I&T Penang Properties Blogs

The Penang Island property sector looks set for major transformation following the launching of two mega development projects within a span of 3 months in the second half of 2007 ie Penang Global City Centre (PGCC) by Equine Capital and The Light Waterfront by IJM Properties.

PGCC, a high-impact and widely publicized RM25bil project was launched by the Prime Minister of Malaysia in September 2007 to complement the NCER initiatives whilst The Light, a RM6.5 waterfront city along Penang’s eastern coastline unveiled in November 2007.

The launching of the two mega projects has received wide publicity coverage by the mainstream media.The vernacular press, sinchew, has given in-depth coverage as well with multiple photo slots on its website and has described it as mega projects which complement each other, each has its own distinct feature with the former being located at the Penang foothill whilst the latter is sited along the waterfront overlooking Penang eastern coastline. It has also provide a comparison of salient facts of the two mega projects.

PGCC, designed by Architect Hani Rashid, will feature architectural themes that synthesise local symbolism and historic forms with contemporary-style designs. The PGCC’s website provides much of the information on its development concept and master plan complete with an animated photo gallery. The website also highlights on the project features of carbon-zero city, PGCC Central Park and Penang Metropolitan Park. The 40ha Metropolitan Park, which will link the Youth Park and Botanical Garden, will see more open spaces for the public. Two flyovers costing RM140 million connecting PGCC to PORR will be built to smoothen the traffic flow of the area. Click here to see to aerial view of the PGCC site and the traffic flow. Over the past few months, the developer has embarked on a series of road shows and exhibitions highlighting that PGCC will benefit Penangites and attract foreign investments and boosting Penang tourism. The development of PGCC is expected to create up to 30,000 jobs.

Unlike The Light Waterfront, the launching of PGCC has generated mixed reactions and split views from the public. A pro-development body, PERINTIS and several Youth associations have voiced their support for the development of PGCC whilst several concerned Penang NGOs and the residents from nearby Jesselton area have voiced their objections and concerns on the implications of this controversial project on issues ranging from environment impacts, traffic congestion, project density, approval procedures etc. The development of PGCC may be delayed and scale down.

Update : The application for PGCC project has been formally rejected by the Penang State Authority on 6/8/2008.

For advisory on individual property investments in Penang, 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.

Map showing the approximate location of PGCC and The Light in relation to the proposed Penang Outer Ring Road (PORR) Alignment or Browse Google’s Map guide on Georgetown.

Location Plan of PGCC

Location Plan of The Light

The skyline of Penang Eastern Coastal area will see major changes when The Light is fully completed…

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.

The NCER blueprint, prepared by master planner, Sime Darby, is expected to bring in RM177 billion investment into the Northern Corridor [Map Guide] covering 4 northern states of Peninsula Malaysia – Perlis, Kedah, Penang and Northern Perak to transform and expand the agricultural,manufacturing, tourism and logistics sectors until year 2025.

According to the NCER blueprint, five growth corridors will be created within the economic region ie. Island Corridor, Coastal Corridor, Central Corridor, Hinterland Corridor and Butterworth-Kulim-Baling-Pengkalan Hulu Grik Corridor. For more highlights on NCER, click here and here. More info are available at NCER’s website www.ncer.com.my.

The plan will position Penang into an integrated logistics hub for northern corridor. Amongst the high-impact projects earmarked for Penang are airport and port expansion, enhancement of public transportation system i) Rapid Penang Bus services , ii) high –speed ferry services iii) RM2Billion Penang Sentral – a central transport hub to be undertaken by MRCB and akin to Kuala Lumpur Sentral albeit at a smaller scale of about one fifth of its development size and iv) the Penang monorail project, micro-electronic center of excellence at USM and the RM18 Billion Penang City Centre to be promoted as MICE destination.

Update : more insights on NCER initiatives by SERI - Penang as an integrated logistics and transportation hub under northern corridor economic region.

For individual property advisory and investment in Northern Corridor of Malaysia, email to us or call us at +604 6588333 (Penang).

To what extend and how fast would all this initiatives and benefits cascading down to the ordinary people in the Northern Corridor ? Find out more on who are the beneficiaries of the NCER ? at Beneficiaries of the NCER and NCER big boost for Penang and which Property firms to get NCER benefits?.

