Moderately-priced houses in trend
By DAVID TAN davidtan@thestar.com.my
THE trend of developing residential properties priced between
RM200,000 and RM400,000 is picking up in
Penang, a state where property
prices are second highest in the country after
Kuala Lumpur.
Tambun Indah Land Bhd,
PLB Engineering Bhd,
Ideal Property Development Sdn Bhd, and
Belleview Group are some of the Penang-based developers with plans to launch moderately priced projects on the island.
With
the exception of Belleview, Tambun Indah, PLB, and Ideal Property are
taking advantage of the
plot ratio guidelines introduced in 2010 which
allowed developers to build 87 units per acre, with a total built-up
area of 122,000 sq ft per acre and priced at between RM200,000 and
RM300,000.
Geh says the demand for houses comes from newly-weds, families and retired couples.
Under
the revised guidelines, developers have to allocate 5% of the total
units in a development scheme to be priced at RM200,000, 10% to be
priced at RM300,000, and 5% not exceeding RM500,000.
Tambun
Indah's Straits Garden in Jelutong, PLB's Sungai Nibong Residences and
Ideal Property's
Valencia Park are the new projects using the revised
guidelines.
The layout plans of the projects have been approved and the company is now waiting for the go-ahead for the building-plans.
Previously,
the plot ratio guideline for high-rise was 60 units per acre or 42,000
sq ft per acre or 30 units of 1,400 sq ft apartments.
The revised
plot ratio guidelines are applicable in areas where it is allowed to
develop 30 units per acre and above and in areas designated as
commercial/tourism areas under MPPP's structural planning and
development control plan.
They are not applicable for prime residential areas such as Jalan
Tunku Abdul Rahman
(popularly known as Ayer Rajah Road), Jesselton area, existing
established housing zones and general housing areas, George Town
Heritage Site (which includes the buffer zone), certain areas in Tanjung
Bungah and
Tanjung Tokong.
Real Estate and Housing Developers' Association (REHDA, Penang)
chairman Datuk Jerry Chan said the new plot ratio guidelines for the island was a win-win situation for both the developers and the state government.
Ho says the RM100mil Autumn Tower project does not come under the new guidelines.
“The
guidelines make the developers supply affordably priced properties and
in return the developers get to better utilise the land for
development,” Chan said.
Tambun Indah is proposing to develop a
RM180mil high-rise residential project called Straits Garden in Jelutong
on a 1.69ha site, the north-east district of the island, with 15% of
the total units priced between RM200,000 and RM300,000.
Tambun Indah
managing director Teh Kiak Seng
said the project's layout plan had been approved and was now waiting
for the building-plan approval from the relevant authorities.
“The
project located in the heart of the island and would feature modern
apartments, office suites and shop lots to meet the demand for
commercial and lifestyle properties in the central business district.
“We
anticipate to commence development in the fourth quarter of the year.
Targeted completion is by the fourth quarter of 2014,” he added.
In
Sungai Nibong, which is close to the Penang International Airport, PLB
plans to launch the Sungai Nibong Residences, comprising 98 units of
medium-cost apartments on an over 0.4ha site.
PLB executive
chairman Datuk Ong Choo Hoon said the project has a gross development value (GDV) of RM70mil and was expected to be launched in the third quarter this year.
Some
15% of the total units would be priced between RM200,000 and RM300,000
in accordance with the conditions of the revised plot ratio guidelines.
The lay-out plan of the project had been approved and is now waiting approval for it's building plan.
Ideal
Property also plans to launch 788 apartment units called Valencia Park
on a 9.1-acre site in Relau, south-west district of the island in
September.
Ong says the Sungai Nibong Residences is expected to be launched in Q3.
Ideal Property
managing director Datuk Alex Ooi said the project, which had a GDV of RM330mil, comprised apartments with built-up areas of 1,000 sq ft and 1,200 sq ft.
In
the past two years, Ideal Property had developed and sold over 500
units of apartments priced between RM300,000 and RM400,000 in the
south-west district.
Belleview's RM100mil Autumn Tower project,
comprising 220 condominiums at All Seasons Park in
Bandar Baru Air Itam,
does not come under the new plot ratio guidelines.
“The project
is scheduled for launch in May 2012.The pricing for the units ranges
between RM350,000 and RM400,000”, said Belleview
managing director Datuk Sonny Ho.
Meanwhile Raine & Horne Malaysia
director Michael Geh
said the sub-sale transactions of high-rise properties priced between
RM300,000 and RM400,000 were very active in the south-west district of
the island in Relau, Bukit Jambul, Bayan Baru, Bayan Lepas, and Sungai
Ara.
“Properties in these locations have been steadily rising at
about 10% per annum,” Geh said, adding that there was strong take up for
newly-launched properties in the first two months of 2012.
“We
observed that the demand came from newly-weds, families that want to
upgrade their lifestyle, and retired couples looking for smaller
high-rise properties in prime locations,” he said.
In Seberang Prai,
Asas Dunia Bhd is undertaking some 1,357 units of landed properties this year with a GDV of RM226.7mil in Central and South Seberang Prai.
Ooi says Valencia Park, comprising apartments, has GDV of RM330mil.
Group
managing director Chan said the price ranged between RM120,000 and
RM580,000, depending on the type of property and the location.
The properties comprised largely single-storey terraced, single-storey semi-detached, and single-storey bungalow houses.
Over
the past two years, the prices of residential properties have increased
from 10% to 15% per annum on the island, making properties in the
RM200,000 to RM400,000 price range increasingly rare.
Prime Minister Datuk Seri Najib Tun Razak
had last July launched the first phase of 1Malaysia Peoples' Housing
(PR1MA) programme, under which residential properties priced between
RM150,000 and RM300,000 would be developed.
PR1MA is specifically
for first time house buyers and moderate-income Malaysians earning not
more than RM6,000 monthly regardless whether they work with the
government, the private sector, or self-employed.
Some 42,000 houses under PR1MA have been identified for 20 sites in the Klang Valley, Rawang and Seremban, and companies like
Sime Darby Bhd,
SP Setia Bhd and
Putrajaya Corp have been invited to participate.
In
the last budget announcement, the federal government also raised the
ceiling price for first home scheme buyers to RM400,000 from RM220,000
with 100% loan financing and stamp duty exemption to promote home
ownership among the middle-income groups.
As Sime Darby owns a large bulk of land bank in Penang via
Eastern & Oriental Bhd, the state could be a site for moderately priced housing projects under PR1MA.
Eastern
& Oriental Bhd is reclaiming 740 acres for the second phase of the
Seri Tanjung Pinang project in Tanjung Tokong to develop two islands for
mixed development projects, which will have a GDV of RM12bil.
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