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Wednesday, December 26, 2012

Penang Property | Penang SME Centre

Penang Property | My Penang | Penang SME Centre

The Penang SME Centre is an incubator to catalyse and spur the growth of Penang SMEs, encouraging them to move up the value chain, become market leaders and to tap on opportunities to proliferate private branding enabling the "Powered by Penang' brand.

The Penang State Government strongly supports the establishment of this industry-led Centre At the current indicative market rental rate, the rental subsidy by the State Government is approximately RM0.80 cents psf Penang SMEs are urged to seize this opportunity, locate their operations in this highly-subsidized, modern and conducive business environment which will accelerate their move to their next level of success.

Penang SME Centre is set to strengthen Penang's competitive edge, attracting FDIs to Penang's supply chain. The Centre will play a role in creating employment and retaining talent, thereby increasing employment in Penang.

The SME Centre is a collaborative effort of the Penang Development Corporation, investPenang and the Penang Science Council (Mentoring Scientific Entrepreneurs Pillar). The establishment of the Centre is in line with the Penang State SME Policy and is part of its 3-prong approach in the overall development of SMEs in Penang.

VULCAN INTERNATIONAL Real Estate Investors Club is promoting Penang SME Centre for newly startup company. Interested please call Vulcan Lau , mobile: +6 016 451 1321 for more details.












Thursday, December 13, 2012

Penang Property | FOR SALE/RENT : Bungalow at Millionaire Row, PenangMALAYSIA

Malaysia: Property market may remain stable in 2013

December 13, 2012 by: fmt
By John Gilbert

KUALA LUMPUR; The Malaysian Institute of Estate Agents (MIEA) expects the property market to remain stable in 2013 as buyers buck expectations of busts and booms.

MIEA president Nixon Paul said recent news reports predicting a boom for next year are creating an artificial situation in the market.

“We view the property market to remain strong for 2013 and prices will continue to increase if the stock availability remains tight,” he told reporters at the MIEA Property Outlook 2012 here yesterday.

He said there were also misconceptions that the condominium market is going to drop, caused by low rental income and take-ups by expatriates.

“We believe the market for the condominium market will hold, especially in the areas of KLCC, Mont Kiara and several other places in the city,” he said.

However, Paul said many foreign companies are repackaging the housing allowance for expatriates into their salaries and this is causing many of them to seek lower rents outside the city centre and closer to international schools for their children.

Touching on the industrial market, Hectares & Stratas Sdn Bhd director Stephen Tew Peng Hwee said the demand for industrial space in the Klang Valley is strong but the supply is limited with overall vacancy being well below 5%.

“Capital values have increased as much as 50% over the past four to five years, rentals by 20%-30% and the main cause of these increases is not much on overly demand but rather lack of new supply,” said Tew.

“Today, the biggest gobblers of industrial space are trading and logistics companies and not manufacturing as in the past.”

As for Penang, Tew said there is also a supply shortage of industrial space and rentals and it can often be more expensive than the Klang Valley.

“The biggest demand for industrial space in Penang comes from the electric and electronics industry and it is not uncommon to hear companies complaining of the difficulty of finding space in Penang for logistics.”

He said the demand for industrial space in Johor has improved substantially over the past few years due to the success of Tanjung Pelepas port and better relations with Singapore.

“Many Malaysia-Singapore joint ventures to develop residential, commercial and industrial facilities in Johor have created a better environment and leadership guidance to Singaporeans to start seriously looking at building new factories in Johor.

“Demand for industrial land and buildings has been improving and land values have begun moving up a bit slower as Johor is a huge state with plenty of land,” he said.

Source reference link: http://www.freemalaysiatoday.com/category/business/2012/12/13/property-market-may-remain-stable-in-2013/


Monday, November 26, 2012

Penang Property | 14 projects approved under density guideline

Penang Property | Monday November 26, 2012

14 projects approved under density guideline

By WINNIE YEOH
winnie@thestar.com.my

THE Penang Municipal Council (MPPP) has approved 14 projects under the 87 units per 0.404ha guideline since it came into effect in June, 2010.

State Local Government and Traffic Management Committee chairman Chow Kon Yeow said stringent measures had however been imposed on developers to build the increased density units.

“The guideline is not applicable in established housing areas, World Heritage Site, the area from Tanjung Bungah Hotel to Mar Vista, along Gurney Drive, the bordering areas of Air Putih constituency and Air Itam constituency and re-zoning area.

“The floor area for the guideline is also capped at about 1,400sq ft per unit and MPPP has also imposed a price control for 25% of the units,” he said in a press conference at the City Hall in Esplanade yesterday. `

Of the 25%, Chow said developers would have to sell 5% of the units at RM200,000 per unit, 15% at RM300,000 per unit and 5% at RM400,000 per unit.

He said if a developer wished to build under the new guideline, the company would have to build an additional 30% low-cost or low medium-cost units in the same district.

“Developers will also have to submit a traffic impact assessment (TIA) report for the respective projects,” he said.

Chow added that currently 109.26ha of land on Penang island was available for the building of units under the new guideline.

He said this worked out to 8,100 units at 30 units per 0.404ha and under the new guideline, 23,490 units could be built.

Council president Datuk Patahiyah Ismail, who was also present, said there would be no capped floor plan size if developers chose to build 30 units per 0.404ha.

“With the 87 units per 0.404ha guideline, we can in a way curb super condos and the issue of expensive prices,” she said.

In recent news reports, many Penangites questioned the need for the guideline as they were concerned that higher density may lead to social and environmental problems for the existing residents.

