Archive for the ‘Penang Apartments & Condominiums’ Category

New Condominium Developments in Bukit Mertajam

Sunday, February 22nd, 2015

As we usher the “Goat Year” of Chinese new Year 2015, the Penang Property sector is entering a challenging year amid the impending implementation of Goods and Service Tax on 1/4/2015.

Whilst high rise residential schemes continue to dominate bulk of the on-going developments in Penang Island, one inevitable development trend that is emerging in Central Seberang Perai is the mushrooming of new condominium schemes and the emergence of integrated developments.

Penang Property Skyline

Unlike Penang Island, conventional landed housing schemes of single and double storey terraced houses used to dominate the residential sub-sector of Seberang Perai and the preferred housing types by the mainland Penang purchasers. But this trend is poised to change in the coming years as new housing supply will be coming from high rise condominiums schemes. As land costs for development lands have gone up substantially in the last few years and coupled with depleting land banks available for housing developments, building conventional landed homes at affordable price range are no longer feasible for developers which seek to maximize profits from their projects.

The property sector in central Seberang Perai will see an influx of new condominiums and apartments into the housing market over the next 2-3 years.

Izrin & Tan Properties Sdn Bhd conducted a research on the supply of new high rise housing schemes currently being built, launched as well as planned projects in  Bukit Mertajam Area.  The supply of new condominiums/apartments in Bukit Mertajam Area is estimated to be 5,543 units from a total of 24 housing projects. Below is a table showing the new condominium schemes in Bukit Mertajam Area.

New Condominium supply in Bukit Mertajam

New Condominium supply in Bukit Mertajam

Bukit Mertajam Area Map

Bukit Mertajam Area Map

Some general observations on the trend of new condominium developments in Bukit Mertajam Area:-

a) In terms of area distribution, Bukit Mertajam Town - Jalan Song Ban Kheng  Area  contributes 32% of  the  total units  from 11 schemes,  followed by  Bukit Mertajam  South-Western  Corridor, namely Bukit Tengah -Bukit Minyak - Juru Area  with  27% of the total units from 5 schemes and  Bukit Mertajam western corridor, namely Jalan Permatang Rawa-Jalan Baru area, with 22.3 %  of the total units from 4 schemes.

b) About 58% of the new schemes in Bukit Mertajam Area are single block development with less than 150 units each as developers prefer to opt for exemption of 30% low cost provision for their schemes. Under the state housing rulings, it is mandatory for developers to build 30%  low cost units  for new developments exceeding 150 units. Some of these developers are first time builder venturing into high rise stratified housing schemes.

c) In terms of sales price, the average per square foot generally ranges from RM240 psf up to RM350 psf for unfurnished units. Sales Price for units that comes with renovation package or kitchen cabinet or additional home improvement fittings range from  RM365-RM450 psf.

d) In terms of Floor areas, the unit sizes range from 1,000 sq ft to 1,300 sq ft for a 3 bedroom/2 bath unit. There are also bigger units with floor size of 1,300 sq ft to 1,500 sq ft for 4 bedroom  type.

e)Car Parks- most schemes are offering 2 car parks as one car park is considered to be inadequate.

f)The ratio for the number of residential suites (with commercial title) vis-à-vis residential titled units is projected to increase as developers seek to maximize land usage ie. mixed usage integrated developments instead of residential schemes.

g)Service charges at RM0.15 –RM0.19 psf per month for condominiums whilst the rate for service charges of residential suites is generally higher, at RM0.25 psf per month. For purchasers intending to buy residential suites(with commercial title),  please note that  the rates for assessment, utility such as water, electricity and Indah Water for suites are based on commercial rates and thus higher than the residential-titled condominium units.

As more supply of new condominium units entering the market, there will be increased  competition for housing developers to price their units competitively in order to boost their sales take up and this would provide more choices for discerning buyers to bargain hunt and choose their homes according to their budget requirements, loan eligibility, locational preferences, security and facilities, tenure, building design, floor layout and size etc.

The changing trend and living lifestyle of young working population will propel the demand for gated and guarded stratified housing units in Bukit Mertajam Area. According to the draft local plan prepared by MPSP, the population of Central Seberang Perai in year 2015 is estimated to be 430,100 and it is projected to increase to 467,800 in year 2020.

For enquires on sales and rental of Penang Properties, email to tan at intproperties dot com or call +604-6588333.

Where to buy a Penang Apartment for less than RM1,000 a month

Monday, October 18th, 2010

The residential subsector for the state of Penang in the second half of 2010 remains vibrant and continue to be the dominant sector in terms of number of transactions of the Penang Property Market. It is inevitable that home prices are on the rising trend in recent quarters brought about by improving economic conditions nationwide and continued bullish outlook of the Malaysian economic performance. It is also a widely known fact that landed house prices such as single and double storey terraced houses, in particular, Penang Island are amongst the highest in the country which have gone beyond the affordable levels of the medium income groups and new home seekers.

However, first time home buyers can still look for affordable Penang Apartments in the secondary market of Penang Island as there are many choices of medium range apartments priced from RM130,000 to RM220,000 per unit.

Incentive for first time home buyers under Budget 2011

Following the recent budget announcement on 15th October 2010, the government will introduce the “Skim Rumah Pertamaku” or “My First Home Scheme” through Cagamas Berhad to assist the newly-employed younger group earning less than RM3,000 per month to buy a house costing less than RM220,000.00.

