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Penang Developers New Projects In 2016 | More Affordable Housing?

Projects worth RM4bil in Penang next year

Developers shift focus to higher-priced residential properties

• StarBiz
 
• December 28, 2015

Chan: ‘We still fore­see the vol­ume and value trans­ac­tions of prop­er­ties to con­tract in 2016. How­ever, the con­trac­tion this time won’t be so sharp.’

GEORGE TOWN: Five developers will undertake RM4.33bil in property projects in Penang next year despite a challenging year for the property market.

The developers planned to price their mostly residential properties from between RM480,000 and RM3.3mil.

The price range came on the heels of this year’s launches of between RM200,000 and RM400,000 in strategic locations.

The developers would be shifting their focus to higher-priced residential properties. The condominium units in Bayan Lepas will be from 1,000 sq ft and priced from RM480,000 while three-storey houses with built-up of 5,300 sq ft will be priced at RM3.3mil in Seri Tanjung Pinang.

The developers are IJM Land Bhd with gross development value (GDV) of RM415mil, Ideal Property Group (RM1.46bil GDV), Hunza Properties Bhd (RM600mil GDV), Eastern & Oriental Bhd (RM650mil GDV) and Mah Sing Group Bhd (RM1.2bil GDV).

Real Estate & Housing Developers’ Association (Penang) chairman Datuk Jerry Chan told StarBiz that developers could be shifting their focus to properties priced from RM400,000 as there was a large supply of housing priced between RM200,000 and RM400,000 targeting first-time buyers.

This did not mean that buyers have lost interest in affordable housing with built-up of 900 sq ft and priced from RM500 to RM600 per sq ft.

Chan pointed out that developers would continue to build housing in the affordable range to leverage on the higher density for plots of land but there would be a gradual shift to the “non-affordable” range.

He added that there would be fewer launches in 2016, due to the difficulties in obtaining bridging and end-financing loans from banks.

Referring to the incoming supply of housing that were currently under construction, Chan said this would be spread over a five- to 10-year period, depending on market demand and the size of the schemes.

The National Information Property Centre (Napic) report revealed that the state would see an incoming supply of 72,114 units into the market.

According to the Napic report, the existing stock of houses in the state stood at 393,303, compared with 383,484 in the first half of 2014.

“We still foresee the volume and value transactions of properties to contract in 2016. However, the contraction this time won’t be so sharp,” Chan said.

Ideal executive chairman Datuk Alex Ooi said the group had developed 4,840 units of affordable projects on the island for the last two years.

“We have sold about 60% of these properties. Moving ahead, the strategy is to move into the non-affordable range priced between RM400,000 and RM600,000.

“Ideal Property still has around 300 acres of land bank on the island. We have some 25,000 units of properties planned for the land bank.

“There are still 8,000 units of properties with more than RM4bil in GDV to be implemented over the next 10 years, priced between RM400,000 and RM600,000,” Ooi said.

'Moderate to flat' outlook

Ooi expected property market conditions to be “moderate” to “flat” in the coming year.

Mah Sing (North) senior general manager Law Wei Keong said the company had recently completed a survey on the preference of housing products in the country.

“The study revealed that a majority of the 6,000 surveyed favoured houses priced in the range of RM500,000 to RM700,000,” he said.

Of the RM2bil worth of housing projects launched in the country this year, about 16% were priced from RM1mil, while the remaining 84% are below RM1mil, according to Law.

IJM Land senior general manager (north) Datuk Toh Chin Leong said despite the weak market sentiment, the company would continue to launch properties priced below RM800,000.

“It will be a slow year for the property market in 2016,” Toh said.

IJM Land’s pipeline of projects for next year in Penang included the RM232mil Waterside Residence in The Light Waterfront project next to Penang Bridge, the RM64.7mil Trehaus Condo Villa scheme in Bukit Jambul, and the RM118.4mil Senjayu Terrace project in Jawi, South Seberang Prai.

