CREATING A REAL ESTATE INVESTMENT DESTINATION

By THE STAR

THE Star’s regional editor (north) Choi Tuck Wo met up with Kuala Lumpur-based and Penang developers on what needs to be done further to promote Penang as a real estate investment destination.

The panellists of the roundtable included investPenang executive committee chairman Datuk Lee Kah Choon, Henry Butcher Malaysia (Penang) director Dr Teoh Poh Huat, Real Estate Housing Developers Association (Rehda, Penang) chairman Datuk Jerry Chan, IJM Land Bhd managing director Datuk Soam Heng Choon, Belleview Group managing director Datuk Sonny Ho, Ivory Properties Group chief operating officer Datuk Ooi Chin Loo, Iskandar & Associates chairman Dr Iskandar Ismail, Nusmetro Group director Thomas Chan, SP Setia (north) general manager S. Rajoo and KPMG partner Ooi Kok Seng.

The following are excerpts of the discussion:

StarBizWeek: What kind of impact will the effort to cool off property speculation in China have on property demand and property prices in Malaysia?

Iskandar: The overseas demand for Malaysian properties is actually overstated. Our foreign direct investment last year grew only by 1%, compared to 9% in Singapore. I have not seen any real evidence that people from Singapore are moving to Malaysia because the property is cheaper.

Soam: There are a lot of high net-worth investors from China to whom we can sell Penang, especially in Inner Mongolia, where there are states with high GDP.

In light of pending subsidies removal, will property prices in Penang reach a point that is beyond the affordability of Penangites? According to a Socio-Economic Research Institute report, property prices on the island is 14 times higher than annual household income.

Soam: Landed properties priced at RM250,000 are still available on the other side. The mainland is not out of reach from the island, just a bit further.

The main thing is still transportation. People do not mind if there is a good public transport system.

Thomas Chan: The removal of subsidies will have minimal impact on property prices.

How can the south-west district of the island be further developed to attract more foreign investments?

Rajoo: We can improve by having more roads and amenities in the south-west district. This corridor is grossly lacking in the infrastructure.

Soam: There is a lot of potential in the south-west district, as the second bridge is coming up and the airport expansion is starting to move.

How can Penang better utilise its heritage properties to attract investments, taking into consideration the 18m height constraint imposed by the local authorities?

Lee: Heritage by itself is a different sort of investment. Generally, my feeling is why do you want to build a property that is more than 18m in the heritage area? There are so many areas that you can build on. All the other houses in the heritage area are one or two stories high and suddenly you have a skyscraper rising from nowhere.

How can developers in Penang improve on their products to meet investors’ expectations?

Sonny Ho: The Japanese are used to staying in small houses. For them, 2,000sq ft is very big. It is not the case for the Europeans and Australians.

Jerry Chan: Rehda has proposed to the state to allow variable unit sizes and layouts within apartments or condo blocks for multi-general use.

What is the feedback from the recent overseas roadshows to promote Penang as an investment destination?

Soam: At a recent luxury property exhibition in China for the rich and famous, the first thing they asked was “Hey, where is Penang?” Most of the people know about KL City Centre, but they are not aware of Penang. We have to give Penang more exposure and branding.

Ho: Malaysia as a whole is a country that is friendly to foreign investors and Penang should do a big marketing and communication job to attract them.

PENANG GEARS UP FOR MORE PROPERTY LAUNCHES

By THE STAR

HOUSING prices in Penang are expected to rise further over the next 18 months, as local and Kuala Lumpur-based developers plan to launch 2,696 units of residential properties with an estimated gross sales value of over RM2.1bil on the island and the mainland.

Some 1,676 units of these properties, with an estimated of RM1.84bil, are located on the island.

The other 1,020 units of these developments, with an estimated gross sales value of RM300mil, are located on the mainland.

The Tudor-style houses under the Botanica.CT’s phase one in Balik Pulau, Penang.
IJM Land Bhd, S.P. Setia Bhd, Asas Dunia Bhd, MTT Properties & Development Sdn Bhd, and Ideal Property Group are among the local and Kuala-Lumpur developers that have drawn up plans for new launches from now till the second quarter of 2011. Real Estate Housing Developers’ Association (Rehda, Penang) chairman Datuk Jerry Chan told StarBizWeek that property prices in Penang were expected to rise between 5% and 10% over the next 18 months.

This was only a very conservative estimate, Chan said after the Star Property Fair 2010 Round-Table Dialogue held at the Star Northern Hub in Bayan Lepas, Penang, on July 9. The dialogue, moderated by The Star’s regional editor (north) Choi Tuck Wo, is a prelude to the Star Property Fair 2010 that will be held from July 23 to 25 at G Hotel and Gurney Plaza.

“The higher pricing reflects the rising land, construction and material costs, and the higher quality, more spacious and better design products from developers,” says Chan.