First time home buyers will be eligible for 100% FINANCING. First-time house buyers will also be given stamp duty exemption of 50 per cent on instruments of transfer on a house price not exceeding RM350,000 as well as stamp duty waiver of up to 50 per cent on loan agreement instruments to finance such first-time purchase of houses. With the exemption in stamp duty, first time home buyers stand to SAVE UP TO RM2,250.00.

Read more :-Full loan for first-time house buyers and Pinjaman rumah 100 % untuk golongan muda.

Perks for first-time house buyers

a)Savings on 50% waiver of stamp duty on transfer instrument:-
House Price say RM220,000.00
1% on first RM100,000.00 – RM1,000.00
2% on balance RM120,000.00 – RM2,400.00
Total RM3,400.00
50% waiver RM 1,700.00

b)Savings on 50% waiver of stamp duty on loan instrument :-
0.5% on full loan say RM220,000.00- RM1,100.00
50% waiver RM 550.00

First time purchaser needs to pay RM2,250.00 only instead of RM4,500.00. Hence, effective savings is RM1,700.00 + RM550.00 = RM2,250.00.

Where to find Penang Apartments ?
Below is our compilation of apartment schemes in selected areas of Penang Island which are within the affordable pricing bracket for first time home seekers where we can help you to locate and own a Penang Apartment at affordable repayments from as low as RM500.00- RM1,000.00 a month. Our company, Izrin & Tan Properties Sdn Bhd is ever ready to assist you to own a Penang Apartment in a hassle-free (no headache to find where to buy), easy and convenience way.

Penang Island Apartment Information
Tanjung Tokong/Tanjung Bungah/Batu Feringgi – Aquarius , Azuria, Bayu Emas, Delima Condo, Ferringhi Delima, Ferringhi Mutiara, Permai Ria, Taman Krsytal, Taman Tegoh
Jelutong – Simphony Park, Mutiara Heights, Mutiara Idaman, Serina Bay, Desa Selatan, Menara Riverview, Taman Jelutong, Taman Cemerlang
Bukit Dumbar – Sinar Bukit Dumbar
Bandar Baru Air Itam – Seri Semarak, Desa Intan, Desa Baiduri, Fortune Court, Sri Impian, Sri Ivory, Sri Krystal, Tanjung Court, Asia Height, BL Garden, Treasure Ville
Padang Tembak - Boundary Court
Paya Terubong – Desa Permata, GL Garden
Perak Road – Casa Impian, Tmn Sri Perak, Tmn Kheng Tian, Kota Emas, Suteramas, Seruan Emas
Gelugor/Bukit Gambier – U Garden, Jade View, Gambier Heights, N-Park, Taman Batu Uban, Villa Sri Kenaga
Bukit Jambul – Taman Bukit Jambul, BJ Court, Desa Daya, Jambul View, Sri Nibong Apt
Batu Lancang/Greenlane – Mewah Court, Desa Green, Kota Emas, Desa Penaga, Eastern Court, Greenlane Heights, Medan Penaga, Taman Sri Damai
Georgetown –Taman Pelangi, Macallum St Ghaut flat, Sri Kota, Medan Samak, Desa Singora
Relau/Sungai Ara – Marina Tower, Taman Desa Relau, Acres Villa, Ara Mas, Desa Alor Vista, Desa Bayan, Relau Vista, Sri Abadi, Sunshine Garden, Villa Kejora, Vista Condo
Sungai Dua- Taman Pekaka, Taman Jubilee, Nipah Emas, Taman Lip Sin
Sungai Nibong/ Bayan Baru – Century Park, Desa Bistari, Gedung Hts, Halaman Cendana, Mahsuri Apartments, Nibong Indah, Taman Jubilee
Bayan Lepas – Saujana Damai, Bayan Permai

Mainland Penang- Seberang Perai Apartment Information
Butterworth – Park View, SeaView (studio unit), Pangsapuri Cantik, Pangsapuri Ria, Vista Perdana, Pantai Apartments, Pangsapuri Sena
Bagan Lallang/ Raja Uda area- Seri Cemerlang, Taman Mesra Indah, Taman Pandan, Pangsapuri Mawar, Pangsapuri Seri Mekar
Bukit Mertajam- Kondo Mutiara, Pangsapuri Seri Pelangi
Prai–Pangsapuri Aman(Prima Prai), Pangsapuri Pesona

Contact us now at +604-6588333 or SMS to 0124072329 to find out how we can assist you to own an affordable Penang Apartment for less than RM1,000.00 a month.

Acres Villa in Sungai Ara, Penang

Asia Height Apartments in Air Item

N-Park in Batu Uban

Jade View Apartments in Gelugor

Park View Tower @Harbour Place in Butterworth

Cassia Resort Condo@ Raja Uda, Butterworth

4 Market indicators on Penang Property Sector 2010

Sunday, September 5th, 2010

1. More new property launches - More housing projects are being slated for launching in the second half of this year by established developers in Penang as there is growing optimism amongst housing developers and market players on the recovery of domestic economic and improving market outlook on the property sector. Read more at Penang gears up for more property launches.

2. Property transactions on the rise -According to NAPIC’s press release, there is an increase of 16% in terms of number of property transaction in 1st Quarter 2010 compared to the corresponding quarter in year 2009 whilst the total transaction values surged significantly, almost 49% from RM16.92bil to RM25.5bil. It is projected that the rise on the property transactions and total values are likely to continue for the forthcoming quarters. The overall property market performance this year is expected to be much better than year 2009 which have been marred by the world financial crisis.

3. Rebound in market demand -The rebound in market demand experienced by the Penang Property sector in the first half of this year is mainly attributable to the pent-up demand after a period of subdue market activities brought about by the impact of the world financial crisis.

