THE Penang tourism market is now enjoying a boost due to growing arrivals from the Asian market.

Malaysian Association of Hotels (Penang) chairman Marco Battistotti said in an interview that the European market was still there, but the arrivals from ASEAN or Asian countries were now more than before.

“Another strong market is the US, which comprises many corporate visitors,” he said.

From January to September 2011, according to immigration data compiled by Penang Global Tourism Sdn Bhd, arrivals from Indonesia, Singapore, China, and Thailand registered at 176,222, 79,895, 37,203, and 12,823 respectively.

This is compared to arrivals from the UK, Western Europe and Scandinavia of 13,396, 11,534 and 2,787 respectively.

Approved project: An artist's impression of the NT Industrial Park hotel, showing the view from Gat Lebuh Gereja and Weld Quay

So far this year, there have been 17,208 arrivals from the US.

“The average occupancy rate this year should hit around 66%, compared to about 60% last year,” Battistotti said.

“There are presently 250 hotels in Penang, providing some 13,500 rooms,” he added.

Penang Municipal Council technical review panel committee member Datuk Richard Jong said the 1.4ha site surrounded by Lebuh Pantai, Gat Lebuh Gereja, Weld Quay, and Gat Lebuh China was the largest precinct in inner George Town approved for hotel and commercial development projects.

The latest hotel project that the local authorities approved in September was the NT Industrial Park project, which sits on a 0.40ha site with a gross development value of over RM100mil.

The project involves the development of a five-star five-storey hotel with 85 rooms, designed to look like an early 20th century port office and warehouse building.

Battistotti: The average occupancy rate this year should hit 66%.

“Two heritage buildings formerly used as offices on the site will be preserved for adaptive commercial use to accommodate restaurants and boutiques.

“The hotel, yet to be named, will be ready for operations in late 2013,” Jong said.

The other hotel-cum-commercial development project that is being developed at the 1.4ha site belongs to Asian Global Business (AGB).

AGB chief executive officer Dr Noraini Abdullah said piling work was currently being done for the RM285mil Rice Miller Hotel & Residences.

The project comprises a 48-suite hotel, retail space with 17,000sq ft of area for leasing, two five-storey office blocks, and 99 units of city residences.

Ready by 2013: This artist's drawing shows the Rice Miller Hotel & Residences project facing the Tanjung City Marina at Weld Quay

“The piling work for the hotel is completed and we are now doing the piling for the residences,” she said.

“The project will also accommodate clubhouse facilities such as a swimming pool and a gymnasium, and five Asian and Western restaurants.

“The entire project is scheduled for completion in June 2013,” she said.

Other hotel projects coming up in George Town include IGB Corporation Berhad’s St Giles.

The Cititel Express Hotel on Jalan Magazine is scheduled to be completed in 2014 while the Victory Annexe, the new wing of Eastern & Oriental Hotel on Lebuh Farquahar will be ready end of 2012.

The One Mansion (formerly Northam Tower) on Jalan Sultan Ahmad Shah, is currently being upgraded into a hotel.

It is scheduled for completion in 2013.

(Taken In Star Newpaper)

Penang Beat Prelude "Experimental Music" By The Sea @ Queensbay, Penang

Im Going!! Are you?

In conjunction with 1Malaysia Clean and Green and efforts to encourage the growth of creative experimental music, MOTOUR Penang and MPPP brings to you Malaysia‘s first ever “Experimental” music assemble showcase, Penang Beat Prelude @ Queensbay on the 11th and 12th of November 2011.

Penang Beat Prelude brings to you award winning groups from around Asia to share their creativity and imagination through “Experimental Musical Instruments” made from recycled or reused materials. The 2 days event will feature groups from Japan, Thailand, Malaysia and Indonesia.
 
