The Star Online > Business
Saturday July 9, 2011

Developers try to ease property concerns in Penang

By PRISCILLA DIELENBERG and DAVID TAN
north@thestar.com.my


THE Star regional operations manager (north) Chung Chok Yin and Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat recently met up with developers to ascertain the impact of a slower GDP forecast for 2011, rising interest rates, and escalating property prices amidst global challenges on the direction of the Penang property market.

Chung and Teoh moderated The Star Property Fair 2011 Roundtable discussion held at the Star Northern Hub on July 5.

The panellists included DNP Land Sdn Bhd (northern region) general manager K.C. Tan, IJM Properties Sdn Bhd general manager (north) Toh Chin Leong, Ivory Properties Group Bhd deputy chairman and executive director Datuk Seri Nazir Ariff, Lone Pine Group of Companies general manager Mabel Ooi, SP Setia Bhd (north) general manager S. Rajoo, Mah Sing Group Bhd general manager (northern region) Low Eng Hooi, Sunway City Bhd general manager Tan Hun Beng, and Real Estate Housing Developers’ Association (Penang) chairman Datuk Jerry Chan.

The roundtable talk was a prelude to the ninth Star Property Fair 2011 in Penang that will be held at Gurney Plaza and the adjoining G Hotel from July 21 to July 24.

The fair is organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd.

The following are excerpts of the discussion:


StarBizWeek: How do you perceive the property market outlook in Penang for 2011 and next year?

Chan: The outlook is stable. Landed properties with unique concepts will see appreciation. The demand is still there. It’s just that people will be more discerning in their decision making when it comes to the high-end high rise developments.


Should steps be taken to ensure Malaysian owners still retain ownership of heritage properties in the core and buffer heritage zone?

Nazir: That’s going to be difficult. That is disturbing the market. How many foreign people own heritage properties now? Some might have foreign names but they may be locals.


Will the property market in Penang experience phenomenal growth as it did last year?

Rajoo: As long as there is expansion, there is going to be ample job opportunities. More people will enter the job market and they will need homes. We expect a good year.


Toh: There is fear that if you don’t buy property now, you can never afford it again in the future. The interest rate is increasing, and the price of oil, materials, land, and compliance costs are going up also. These are driving people to keep buying houses now.


K.C. Tan: The mainland and island are now better connected in terms of distance, and accessibility, which will be further enhanced with the completion of the second bridge.

We can expect a shift in the property market towards Batu Kawan, especially when the second bridge and the Electrified Double Track Project (EDTP) connecting Ipoh and Padang Besar are completed.


The trend appears to be less focused on super-condominium lifestyle living, according to a recent report. What do you feel about this?

Ooi: That is what we hear from the locals. The trend is to go for smaller units. I would say there is still a demand for big units, as there are buyers attracted by unique concepts.

Purchasers of our 1 Tanjong beachfront-condominium project in Tanjung Bungah intend to stay there.

In future, the supply of this type of properties along certain stretches will be limited.


How will developers strategise to promote their properties this year in view of the slower economic growth locally and globally?

Nazir: Penang developers are now more organised. Developers like IJM, SP Setia and Mah Sing have set benchmarks that we local developers have followed.

They have given Penang companies competition and a challenge, and you can see better designs in houses and apartments in Penang because of that.


Has Mah Sing made the right move to enter the Penang property market?

Low: The local market, particularly in Batu Maung, has accepted the new concept. Buyers expect different concepts, innovation and designs. They buy into the lifestyle aspect, and they are willing to pay more for it.

All these factors will steer the property market and make it just as favourable if not more favourable than the outlook this year.