Recent reports of higher take up and improving sales performances experienced by Penang’s established housing developers indicates that the market demand has indeed picked up and the demand trend is likely to remain firm in the short term as property investors are flocking back into the property market in anticipation of buoyant economic outlook as well as further price increase following the recent government’s move to implement gradual removal of subsidy on energy and raw materials.

Another factor that could fuel the buoyancy of the property market is the recent strong performance of the Bursa Malaysia KL Composite Index which have recovered over 1,400 points. The stock market has made substantial gains this year and this could boost the property sector.

A local research fund house predicted that Malaysia’s property sector is set to see its biggest residential boom in a decade. The property sector was already entering the early stage of a property “super cycle”. More at OSK bets on Malaysian Property boom.

The Economic Clock - Malaysia’s property sector is currently at the stage of 9 - 12

4. Rising home prices - There is a growing concern that home prices are getting costlier due to the cost push factor as most of the newly launched projects appeared to be in the category of upmarket segment offering luxury housing units.

Penang Island is facing very limited land bank for housing development particularly medium cost housing units and landed homes. With limited supply in land bank, land costs on the Penang Island keep rising and inevitably push up home prices to unprecedented range that go beyond the affordable levels of the majority of the island’s population. A Penang politician MP has recently voiced his concern on rising home prices and has urged the housing ministry to relook into the present housing policy. In the meantime, more parties are urging the state government to review and address the housing issues in Penang which may have an impact on brain drain of Penang employment. The rising prices of homes, if left unchecked, may result in gentrification. Urban gentrification is a phenomenon on socio-cultural changes in an area resulting from wealthier people buying up the housing units in a less prosperous community area.

How to determine property investment yields

Wednesday, January 6th, 2010

In property investments, there are two main determinants ie capital growth and rental income. Capital growth is the increase in the value of a property over time whilst rental income refers to the amount of monthly rents that can be collected from the tenancy of a property. A good property investment has two key elements ie. a) one that have the potential of high capital growth, which appreciates in value over time and b) secure rental, which generates cash flow or steady incomes to the property owner.

When making investment decisions, property investors need to know what is the expected rental yields from a property investment and how its yield would fare in comparison with similar class of properties as well as other alternative investments available in the market such as REIT, stocks, unit trusts etc.

A rental yield provides indication about the performance of a investment and its relative attractiveness against other types of investment. For example, if a residential property can produce a rental yield of 5% pa, it is considered a better investment than the fixed deposits offered by the local banks at prevailing rates of 2.0- 2.5% pa. On the contrary, the 5% yield is considered less attractive if compared to other higher yields but riskier investment options like stocks, equity-based unit trusts etc.

Besides, the yield can be used as a yardstick to measure and evaluate similar class of competing investments for decision making. For example, condominium investors would be keen to know which class of condominium in Penang can offer higher rental yields ?

a) beach / holiday resort condominium within the tourist belt of Batu Ferringgi or
b) city condominium in the inner city of Georgetown or
c) Suburb condominium at new growth areas along the reclaimed coastal area of Jelutong- Gelugor- Bayan Baru

Ways to determine property investment yields

The rental yield for a property investment can be determined by using the following calculation, commonly known as investment method:-

Estimated Rental per annum
______________________ X 100 = Gross Yield (%)
Property Acquisition Cost

Property Acquisition costs = Purchase Price + incidental costs ie legal fees, stamp duties, agent fees etc

Example :

Monthly rental RM1,000.00. Estimated annual rental income = RM12,000.00
Property acquisition cost= RM185,000.00

——————- X 100 = 6.5% gross yield

For computation of net yield, which is more reflective of the actual return, the following expenses ought to be deducted :- maintenance charges, sinking fund, management fees, insurance, quit rent, assessment, and other expenses.

Indicative gross yields of several property class in Penang

Landed houses- terraced, semi-detached and bungalow: 2 – 3%
Townhouse/Apartment/Condominium : 4-7%
Commercial shops/light industrial : 6- 9%

Generally, landed homes in land-scarce Penang offer lower rental yields as compared to high rise stratified and commercial units. Lower yield signifies that it is a safer or lower risk investment and hence  investor is willing to accept longer payback period for his investment. Property investors would expect higher yields for commercial/industrial property investments due to higher holding costs and risks.

Property investor need to set out his/ her investment objectives whether to invest for rental returns or long term capital growth or combination of both as each investor has his own investment requirements and rental yield expectations and hence difference strategies and choices of properties as their investments.

• Landed houses vs condominiums/apartments
• High price single property vs low price multiple properties
• Off-the-plan housing unit vs secondary market unit

A retiree might seek higher rental as passive income from his property investment whilst a young working professional would be more interested in wealth creation and achieve long term capital growth.For more related information on investment strategies, go to 6 strategies to succeed in Penang Property Investment.

In addition to the above investment method, other sophisticated approaches that can be used to aid property investors in decision making are:-

The Discounted Cash flow (DCF) model can be applied to determine the Internal Rate of Return (IRR) or Net Present Value(NPV) of an investment property. The DCF method is one of the valuation methods being used by property valuers particularly in evaluating income-producing properties and potential   development lands.

The Monte Carlo Analysis is another decision-making tool using multivariate modelling technique that allows investors to forecast various investment outcomes. The risk/return profile of any investment can be calculated and compared to investor’s risk tolerances.