1) Rhythm of Borneo (Malaysia) - http://youtu.be/xvpsoe1Pmf0
2) STOMP The Rythm (Malaysia)
3) No Noise (Malaysia)
4) Exotic Percussion (Thailand) - http://youtu.be/Kr5-IzzIylQ
5) Percossa Percussion (Indonesia) - http://youtu.be/qDyaAXU5kEE
6) Nusindo Persada (Indonesia)
7) Jogja Suara (Indonesia)
8) Wadaiko Syo (Japan)

Stay tune for more details.

Come join the BEAT! It's FUN, it's the FIRST in Malaysia and it's FREE.

Date : 11th & 12th November 2011 (Friday & Saturday)
Time : 7.30pm – 10.30pm
Venue: Queensbay Seafront (Outdoor), Bayan Lepas, Penang
Style : Free Standing, Open for Public

Developers in Penang are targeting buyers on a lower budget

Extract from The Star

GEORGE TOWN: Double-storey terrace houses and properties priced around RM200,000 are making a comeback in Seberang Prai.

Henry Butcher Malaysia (Seberang Prai) senior manager Fook Tone Huat said in early 2003 and 2004, 2½- to three-storey houses were popular as purchasers sought bigger space for their families.

“The built-up areas of such properties start from 2,200 sq ft and when first launched, they were priced from RM280,000. Today, these properties are priced between RM350,000 and RM380,000.

“Last year, when the global economic crisis set in, developers started developing double-storey houses, as buyers now have a lower budget,” he told StarBiz.

With a built-up area of 1,500 sq ft, the double-storey properties were priced from over RM200,000, depending on location, Fook said.

“Such properties on the mainland generally appreciate by about 10% annually. We are also seeing a new range of affordably priced high-rise properties with theme park facilities being planned for the mainland, that are normally found only on the island. These condominiums are priced between RM170,000 and RM190,000,” he said.

Fook said developers should look into introducing the 5:95 easy payment plan, which allowed buyers to pay just 5% for the property and the remaining 95% upon completion of the project.

This easy payment scheme, although popular on Penang island, had yet to be widely implemented for projects in Seberang Prai, he said.

The Seberang Prai property market in the second quarter showed no improvement over the preceding quarter and was expected to remain sluggish into the third and fourth quarters, he said, adding that sales were anticipated to pick up early next year.

Fook added that for the past two years, the development of new property projects had shifted from Raja Uda and Bagan Lallang in north Seberang Prai and Bukit Mertajam in central Seberang Prai to Bukit Tambun and Simpang Ampat in south Seberang Prai.

One Asia Property Consultants (Penang) Sdn Bhd managing director Najihah Md Noor said the soft property climate offered buyers a wide range of choices.

“It is the buyer’s market. They can pick from the new launches which normally offer freebies for the properties such as kitchen cabinets and air-conditioners.

“Buyers can also get value for their money from auctioned properties which are sold below market value,” she said.

The banks’ offer of ultra low financing loans last month had also brought some improvement in the market, she said.

Developers launching new double-storey terrace and higher-end condominium projects on the mainland include Asas Dunia, Tambun Indah, DNP Land Sdn Bhd and new player Landmark Strategy Sdn Bhd.

After a hiatus about six months, Asas Dunia is now launching some 1,177 landed properties in central Seberang Prai.

Asas Dunia managing director Datuk Jerry Chan said about 50% of the new launches were terraced properties priced between RM130,000 and RM250,000.

“The other 50% are semi-detached houses and bungalows, priced at RM280,000 to RM350,000 for the former and RM350,000 to RM450,000 for the latter,” he said.

Chan said the group was resuming its property launches because sales had picked up in May and June.

“We are also confident that there is commitment to complete the second bridge on schedule by 2012, after seeing substantial progress made on construction work,” he said.

DNP Land general manager K.C. Tan said the company would, in the fourth quarter, launch 338 properties, comprising 200 double-storey terrace houses and 138 semi-detached houses and bungalows, for the BM Utama project in Bukit Minyak and Taman Sri Impian in Bukit Mertajam.

The double-storey terrace houses are priced from RM250,000 while the semi-detached units and bungalows start from RM400,000.