The 14 projects which have been approved are in Jalan C.Y. Choy, Jalan Macalister, Jalan Seang Teik, Lorong Perak, Sungai Ara, Bukit Gambier (two projects), Lembah Permai, Jalan Jelutong (two projects), Jalan Paya Terubong, Jalan Perak, Jalan Tanjung Tokong and Jalan Pantai Jerejak.

Source reference link: http://thestar.com.my/metro/story.asp?file=/2012/11/26/north/12369232&sec=North

Back to Main Page: www.VulcanInternational.blogspot.com

Saturday, November 17, 2012

Penang Property | 2-Storey Commercial Building For Rent

Penang Property | 2-Storey Commercial Building For Rent

Total Build Up area: 8,475 sq ft
☛ Asking rental: RM2.35 psf (negotiable).
☛ Car park: Ample of parking lots.
☛ Direction of building: Facing NW.
☛ Note: All the fittings in pictures are 'as is where is basis'.

Interior Setup:
1(a), 1(b). Equipped with three(3) meeting rooms partition with glass panel.
2(a), 2(b). Kitchenette and toilet(in excellence condition).
3(a), 3(b). Floor carpeted with offices.
4. Empty space and also offices.

Note: Potential tenant could get a copy of report by calling +6 016 451 1321 or email: Vulcan.Lau@gmail.com

Interested please contact Vulcan Lau, mobile: +6 016 451 1321 for details.

Wednesday, November 14, 2012

Penang Property | Debenhams PLC UK gears up for Penang

Friday November 9, 2012

Penang Property...Debenhams gears up for Penang
By CHRISTINA CHIN
sgchris@thestar.com.my

FASHIONISTAS can look forward to the opening of Debenhams in Gurney Paragon Mall, Penang, next year.

The exciting ‘British invasion’ is scheduled for July or August and work on designing the flagship store for the northern region is already underway, said Debenhams Malaysia managing director Andy Jackson.

The focus will be on the ladies with about 60% of the merchandise comprising womenswear.

Promising “great British products at great Malaysian prices”, he said the decision to bring the brand up north was a well thought through move.

In Malaysia, Debenhams has stores in The Curve, Mutiara Damansara, and Starhill Gallery, Jalan Bukit Bintang, since 2008.

The soon-to-be-opened 18,000sq ft outlet will be Debenhams first outside of the Klang Valley.

“We’ve invested some RM4mil in this outlet and we will be employing about 30 local staff.

“Gurney Paragon will be the epicentre of shopping in Penang and the brands we carry will provide a breath of choice in quality fashion.

“Fundamentally, we realised from the onset the importance of getting the pricing right.

“Now Penangites won’t have to travel down to Kuala Lumpur to get their Debenhams fix,” he said.

He said Debenhams’ debut was timely as fashion conscious Penangites had often visited the brand’s outlets in Kuala Lumpur and asked about the possibility of a store opening here.

“We anticipate opening more stores in Malaysia such as in Johor but the Gurney Paragon outlet will be a flagship store to cater to the whole northern region,” he said.

Debenhams represents London’s most famous edgy high street fashion names alongside chains like Topshop, Dorothy Perkins, Warehouse and Marks & Spencer.

With a legacy that dates back 200 years and more than 239 stores globally, Debenhams carries a host of designer lines exclusive to the chain, namely Julien McDonald, Matthew Williamson, Henry Holland, John Rocha and Jasper Conran.

Debenhams PLC UK head of international business development John Scott who was also present, said Asia offered the brand its biggest expansion opportunity.

“Clearly with the current crippling European economic conditions, Asia is our biggest growth area.

“We are looking at more stores in Indonesia, Philippines, Vietnam and China.

“Debenhams sees itself as an ‘international retailer’ rather than a British retailer looking to spread its wings globally,” he said.

The duo were speaking at a press conference after the signing ceremony between Jackson and Hunza Properties Bhd executive chairman Datuk Khor Teng Tong recently.

In his speech, state executive councillor Chow Kon Yeow who witnessed the signing, said Debenhams’ opening marked a continuation of Penang’s rich British presence here.

“The introduction of international brands like Debenhams will surely boost the state’s tourism, retail and food sectors,” he added.

Picture below:
Top guns: Debenhams Malaysia managing director Andy Jackson speaking to the media while Scott looks on.

Source reference link: http://thestar.com.my/metro/story.asp?sec=north&file=/2012/11/9/North/12270734

Saturday, November 3, 2012

Penang Property | Higher prices with heritage status

Saturday November 3, 2012

Higher prices with heritage status

By DAVID TAN
davidtan@thestar.com.my

HERITAGE properties in Penang are now selling for RM600-RM1,200 per sq ft, depending on the historical and architectural characteristics of the property, the size and location.

Henry Butcher Malaysia (Penang) vice-president Shawn Ong says that prior to George Town's listing as a Unesco World Heritage Site (WHS) in 2008, the properties were selling from between RM300 and RM600 per sq ft.

“In view of the limited units of pre-war properties available in Penang, pre-war buildings with unique characteristics are generally attracting a lot of buying interest.

“Therefore, it is quite common for pre-war buildings available for sale being snapped up by investors, pushing up the selling price.

“The majority of buyers are Malaysians contrary to perception that more foreigners than Malaysians buy pre-war properties.

“A notable recent transaction is the sale of 30 units of pre-war shophouses in Nagore Road, George Town to investors,” he says.

According to Ong, the rentals of pre-war buildings of larger size in George Town's prime zones generally fetch RM10,000 to RM20,000 per month, compared to between RM5,000 and RM8,000 before George Town's Unesco WHS status.

“Locations such as Armenian Street, Stewart Lane, Chulia Street, Love Lane, and Muntri Street, due to their proximity to Little India and Khoo Kongsi, are among the most sought-after areas for heritage properties in George Town,” Ong adds.

