Posts Tagged ‘Penang Properties’

New Condominium Developments in Bukit Mertajam

Sunday, February 22nd, 2015

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.

New Condominium supply in Bukit Mertajam

New Condominium supply in Bukit Mertajam

Bukit Mertajam Area Map

Bukit Mertajam Area Map

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.

Focus on Penang Property and Housing-Part II

Monday, February 12th, 2007

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..

Focus on Penang Property and Housing-Part I

Wednesday, January 24th, 2007

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. 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)