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Added on July 9, 2011, 8:24 amRice Miller City Residences launching on Friday

Tags: AGB , Asian Global Business Sdn Bhd , Baltimore , Beach Street , Boston , Carcosa Seri Negara , Cinnovation | CG , Darling Harbor , George Town , InVision Hospitality , Kate Lim , Kuala Lumpur , London Docklands , New York , Noraini Abdullah , Penang , Penang International Airport , PPC International Sdn Bhd , Singapore , Sydney , Unesco , Weld Quay , World Heritage , Zinc | InVision Hospitality


By Rosalynn Poh of theedgeproperty.com
Friday, 08 July 2011 15:08

KUALA LUMPUR: Asian Global Business Sdn Bhd (AGB) launches The Rice Miller City Residences on Friday, July 8, after some delay due to reconfiguration of plans following Penang's World Heritage listing in 2008.

The initial plan was to build a 13-storey building but the height has been reduced to five storeys to comply with new regulations, including height restrictions in line with Penang's Unesco World Heritage site status.

The residences are part of the RM250 million Rice Miller mixed development located in historic Weld Quay in Penang. The entire in-city resort development by the old Penang harbour lies within the Unesco World Heritage site in George Town. It consists of four adjoining parcels of freehold land on a 1.2ha site and is bound by Beach Street on the west and Weld Quay to the east. It is a 20-minute drive away from the Penang International Airport.

The Rice Miller development now comprises a 48-suite boutique hotel; two office buildings, lifestyle restaurants, cafes and retail spaces; and the low-rise low-density Rice Miller City Residences which comes with a private club, gym, pool and spa.

AGB managing director Dr Noraini Abdullah said the company was inspired by waterfront developments such as London Docklands and Sydney Darling Harbor. "In the United States, empty waterfronts in Boston, New York and Baltimore have produced turnarounds as new housing transformed wharves and crumbling old buildings re-emerged as festive market places," she said.

The Rice Miller City Residences offers 99 private city residences spread over five storey buildings. They range from studio units to three-bedroom and duplex units with sizes between 766 sq ft and 3,472 sq ft. The units with prices ranging between RM1.13 million and RM3.7 million have been almost 50% booked so far.

The development will feature colonial architecture with modern amenities. Part of the infill site comprising old godowns and shop offices will be refurbished and restored, said Noraini. The whole development is slated for completion in 1Q13.

AGB chairman and Penangite Kate Lim said: "We aim to respect George Town's traditional urban character while restoring the city's sense of dignity and importance."

As for the hotel, it is looking at a rate of RM1,000 per night for suites which are about 550 sq ft in size. The boutique hotel will be called The Rice Miller Hotel.

The developer may look to expand the Rice Miller brand to other countries in the future. In January, it appointed Zinc | InVision Hospitality, a joint partnership between Thailand-based InVision Hospitality and Singapore-based investment company Cinnovation | CG, to manage The Rice Miller development.

The official launch will be held at Carcosa Seri Negara in Kuala Lumpur on Friday. PPC International Sdn Bhd has been appointed joint marketing agents for The Rice Miller City Residences project.

http://www.theedgeproperty.com/news-a-views/7765.html

This post has been edited by kh8668: Jul 9 2011, 08:24 AM

Compiled by DAVID TAN and PRISCILLA DIELENBERG
north@thestar.com.my | Jul 13, 2011
Good demand for Penang property
Developers share their thoughts on current and future market trends

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The Star regional operations manager (north) Chung Chok Yin and Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat met up with developers at the Star Northern Hub in Bayan Lepas to ascertain the impact of a slower GDP forecast for 2011, rising interest rates, and escalating property prices amidst global challenges on the direction of the Penang property market.

The panellists included DNP Land Sdn Bhd (northern region) general manager K.C. Tan, IJM Properties Sdn Bhd general manager (north) Toh Chin Leong, Ivory Properties Group Bhd deputy chairman and executive director Datuk Seri Nazir Ariff, Lone Pine Group of Companies general manager Mabel Ooi, SP Setia Bhd (north) general manager S. Rajoo, Mah Sing Group Bhd general manager (northern region) Low Eng Hooi, Sunway City Bhd general manager Tan Hun Beng, and Real Estate Housing Developers’ Association (Rehda) (Penang) chairman Datuk Jerry Chan.