The selling price of heritage properties in Penang has risen by about 10% this year compared with 2011, according to Ong.

According to Henry Butcher's Penang Real Estate Market Report, the total number of pre-war buildings within the conservation area of George Town Unesco WHS is 4,665, with 2,344 units at the core zone and 2,321 units at the buffer zone.

The core zone covers 109.4 ha bounded by the Straits of Malacca on the north-eastern tip of the island, Love Lane to the north-west, and Malay Street Ghaut and Dr Lim Chwee Leong Road to the south-west corner.

The core zone is protected by a 150-ha buffer zone bounded by Dr Lim Chwee Leong Road to the south-west and Transfer Road to the north-west.

According to PPC International Sdn Bhd director Mark Saw, the number of heritage property transactions for Penang in 2011 was 228, compared with 211 in 2010.

“Most of these properties were for double-storey pre-war houses in the north-east district of the island.

“Those with the foresight to invest in heritage properties before George Town received the WHS status would see the value of their properties increased substantially today.

“In the market presently, there are large-size heritage properties in inner George Town selling for more than RM10mil,” he says.

One such heritage building in inner George Town with a built-up and land area of 10,000 sq ft and 5,762 sq ft respectively is the No. 25 China Street, a double-storey property built in 1846 by Kapitan Chung Keng Kwee.

Malaysian-born David Wilkinson, who owns the property, says he bought the property in 2005 and spent over RM2mil to restore the building, which took about two years.

“It is the largest property on China Street as the building is equivalent to three shophouses. The property is being used as a private residence, but has the potential for commercial usage as a special heritage museum,” he says.

Another sizable heritage property in inner George Town that has seen its value rise substantially since 2008 is the row of five pre-war houses on Stewart Lane now collectively known as Coffee Atelier, comprising a coffee house cum restaurant, museum, art gallery and four hotel rooms owned by Stefan Gehrig and his wife Lorina.

Stefan says he purchased the five properties, which had a total built-up area of 8,160 sq ft and land area of 4,800 sq ft, for RM3.5mil in 2010.

He adds that he had recently received an offer of RM6mil for the properties.

“The five unique heritage properties were built in 1927 and were called shophouses because the original inhabitants carried out their trades on the ground floor, and lived with their families on the upper floors.

“One of these shophouses was once a coffee merchant's workshop in 1988.

“The name Coffee Atelier' derives from this element of the building's history and celebrates the memory of this artisanal trade from a bygone era,” he says.

Pictures below:
The Coffee Atelier, comprising 5 prewar buildings at Stewart Lane.

Stefan and Lorina co-own the Coffee Atelier.

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/11/3/business/12262229&sec=business

Penang Property | RM46mil allocated to four restoration projects inPenang

Saturday November 3, 2012

RM46mil allocated to four restoration projects in Penang
By DAVID TAN
davidtan@thestar.com.my

SINCE George Town received Unesco World Heritage Site (WHS) status in 2008, over RM46.3mil has been allocated to restoration work in four major heritage projects.

The most well-known of these heritage properties restored are the Choong Lye Hock mansion and the Loke Thye Kee building.

The other two restoration projects are by Asian Global Business (AGB) and Public Packages Holdings Bhd involving commercial offices and warehouses built in the early 20th century at Weld Quay and Church Street Ghaut.

The AGB Group is restoring two early 20th century commercial and warehouse properties to be an integrated RM220mil Rice Miller Hotel and Residences, which is an in-fill development project.

An in-fill development involves constructing a project from scratch.

The cost of restoring a heritage project depends on the quality of finishing used and normally ranges between RM300 and RM400 per sq ft.

Sometimes a company spends more for restoration because of the condition and age of the property.

A prime heritage property in George Town can fetch rental of between RM5 and RM10 per sq ft, which means that a 2,000 sq ft heritage property strategically located can generate a rental of RM10,000 to RM20,000 a month, according to Henry Butcher Malaysia (Penang) vice-president Shawn Ong.

The Choong Lye Hock mansion restoration project, located on 48,943 sq ft at Macalister Road, was undertaken by local businessman Datuk Sean H'ng and his wife Datin Karen H'ng.

The Choong Lye Hock mansion belonged to a tycoon and philanthropist, who bought the property in the late-1890s.

Lye Hock is the father of local millionaire Ch'ng Eng Hye and the grandfather of badminton legend Datuk Eddy Choong.

The restored building, now known as Macalister Mansion (MM), has eight hotel rooms, two restaurants called The Dining Room and The Living Room, and two bars called the Bagan Bar and The Den.

Macalister Mansion opened its doors to the public in April 2012.

According to MM public relations director Josephine Leong, the planning and the restoration work for the 17,286 sq ft mansion took about 20 months.

“This is corporate responsibility initiative project to demonstrate that old colonial buildings can be regenerated into useful and practical spaces with a contemporary feel.

“Some eight months were spent on planning the design with a Singapore-based interior design company, Ministry of Design (MOD) to produce stunning interior designs.

“It took us 12 months to restore and reinforce the original columns, staircases and archways, original brick walls and wall cornices.

Leong says the Macalister Mansion project was more about a labour of love.

“The owners want to raise the bar in the boutique hotel scene in Penang. As global travellers, they would like to bring back that differentiated hotel experience where guests get to enjoy a more personalised and intimate level of service within luxurious surroundings,” Leong adds.

Raine & Horne Malaysia director Michael Geh says about RM2mil or about RM630 per sq ft was spent on restoring Loke Thye Kee, known as the oldest restaurant in Penang, at Burmah Road.

According to Geh, a local investment company, Loke Thye Kee.com, set up by Singaporean investors, bought the double-storey property from a local businessman some about six years ago.

