Posts Tagged ‘Penang Apartments & Condominiums’

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 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.

Focus on Penang Bridge-Bayan Lepas coastal area-Penang’s property hotspot – Part I

Wednesday, June 6th, 2007

Penang Island’s south-eastern coastal area, 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.

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 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.

Investing in Penang Apartments and Condominiums- Part I

Tuesday, April 24th, 2007

Factors to consider when buying Penang Strata Properties.

Penang’s residential subsector made up bulk of the property market transactions at almost 80% of the total volume of property transactions. It is noted that majority of these housing units involve high rise/strata units. This trend is expected to dominate the Penang Property Market in the coming years as more new multi-storey residential units are being developed and released into the market on the land-scarce Penang Island.

As strata properties are heterogeneous in nature and each has its own unique characteristics, there are merits and demerits factors to look into before one decides to acquire a property. Generally, the condominiums in Penang can be classified into 3 categories; namely city condominiums within the city of Georgetown, resort / beach front condominiums along the tourism belt from Tanjung Tokong-Tanjung Bungah-Batu Feringghi area and outer city condominiums scattered along the south-eastern coastal area of Penang Island from Gelugor to Bayan Baru area. In Kuala Lumpur, buyers generally choose condominiums for prestige, security and returns. In this episode, Intproperties.com will highlight factors that you need to consider when buying Penang Strata Properties.

If you are currently looking to buy or invest in apartments or condominiums in Penang, there are things to look for before deciding to buy your dream homes ie strata title, payment of service charge, reselling or renting out. As condominium living entails shared living involving shared facilities and maintenance, payment of service charge and communities rules and formation of management corporation (MC). Recommended links – Is condominium living for you ? and stratified considerations.

Home seekers who opt for strata living should also aware about their rights and responsibilities and the need to form Management Corporation to manage their units and common property after issuance of strata titles. As becoming a strata property owner, you own not only your unit or strata lot, but also a share of the common property which include facilities such as car parking, recreational services etc. More at know what you buy.

In the case where you are thinking of investing in service apartments, beware that “Service Apartments” in Malaysia are being classified as commercial units and therefore NOT covered under the Housing Development (Control & Licensing) Act, 1966. However, with the recent amendment to the HDA Act on 15 Feb 2007, the development of service apartment is now come under the ambit of the amended HDA Act. Recommended link; Investing in Serviced Apartments. and law for serviced apartment timely.

When buying new off-the-plan housing units or under construction units from primary market ie. from housing developers, it is advisable to run a checklist and refer to guidelines of the Ministry of Housing and Local Government, Malaysia. There are other local consumer-centric NGOs such as House Buyers Association and National Consumer and Complaints Centre which offer information resources on wide range of housing and consumer related issues from consumer perspective.

However, when you intend to purchase existing completed units from secondary market, a word of caution, always engage the services of a licensed property agent to handle your property needs. It is always safer to deal with licensed property agents as licensed property agents are covered by professional indemnify insurance which is a requirement to renew their license annually. Beware that there are thousands of illegal or freelance brokers moonlighting in the marketplace of Kuala Lumpur and Penang. Don’t use illegal property agents and British cabbie taken for a ride. You can now verify online whether the person you are dealing with is registered with Malaysia’s regulatory body ie. Board of Valuers, Apppraisals and Estate Agent Malaysia by login to its website;www.lppeh.gov.my and key-in the person’s name or the firm’s name.

View of inner city condos in George Town, Penang

For next episode, Intproperties.com will look into the importance of strata titles and overview on strata titles for high rise buildings in Penang. (To be continued).