The roundtable talk on July 5 was a prelude to the ninth Star Property Fair 2011 in Penang that will be held at Gurney Plaza and the adjoining G Hotel from July 21 to 24.

The fair is organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd.

The following are excerpts of the discussion:

Q: How do you perceive the property market outlook in Penang for 2011 and next year?
Chan: The outlook is stable. Landed properties with unique concepts will see appreciation. The demand is still there. However, house buyers will be more discerning in their decision making when it comes to the high-end high rise developments.


Q: Should steps be taken to ensure Malaysian owners still retain ownership of heritage properties in the core and buffer heritage zone?
Nazir: That’s going to be difficult. That is disturbing the market. How many foreign people own heritage properties now? Some might have foreign names but they may be locals.


Q: Will the property market in Penang experience phenomenal growth as it did last year?
Rajoo: As long as there is expansion, there is going to be ample job opportunities. More people will enter the job market and they will need homes. We expect a good year.

Toh: There is fear that if you don’t buy property now, you can never afford it again in the future. The interest rate is increasing, and the price of oil, materials, land, and compliance costs are going up also. These are driving people to keep buying houses now, as property can hedge inflation.

K.C. Tan: The mainland and island are now better connected in terms of distance, and accessibility will improve with the completion of the second bridge. We can expect a shift in the property market towards Batu Kawan, especially when the second bridge and the Electrified Double Track Project (EDTP) connecting Ipoh and Padang Besar are completed.

Chan: There is a lot of confidence towards Penang, with locals and foreigners wanting to invest, both in production and in property. Penang has the right ingredients. The demand will be consistent and the supply will not outstrip demand.


Q: The trend appears to be less focused on super-condominium lifestyle living, according to a recent report. What do you feel about this?

Ooi: That is what we hear from the locals, that the trend is to go for smaller units. I would say there is still a demand for big units, as there are buyers attracted by unique concepts and ideas. Purchasers of our 1 Tanjong beachfront-condominium project in Tanjung Bungah intend to stay there. In future, the supply of this type of properties along certain stretches will be limited.


Q: How will developers strategise to promote their properties this year in view of the slower economic growth locally and globally?
Nazir: Penang developers are now more organised. Developers like IJM, SP Setia and Mah Sing have set benchmarks that we local developers have followed. They have given Penang companies competition and a challenge, and you can see better designs in houses and apartments in Penang because of that.

Rajoo: The healthy competition has made us think more creatively. The supply of properties now is a completely different breed of product than those completed five years ago.


Q: Has Mah Sing made the right move to enter the Penang property market?
Low: The local market, particularly in Batu Maung, has accepted the new concept. The buyers expect different concepts, innovation and design. They buy into the lifestyle aspect, and they are willing to pay more for it. All these factors will steer the property market and make it just as favourable, if not more favourable than the outlook this year.


Q: Going forward, would the market be sustainable, and why?
Chan: If the job creation is there for Penang in the years to come, the demand for housing will follow. We just need to consider the kind of supply situation. After every recession, there is inflation, which drives property prices up. Everything else goes up – fuel prices, energy costs, raw materials, transportation, labour costs, cost of living, compliance costs, construction costs, fees, land prices. Inflation is not suddenly going away, and these costs are not coming down.

Rajoo: If you’re doing high rise, it’s all about pricing and location. We were selling our Reflections condominiums in Sungai Ara for over RM400,000. The last few units we had sold at RM550,000. And there is a long list of people waiting for sub-sale units.

H.B. Tan: The branding for Penang has been done even 40 years ago when Tun Dr Lim Chong Eu was the Chief Minister. He moved Penang forward with industrialisation. Penang also had the branding of the free port status before 1969. When it comes to property, Penang has this macro branding and there is micro branding among every developer in terms of the location and type of development. Having said that, every square foot that we build on Penang island means there will be another square foot of land gone. Yet, the demand for property is continuous.



