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 www.intproperties.com 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.
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.