“About two years, which included also the time to obtain the green light from the local authorities for renovation, was spent on restoring the building with approximately 3,200sq ft of built-up area.

“It has been leased to a local company called Food People Sdn Bhd, which plans to set up soon a Hainanese restaurant, and food and beverage outlets,” he says.

Known as the House of Happiness in Hainanese, the Loke Thye Kee restaurant was established by brothers Loy Kok Boon and Loy Kok Dai, who leased the building from local businessman and philanthropist Khoo Sian Ewe.

Loke Thye Kee serves traditional Hainanese and Western cuisine such as curry kapitan, choon piah, and chicken chop.

AGB Group spent RM21.5mil or RM860 per sq ft to restore two heritage commercial and warehouse properties built in the early 20th century at Weld Quay.

AGB chief executive officer Dr Noraini Abdullah says the restoration turned out to be costly because a lot of work had to be done for strengthening the physical buildings, as their conditions were bad.

“About RM16mil was spent for restoring and reinforcing the physical infrastructure of the warehouse building, which serves as the event hall of the Rice Miller Hotel.

“Another RM5.5mil was spent in restoring a 5,000 sq ft colonial commercial building that will serve as the restaurant for the Rice Miller Hotel,” she adds.

The Rice Miller Hotel and Residences project is scheduled for completion next August and scheduled for opening in Dec 2013.

It will comprise 48 hotel suites, 99 city residences, which range between 800 and 2,500 sq ft in built-up, 23 retail lots of 600 sq ft, and two blocks of five-storey office buildings.

“In the past 12 months, we have sold 50% of the retail lots and city residences. Most of the buyers comprise Penangites and investors from Ipoh and Kuala Lumpur,” she adds.

Next to the Rice Miller Hotel and Residences project, Public Packages Holdings Bhd (PPHB) is restoring two heritage double-storey commercial properties with over 39,632 sq ft to be integrated into a RM50mil in-fill heritage hotel cum commercial project located at Church Street Ghaut, off Beach Street, which is popularly known as the central banking district.

PPHB hotel project manager Tony Koay says the group would spend RM15.8mil or RM400 per sq ft to restore the two heritage properties with fittings.

“One of the heritage commercial building with 11,000sq ft will be restored as part of the in-fill heritage hotel.

“The other heritage property with 28,632sq ft will be restored for commercial and office usage,” he says.

Koay says the advantage of carrying out infill development work for the heritage hotel project was that one could maximise the interior of the buildings to suit the needs of modern business usage.

The cost per sq ft to develop a heritage hotel from scratch with furnishings is about RM1,000 per sq ft, says Koay.

“A problem with restoring a heritage building for hotel usage is that the interior of such heritage buildings restricts the utilisation of space,” he says.

Koay adds that the in-fill heritage hotel would have over 150,000 sq ft of built-up area, 150 rooms, a business centre, meeting rooms, two-level of basement car-park, and retail shops on the ground floor.

“The architectural style for the hotel follows the design of late 19th and early 20th century port offices and warehouse buildings in George Town.

“We are targeting the upmarket tourists,” Koay says.

Picture below:
The restored Macalister Mansion has 8 hotel rooms, two restaurants and two bars.

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/11/3/business/12262216&sec=business

Tuesday, October 30, 2012

Penang Property...Warehouse for lease (3rd warehouse)

Penang Property...Warehouse for lease (3rd warehouse)

Facilities: Penang Island with mezzanine floor and office

Total Build Up Warehouse (sq ft): 4,600

Interested call Vulcan Lau, mobile: +6 016 451 1321 to arrange for viewing.

Tuesday, October 23, 2012

Penang Property | Exclusive Sale 1.72 acre land @ Balik Pulau, PenangMALAYSIA.

Exclusive Sale 1.72 acre land @ Balik Pulau, Penang MALAYSIA.

Asking RM3.0 million. Call Vulcan Lau (VULCAN INTERNATIONAL Real Estate Investors Club), Mobile: +6 016-451 1321 to arrange for appointment.

Back to Main Page: www.VulcanInternational.blogspot.com

Tuesday, October 16, 2012

Penang Property Talk Guru...Warehouse for lease (2nd warehouse)

Penang Property Talk Guru...Warehouse for lease (2nd warehouse)

Facilities: Penang Island with cargo lift and office

Total Build Up Warehouse (sq ft): 22,200

Interested call Vulcan Lau, mobile: +6 016 451 1321 to arrange for viewing.

Interested tenant could request a copy of warehouse report by email to: Vulcan.Lau@gmail.com

Tuesday, September 25, 2012

Penang Property Talk Guru | Warehouse for lease (1st warehouse)

Penang Property Talk Guru...Warehouse for lease (1st warehouse)

Facilities: Butterworth, Prai

Total Warehouse (sq ft): 180,000

Cold /chilled storage (cu ft): 385,000

Interested call Vulcan Lau, mobile: +6 016 451 1321 to arrange for viewing.

Monday, August 6, 2012

Penang Property Talk Guru | Penang Investment | Rising rental yields...Restore or renovate?

Monday August 6, 2012

Penang Property Talk Guru | Penang Investment | Rising rental yields...Restore or renovate?

[The rental value of prime property in Georgetown's heritage zones has climbed at least 50% over the past 12 months]

HERITAGE buildings in George Town continue to draw investment interest, with renovated shophouses in the heritage core and buffer zones chalking up an increase of 50% to 100% in rental value since last year.

But is all this rush to cash in on tourist dollars resulting in unsafe buildings that do not meet fire safety regulations?

In Penang, a“heritage building” refers to pre-war structure, such as traditional Chinese shophouse, built before 1945, the year World War II ended.