Q: Do you foresee what has been described by the media as a property bubble forming?
Toh: A lot of people say that property in Penang is driven by speculators. If you actually look at it, the number of people who own two to three houses is very small compared to the population. So, there is no bubble. People will still buy if the location is good. They also look at the product — the lifestyle, design, innovation and features — and reputation. The market was hot for the last few years but there were still houses that never sold. Yet, people still queue up for other houses and these are snapped within days of the launching.

Rajoo: About six years ago, we thought the market was going crazy because it was already very high. But people have actually made money. A year ago, we launched our Setia View houses and priced them from RM600,000 to RM998,000. I thought the bubble was up. I was wrong, it was taken up overnight.

Low: Basically, we have all unanimously agreed that there is no bubble. The trend is going for products that have value for money. If you have good branding, innovative design, good concepts, the price will probably hold.


Q: What do foreign buyers look for, and how can we make Penang appeal more to them?
H.B. Tan: Penang it is still very much a local market. Most of the “foreign buyers” in Penang are former Malaysians who come back to invest. It is not really an international market.

Ooi: Foreigners buy in Penang because it is a good location, the environment is relaxing, and we have international schools. Some would like to retire here one day. They also like to buy seafront properties. And the prices here are cheap in relation to what they would have to pay for such a big unit in their country. But there is a lot of improvement that can be made to attract foreigners — infrastructure, transport system, hospitals and schools.


Q: Does Rehda think there is a need to look into possible strategies to attract more foreign buyers?
Chan: There are certain projects that will have a higher demand for foreign buyers. However, most of them who stay here do not buy property as they find that the rental is so low. Then, there is the Penang diasphora. Malaysians who probably are not going to stay in Penang may want to invest in Penang because of confidence.

It is a two-edge sword to go out and encourage more foreigners buying property. That would create additional demand but cause a backlash when property prices go up, as you’re not catering to the local market first. People are already blaming developers for marketing high-end properties overseas.



Q: How can the local infrastructure support further development in Penang to meet demands?
Ooi: Plans for a monorail and the Penang Outer Ring Road (PORR) which were earlier conceived should be revived. Taxis should be made more pleasant and regulated. By having a more efficient public transport, people will not drive and this will relieve congestion.

Chan: If you want to remove congestion, you have to make it expensive to drive to reduce traffic congestion. Only then can you improve public transport. The cheapest, fastest and most convenient system is the tram, as you don’t need purpose-built stations.

The existing road system can determine the routes, so you don’t need to create something new. The bus system can run concurrently for longer distances but within greater George Town, the tram system can run on certain roads. But we need legislations for that.

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Added on July 14, 2011, 11:11 amJul 14, 2011
Two housing estates offer tranquil living amidst lush greenery

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BM Utama and Jesselton Hills in Bukit Mertajam are two prestigious projects by DNP Land, with living spaces that are stylish and comfortable, and much thought given to the natural environment.

DNP northern region general manager K.C. Tan said Phase 3 of BM Utama is built around an ideal blend of modern and practical architecture that emphasises on a natural and healthy lifestyle, with pockets of lush greenery providing a tranquil setting.

Comprising 75 units of two-storey (Roystonea) and 63 units of three-storey (Mauritia) terrace houses on land sizes measuring 22ft by 60ft onwards, with built-up areas of approximately 2,500sq ft, each is geographically positioned to encourage better air flow and maximise natural lighting.

Spacious 200sq ft balconies give residents commanding views of the development’s other features, such as the Linear Park and gurgling Riverline trails.

“Mauritia features contemporary design elements with double volume ceiling height at family area that maximises natural ventilation and lighting, and split level concepts that allow room for more common areas where family members can interact.

“We have also tailored the unit sizes specially to cater for increasing family sizes nowadays,” he said, adding that prices range from RM468,000 to RM600,000.

Jesselton Hills is an upmarket residential neighbourhood located on a 120-acre parcel of land near the Alma precinct, and is a continuation of the earlier Taman Seri Impian. Comprising 900 over units, it is to be completed over four phases, with pockets of green in close proximity to all units.

