Archive for August, 2008

Malaysian Budget 2009 highlights and its impact on property sector

Saturday, August 30th, 2008

The 2009 Budget Speech was presented by the Prime Minister of Malaysia in Parliament House on 29th August 2008 and the highlights of the RM207.9 billion Budget are here(English), here(Malay) and here(Mandarin).

Highlights of Budget 2009 on property and housing :

a) First time house purchasers are eligible for 50% stamp duty waiver on sales and purchase agreement signed during the period of 30th August 2008 to 31st December 2010. Unlike budget 2008, The 50% stamp duty exemption to be extended to loan agreements as well to further reduce the cost of buying medium-cost houses of up to RM250,000. More related information on 50% stamp duty waiver at here, here and here.

The move is expected to help purchasers for homes costing under RM250,000 to save up to RM2,625.00 on stamp duty waiver on transfer instrument and loan document.

Example :

Stamp Duties

i) Loan Agreement
0.5% of the loan amount
ii) Transfer of Title (for completed properties)
1% for the first RM100,000
2% for the next RM400,000
3% on the excess above RM500,000

Purchase Price;RM250,000.00, Housing loan @90% of purchase price; RM225,000.00

Stamp Duty payable on transfer instrument; RM4,000.00
Stamp duty payable on loan document ; RM1,125.00
Total stamp duties payable ; RM5,125.00
Apply for 50% waiver on stamp duties ;RM2,562.50
Amount payable ;RM2,562.50

Savings for house purchaser ;RM2,562.50

b) Reducing withholding tax on dividends of Malaysia REITs to 10%

c) RM330m allocation for Jabatan Perumahan Negara to complete 4,400 units of Program Perumahan Rakyat (PPR) Disewa, 1,500 units of PPR Bersepadu and 600 units of PPR Dimiliki. In addition, Syarikat Perumahan Negara Berhad will build 33,000 low cost houses.

d) Increase the size of the Housing Credit Guarantee Scheme (SJKP) to RM100m from RM20m to assist those without fixed income to own affordable houses.

e) RM50 Million conservation funding for heritage buildings following the recent inscription of Malacca and George Town as historical cities of the Straits of Malacca under Unesco’s as World Heritage Sites(WHS). The Unesco listing of these two historical cities is expected to boost tourism and a boon to the property sector of these two cities.

For advisory on individual property investments, purchases and rentals of Penang Properties, 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