For a long time, the rental yield of old shophouses was rather low, typically fetching a couple of hundred ringgit for residential use and several hundred ringgit for business use.

In George Town, shophouse property can either have residential or commercial status within the same street.

But in recent years, with the increase in low-cost flights to the island and the influx of tourists — bother domestic and foreign — new investors have been attracted to establish mainly boutique or budget hotels in shophouses.

A check on online property portals reveal that typical shophouse property in the prime commercial areas of George Town are not longer within the RM1,500 to RM2,000 rental range but at least RM3,000 per month.

Tenancy agreement
Previously, we have reported on the steep rise in the value of heritage buildings in George Town due to the new-found demand for property with a bit of history and architectural appeal.

And the latest news is that such increases have prompted stakeholders — especially clan and religious associations that own many such properties — to re-evaluate their rental agreements with tenants. One business affected by the rise in property value is the Alpha Utara Gallery established by veteran artist Khoo Sui Hoe, 73. Located in a renovated, pre-war shophouse at Lebuh China, the gallery has been operating there for the past eight years.

“My rent was RM2,000 when I first started here,” explained Khoo, who has been an ardent promoter of art in Penang.

“But with the nature of this business, it will be hard to keep up with any increase.”

However, according to Khoo, he wasn’t even informed of any rent increase.

He was only told that the association wanted to terminate the rent agreement and take possession of the premises. Apparently, others were waiting in the wings. Khoo will move out by the end of September.

Word in the neighbourhood is that such a splendid double-storey shophouse in Lebuh China, near the Kwan Im Teng Temple, can fetch at least RM4,000 a month.

According to an informed source, even RM4,000 is considered reasonable, as there are properties nearby, up for rent at between RM5,000 and RM6,000 monthly.

For instance, a newly-completed triple-storey, shophouse property — spanning three adjoining units — is commanding rent of RM12,000 a month. The tenancy agreement purportedly extends to 25 years and the cost of restoration is being borne by the tenant.

However, not all shophouse property located in George Town can fetch such prices — not yet anyway. The popular areas for new businesses seem to be centred on the heritage core zone and buffer zone where tourists throng.

Love Lane
While Jalan Chulia and Lorong Love (Love Lane) have long been favoured by back packers in the past, more chic and pricier lodgings and eateries have sprouted within and beyond the inner city neighbourhood.

Even the early “heritage” enterprises such as the Little Shanghai Heritage Row at the junction of Jalan Nagor and Jalan Bawasah have been overshadowed by recent developments closer to the heritage zones.

Typically, many of the old buildings located in areas such as Lebuh Armenian, Jalan Muntri, Lebuh China and Lebuh Pantai (Beach Street), have been converted into trendy cafes, restaurants and art galleries as well as “boutique” or “budget” hotels with a couple of “Homestay” establishments joining the bandwagon.

Even places further afield from the heritage zones such as Jalan Hutton and Jalan Clove Hall have relatively new businesses in heritage buildings.

Within the past year, more tourism-related enterprises have mushroomed, including along Jalan Pintal Tali (Rope Walk), Lebuh Campbell, Lebuh Cintra, Jalan Masjid Kapitan Keling and Lebuh Noordin.And soon to join the ranks will be new business establishments at Lebuh Melayu, Lorong Ikan, Lorong Lumut, Lorong Stewart, Lebuh China and Jalan A.S. Mansoor (Jalan Sekarat).

What has been mentioned, refers mainly to old shophouses converted to lodgings with limited accommodations ranging from five rooms to a dozen or two, depending on how many adjoining shophouses are involved.

St Giles
Incidentally, dwarfing all these little “boutique” developments will be IGB Corp Bhd’s St Giles Hotel being built on five lots facing Traders Hotel along Jalan Magazine, a road parallel to Lebuh Noordin. The 31-storey building will have 576 rooms. It will be managed by Cititel Hotel Management. But St Giles will be marketed at a higher class than Cititel.

Commercial use
Anyway, buying or investing in an old shophouse is one thing. The hassles begin when the owner or stakeholder tries to restore or renovate the property for a business venture. There are so many confusing and conflicting regulations involving regulatory bodies, including the local municipal council, Fire & Rescue Department (Bomba) and even George Town World Heritage Incorporated.

Applying for a permit to restore your property — especially if it is located within the heritage zones (core and buffer) — could take at least eight months to a year. This is despite all the talk about the local authorities’ one-stop approval centre.

If you want to apply for a change of status from residential use to commercial use, the process is long and tedious. Actually, first and foremost, you have to submit all your architectural plans to Bomba for approval. And Bomba’s requirements may not necessarily conform to heritage conservation guidelines.

A property owner on Lebuh Melayu complained that it took him two long years to get the approval to convert his shophouse to a hotel. Apparently, his building and material costs went up three times while waiting. Other property owners who try to do things the right way have complained of illogical requirements.

One property owner was made to build a enormous water storage tank in his shophouse property that took up half his kitchen space. He was also asked to provide parking space in front of his shophouse property along busy Lebuh Campbell, an impossible requirement.

When challenged to show the actual bylaw requiring this, the official concerned could not respond.

Those who have yet to be issued a renovation permit have also complained of harassment when they try to dispose of rubbish from their newly vacated property.

One owner at Jalan Pintal Tali was recently told that clearing rubbish also require a permit!

Bomba
Nevertheless, a visit to Bomba Penang headquarters in Prai revealed that certain property owners of heritage buildings in George Town have not renovated or restored their property to conform to fire safety regulations. This is simply because they did not apply for Bomba’s approval.