Maps on Infrastructure road linkages;

Maps on Penang’s high impact projects under the NCER masterplan ;

Green homes, a relatively new home living concept to the local Malaysians, is beginning to make foray into the local housing scene. In recent months, Malaysia’s conglomerate and leading housing developer, YTL Land has taken a lead in preserving environment via its Bird Island project [Video] and has also announced its first green architectural competition in a move to encourage more home designs that promote sustainable living.

In Kuala Lumpur, another housing developer, Putra Perdana Development Sdn Bhd is carving a niche in designing and constructing energy-efficient buildings and has recently launched its D’Heron at the Lakes, a niche bungalow development located at Putrajaya offering green home features which received good response. More at Good response seen for green homes .

In Penang, Intproperties.com team went for a quick search recently on the availability of such new green homes during the recent MAPEX 2007 organized by REHDA Penang but found that there isn’t any housing schemes in Penang with green home features in their housing designs yet. In a related significant event, the Nationwide Environment Awareness Campaign 2007 was launched by the Prime Minister of Malaysia at Queensbay Mall, Penang two weeks ago urging Malaysians to save the environment. The Prime Minister has also urged housing developers and builders to pay heed to conscious planning to preserve the environment. Unlike Singapore which has already introduced the Building and Construction Authority’s (BCA) Green Building Master plan as well as providing incentives to encourage developers to embrace green housing technology for sustainable development- related link at Buildings going green with style and savings, Malaysia has yet to introduce such green master plan to encourage more local developers to follow suit. Like other industrialized countries in the world, Malaysia is facing similar environmental problems such as haze (Video), water pollution, unmanaged waste, global warming etc. Major cities of Malaysia ie Putrajaya- Kuala Lumpur, Penang have already recorded raising temperate caused by developments.

On the local front, the local council of MPSP Penang has recently conducted a Green Productivity workshop under the LA 21 initiative for the factories in Perai Industrial Area in a move to encourage more factories to adopt green productivity practices. More info on Green Productivity. The Malaysia government has also recently launched a program called Suria for Developers offering financial reward to the property developers that can come up with the best sustainable, eco-friendly housing development which incorporates solar panels or building integrated photovaltic (BIPV). The BIPV is an initiative by the Malaysia government under the 9th Malaysia Plan and implemented by Pusat Tenaga Malaysia under the stewardship of the Energy, Water and Communication Ministry.

As house buyers are increasingly discerning and environmentally conscious, they become selective and are demanding for better quality houses with eco-friendly features like the D’Heron at the lakes at Puterajaya by Putra Perdana apart from the primary factors such as location, pricing, architectural design and facilities when buying new homes. For aspiring home owners and house buyers, the next time you register for a new home with any housing developers for their upcoming projects, voice out that you wish to own a house that incorporates green home features and eco-friendly too !!

Read more for Green tips here and here! or participate in the upcoming seminar on 7th August 2007 a) The building industry’s solution to sustainable development or b) Regional conference on 5-7th November 2007Conference on Sustainable Building South East Asia – Theme : Strategies for Implementation.

The Prime Minister of Malaysia, YAB Datuk Seri Abdullah Ahmad Badawi launched the Nationwide Environment Awareness 2007 at Queensbay Mall, Penang on 8th July 2007.

Queensbay Mall, Penang

Recommended update link : Go green for a brighter future.

Penang Island’s south-eastern coastal area [Penang Map Guide], stretching from Gelugor–Batu Uban-Sungai Nibong-Bayan Lepas area, is poised to be one of the Penang’s property hotspots. This strategic coastal area, supported by a good network of coastal highways ie. Jelutong Expressway and Bayan Lepas coastal highway as well as good accessibility to the mainland Penang via Penang Bridge and close proximity to the island’s main industrial hub of Bayan Lepas and Penang Cyber City, is gradually transformed into a vibrant business and affluent residential enclave.

In recent years, the Penang property sector has witnessed the successful completion of several developments along the south-eastern coastal area and the opening of Queensbay Mall, E-gate and Tesco hypermarket whilst new developments are being launched and built. Notable development schemes located along this sea-front reclaimed area are 73-acre Queensbay, 155-acre Bayan Mutiara and Techware’s four condominium schemes at Sungai Nibong (click here for location map). When both Queensbay and Bayan Mutiara developments are fully completed, this south-eastern enclave would also become Penang’s new waterfront resort precinct like Singapore’s Sentosa Cove.