The first phase of Jesselton Hills features two and two-and-a-half storey semi-detached units priced from RM550,000 onwards. Land sizes start from 2,604sq ft while the built-up areas range from approximately 2,478sq ft to 2,960sq ft.

The units’ unique architectural features reflect a modern style, and consideration is given to make the units energy efficient. Its aesthetically appealing box design doubles up as shading for various functional spaces within.

They feature high ceilings up to 12ft, larger window openings that brighten interior spaces, high car porch, sheltered balcony with sun breaker, and spacious master bedrooms with en-suite bathroom. The seamless integration of the indoors and outdoors brings nature right into the living spaces.

Amenities include a complete range of clubhouse facilities such as swimming pool and gymnasium, outdoor fitness stations, children’s playground, lake gardens, designated cycling tracks and jogging trails.

For the Star Property Fair 2011, the company is absorbing legal fees and stamp duties on transfer, as well as early bird promotions for its units. Both projects have a total gross development value of RM150mil.

Touted as Penang’s premier property expo, the fair’s ninth edition will be held at Gurney Plaza and the adjoining G Hotel from July 21 to 24.

To date, 28 major developers — representing almost all the big boys in the industry — along with several financial institutions, have taken up booths in the fair.

The fair, to be open to the public from 10am to 10pm daily, is organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd. Admission is free.

For enquiries, call 04-6473388 ext 3357 (Shirmein) or ext 3418 (Bessie).


This post has been edited by kh8668: Jul 14 2011, 11:11 AM

By DAVID TAN
davidtan@thestar.com.my | Jul 20, 2011
A preferred choice

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Senior executive: Law posing outside Henry Butcher's office in George Town.


Penangites working in China and Singapore are taking up property in Penang, thus providing a stable demand to drive the growth of the local property market this year.

Henry Butcher Malaysia (Penang) Sdn Bhd senior business development manager Law Beng Yeow said that Penang’s residential properties would continue to be attractive despite a slowing GDP forecast, which was expected to be around 5.5% to 6%, compared to about 7% a year ago.

“Penang is on the map of many overseas Penangites, especially those working in China and Singapore, who want to leverage the strong foreign currencies they are earning to invest in local properties, which are still priced competitively in the Asian region,” Law said.

“They go for landed and high rise in choice locations such as properties in Pulau Tikus, Tanjong Tokong, Tanjung Bungah, Batu Ferringhi and Green Lane.

“The demand is reflected in the increase in the selling prices of such properties in the secondary market,” Law said in an interview held in conjunction with tomorrow’s ninth Star Property Fair 2011 in Penang, which will be held at Gurney Plaza and the adjoining G Hotel from Thursday to Sunday.

Law said landed property in these neighbourhoods transacted in the secondary market have risen by about 10% compared to last year, while high-rise properties have risen between 5% and 10%, all depending on the location, size and specifications.

“For example, an average size landed terraced unit with a built-up area of approximately 2,000sq ft to 3,000sq ft is now priced between RM1mil and RM1.5mil, up from about 10% from last year,” said Law.

“For a semi-detached unit with a built around 3,000sq ft to 4,000sq ft, the current price ranges from RM1.8mil to RM2.8mil, up from about 10% from last year.

“A condominium unit with a built-up area of about 2,500sq ft to 5,000sq ft is priced between RM700,000 to RM3mil, about an increase of 5% to 10% growth from last year’s pricing.”

He said new landed and high rise property in these areas to be launched soon were expected to be priced slightly higher from the present price levels in the secondary market.

“The local property market is expected to continue to grow but at a slower pace this year, as we have already seen a big rush to take up properties in 2010,” Law added.

On the high prices of Penang property, Henry Butcher Malaysia (Penang) vice-president Shawn Ong said the cap on the third property loan to 70% had deterred speculators from coming into the property scene.

“Those coming in now are genuine investors with the cash to hold to the property.

“High commodity prices and the volatile stock market overseas are continuing to prompt medium and long-term investors to take up properties, which are considered to be lower-risk,” he said.