According to Bomba Penang director Azmi Tamat, 55, owners wanting to convert their property to commercial use have to abide by the regulations stipulated in the Uniform Building Bylaws 1984 that apply everywhere in the country.

“We understand the situation of property owners, but not all heritage properties can be approved for use as hotels or restaurants,” said Azmi, a veteran of the fire department for the past 35 years.

“We don’t want a situation in which a tourist or anyone is killed in a fire in one of those boutique or budget hotels. We have to adopt preventive measures before such a situation occurs. And the regulations are clearly spelt out under the bylaws,” pointed out the fire chief.

Two exits
He said that any property for hotel use must have two exits — front and back. The maximum distance to the exit is nine metres. And the staircase must face the front entrance. This is contrary to the traditional layout of a shophouse where the staircase faces the back.

Wall and flooring material must be fire retardant or resistant, which means that the floor boards on the upper level have to be underlaid with such a material. Doors have to be fire-rated and must be able to withstand heat and flames for at least one hour.

Azmi explained that during an emergency, local workers may be familiar with the building structure and escape, but a visitor especially a foreigner, may not find a way out. Also, a fire victim could also be easily overcome with smoke.

Architects
Owners of old shophouses should adopt both active and passive measures to prevent fires from occurring or spreading, advised Azmi.

Besides installing smoke, heat and fire detectors as well as a smoke extraction system, hose reels, emergency lights, exit signs and fire extinguishers, the staff of commercial premises must attend a course on emergency response conducted by Bomba. A company representative such as the receptionist, chef or security staff need only attend the three-day class once. The participant is then expected to train his or her own colleagues.

Said Azmi: “We know that operators of hotels in heritage buildings don’t make that much and we sympathise with them, but where lives are at stake, we can’t take chances. Their qualified architects know the requirements and procedures, therefore, they should submit their plans to us to ensure everyone’s safety.”

But like everything else, there is a loophole in the law that allow owners of residential property to operate their “hotel” business. And it is perfectly legal but we shan’t go into that.

And just how many “heritage” buildings and sites are there in George Town?

World heritage
According to George Town World Heritage Incorporated (GTWHI) acting general manager Lim Chooi Ping, 45, there are 5,439 buildings and sites identified and deemed to be of heritage value. These are classified under four categories of importance.

Under Category I, there are 93 properties including buildings, gateways, cemeteries and historical sites. Sixty-nine of the properties are located in the heritage core zone.

Category II has 4,048 properties comprising mainly shophouses. They are evenly distributed within the core and buffer zones.

Under the category of “infill development” there are 585 sites identified as vacant land or temporary structures where “compatible” re-development is permitted. They are mainly located along the waterfront between Lebuh Beach and Pengkalan Weld (Weld Quay).

And under the “replacement” category, there are 713 buildings deemed to be without any significant value where sensitive re-development is permitted.

Thumbs-up
As a private company set up by the Penang State Government, GTWHI has no actual powers to enforce any perceived flouting of rules and regulations. However, the company’s representative sits on the approval board of the local council which vets permit application for restoration or renovation projects, especially those located within the heritage zones. They can give the thumbs-up or thumbs-down should they have any objection.

A town planner by profession, Lim has been seconded from the Municipal Council of Penang Island to head the GTWHI at the end of 2010.

“A copy of all renovation permit applications is extended to us for our comments at the technical review panel. We look for compliance to building guidelines or the strategy or action plan prepared.”

On the apparent contradictions in Bomba’s fire prevention measures and GTWHI’s focus on ensuring compliance to heritage conservation, Lim said if there were conflicting requirements then, “maybe such commercial use is not advised”.

Intrinsic value
For her, the main challenge facing GTWHI was to educate the public especially property owners on the importance of maintaining the building’s inherent character and intrinsic value, especially when renovating.

“We hope they can work with us to enhance the building’s value. We can advise them on where to get the necessary material from suppliers or get technical advice from experts.”

According to Lim, the definition of “heritage value” covers five aspects:
• historical value
• architectural value
• townscape value
• social value
• scientific value (construction technology)

“For shophouses, the only requirement is for the owner to preserve the façade. Internally, the owner can alter or make changes like adding more floor space but subject to compliance to guidelines,” explained Lim.

Special Area Plan
With the restrictions in the proposed Special Area Plan pertaining to the type of commercial activities allowed within certain zones, she pointed out that when it came to food and beverage outlets, there was no blanket ban on western restaurants.

“We want to promote local cuisine but we can still have French or Italian restaurants but not international fast food restaurants like KFC or McDonald’s.”

Lobbying
And the last word on heritage buildings and restoration comes from Penang-born entrepreneur Christopher Ong, well-known for transforming shophouses and other antiquated buildings into boutique “rental units”.

“It is important for buyers in the heritage zone to restore their properties and not just speculate and add nothing to the Unesco World Heritage Site,” pointed out Ong.

“I am lobbying the council to impose regulations to compel (proper) restoration if the property change hands. There has to be responsibility that comes with profitability.”

•Log on to www.starproperty.my for related articles and to check the rental rates and asking prices of Penang property especially in George Town.

Source reference link: http://thestar.com.my/metro/story.asp?file=/2012/8/6/north/11803254&sec=North

                                  http://thestar.com.my/metro/story.asp?file=/2012/8/6/north/11803314&sec=north

Wednesday, August 1, 2012

Penang Property Talk | Penang Investment | Plans for Heritage Square

Penang Property Talk | Penang Investment

Wednesday August 1, 2012

Plans for Heritage Square New enclave will complement revitalisation of Komtar, says CM
By WINNIE YEOH and CLIFFORD LEE
newsdesk@thestar.com.my

GEORGE TOWN: The old Sia Boey market will be part of a 1.82ha plot of land to be turned into a new heritage enclave on the island.