Queensbay – A 73 acre mixed development project, formerly known as Bayan Bay, was revived by developer CP Group. This mixed development comprises existing commercial 3-storey shopofffices and Queensbay Mall, the largest shopping mall on the island with a built up area of 2.5 million sq ft and more than 1 million sq ft net lettable area of which about 255,000 sq ft is occupied by anchor tenant, Japanese-owned Jusco Store. Other ongoing and planned projects within Queensbay Master development plan include BayCapita, Baystar, Baygarden, Bayvillas, a 380 room three star hotel and a five star hotel. More update info as at 5.1.2008 on Queensbay Lure .

Bayan Mutiara – Penang Development Corporation (PDC)’s flagship mixed development project. D’Residence, sited on 96 acres reclaimed land and forming part of Bayan Mutiara master development plan, is the first upmarket housing project by PDC Properties in Penang. Phase one of D’Residence was launched last year comprises 113 units (70 units of superlinked houses, 14 units of twin bunglows, 15 units of supreme bunglows and 14 premium bunglows) at selling prices ranging from RM880,000 up to RM2.8mil. More related info on D’Residence .

Two newly completed condominiums scheduled to make entry into Penang’s luxury condominiums this year are Bayswater Condominium and Putera Marina Resort.

Bayswater Condominiums – a new freehold luxury sea-facing condominium project developed by IJM Properties and located adjacent to E-gate and Tesco hypermarket. It comprises 2 blocks of 26 storey condominiums with floor areas ranging from 1,173 sq ft to 1,636 sq ft each. The developer’s selling price ranges from RM321,000 to RM435,000 per unit. Whilst Putra Marine Resort is the latest condominium block developed by Techware and has a total of 126 sea-facing units. Each unit has a floor area of 2,027 sq ft to 2,723 sq ft priced at RM275.00 per square foot onwards.

Other existing condominiums located along this enclave include The View Condominiums, Putera Place, Gold Coast Condominiums, Sunny Ville, E Park and Villa Emas. Other medium range apartments include N-Park and Bukit Dumbar Indah.

The View – a newly completed super twin tower condominiums with a skybridge developed by Penang-based developer, Ivory Sdn Bhd. The units are sea-facing and overlooking the Penang Bridge and has a built-up areas of 2,068 sq.ft for a typical unit that come with 5 +1 bedroom and 4 baths and 5,580 sq.ft for a penthouse unit. Prices ranging from RM633,000 to RM1.62 Million. Related link on The View Twin towers.

Gold Coast Condominiums- This resort condominium, completed in 1999, is sited on 11 acres of leasehold residential land, comprises 3 condominium blocks with a total 412 sea-frontage units. The floor area of the units ranges from 1,042 sq ft, 1600 sq ft up to 4,290 sq.ft. The market price ranges from RM300,000 to RM340,000 for a standard 3 bedroom condominium unit and RM450,000 to RM500,000 per unit for a bigger size units of 1,600 sq ft. Monthly rental rates from RM2,500 to RM3,000 per month.

Putra Place condominium is another condominium scheme by Techware with total units of 626 and completed in mid 2006. Each typical unit has a floor area of 1,000 sq ft whilst duplex and penthouse unit have floor areas of 1,872 sq ft and 2,000 sq ft respectively.

Villa Emas is the first scheme developed by Techware and completed in 1998. It is sited on over 10 acres of leasehold residential land and comprises 3 blocks of 16 storey condominiums with a total of 488 units. Each standard unit has a floor size of 850 sq ft to 950 sq.ft. Located alongside with the Bayan Lepas coastal highway, the scheme is popular amongst Penangites and recorded high occupancy rate. Individual strata titles has been issued. The market prices for a standard unit ranges from RM180,000 to RM240,000 depending on the condition / improvement of the unit whilst monthly rental ranges from RM750 for vacant unfurnished unit up to RM1,500 for furnished units.

Sunny Ville – An integrated resort condominium completed in 1994, comprises a total of 6 blocks of 22 storey in height with more than 500 units. Each typical unit has a floor area of 900 to 1,090 sq ft. Market price for a standard 3 bedrooms type ranges from RM220,000 to RM230,000 per unit whilst monthly rental rate for furnished unit ranges from RM1,000 to RM1,500.00.