Ong added that the trend forward was towards medium market properties, as developers were taking into consideration the affordability level of home purchasers.

“This is why we are seeing more recent developments in the past 12 months of high-rise units on the island, with built-up of over 1,000sq ft, priced between the RM300,000 and RM500,000 range, which have received overwhelming response.

“Such property are now being developed in Bayan Baru, Bayan Lepas, and Air Itam townships,” he said.

The Star Property Fair 2011, organised by The Star in collaboration with Henry Butcher, will be open to the public from 10am to 10pm daily, and admission is free.

To date, 28 major developers — representing almost all the big boys in the industry — along with several financial institutions, have taken up booths at the Star Property Fair.

The fair will also see RM30,000 worth of prizes to be won for the ‘Surf, Click & Win’ contest which is sponsored by IJM Land.

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Added on July 22, 2011, 10:15 pmul 22, 2011
Penang market still vibrant

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GEORGE TOWN: The increase in the number of exhibitors at the Star Property Fair 2011 here is an indication that the property market in Penang is still vibrant.

Star Publications (M) Bhd group managing director and chief executive officer Ho Kay Tat said there were 36 exhibitors now compared with 29 last year.

“We can expect a turnout of more than 30,000 visitors to the fair this year,” he said when opening the four-day fair at G Hotel here yesterday.

The fair is being held at Level Two of the hotel and ground floor of the neighbouring Gurney Plaza from 10am to 10pm daily until Sunday.

It is the ninth time the annual fair is being held. Admission is free.

Ho said that due to the stronger ringgit, foreign properties had also caught the attention of local investors.

“Thus, there are developers at the fair showcasing properties in the UK and Australia,” he added.

Ho said that since the 1980s, The Star had been involved in organising events, pointing out: “We started out doing education fairs and we found that such events can be very successful and popular.”

On The Star’s old office on Jalan Mesjid Kapitan Keling, Ho said the office was being renovated.

“The building is strategically located within a neighbourhood of historical significance.

“We will soon release details of what we want to do with it,” he added.

The fair is organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd.

The exhibitors include almost all the big boys in the housing industry along with several financial institutions.

Key exhibitors include IJM Land, Sunway Grand, Mah Sing, Ideal Property Development, SP Setia Group, Boon Siew Group, Ivory Properties Group, Nusmetro Venture, MTT Properties & Deve­lopment, Reka Indah Develop- ment, Belleview Group and DNP Land.

IJM Land is sponsoring RM30,000 worth of prizes for the “Surf, Click & Win” contest.

Among the many visitors to the fair yesterday was Roslina Begum Baharudeen who said she was very keen on the Pearl Villas homes developed by Tambun Indah Land Berhad Group at Simpang Ampat.

“I am inclined towards this property because the second Penang bridge, schools and banks are nearby.

“This is a suitable place to start a family,” said Roslina.

Goh Ai Lin, 50, who was looking for an apartment on the island, lamented that property prices in Penang were going up year after year.


This post has been edited by kh8668: Jul 22 2011, 10:15 PM

the state government has come out with a RM2.7 billion Bandar Cassia Affordable House Scheme by PDC on an 80ha plot of land. This project is designed by Singapore-based Surbana and will have about 12,000 medium-cost housing units, three football fields, a man-made river and recreation parks. The units will be housed in high-rise buildings of between nine and 16 storeys and ranging from 800sq ft to 1,000sq ft. They are priced at between RM72,500 and RM220,000 each with a free car parking lot. This freehold project has a 10-year development period over five phases with the Phase 1 expected to be ready by 2014.



Bandar Cassia Affordable House Scheme


There are quite a lot of new factories under construction at the nearby Penang Science Park. With the completion of Penang Second Bridge expected in the end of 2013, the south-west of Province Wellesley could see a significant growth in term of population, jobs, infrastructures and housing projects. Areas nearby Batu Kawan such as Tambun, Simpang Ampat, Jawi, Juru etc should be able to reap some benefits from it.

https://penangfoodie.com/tgv-batu-kawan/

Is this happening?