View of the coastal area along Tanjung Bungah- Batu Feringghi

6 strategies to succeed in Penang property investment

Monday, April 27th, 2009

The current downturn in Malaysia property market provides good buying opportunities for property investors. Here are several strategies for property investors who are keen to invest in Penang Properties.

1) Determine your strategy

Before you venture into property investment, you should determine your purchasing strategy and evaluate whether it meets your income and growth expectations. For example, if you want a steady passive rental return, consider apartments and condominiums in areas close to major industrial parks, commercial centers, university, hospitals, where there is sure to be a constant supply of renters.

Conversely, if your investment strategy is to buy and hold a property so you can build equity for a capital gain, landed homes at Penang Island may offer steady capital growth and sustainability in the long term due to limited supply of land bank or escalating land cost for landed homes.

2) Avoid investment pitfalls

Like any other investments, property investment is often associated with risks and pitfalls that prudent investor would want to avoid. Learn more on 10 Most common mistakes made by first time investors.

3) Select the right location

According to the old real estate saying, “The only three things that matter in real estate are “location, location and location”. The property needs to be in a good location close to schools, shops, transportation centre and recreational facilities. The fact that a posh bungalow that is sitting next to a garbage dump has very low desirability factor and fetch poor value. Conversely, a sea-front condominium unit within the heart of the city or along the Gurney Drive promenade will have high desirability factor and therefore constantly attracting potential tenants and investors.

4) Buy property with positive equity

Buy property from motivated sellers, buy auction property at public auctions or buy bargain property that can bring you positive equity. Due to the imperfection of the property market, there are times when sellers are motivated or must sell at all costs urgently at below market price. In a slowdown market, property sellers are more realistic in their asking prices and receptive to offers by interested buyers.

5) Look for a catalyst

One sign that an area is up-and-coming and has potential to be a new vibrant growth center in the future is the development of new critical infrastructure projects such as construction of Second Penang Bridge and the expansion of Penang International Airport and other NCER projects which when completed, would spur more investments and developments to the Batu Maung/Bayan Baharu areas of Southern Penang Island as well as Batu Kawan of Southern mainland Penang. The completion of Jelutong Coastal Highway and Buterworth Outer Ring Road (BORR) have indeed transformed its corridor areas into new property hotspots with many new housing schemes mushrooming along these highways.

When you see new highways, roads, schools, hotels and major shopping centers being built, it’s a sign that the community is set for a vibrant growth.

6) Capitalise on tax relief / incentives provided by SSP

Residential purchasers can take advantage of the tax relief on interest paid on housing loans up to RM10,000 a year for 3 years between March 10, 2009, and Dec 31, 2010 under the recently announced Second Stimulus Package (SPP) Mini Budget 2009.

Whilst for business owners, it is a good time to renovate and refurbish your commercial premises as expenditure incurred on renovation and refurbishment between 10 March 2009 and 31 December 2010 will be given Accelerated Capital Allowance, which can be claimed within 2 years. The Allowance is capped at RM100,000.

There is also no capital gains tax when you dispose off your investment property as the Malaysian Government has abolished Real Property Gains Tax (RPGT) since 1/4/2007.

For more related articles on strategies in property investments, I like the following FREE web blogs of Milan Doshi and Bill Zheng, learn more :- Do properties Make the “Prefect” Investment? ; Part I and Part II By Milan Doshi and A straightforward guide to property investment strategies By Bill Zheng.

View of high rise buildings near Gurney Drive as seen from the playground of CRC.

For advisory on property investments in Penang and Kuala Lumpur, email to us at Izrin & Tan Properties Sdn. Bhd or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Why Penang apartment and condominium purchasers need to aware about COB, JMB of ACT 663?

Tuesday, March 31st, 2009

All stratified buildings in Malaysia are required to form Joint Management Bodies (JMBs) during the initial period (whereby strata titles are issued and pending transfer to unit owners) before the deadline 12th April 2008 in accordance to the Building and Common Property (Management and Maintenance) Act 2007 [BCPMM Act- ACT 663].

In mainland Penang, the Commissioner of Building (COB),  who is also the council president of MPSP recently revealed that although there are a total of  existing 512 stratified housing schemes with a combined 57, 144 parcels, only 53 JMBs and 30 MCs have been formed (Refer chart 1 below).

Chart 1

The recent awareness seminar by the local council – MPSP on the need to set up JMBs(高楼须成立共管机) for high rise stratified buildings in Penang State revealed that despite the deadline is already over and is coming to one year by this 11th April 2009, there are still many high rise buildings have yet to form JMBs. The COB is giving more time to some 400 high rise buildings to set up a JMB for each building.

With the appointment of the local council presidents as COBs and the formation of JMB under the ACT 663, the Malaysian government hopes to address problems faced by high rise buildings as many high rise buildings in the country more particularly low and medium cost stratified housing schemes have been beset with maintenance woes and with some of them experiencing deteriorating stage of maintenance and upkeep after only several years of completion. The quality and standard of maintenance and upkeep of each building has major impacts on the market prices of these stratified housing units, those schemes with good stage of maintenance have been able to maintain or preserve their market values. Likewise, poorly managed schemes are experiencing declining property values. Read more : problems of managing high rise strata buildings and the impacts of ACT 663 and Update on high rise building maintenance - Whither improvement ?.

Chart 2

Chart 3

Chart 4

It is observed that the number of JMBs formed in mainland Penang is lower, only 53 compared to Penang Island’s 115 although both councils received about similar submissions of accounts and minutes of meeting  ie 187 and 184 applications respectively ( Chart 2 & Chart 3), indicating that the level of awareness to form JMBs by high rise building owners in mainland Penang is lower compared to those of Penang Island.