“Other factors include the influx of money from regional investors and Malaysians abroad, and the positive forecast from the government that the country’s GDP will be over 6% this year,” Chan says.

He says it is time for the state government to brand Penang’s products and services because of the island’s liveability and uniqueness and the fact that its property prices are one-quarter that of Singapore’s.

He calls for a directory to list comprehensively Penang’s hospitality services, products, facilities, and manufacturing services.

He says current efforts to promote Penang such as road shows have not been effective.

Henry Butcher Malaysia (Penang) director Dr Teoh Poh Huat is also in agreement that property prices would rise between 5% to 10% from now till next year.

According to the Valuations & Property Services Department from the finance ministry, the residential property pricing in Penang had soared above that of Kuala Lumpur in 2009 by over 2.5%, Teoh says.

The housing price index of Penang was 145 in 2009, compared with that of Kuala Lumpur and the national average, which was 142 and 130, Teoh says.

“Among the drivers of residential property prices in Penang include foreign investments from China because the Chinese government have started to implement policies to curb property speculation,” Teoh says.

The largest development projects on the island are by IJM Land, which has lined up over RM1bil worth of residential properties to be launched for the second half of 2010 and 2011.

IJM Land Bhd managing director Datuk Soam Heng Choon says these properties include the RM830mil Light Collection projects, comprising 585 units of condominiums, bungalows, and town-houses next to Penang Bridge, the RM113mil The Address in Bayan Baru, comprising 148 units of condominiums cum town-house scheme, and the RM70mil Permatang Sanctuary project, comprising 170 units of semi-detached and bungalow houses, in Bukit Mertajam.

The Light Collection properties, to be launched in October 2010 and in the second and third quarters of 2011, are priced between RM700 to RM800 psf, while the pricing for The Address, to be launched in December 2011, starts from RM625,000 to over RM1mil.

The landed properties in Permatang Sanctuary, to be launched in January 2011, are priced between RM400,000 and RM700,000.

SP Setia is launching condominiums, terraced houses, and bungalows with a gross sales value of about RM425mil in the south-west and north-east districts of the island.

SP Setia (north) general manager S. Rajoo says the RM180mil high-rise project in Setia Pearl Island, Sungai Ara, comprising 300 condominiums would be launched in the second quarter of 2011, while the RM180mil Setia Eco Greens project in Sungai Ara, comprising 167 terraced and semi-detached properties, and the RM65mil Brookes Residence projects in Taman Jesselton, comprising 11 bungalow houses, have been targeted for launch in the first quarter of next year.

Prices for the condominium scheme starts from RM400,000, while the bungalow houses are priced from RM898,880 onwards, and Brookes Residence bungalows from RM5.8mil onwards.

Ideal Property Group will also be launching RM370mil worth of landed residential properties comprising 436 units of terraced, super-linked, and semi-detached houses for its One Residence project in Bayan Lepas, the southwest district of the island.

Ideal Property managing director Datuk Alex Ooi says in September the group would launch 316 units, and in the second quarter 2011, another 120 units.

Prices range between RM650,000 and RM1.4mil, he adds.

MTT Properties & Development Sdn Bhd general manager Jason Tan says the group plans to launch at end of the year in Balik Pulau, 29 units of three-storey hillside villas for its Botanica.CT project, overlooking the Andaman Sea, with a gross sales value of RM100mil. The properties, with a built-up area of 8,000sq ft, will be priced from RM2.5mil onwards.

On the mainland, Asas Dunia plans to launch RM230mil worth of residential properties comprising 500 single storey semi-detached houses, and 350 double-storey terraced, double-storey semi-detached, and light industrial houses in Bukit Mertajam, Simpang Ampat, Nibong Tebal, Sungai Bakap, and Permatang Tinggi from late July till the second quarter of 2011.

Chan, who is also Asas Dunia managing director, says the single-storey semi-detached unit, with built-up and land areas of 1,200sq ft and 2,660sq ft respectively, was priced between RM150,000 and RM290,000.

The double-storey semi-detached unit, with built-up and land areas of 2,557sq ft and 2,724sq ft, is priced from RM358,888 onwards.

“These properties will be launched in phases starting end of July. Their prices are already about 5% higher than the

previous launches,” Chan says.

- Penang Real Estate Property Launches

Road Show for 1 week

Good morning people. It's a good day to start the awesome Friday with a roadshow.

we'll be doing a roadshow / project launching of Casa Perdana starting today,

till the 1st of Aug 2010 at Carrefour, Seberang Jaya, Penang.

If you are also interested in our Penang Properties and other Properties,

You can head over to Carrefour and talk with us. We wouldn't mind helping you guys out.

For those who haven't been following us on the Propertizer, I'm gonna release the information

once again just for you. The information are as stated below:-

Casa Perdana - 3 storey terrace homes

Casa Perdana, an exclusive and freehold property scheme ideally located atSeberang Prai Tengah is ready to expand its site after the successful launch ofPhase 1 with the newly launch of Phase 2 this coming June 2010.