E Park – completed in 1996 and located adjacent to Sunny Ville. It comprises 3 blocks with 350 standard units of 800 sq ft and 7 penthouses of 1,600 sq ft.

Lavinia Apartments – completed in 1994 and comprises 5 condominium blocks with a total 236 units with sea-view. Standard floor area ranges from 980 to 1,140 sq ft.

There are growing interest by foreign purchases and increasing numbers of expatriate communities residing in some of these sea-facing resort condominiums. For more information on property investments and advisory on your property needs and expatriate accommodation in Penang and Kuala Lumpur, email to us or call us at +604 6588333 (Penang) or +603 92839782 (KL), we would be pleased to assist.

Located close to Queensbay and a short distance away is Pulau Jerejak, an island that has vast potential to be an eco-tourism destination. Presently, only a small part of the island is being leased to Jerejak Resort whilst major part of the island has recently been gazetted by Penang state government as forest state park. There are plans to built a cable car connecting Queensbay mall to Pulau Jerejak and a theme park.

Intproperties.com has blogged and found that there are two websites that offer lots of photos and information on Pulau Jerejak, here and here.

View of Bayswater Condominiums, located near to E-gate and Tesco hypermarket.

The View twin towers condominiums as seen from Penang Bridge.

View of the Sunny Ville and E Park as seen from Penang Bridge. Sited on the coastal front is the Penang’s new marine police complex cum quarters.

An entourage of RTM crew has recently came to Penang to film a TV documentary on Batu Kawan Parliamentary area and its Member of Parliament MP Huan Cheng Guan. Amongst the places of focus are the site for the proposed Second Penang Bridge and Bandar Cassia in Batu Kawan, Auto City in Juru, Sungai Sembilang Village, Mybatik-a batik production house in Bukit Tengah and a little-known island of Pulau Aman. The half an hour TV programme will be aired through channel RTM 1 on 27th May 2007 (Sunday), Malaysian time 22.00 pm.

Like the much-publicized Iskandar Development Region (IDR) in the southern Peninsular of Malaysia, Batu Kawan Parliamentary area[click here for Location Map], which is situated in the mainland state of Penang and covers part of the two districts of central and southern Seberang Perai (stretching from Perai to Sungai Bakap), has great potential to be the future booming area of the northern Peninsular Malaysia. The construction of the proposed RM2.8 Billion Second Penang Bridge project, a major infrastructure projects initiated by the Federal Government under the Ninth Malaysia Plan (9MP), is expected to generate tremendous economic spillover effects and accelerate the developments of the northern region.

The 2,680 hectare Batu Kawan land bank, formerly an oil palm estate, was acquired by Penang Development Corporation (PDC) in 1990’s and earmarked as Penang’s third satellite township after Bandar Baru Bayan Baru dan Seberang Jaya. The new township known as Bandar Cassia will take about 30 years to complete and has a projected population of 150,000. Crescentia Park, an 186 hectare township which forms part of the Bandar Cassia master plan, is currently being developed by Equine Group. There will be a 16-hectare park with man-made lakes within Crescentia Park. See related links at Equine riding high on Penang Projects and Equine Capital Unit launching houses in Crescentia Park. Besides this, the construction of the Penang International Equestrian Centre (PIEC) to relocate the Penang Turf Club to Batu Kawan is progressing well. More info at Work on equestrian centre in Batu Kawan picks up pace.

In addition, PDC has also launched its RM150 million project; Dedaun, a 127-acre bunglow village within Bandar Cassia offering 8 different country bungalow designs. Other housing developers have also capitalized on this and launched their schemes recently in the vicinity of Batu Kawan are Tambun Indah’s Juru Heights and Airmas Group’s Palm Garden.

Batu Kawan is also famous for its sea food industry. In recent years, many sea food restaurants have mushroomed in the vicinity. Located within Batu Kawan area and close to the proposed Second Penang Bridge is the little known small island of Pulau Aman. A new jetty known as Batu Musang Jetty at Batu Kawan has been built last year to enhance accessibility and further promote Pulau Aman as an eco-tourism destination similar to Pulau Jerejak. More interesting info on Pulau Aman.