The formation of JMBs for high rise buildings is not progressing as fast as expected. The COB has received many appeals from housing developers to give them more time for establishment of JMBs. These are still many housing developers including PDC Properties – the Penang’s state development agency, have yet to submit their audited accounts to COB for their housing schemes. The COB has identified recalcitrant developers who did nothing on their schemes and will take action soon.

Some pertinent issues brought up at the recent seminar ranged from problems of collection of service charges, parking lots dispute, illegal extension, defects and leakages etc. On the issue of recovery of maintenance arrears, the JMB  in addition to the normal court action against the defaulters,  can now submit a list of defaulters ( arrears more than 6 months) to COB for recovery action and to issue warrant of attachment against the defaulters. So far no precedent action has been initiated by COB against any defaulters yet.

Below are some pointers to help increase apartment and condominium purchasers’ level of awareness on ACT 663:-

*KNOW the progress phase of strata titles registration of your housing scheme whether it is still at first or second or third phase of post-development ;

The first Phase refers to the period whereby in accordance with Strata Title Act(ACT 318), developers are required to submit application for strata title. JMB to be formed within 12 months of vacant possession or 12 months of act in force ie 11 April 2008.

The Second Phase refers to Initial period whereby strata titles are issued and in the process of being transferred to unit owners from the developer. At least one quarter of the aggregate share units of the strata unit owners have to be registered first to form Management Corporation (MC).

The Third Phase refers to the formation of MC where parcel owners takes over responsibility of MC and termination of JMB within 3 three months after formation of MC.

For guide on the phases in relation to ACT 663 & ACT 318, go to impacts of ACT 663 on management and maintenance of stratified properties in Malaysia

*FIND OUT whether your housing scheme is one of those schemes that has been issued with JMB certificate by COB or otherwise. What is the name of JMB and when is the date of issuance and who are the committee members (JMC) if JMB has been set up ?.

Kompleks Bukit Jambul is the first stratified scheme in Penang Island to set up JMB on 21/9/2007..

*CONFIRM your monthly service charge payment; Is it bank into Building Maintenance Account in the case where JMB has been set up or still the developer’s account ? If the payments collected go to developer’s account, has the developer created a separate account for each project or one master account for all projects?

*UNDERSTAND the functions of COB, duties of JMB, duties of developer as well as duties of unit owners to pay maintenance charges.To know more about ACT 663 and ACT 318,  get FREE print out/download on ACT 663 and ACT 318!(Thanks to HBA).

Under these two Acts, The COB Penang has the power to act on matters relating to building maintenance problems and disputes. The COB Penang has dealt with many cases such as ceiling leakages-A property nightmare faced by this Penang blogger. Whilst legal redress is one of the options, the aggrieved owner can refer to JMB/MC and bring his case to COB secretariat to seek intervention of COB.

For advisory on property investments in Penang and Kuala Lumpur, email to us at Izrin & Tan Properties Sdn. Bhd or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Penang’s new property hotspot along Jelutong Expressway

Thursday, August 21st, 2008

With the completion of the final stretch of Jelutong Coastal Highway(JE) or JE Drive connecting to Weld Quay as well as inner city of Georgetown from Gelugor/Penang Bridge area, travelling time to the inner city of Georgetown from Gelugor / Penang Bridge area via JE has indeed shortened to mere less than 10 minutes drive. This coastal areas along JE has since become one of the Penang’s new property hotspots as the Penang property sector witnessed the completion of several housing parcels within the reclaimed housing project of Bandar Sri Pinang since mid 2004 as well as feverish launchings of several new housing schemes and the much publicized mega project –The LIGHT waterfront project by IJM Group over the last one year. The development of The Light Waterfront is poised to transform this eastern coastal area into a high end integrated housing precinct.

In 1990’s, the former Penang state government has granted approval to IJM Group to develop 338 acres of land in exchange for the construction of the 4.7km Jelutong Expressway. The first 3.1km stretch of the expressway was opened to the public in 2003 while stage two was opened in February 2008.

The whole development will be undertaken over four precincts – Bandar Sri Pinang (82 acres), Metro East (30 acres) and The Light (152 acres) while the balance 100 acres comprising education, medical, art/cultural, commercial and residential components will be for future development. More related info at IJM land to focus on mid to high-end projects and Penang Mega Projects: PGCC and The Light.

Notable completed housing schemes within Bandar Sri Pinang are Fortune Park, completed in 2005, an integrated industrial park comprises terraced light factories catering to small & medium scale industries whilst Lot 28 comprises 2 and 3 storey shopoffices. Ocean View, completed in 2004, comprises 11 storey Medium Cost Apartment and some 2,242 low and medium cost housing units of Desa Pinang and Pinang Court etc. Other mid range completed housing schemes located along the JE are Mutiara Heights and Mutiara Idaman. Generally, the rental for medium range three bedroom apartments in Jelutong area ranges from RM650 permonth onwards whilst selling prices for mid range apartments are in the range of RM120,000 to RM200,000 per unit.

Whilst the newly completed housing schemes include Nautilus Bay - 78 units of 3-storey terraced courtyard terraced houses prices ranging from RM780K to RM1.2mil 21’x70’ built up area 2,600 sq ft and The Spring, high rise condominium blocks with floor areas ranges from 925 to 1,281 sq ft. Other upcoming housing projects include Summer Place and Platino luxury condos.