Phase 2 of Casa Perdana is a project that consists of 44 units (in total) of 3 storey terrace (20’ x 60’) placed on a 6.5 acre land. Each home offers a spacious area of 2,300+ square feet (built up) for families to live in. This project is posed to bless its residence with the enjoyment of nature’s flora and fauna right at their doorstep.

Attractive features that new home buyers will definitely be interested in, is the new improved quality specs offered as well as the high quality finishing that the developer would be providing. (Please find the details mentioned at the “specifications” area of the brochure/ internet website) All houses are also set to be elegantly designed to suite your modern family needs.

Families will find comfort as their new home will come with 4 bedrooms and 4 bathrooms with high ceilings, designed to provide the need for comfort, relaxation and space. Families would also find easy convenience the project is close to public amenities such as shopping malls, hypermarket, hospitals, schools and banks. The site is also easily accessible from Penang Island & other major towns.

Land area: 20’ x 60’ (1,200 sq.ft)

Build up area: 2,373 sq.ft

1. 2,373 sq.ft built up area with 4+1 bedrooms, 4 bathrooms and spaciousbalcony
2. All houses are elegantly designed with improved quality spec & high quality finishes to suite modern lifestyle living
3. 12’ high ceiling on ground floor & 11’ high ceiling on 1^st/2^nd floor forbetter air ventilation
4. Covered car porch can accommodate 2 cars
5. Under construction, expected to be completed in 2011
6. Houses are made with distinctive quality finishes, such as light tinted glass,powder coated fixtures & branded fittings
7. Exclusive & FREEHOLD with individual title
8. Phase 1 Completed and Sold Out in 2007 – Currently fully occupied
9. Surrounded by matured housing estate & well developed infrastructures.

Location

1. Ideally located at Seberang Prai Tengah, one of the fastes growing township in Prai
2. Close to public amenities such as shopping malls, hypermarket,hospitals, schools and banks.
3. Easily accessible from Penang Island & other major towns. Only 4 minutes from Penang Bridge, 5 minutes from Juru Auto City & Bukit Mertajam town.

Summary

Project: Casa Perdana

Type: 3 Storey Terrace Homes

Tenure: Freehold

Location: Seberang Prai Tengah

Land Area: Approximately 1,200 sq.ft. (20' 60')

Built up Area: Approximately 2,373 sq.ft.

Convenience: 1. Ideally located in one of the fastest township in Prai

2. Close to Shopping Malls, Hypermarkets, Hospital, Schools and Banks

3. Easily accessible from Penang Island and other major towns

4. 4 mins away from from Penang Bridge

5. 5 mins away from Juru Auto City and Bukit Mertajam

Expected Completion: 2011

For more information don't hesitate to call us.

Michael: 016 - 4207727

Ryan: 016 - 4278766

Luffy: 012 - 5560077

Daniel: 016 - 4217121

There are pictures of the site and during our roadshows.

How to get to the Page?

On the right hand middle corner you can see the project name: Casa Perdana, just click on it and there

you go.

It's the same for our other project TK Residents.

Pictures and direction video(s) are up all ready for you.

Please leave your comments and views on our pages.

If you want to meet us directly in person, we are more than ready to assist you.

Thank you.

Regards;

Project Marketing Team

Words of Encouragement on Casa Perdana

There has been some small talks regarding that there might be a Price increment for CP.
Well to all those who have bought a unit or so, you have made the right choice.
We have gotten breaking news that there will be soon be an increment of price from
approximately 5% to about 10%. That we are only based on after the show house is completed
(80% completed). The increment will take place somewhere within these few months.
As you all know that the price that has been to you presently, is the soft launch price.
So what are you guys waiting for? Get your units today and get your appreciation price
withing a few months after you have purchased a unit.

Moreover, for all those who are interested, you can catch us at the Carrefour, Seberang Jaya,
Penang. From this 23rd July 2010 till the 1st of August 2010. We would be most grateful and
honored to assist you in whatever information you need. We can take you to the Site of the
Project if you would want to.

Last-but-not-least, If you need the directions, on our pages you can find that we came up
with a direction map plus a "GPS" style to guide you to the site.

For more information please do not hesitate to give us a call on any of these numbers;
Michael: 016 - 4207727
Ryan: 016 - 4278766
Luffy: 012 - 5560077
Daniel: 016 - 4217121

Or email us at: the.propertizer@gmail.com

Our phones are on almost 24/7. Give us a call and we'll provide you with the information(s)
you need.

Thank you.

Regards;
The Propertizer Group

Update on Roadshow

Hello everyone! :)

We would like to announce that we would be having another round of Roadshow at Carrefour (Booth A6) this coming friday which is the 23th to the 1st of August (Sunday).

During the roadshow, we would be collecting registration for those that are interested in our project, Casa Perdana (Phase 2) 3 Storey Terrace/Link Houses

Until then, stay tuned :)