“We will develop a five- and four-acre park respectively for the BM Utama and Taman Seri Impian schemes, which will be properly landscaped and equipped with the appropriate amenities.

“We will also construct a 90,000 sq ft commercial centre in Bukit Minyak, located between the two projects,” he said.

Meanwhile, Tambun Indah and Mutiara Goodyear Bhd are offering 600 terraced, semi-detached and bungalow units at its Pearl Garden scheme with an estimated gross sales value of over RM200mil in Simpang Ampat, south Seberang Prai.

Landmark Strategy Sdn Bhd is developing the 952-unit Pinang Laguna Theme Park Condominium with a gross sales value of RM160mil on seven acres in Seberang Jaya.

The units are priced between RM170,000 and RM220,000 for built-up areas of 950 to 1,100 sq ft.

Business development manager Michael Cheng said the project would be equipped with theme park facilities. “There will also be a clubhouse with spa, gymnasium, sauna and outdoor jacuzzi,” he said.

Gross Rental Yields - Malaysia Compared to Continent

Malaysia: Gross rental yields (%).

The gross annual rental income, expressed as a percentage of property purchase price. This is what a landlord can expect as return on his investment before taxes, maintenance fees and other costs.

The properties are 120-sq. m. apartments located in premier city centres. (See our list of premier cities)

The gross rental returns (or rental yields) figures published by the Global Property Guide are based on the Global Property Guides own proprietary in-house research.

Only resale apartments and houses are researched. Yields for newly-built properties are not included.

Buyers should expect the rental yields of new properties to be lower than the gross rental yields published by the Global Property Guide.

Properties will be in excellent condition, with good facilities, and have been refurbished or redecorated within the last five years.

When was this data collected? Click on individual countries to see the data collection date.

Source: Global Property Guide Research

Malaysia releases a quarterly house price index. Data are available from the Bank Negara Malaysia (BNM). The Real Estate and Housing Developers Association (REHDA) is the best source of papers, press clippings and stories about the housing market. The National Property Information Center (NAPIC) publishes Property Market Status Report which focuses on property sales.

BNM has useful monetary, financial and economics data.

More REITs seen with easing of guidelines

Extracted from the Star – StarBiz, Monday 6^th July 2009.

By Angie Ng

Malaysia will now be able to look forward to more property funds organization and real estate investment trusts (REITs) implementing into the market for the next few months following the liberalization of Foreign Investment Committee (FIC) guidelines for foreign property investors and the aborting of the bumiputra equity condition in public-listed companies.

According to Axis REIT Managers Bhs Chief executive officer-cum-executive director Steward LaBrooy, the removal of the 30% bumiputra condition on listed companies, which hopefully soon be applied in REIT management companies, this would then encourage more industry investors to be involve.

LaBrooy added that the bumiputra equity condition was a holdup to existing REIT managers in forming alliances with strong overseas operators through sales of equity without the major reduction of shareholders’ interest. By this removal of 30% bumiputra condition, it will attract more players through the new alliances that will increase the capital inflows as a result.

He said the deregulation of the FIC would provide the catalyst or renewed interest in the foreign investment in Malaysia’s real estate. Prior to this, any foreign buyer of Malaysian real estate had to go through complicated structures to own and list their Malaysian assets. Moreover, with Malaysia REITs market becoming more well established and the Securities Commission introduction form a business-friendly guidelines for both conventional and Islamic REITs foreign investors will have good reasons to re-enter the market. The move will promote many other private funds to re-consider the market.

“The lifting of the bumiputra equity rule in stocks as well as allowing 100% foreign ownership in fund managers seeking to operate in Malaysia its positive moves that would place Malaysia in a favorable position to attract foreign investors,” Labrooy added. Later he added that as it was now much easier for foreign real estate ownership by wither individuals or property funds, investment trade properties should be able to perform well.

“A lot of new ventures are the commercial or residential, should be able to take off as there will be a need for more quality and REIT-able property projects going forward. At the end of the day, these investors will need an exit plan and REIT will be a good option for them,” he said.