The Jelutong coastal area is turning into an Urban Park by the sea with the recent completion of a A 3.6 km long RM7mil promenade along the Jelutong Coastal Front. In addition, the Penang state government is currently evaluating plans to built a multimillion ringgit Meetings, Incentives, Conventions and Exhibitions (MICE) centre in Jelutong, Penang.

Update : There is also a proposal to transform the existing 20 hectare landfill site into an urban park along the coastline near the JE.

For advisory on individual property purchases and rentals of Penang apartments and condominiums, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Jelutong Map

General View of the Jelutong coastal front

view of jelutong coastal area

The new commercial centre of Bandar Sri Pinang. To the rear is the newly completed The Springs Condominium

Newly completed Nautilus Bay.

Ocean View / Desa Pinang medium cost apartments.

Mutiara Idaman/Mutiara Heights Apartments along JE

Penang apartments and condominiums in the vicinity of PCC1

Tuesday, May 13th, 2008

Penang is the first state in Malaysia outside Multi Super Corridor (MSC) to be officially granted the Cybercity status, providing a high-tech growth platform for the state of Penang. Penang Cybercity 1 (PCC1), covering an area of about 923 hectares at the south-eastern of Penang Island, was launched by YAB Prime Minister of Malaysia on 29 January 2005. PCC1 includes Bayan Lepas Industrial Park, a portion of Bayan Baru area, and Queensbay as well as PDC’s upcoming Bayan Mutiara development along the Sungai Nibong coastal area. PCC1 is surrounded by Penang International Airport and Bayan Baru township whilst the Bukit Jambul Golf Course and University Sains Malaysia Campus is located to the west and north of PCC1 respectively. IF you need locational guide, go to Google map.

The PCC1 is currently undergoing upgrade. It was reported recently that the number of MSC companies in Penang has increased to 146 compared to 116 companies as at July last year. More at Penang plans more MSC-status firms. Notable upcoming MSC compliance office building located within or near PCC1 are suntech@Penang Cyber city,PDC’s Bayan Mall 2, Wikiworld, Penang’s first digital lifestyle mall with 136 units of MSC offices and the one Penang cyber city. More related info at KFH to finance The One cyber city.

Apartments and Condominiums in the vicinity of PCC1

The establishment of the Bayan Lepas Industrial Park since 1972 has accelerated the development of satelite township of Bandar Bayan Baru as well as mushrooming of many medium range high rise apartments and condominiums mostly developed by private housing developers in the following areas :-

PCC1 North

Sg Nibong / Batu Uban area : Villa Emas, Gold Coast, Putera Place, Putera Marine, E Park, N Park, Sunny Ville, Villa Sri Kenanga, Century Park, Krystal Court.

PCC1 North West

Sungai Dua / USM area : Universiti Heights, Desa Permai Indah, Sri Saujana, Desa Universiti, Taman Jubilee, Taman Pekaka, Taman Sri Bunga. Relau area: Vista Condo, Desamas Melur, Relau Indah, Desa Relau, Villa Kejora, Marina Tower.

PCC1 West

Bayan Baru / Bukit Jambul area : Halaman Cendana, Lavinia Apartments, Halaman Teratai, Parkview Towers, Alphine Towers, Lakeside Towers, Desa Bukit Jambul, Desa Golf, Ayu Heights, Fairway View, Golf View, Halaman Areka, Sri Bukit Jambul. Sungai Ara area: Pearl Garden, Acres Villa, Springfield, Vistaria, Regency Heights.

Majority of these apartments and condominiums in the vicinity of PCC1 are medium range category. Notable higher end luxury resort condominiums are located along the Sungai Nibong coastal area with pricing ranges from RM750,000 to RM1 million perunit namely Putera Marine and The View Condominiums with floor areas 2,000 sq ft onwards whilst other mid range condominiums with floor areas of 1,000 sq ft to 1,600 sq ft with pricing ranges from RM250,000 to RM500,000 perunit are namely Alpine towers, Gold Coast, Putera Place, Regency Heights, Pearl Garden, Sunny Ville, Fair View, Golf View, Sri Saujana, Lavinia Apartments, Desa University. The rental rates range from RM1,000 onwards for unfurnished units whilst rental for furnished units range from RM1,500 to RM3,500 permonth.

Mid range 3-bedroom apartments, with floor areas of 700 sq ft to 970 sq ft and pricing between RM150,000 to RM250,000 perunit are namely Desa Permai Indah, E Park, N Park, Acres Villa, Kristal Villa, Taman Pekaka, University Heights, Desa Golf etc. Rental rates range from RM700 onwards ( standard unfurnished unit) and RM1,000 to RM1,500 permonth ( furnished unit).

However, for those seeking affordable apartments costing RM150,000 and below, there are many apartments located along the locality of Relau to Payar Terubong main road namely Marina Tower, Desamas Melur, Relau Indah etc. Rental rates for aparments in this area are in the range of RM600 to RM700 permonth unfurnished.

For advisory on individual property purchases and rentals of Penang apartments and condominiums in the vicinity of PCC1 area, email to us at Izrin &Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Aerial view of part of the PCC1 area (source from Thestar online)

View of Villa Emas along the Bayan Lepas coastal highway

View of the Lakeside Apartments in Bukit Jambul Indah

View of the Lavinia Apartments at Sungai Nibong

General View of Bukit Jambul / Sungai Dua housing area

Penang’s luxury homes market plays catch-up

Saturday, November 10th, 2007

Home values set to rise as big-name players race to build high-quality developments on Malaysian island.