The enclave, to be known as Heritage Square, is a project under the Komtar Phase Five development announced by the state government and the Penang Deve-lopment Corporation (PDC).

Chief Minister Lim Guan Eng said the move was in line with George Town’s World Heritage Listing and would complement the revitalisaation of Komtar as a socio-civic centre and business hub of the state.

“It will be a complete makeover and it will predominantly be used as a public space,” he said after visiting Sia Boey in Lebuh Tek Soon yesterday.

The project will have five major elements – restoration and expansion of Sia Boey (Prangin Market), the creation of urban spaces, a heritage celebration square and an iconic George Town heritage centre, reinstatement and adaptive reuse of old shophouses and restoration of the Prangin Canal.

Under the plan, it is hoped that the square and centre would restore the cultural vibrancy of George Town by promoting living heritage and street life as well as green the city to ensure balanced development in the area.

Lim, who is also PDC chairman, said the draft plans would be open to the public for viewing next week.

“The draft is subject to changes. We want to make public viewing available before Hari Raya Aidilfitri,” he said.

The revitalisation will include a visitors’ centre, crafts and souvenir retail areas, flowers and food hubs.

PDC is also expected to build an adjacent market to complement the existing one. However, this will be a “dry” market instead of “wet” one.

The plan will also see existing shophouses along Maxwell Road undergo adaptive reuse into cafes, coffee shops, teahouses, handicraft centres, mini museums, boutiques and B&B hotels in line with the heritage ambience and theme of the area.

A five-storey building would be erected to add to the vibrancy of the square.

The restoration of the Prangin Canal would include plans for a hawker street food zone and street furniture in well-landscaped areas.

Source reference link: http://thestar.com.my/metro/story.asp?file=/2012/8/1/north/11771391&sec=north

Sunday, July 22, 2012

Penang Property | Singaporeans snap up Malaysian property as ringgit weakens

By Clara Choo

KUALA LUMPUR, July 22 — More Singaporeans are streaming across the Causeway to buy up property in Malaysia, taking advantage of the weakening ringgit which has fallen by 2.7 per cent in the past year to reach a 14-year low against the Singapore dollar.

Singapore’s Straits Times (ST) reported today figures from Malaysia Property Inc — an agency that promotes Malaysia’s real estate abroad — showing that the total transaction value of real estate here had spiked by 28 per cent last year to RM137.8 billion from RM107.4 billion in 2010.

Of the total, the paper said, two per cent were foreign investments.

Noting the trend, local agents have also been increasing efforts to lure Singaporeans into investing in the Malaysian property market through heavy advertising, roadshows and road trips for potential buyers to visit sites.

Citing property agency HSR’s overseas department head Donna Lim, the daily reported that the number of exhibition visits from Singaporeans alone had seen a sharp incline from last year.

Property agent Propnex was cited as saying that Singaporeans had purchased 50 units through them in the second quarter of the year, double the amount purchased in the first quarter.

Leisure Farm Singapore head Peter Lim said Singaporeans had bought 35 units in Johor’s Iskandar region over the past two months, compared to merely a dozen in the first two months of last year.

“The weakening Malaysian ringgit, the lure of owning landed property and familiarity with the country are reasons they (Singaporeans) cite for looking north,” the daily wrote.

But although the capital of Kuala Lumpur continues to have its lure, Singaporean investors are finding better familiarity with Johor and are particularly attracted to the state’s bustling Iskandar region.

Citing Malaysia Property Inc, ST reported that in the first half of 2010 alone, foreigners made up only four per ent of Johor’s property transactions for purchases above RM1 million.

“In the corresponding period last year, however, that figure shot up to 25 per cent,” the paper wrote. “Much of the demand has been generated by the buzz over the Iskandar region, earmarked by the Malaysian government as a major growth area for the country.”

According to Edwin Tan, director of the Paragon Residences @ Straits View Malaysia project in Iskandar, Singaporeans booked 116 units during a roadshow earlier this month while only 54 bookings were made by Malaysians.

Apart from Johor, the ST reported that many Singaporeans have also been venturing further up north in Malaysia to scout for potential investments in Malacca, Kuala Lumpur and Penang.

Hunza Properties senior marketing and sales manager Lily Tan was cited as saying that Singaporeans account for some 15 per cent of the firm’s unit sales in its newest condominium Gurney Paragon in Penang.

“The weakening of the ringgit against the Singapore dollar is expected to further stimulate demand. It has fallen by 2.7 per cent in the past year to reach a 14-year low against the Singapore dollar,” ST wrote.

[Analysts say Singaporean investors are particularly attracted to Johor’s bustling Iskandar region as they visit the state often.]

Source reference link: http://www.themalaysianinsider.com/mobile/malaysia/article/singaporeans-snap-up-malaysian-property-as-ringgit-weakens/

VULCAN INTERNATIONAL Real Estate Investors Club | Penang Property

Saturday, July 21, 2012

Penang Property | The 8-mural in the city of Georgetown Heritage Zone,Penang MALAYSIA.

Penang Property | The 8-mural in the city of Georgetown Heritage Zone, Penang MALAYSIA. Mural#1 & 2.

Courtesy of VulcanInternational | Penang Property
_____________________________

Thursday July 19, 2012

Trishaw mural set to draw interest

INTERNATIONAL artist Ernest Zacharevic has managed to bring his idea to life by painting a gigantic mural of a man sitting in a trishaw in George Town Penang.

Zacharevic, from Lithuania, is now famed for his murals of his ‘Mirrors George Town’ street art project for the George Town Festival 2012.