Some snapshots on recent visit by RTM crew to Bandar Cassia, Batu Kawan and Pulau Aman….

Mr C H Kwong, General Manager of Abad Naluri Sdn Bhd and the developer of Crescentia Park, briefing MP Huan dan RTM crew on Batu Kawan development plan.

Coincident meet at Pulau Aman between MP Huan and Datuk Zainal Rahim Seman, who was on his last inspection assignment of an infrastructure project in Pulau Aman prior to his appointment as the new Council President of Penang Island Municipal Council (MPPP).

View of Pulau Aman, with potential to be an eco-tourism destination.

The dynamics of today’s economy are demanding. In an increasingly borderless world where foreign investments are needed for wealth creation, a premium location is one which is both commerce and entertainment driven.

Featured article by The Star online on penang property outlook and MM2H.

Read more at Real estate in Penang set to boom…

Based on the draft report of Penang Structure Plan 2005-2020, it is noted that much of the housing guidelines focus on providing affordable low cost and low medium cost housing as well as strategies that aim to enhance the quality of housing and living standard of Penang.

The report, however, provides little clues and information on the guidelines and directions for medium to high costs or luxury housing segments. These housing guidelines, inter-alia, include pricing and density on new low cost and low medium cost housing developments according to locational zones ie primary zone (Zone A) and secondary zone (Zone B) for the 5 districts of Penang State. For example, new low cost units to be built within the designated housing zones in the North East District of Penang are subject to price control ranging from RM25,000- RM42,000 per unit depending on location and type of low cost (LC) units (flat or cluster house) whilst for low medium cost (LMC) units, the price range is being fixed at RM40,000 – RM75,000 according to the housing zones as indicated in the Map on Penang State LMC housing zones.

For new housing developments, private housing developers are required by the state government to built 20% Low cost (LC) and 20% Low medium cost (LMC) housing units of the total planned housing units beginning of 2005. Notable LMC housing developments currently under construction on the Penang Island are a) Sri Saujana, a privatized housing project by PLB – Wonder Bay Developments Sdn Bhd comprising 2,304 units at Gat Lebuh Nordin, Georgetown. The sales price is RM75,000 perunit with a floor area of about 646 sq.ft, b) Sri Aman, Relau by Chong Company Berhad with typical 680 sq.ft 3-bedroom unit priced at RM70,000 per unit; c) Puncak Eskine Apartment (total 1,038 units) at Mount Eskine by Aseania Group from RM55,000 perunit with a floor size of 604 sq.ft. For eligible Malaysians, the guidelines on the application for low medium cost housing are available at Penang State Government’s website; www.penang.gov.my.

The draft Penang Structure Plan 2005-2020 also placed emphasis on Public Housing ie housing schemes developed by state government-initiated programs such as Public Housing Program (PPR). It was reported recently that the Penang State government has approved 13 public housing projects. In addition, the Penang state government, through its development agency, Penang Development Corporation (PDC) will continue to built another 1,628 units of low and medium cost houses between 2006 till 2010. PDC have so far successfully completed more than 22,000 housing units since 1970s. More related information on Malaysia’s housing sector under the 9th Malaysia Plan (9MP) for the period 2006- 2010, click here .

For next episodes, InTProperties.com will bring you more insights on Penang’s medium to high end and luxury housing subsectors at upcoming or popular locational hotspots namely Bayan Baru coastal area, Gurney Drive, Tanjung Tokong coastal area etc. As Lunar new year is approaching next week, InTProperties.com would like to take this opportunity to wish all our valued clients and visitors worldwide a “Happy and Prosperous NEW YEAR”.

Penang’s popular locational hotspot; Gurney Drive, is fast becoming an international enclave. The skyline of Gurney Drive ..

New housing developments mushrooming along the newly completed Jelutong coastal highway. The skyline of Jelutong coastal area of Penang..

According to the Draft Penang Structure Plan 2005-2020, the estimated housing stock for Penang State as at year 2005 totals 470,331 units. During the period 1994 – 2005, the Penang state government has approved the construction of about 121,000 units of houses. The report also stated that a total of 185,000 units of houses of various types or at an average of 12,300 units a year will be built until year 2020.