WHEN it comes to Malaysian property, foreign investors seldom set their sights beyond Johor, Kuala Lumpur (KL) and Malacca. But the island of Penang in the north is starting to come into its own.

Malaysia’s foreigner-friendly policy means that Singaporeans can buy properties freely in the country, as long as they are worth more than RM250,000 (S$110,000).

Home prices in Malaysia’s second-smallest state have been on the rise and property players say the area is drawing the attention of overseas buyers.

‘Prices are generally on the uptrend and properties located in prime areas have seen significant price increases of 10 per cent from a year ago,’ said Mr Tan Chai Liang, a consultant with Izrin & Tan Properties in Penang.

Still, the island’s properties remain affordable. In general, prices of Penang homes have ‘a lot of room for appreciation’, said Mr Michael Geh, a senior partner at property firm Raine & Horne.

In the high-end segment, homes are 30 to 50 per cent cheaper than those in KL, he added. Luxury condominiums in the KL city centre range from RM700 to RM1,500 per sq ft (psf), compared with RM400 or RM500 psf for Penang’s priciest condos.

But Penang is playing catch-up. The state’s government has been pouring money into large-scale infrastructure projects that are helping to boost home prices. Also, more developers are now investing in Penang. ‘For many years, there wasn’t much development in Penang. But now, bigger developers are coming in and bigger projects are being built,’ said Mr Geh.

Well-known developers from KL have begun to descend on Penang, lured by the lower land prices, which can be as little as a quarter of those in KL.

Since 2004, these developers have announced projects worth about RM30 billion to be built in Penang over the next 10 to 15 years.

The big players include luxury developer E&O Properties and leading construction and property firm CP Group.

With their entry into Penang come more high-quality projects and the promise of escalating property values.

Indeed, their arrival has helped home prices in the southern and south-western districts of Penang shoot up by more than 20 per cent in the past year, according to Malaysia’s Star newspaper. For instance, a condo development called Coastal Towers is now selling units at RM235,000 each, compared with RM180,000 previously, said Mr Geh.

Attention is also on the northern coast, which hosts a 9km tourism belt. Districts to look out for include Gurney Drive, Tanjung Bungah and Batu Ferringhi, where a slew of resort condos and waterfront villas are being built, said Mr Tan.

For a three-bedroom condo in these areas, investors can expect to pay RM350,000 to RM650,000, he added.

Annual rental yields are 6 per cent to 8 per cent for quality condos in prime areas.

For ’super condos’ with large floor areas of 4,000 sq ft and above, prices range from RM1.5 million to RM2 million, Mr Tan said.

Some high-profile projects include CP Group’s 74-acre Queensbay development, with shops, homes and offices. On sale now is the 160-unit Bay Star condo, which is 70 per cent sold at prices ranging from RM450,000 to RM1.4 million. CP Group estimates rentals at RM3,000 to RM8,000. Bay Villas, also a Queensbay project, will be previewed in Singapore next year. It has 86 freehold waterfront villas, each with a built-up area of 5,000 to 6,000 sq ft and priced at RM3.8 million to RM5 million.

Another Penang development being marketed in Singapore is Seri Tanjung Pinang, an integrated seafront development that its developer, E&O Property Development, says is similar to Sentosa Cove.

E&O, which opened its first overseas marketing office in Singapore last week, said it has received ‘keen interest’ for its Acacia semi-detached homes, priced from RM1.45 million each.

In December, it will launch its seafront villas - at RM2.5 million to RM6.5 million each - and may also sell the condo units in Singapore next year. Other homes in the development include courtyard terraces, which start from RM735,000 and offer rental yields of 6 to 10 per cent.

Strong attraction

Since 2004, well-known developers such as luxury developer E&O Properties and leading construction and property firm CP Group from Kuala Lumpur, have announced projects worth about RM30 billion (S$13 billion) to be built in Penang over the next 10 to 15 years.

Source: The Sunday Times, Singapore 28 Oct 07

For advisory on property investments in Penang email to us at Izrin &Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) and we would be pleased to assist.

Investing in Penang’s tourism belt; Tanjung Tokong-Tanjung Bungah-Batu Ferringhi coastal area

Thursday, October 4th, 2007

Penang’s tourism belt [area indicated colored red], an international famous holiday resort area stretching along the 9 km northern coastal area from Tanjung Tokong to Tanjung Bungah to Batu Feringghi area, is poised for rapid transformation with at least more than half a dozen of ongoing resort condominium/sea front villa developments in various stages of construction. Several more planned housing developments are also in the pipeline and scheduled for launching next year. In recent months, this area has increasingly become Penang’s property hotspot amongst the local Malaysians as well as foreign investors who choose Penang as their second homes under MM2H programme.

Penang Beach Hotels
This stretch of popular tourism belt is also the main concentration of Penang’s beach hotels namely Naza Hotel, Tanjung Bungah Hotel, Copthorne Orchid Hotel, Paradise Sandy Beach Resort, Crown Jewel Hotel, Hydro Majestic Hotel (formerly Ferringhi Beach Hotel), Rasa Sayang Resort and Spa, Golden Sand Resort, Lone Pine Hotel, Holiday Inn Resort, Grand Plaza Parkroyal, Casuarina Beach Hotel and Bayview Beach Hotel. Majority of these beach hotels are located in Batu Ferringhi area. See picture below for location guide of these hotels;

Penang’s existing hotel room supply stands at about 12,000 rooms with bulk of these hotel rooms located within this tourism belt. An estimated new supply of between 3,500 and 4,000 hotel rooms will be coming on stream within the next five years to accommodate more tourists and those responding to the Malaysia My Second Home Programme (MM2H). More at related link - Three more hotels to meet growing demand in Penang.