To provide a boost to the market, he said there was a need to promote greater retail interest in REIT investment. Prior to this, there will be road shows held in various states starting with Penang over the weekend to raise a necessity awareness of REIT investment among the local investment community. In addition to investing in REITs, the investors will be given a chance to broaden up their interest in a wide portfolio of property, while REITs provide regular dividend payout that draws a withholding tax of 10% for individual unit holders. Annual yields paid out by the various REITs in the country so far are between 8% and 13%.

Labrooy said as the global financial crisis had yet to bottom out and foreign players would not be coming in immediately, the more liberalized environment was a good groundwork to attract them when the economy turned for the better.

Overseas property companies and funds that are looking for good value investment in the region may be lured to invest in Malaysia for capital appreciation. CapitaLand, which is eyeing a bigger stake in Malaysia’s real estate market, is one of the potential big players. CapitaLand’s REIT, with an initial asset size of RM2bil, was targeted to be the country’s first foreign-sponsored REIT on Burse. The company had intended to inject its three shopping malls in Malaysia – Gurney Plaza in Penang, the Mines Shopping Fair in Seri Kembangan, Selangor, and Sungei Wang Plaza in Kuala Lumpur - into the REIT.

Through its US$30.5mil real estate private equity fund, Mezzo Capital, CapitaLand has invested in a number of high-end residential projects in the country. CapitaLand also owns a 30% stake in the 50-storey Menara Citibank in Kuala Lumpur’s Golden Triangle.

Property transactions no longer need FIC approval

by Bernama: 30th June, 2009

KUALA LUMPUR, Tue: ALL property transactions, including those between foreigners and non-Bumiputeras, will no longer require Foreign Investment Committee (FIC) approval, Prime Minister Datuk Seri Najib Tun Razak announced today. The FIC approval will only be required for property transactions which involve a dilution of Bumiputera or government interest for properties valued at RM20 million and above, he said at the Invest Malaysia 2009 conference here.

For example, a dilution of Bumiputera interest refers specifically to the instance where a property currently majority held by Bumiputeras and as a result of a transaction ceases to be owned by a majority Bumiputera entity.

Transactions no longer requiring the FIC approval fall into two categories, with the first relating to any transactions involving sale by non-Bumiputera or foreign majority interest.

Secondly, any transactions involving purchase by Bumiputera-controlled entity and this will include a Bumiputera-owned company acquiring property from another Bumiputera-owned company.

This deregulation is expected to facilitate greater property transactions and investments, including acquisitions of commercial properties by foreign interest.

"The government believes that the easing of the regulation will significantly enhance Malaysia's value proposition as a place to do business and invest," said Najib, who is also the Finance Minister.

He said with the comprehensive easing of FIC guidelines at the firm level, the Economic Planning Unit will refocus its efforts towards coordinating and monitoring distributional policies at a macro level.

In this respect, the government remained committed towards enhancing economic participation by Bumiputeras, he added. - BERNAMA

Come visit Penang...

Penang also known as “The Pearl of the Orient” lies of the north-western coast of Peninsular Malaysia. The state comprises the island of Penang covering an area of about 285 square kilometer and a narrow strip of approximately 760square kilometer on the mainland known as Seberang Perai (Province Wellesley) separated by a channel 3km wide at the closest point. They are linked by the Penang Bridge and a 24- hour ferry service. Its population of more than 1 million represents a happy mix of the major races found in Malaysia with Malays making up 32%, the Chinese 59% and Indians 7%.

Georgetown is at the northeastern tip of the island is the seat of administration and also the commercial hub of the state. This bustling metropolitan city combines the best of east and west as seen in its fascinating collection of fine old buildings, each bearing the stamp of different foreign influences in its colourful history. Much of its charm also lies in its famous golden beaches and calm warm seas. Penang today is a resort island in full bloom – an idyllic playground for worshippers of the sun and the sea. Its multi-racial population contributes to a wealth of cultural attractions and festivals for visitors to bring home memories of happy times in Penang.