I&T Penang Properties Blogs

Institution of Surveyors Malaysia (ISM) Northern Branch has recently organized its 15th anniversary dinner. The event was attended by more than 250 members of ISM and the guest of honor of the event was the newly appointed Penang Chief Minister Mr Lim Guan Eng. During the function when speaking to members of the ISM and guest, the Chief Minister acknowledged the role of the Surveying Profession within the construction industry comprises 4 main divisions ie GLS, PCVS, QS and BS and hopes to establish close relationship with professional bodies and invites qualified professionals to sit in the Penang Tender Board’s Committee.

The Chief Minister stressed that the new state administration of Penang is a CAT government, Competency, Accountability and Transparency and Penang will lead to be the first state government that adopts the CAT governing philosophy.

On foreign investments, Mr Lim disclosed that two foreign companies from Japan and USA have confirmed their investments in Penang. It was later reported in the media ie. Japanese firm invests RM1.2b and Honeywell to invest RM115m in Penang. The new administration hopes to achieve RM3.1 billion foreign investment this year.

Earlier, the state government has endorsed the Northern Corridor Implementation Agency Act which empowers the agency to implement plans for the Northern Corridor Economic Region (NCER) to speed up economic development in the region and federal projects in Penang. More at Penang supports NCER agency act.

To know more about Penang’s new Chief Minister, there is a blog that provides a compilation of media reports and press statements since March 2008, click here.

Penang Chief Minister, Mr Lim Guan Eng addressing members of the ISM northern branch at its 15th anniversary dinner at Gurney Hotel on 23rd May 2008…

Guest and Members of the ISM Northern Branch at the 15th anniversary dinner..

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).