Existing sea facing condominiums along Penang tourism belt
Notable existing sea facing resort condominiums, with selling price ranges from RM160,000 to RM2 million perunit and located along this stretch of tourism belt are :-

Eden Seaview Apartments, located in Batu Feringghi and sited next to Uplands international school. A standard 3-bedroom unit with a floor area of 850 sq ft is priced from RM160,000.

Mar Vista, comprises 6 high rise blocks of 2,3,4 bedrooms, is located in Batu Ferringhi. A standard 2 bedroom unit with floor area of 838 sq ft is for sale at RM180,000.

Diamond Villa, completed in 1994 to 1998, comprises 3 blocks of 18 to 26 storey in height with seaview and floor areas of 1,480 sq ft onwards. Rental from RM3,500 per month. A penthouse unit with a floor area of 6,000 sq ft is for sale at RM1.5 Million.

Miami Green, another sea facing condominium with standard size of 1,100 sq ft to 1,270 sq ft. Selling price ranges from RM350,000 per unit.

Twin Towers, a standard unit with a floor area of 1,325 sq ft currently for sale at RM340,000.

Coastal towers- Rental rates from RM1,200 per month for unfurnished units. A renovated and fully furnished unit on high level with seaview and has a floor area of 1,210 sq ft is for sale at RM380,000.

Straits Regency – A standard unit of 1,530 sq ft is for sale from RM380,000 onwards while rental rate is RM2,500 per month for furnished unit.

Tanjung Bungah Beach condominiums- Rental rate for fully furnished unit with floor area of 2,200 sq ft ranges from RM6,000 per month whilst a deluxe penthouse unit with floor area of 4,478 sq ft is for sale at RM1.7 Million.

Sri Golden Bay Condominiums. Each standard unit has a floor area of 2,875 sq ft with selling price ranges from RM1.4mil onwards.

The Cove or [Video] - A newly completed super condominium comprises four blocks of 40-storey freehold luxury condominiums– Each unit has a floor area of 5,850 sq ft with five bedroom and large balcony facing the sea ! Sales Price from RM1.4 mil to RM2 mil.

New condominium schemes along Penang tourism belt
Notable new resort condominium schemes currently under construction are The waterfront condominiums, Shamrock Beach development comprises 3-storey landed seafront link houses and villas, Alila, a high end condominiums and villa project comprises 418-unit by Hunza Group and IGB’s project comprises 37 units of 3-storey bungalows located adjacent to Mar Vista.

Springtide Residences, a 39-storey condominium project with only 74 units of high end sea front condominiums and three beach villas located in Tanjung Bungah. The units, measuring 3,989 sq ft and 5,078 sq ft, are priced at RM430 per sq ft.

Infinity sea front super condominiums located along Tanjung Bungah comprises 2 36-storey blocks , typical floor area range from 3,669 to 4,873 sq ft and priced from RM1.5mil each.

Moonlight Bay villas, an on-going luxurious lifestyle project by Penang-based developer, Ivory Properties Group, comprising 70 four-storey detached villas priced between RM1.8 mil to RM3 mil offering sea and hill views. All units come with lifts and condominium facilities. Land area range from 2,600 to 6,000 sq ft whilst built-up areas range of 3,800 to 5,500 sq ft. More info at related link- Ivory’s four storey villas with lifts.

Skyhome – another ongoing high end condominium project by Giant Resorts comprises one block of 32-storey beach front super condominiums 47 units. Each standard unit has a floor area of 6,300 sq ft priced from RM2.2mil onwards.

The Residences @ Feringghi Park - An ongoing housing scheme at Batu Feringghi resort area comprises mainly 3-storey semi-detached and bungalow homes. More info about Blossom Time’s Batu Feringghi project at Naluri unit’s maiden project set to blossom.

Other planned resort condominium schemes likely to be launched next year include Plenitude’s 10.6 acre sea front resort development located opposite Rasa Sayang Hotel and Spa, a 42-acre mixed-development joint development project at Mount Pleasure Resort by AP Land and IJM Properties and Bolton’s first project in Penang in Tanjung Bungah – a high rise condominium project comprises two blocks of 28-storeys with total 396 condominium units.

Besides its historical and truly Asia multi-cultures and heritages, Penang has good health care services which is fast catching up with those in developed European countries and good supporting international schools namely St. Christopher International Primary School, The International school of Penang and Dalat international school. Penang Island is certainly a choice liveable city in this region and ideal destination for your holiday and retirement homes. More at related link -Making Penang, Malaysia your second homes.

With only USD72,000 (RM250,000) and above, foreign investors are eligible to purchase and own a resort condominium or holiday home in Penang. There is no restriction for foreign investors to acquire more than one properties. Subsequent disposal of the properties will no longer be subject to any real property gains tax following the recent relaxation of property rulings by the Malaysian Government.

For advisory on property investments in Penang tourism belt, email to us at Izrin &Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

If you have not visited Penang before or lost touch with Penang for many years, watch this video show by David Chan’s Penang Scenic Slide Show and Lone Pine Hotel’s Penang Scene.

View of the Tanjong Bungah Coastal Area

Coastal Tower along Tanjong Bungah-Batu Feringghi coastal area

View of Eden Seaview in Batu Feringghi

Sri Sayang Service Apartments

Ferringhi Villa, Landed bungalow homes in Batu Feringghi

View of the Batu Ferringhi Beach .