Penang needs to develop 5,000 hectares of land within the next 15 years to cater for development of which 4,500 hectares of the land earmarked for development are located in high potential areas. In order to achieve balance and sustainable development over the next 15 years, there is a need to balance development at the ratio of 30% on the island and 70% on the mainland Seberang Perai.

Penang Island, a relatively small island covering an area of 293 square kilometers with a population of 678, 000 (year 2005), has limited usable lands for development as major part of the Island is under conservation and classified as environmentally sensitive areas ie. hill lands, forest reserves and water catchments areas. The limited usable lands are mainly located along the eastern Island stretching from Tanjong Tokong area to down south Bayan Baru / Sungai Ara area.

Owing to high land cost and limited usable land for development on the Penang Island, reclamation activities at designated coastal areas such as Bayan Baru, Jelutong and Tanjung Tokong will be continued to expand the land bank on the Island. Several man-made islands around Tanjong Tokong and Jelutong coastal areas will also be created via land reclamation. See map for details: Map on Penang Usable land for development. New locational hotspots for potential housing development are situated towards the south-western part of the Island, these areas include Sungai Ara, Gertak Sanggul, Teluk Kumbar and Balik Pulau.

In the mainland Seberang Perai, bulk of usable lands for development are centred at Batu Kawan-Jawi area (South Seberang Perai) and Bertam -Kepala Batas (North Seberang Perai) and Seberang Jaya-Permatang Nibong (Central Seberang Perai). Other potential areas as stated in the report include Valdor, Juru and Bukit Minyak.

The future housing trends on the Island will continue to see more high density flatted developments being built whilst piecemeal housing developments will be taking place in new growth areas at the southern part of the Island. More smaller scale but high value niche housing schemes offering new lifestyles, themes and concepts with buzzwords such as super condos, condovillas, gated and guarded communities, waterfront courtyard terraced homes, super-link houses, landed garden villas, supreme and premium bungalows may emerge in prime locations at the suburbs of Georgetown and coastal areas of Bayan Bay, Gurney Drive and Tanjong Tokong. Old settlement areas in prime locations will also be make way for high rise flatted developments whilst in the inner city of Georgetown but within the ambit of heritage conservation zones, any redevelopment will be subject to heritage preservation guidelines.

The mainland Seberang Perai will see the emergence of large scale integrated township developments ie. Bandar Cassia in Batu Kawan which is planned to be the third largest township after Bandar Bayan Baru on the Island and Bandar Seberang Jaya in Central Seberang Perai as well as transformation of several other townships such as Bandar Bertam, Bandar Perda dan Bandar Tasek Mutiara. Unlike Penang Island, the future housing trend for mainland Seberang Perai will continue to see more landed properties with features of modern township amenities and services and parks (2 and 3 storey terraced and semi-detached houses and bungalows) being built as landed properties are still the preferred choice.

The future housing trends for Penang Island; more high rise flatted developments and high value niche housing schemes..

Focus on Penang Property and Housing – Part II ( To be continued)

The Penang State Government has unveiled the Draft Penang Structure Plan 2005-2020 in September 2006. The draft plan, which was prepared by Penang State Town and Country Planning Department, is a written blueprint consists of the state’s policy, direction and strategic proposals on development and land use until year 2020. The last Structure Plan for Penang Island and the mainland Seberang Perai was gazetted on 14th June 1990 and 19th September 1993 respectively.

Following the month-long public display of the Draft Penang Structure Plan 2005-2020, a total of 84 respondents have forwarded their views and objections to the Penang State Town and Country Planning Department. The respondents comprises of representatives from government agencies, political parties, NGOs, various resident associations, REHDA, housing developers and individuals etc.

Consequently, in accordance with Section 10 (3)(b), Malaysia’s Town and Country Planning Act 1976 (Act 172), a public hearing has been held at Mutiara Room 2, 29th Floor, KOMTAR during the period from 11th to 22nd December 2006 whereby each respondent was given half an hour time to present their objections and views on the Structure Plan to the public objections hearing committee. The structure plan is expected to be gazetted this year after the draft report together with the feedbacks and objections gathered during the hearing have been submitted to the higher authority for approval.

Respondents expressing their views /objections to the public hearing committee;

Please come back again for more insights on the Penang property and housing development – its future trends and directions and where are the locational hotspots as expounded in the Penang Structure Plan…(To be continued).