The gigantic mural about 15.2m by 15.2m is majestically painted on a wall of a building in Upper Penang Road beside the Red Garden Food Paradise car park.

The mural was his sixth, which was painted within the core heritage zone of George Town.

“I find it most interesting to see the trishaw-man using the trishaw to hide from the sun and to sleep and sip coffee after a hard day’s work. It is an interesting concept and it gave me the idea to paint it,” said Zacharevic.

My gift to Penang: Zacharevic posing in front of his mural in Upper Penang Road
The 25-year-old added that the location is also perfect as there is a trishaw pick-up spot (beside Cititel Hotel) just a stone’s throw away from where the mural was painted.

It took Zacharevic about a week to complete the gigantic mural painting.

George Town Festival 2012 director Joe Sidek was grateful to the state for giving freedom for artists to promote the diversified arts and culture scene here.

Singaporean actress Tan Kheng Hua, 49, who played Margaret in the ‘Phua Chu Kang’ sitcom, expressed her interest in working with Joe in the next George Town Festival.

“I would do anything to work with him and I see Penang as a hit,” she said when met at the site on Sunday which was the last day of the George Town Festival 2012.

State Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai said the project sparked an interest as the arts is not only confine to art galleries alone.

He said: “There are many types of art, be it sculpture, mural or others.”

He added that to work on the mural paintings, the artist must obtain permission from the building owners and the local councils before commencing work.

Source reference link: http://thestar.com.my/metro/story.asp?file=/2012/7/19/north/11670115&sec=North

[My gift to Penang: Zacharevic posing in front of his mural in Upper Penang Road.]

Thursday, July 19, 2012

Penang Property | Stable office rentals in KL

Penang Property | Thursday July 19, 2012

By THOMAS HUONG
huong@thestar.com.my

KUALA LUMPUR: Rental rates for purpose-built offices in Kuala Lumpur were generally stable in the last three years, except for certain suburban and city centre areas which showed an upward trend, according to the 2011 Purpose Built Office Rent Index (PBO-RI) for Federal Territory of Kuala Lumpur.

“Looking at the data... the market is still good,” National Property Information Centre (Napic) director Dr Zailan Mohd Isa said at a pre-launch briefing of the 2011 PBO-RI which will be launched today.

The rent index has four regions, namely Kuala Lumpur City Centre-Golden Triangle (KLCC-GT), Centre Business District (CBD), within city centre (WCC) and suburban.


According to the rent index, average monthly rentals for purpose-built offices in the WCC region had increased gradually from RM2.92 per sq ft in the first quarter of 2009 to RM3.46 per sq ft in the fourth quarter of 2011.

This meant that average monthly office rentals in the WCC region had increased 18.5% over a three-year period.

It was also noted that average monthly office rentals in the suburban region had appreciated by 13.2% over a three-year period, rising from RM3.10 per sq ft in the first quarter of 2009 to RM3.51 per sq ft in the fourth quarter of 2011.

The suburban region includes Bangsar, Bukit Kiara, Damansara Heights, Jalan Pantai Baru, Jalan Istana and Jalan Syed Putra.

“Companies may be relocating to the suburban areas,” said Zailan.

Meanwhile, although the KLCC-GT region is the most sought after location in the city, average monthly office rentals were stable (a slight rise from RM4.60 per sq ft in the first quarter of 2009 to RM4.66 per sq ft in the fourth quarter of 2011).

However, the CBD region suffered a drop in average monthly office rentals, from RM3.46 per sq ft in the first quarter of 2009 to RM3.27 per sq ft in the fourth quarter of 2011.

For the entire Kuala Lumpur region under review, average monthly office rentals had increased sightly over a three-year period, from RM3.91 per sq ft in the first quarter of 2009 to RM4.04 per sq ft in the fourth quarter of 2011.

The rent index, which will be produced on a quarterly basis, is developed by Valuation and Property Services Department (JPPH), with assistance from Universiti Teknologi Mara (UiTM) and University of Malaya.

Zailan said it was the first rent index of its kind in the Asean region.

“It is based on data from actual rental agreements, and not asking rates.”

The rent index defines purpose-built offices as buildings with office use of not less than 75% of net lettable area, and has compiled rental data from 6,831 tenancy leases from 167 buildings.

Zailan said the rent index's aim was to provide a guide on current market rentals for investors, and a benchmark for the financial stability of the country.

“We also want to attract multinational corporations to set up regional headquarters in Kuala Lumpur,” she said.

Zailan also said the PBO-RI would be expanded eventually to cover all the major cities and towns in Selangor, followed by Penang and Johor.

“Getting data is the most dificult part. We urge all property managers and owners to co-operate with us in providing data.”

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/7/19/business/11687866&sec=business

Monday, July 16, 2012

Penang Property | National Electric Tariff with effect from 1-June-2011

Penang Property | National Electric Tariff with effect from 1-June-2011 / Tarif Elektrik Berkuatkuasa 1-June-2011

Case study 2: With increase new development launching on condominium/apartment in Penang under commercial title, the advantage of commercial title will only be effect if the usage is above 3,300kwh or RM1,419.00 .

Henceforth buying condominium/apartment under commercial title buyers will have to pay more for their electricity bill.

Case study 2a: Based on 600kwh usage for commercial title, you've to pay additional of approx. 30% . This a nominal(avg) household usage with bill of RM200.00(calculated under residential title).

Courtesy of VulcanInternational | Penang Property

Sunday, July 15, 2012

Penang Property | Star Property Fair 2012 @ G-Hotel & Gurney Plaza(12-July-2012 to 15-July-2012)

Penang Property | Star Property Fair 2012 @ G-Hotel & Gurney Plaza (12-July-2012 to 15-July-2012)

Courtesy of VulcanInternational