am to 5pm daily.

For enquiries, call 017-3612266 or 017-3572266. - The Star

New online way to submit building plans

BUILDING plans can now be submitted to the Penang Municipal Council (MPPP) online via the Building Plan Management System.

“If the new procedure works, manual submission of plans will no longer be accepted from July,” said state Local Government and Traffic Management Committee chairman Chow Kon Yeow.

“For the time being, the principal submitting person (architects in particular) can continue to submit the hardcopy of their plans at the one-stop centre counter,” he said during the launch of the Building Plan Management System in Komtar yesterday. 

He said MPPP and Mesiniaga Bhd developed the system jointly.

“I hope it will be practical as previous systems that were launched had been unsuccessful,” he said.

Chow said if the building plan online submission system was successful, the council would consider extending it to include applications for planning permission.

“The system is breaking barriers of normal working hours as submissions can be sent at any time of the day, even on weekends,” Chow said. 

He said that with the system, the council was expected to be able to achieve their target of 37 days for processing building plans. - The Star

Out to rebrand Pulau Tikus

SEVERAL improvement projects including public facilities, landmarks, signage and new bus stops are being planned for Pulau Tikus in Penang.

With that in mind, its assemblyman Yap Soo Huey is holding a competition to design a logo and theme for Pulau Tikus.

Jointly organised by Yap, Ken Ray Communications Sdn Bhd and Equator College, the competition is divided into open and student categories with grand prizes of RM5,000 and RM3,000 respectively.

Yap said the contest was open to design agencies and students from or outside Penang.

“The township is named after a rocky outcropping off the coast, a tiny island with sand dunes that look like a trail of mice marching towards Penang island,” she said.

Yap said the main objective of this competition was to identify a logo and theme that could give Pulau Tikus a distinct identity.

“The logo and theme should project Pulau Tikus as a quality, multiracial and vibrant community.

“The winner will have his or her masterpiece mark on all future projects in Pulau Tikus,” she said.

The deadline for submissions is 5pm on Feb 28.

The judging criteria of the logo designs will be based on online voting on Yap’s Facebook page which accounts for 20% of the total score while the remaining 80% will be from the panel of seven judges.

Facebook voting closes at 11.59pm on March 21.

The judges are Yap, East Design Architect director Datuk Richard Jung East Full, Arkitek Permata principal Datin Chiu Chew Ying, a2 Gallery owner, curator and artist Alfred Yeoh, Think City executive director Hamdan Abdil Majeed, George Town Festival director Joe Sidek and Penang Global Tourism general manager Ooi Chok Yan.

Contest details are available online at http://mypulautikus.org and for submissions, e-mail logo@mypulautikus.org.

Enquiries may be directed to pulautikuslogo@equator.edu.my.

Alternatively, those interested can call 04-2615116/2625117 (Cindy Leow or Cheng Khim Lim). - The Star

Apply for licence before year ends, hotels told

PENANG Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow has urged unlicensed hotels and lodge houses in the state to apply for their temporary licences before the year ends.

Chow said that 92 out of 165 unlicensed hotels and lodge houses had accepted the offer of a temporary licence by Penang Municipal Council.

“There are still 73 hotels which have not applied for a temporary licence,” he said in a press statement.

Chow urged the operators of the unlicensed hotels and lodge houses to submit their applications and pay up to prevent any action against them.

The Penang Municipal Council had offered a one-year temporary licence to the operators from Nov 1 and they were given two months to accept the offer.

The purpose of the temporary licence is to give the operators a longer time to obtain a proper licence.

Those who do not accept the temporary licence will have action taken against them. 

From Jan 1, fines will be issued, equipment seized from premises and operators taken to court.

Density hike in Penang’s famed Batu Ferringhi area raises alarm

The proposed project in Batu Ferringhi is raising concern among residents as the density of the area will be increased. – Graphic courtesy of residents, December 27, 2014.The Penang government’s move to increase building density at a site in the idyllic Batu Ferringhi tourism belt has raised alarm among locals and foreigners who live and have invested in homes in the island’s most popular beach area.

Residents told The Malaysian Insider that the State Planning Committee (SPC)’s plan to double permissible density from 15 units per acre (0.4ha) to 30 units in January would lead to congestion and over-population, while having an adverse impact on Batu Ferringhi’s environment and charm.

The residents who sighted a Penang Island Municipal Council (MPPP) document on the density change for a planned project there said it also raised questions over the state authority’s planning and decisions on future development of the island in the northern part of Malaysia.

Batu Ferringhi comprises a mixed community of local Malaysians, MM2H (Malaysia My Second Homes) registrants, retirees and self-employed foreigners. Most opted to stay there as they had been assured of a green tranquil environment in the low-density residential part of the area, close to an international school.

“If this building proposal is approved, it’s a clear message to all MM2H and other foreign house buyers that the precondition when you bought the property can drastically change overnight,” said a resident who only wanted to be known as Andreas. “No property is safe anymore.”

Of the thousands of residents who would be affected, about 18 homes in the Sungai Mas neighbourhood are within 20 metres of, and directly adjacent to, the project site.

Some of the residents received a letter from the MPPP about the project on August 18 this year, as required by law due to their close proximity.

None of the project details were initially made known to them. It was only when the residents visited the MPPP to solicit details that they realised the size of the project.

According to the residents, the proposed plans appeared to include a 38-storey low-medium cost block of flats, a 48-storey medium-cost block and a 49-storey condominium tower. It also has a shopping mall.

“We went to the MPPP and we were shocked,” said Andreas. “It was really a huge building planned just metres away from our house.”

There was concern that the towers would become inappropriate landmarks, visible from a distance, spoiling Batu Ferringhi’s traditional tourism image.

The MPPP subsequently held a hearing, attended by council president Datuk Patahiyah Ismail, on September 30.

The project is planned on the site of Kampung Chetty whose residents are being evicted with compensation.

Residents are concerned that while MPPP is saying that the project had yet to be approved, many villagers who resided on the site had already moved out and part of the land appeared to have been cleared.

“This is supposed to be one of the main tourism sites in Malaysia,” said Andreas, adding that the project would cause a lot of nuisance to residents in the area.

“If I sell the house, as a foreigner, I will have to sell this house at a lower rate and buy a new one costing at least RM2 million as per the current regulations.”

Another resident who wished to be known as Glen said a high-density project in Teluk Bahang on the same coastal stretch is already causing heavy construction-related vehicles to frequently drive through Jalan Batu Ferringhi.

He said other famous tourism sites like Pattaya and Phuket also had development near their beaches, but they were not high-density, high-rise projects.

There are also concerns on whether the public utilities in the area can cope with a surge in population. The sole public sewage treatment plant there saw spillage of effluents in January last year that led to pollution of the river and a section of the beach.

“Is the sewage plant prepared for the increase in population?” Andreas asked.

The Batu Ferringhi and Teluk Bahang belt also does not have a fire station. The nearest station is 12km away in Tanjung Tokong.

Andreas said he was disillusioned by how things in Penang had degenerated. “We used to invite a lot of friends to come here to visit Malaysia. We felt like ambassadors for Malaysia,” he said.

Showing news clips that described Penang as one of the best places to retire, he said: “I can’t say that anymore.” – December 27, 2014.

Residents fear the proposed highrise project will be a blight on the landscape of Batu Ferringhi. – Graphic courtesy of residents, December 27, 2014. - The Malaysian Insider