The Trehaus and the Waterside Residences scheme would be launched in the second quarter of 2016, while the Senjayu Terrace would be introduced in late 2016.

“The price of the three property schemes ranged between RM730,000 and RM1.3mil,” he said.

Meanwhile, Ideal would be launching the RM460mil Forestville, RM600mil Queens Waterfront Residences, and RM400mil Camerlina, located in Bayan Lepas, priced between RM480,000 and RM800,000.

“There is still growing need for mid-range houses that is reasonably priced, located within mature township, surrounded and supported by amenities such as schools with good accessibility, lower density with lifestyle concept,” he said.

Eastern & Oriental will develop the recently launched RM482mil Tamarind and 50 units of terraced houses with a RM168mil GDV in Seri Tanjung Pinang.

The Tamarind units, ranging between 1,000 sq ft and 1,770 sq ft, are priced around RM691,000 and RM1.16mil, while the terraced units, with built-up areas of 5,300 sq ft, are priced from RM3.3mil.

Its general manager (marketing and sales) Christina Lau said the Tamarind was scheduled for completion in 2019.

No date has been set for the completion of the 50-terraced properties.

Mah Sing to unveil Ferringhi Residence 2

Mah Sing will launch the RM735mil Ferringhi Residence 2, the RM350mil Icon Residence and an unnamed RM150mil project in Southbay City, Batu Maung.

“We are targeting the Ferringhi Residence 2 launch in the first quarter,” Law said.

The Ferringhi Residence 2 consists of three blocks offering 632 units with built-up areas from 1,208 sq ft to 2,910 sq ft, priced from RM775,265.

Law said the pricing for the unnamed project would be below RM680 per sq ft.

“The units have built-up areas of 750 sq ft to 1,000 sq ft,” he said.

Meanwhile, Hunza will develop the RM600mil Alila 2 project in Tanjung Bungah, 270 units which have built up of between 1,900 sq ft and 3,300 sq ft, priced from RM775 per sq ft.

“We will promote the 9.8acre project in Indonesia, Hong Kong, and Singapore early next year.

“The key attractions are the size of the units, which are extremely scarce on the island nowadays,” group managing director Khor Siang Gin said.

Source | StarBiz

Question: The prediction of 2016 of continue slowdown as a continuation from 2015 seems to hold water. Are the developers moving in right direction for affordable homes? What do you think? [Kindly share your comment below]

Bear in mind, Penang Government just published its massive blueprint of RM27 billion Penang Transportation Master Plan (PTMP) and location, location, location is there to consider for your hard earned money.

Boldly go. LLAP

VulcanInternational could be contacted at +6 016 451 1321 | #VulcanInternational | #VulcanFocus | #YouCallWeMatch

More details: http://vulcaninternational.blogspot.com .

You're welcome to write your constructive comment below.

investPenang | Press Statement | Merges And Acquisitions On Current Industry

Penang State's investPenang has came out with facts and figures including information on employment to clear the air on what's going on with the current industrial merges and acquisitions as in press statement published in Mutiara Buletin Issue of Nov 1-15, 2015 as below:

investPenang director Datuk Lee Kah Choon

PRESS STATEMENT—CURRENT INDUSTRY M&A                   [investPenang]

27 Oct 2015

1. As the State's investment promotion agency, investPenang wishes to address the current spate of on-line news and speculations regarding corporate movements of a few semiconductors / E&E (Electrical and Electronic) multinationals in Penang.

2. In today's industries and business, mergers and acquisitions are commonly carried out not only to consolidate operations but also for other reasons such as increase in market share and technology synergies. This is happening globally in the semicon and E&E (Electrical and Electronics) technology companies and Penang, as an electronic hub, with its many international companies, is invariably impacted.

3. In 1H 2015 alone, globally, $72.6 billion worth of M&A (mergers and acquisitions) were announced. This was more than four times the value of M&A reported in fiscal 2014. The 3 major M&A include:

- $37 billion acquisition of Broadcom by Avago

- $16.7 billion acquisition of Altera by lntel

- $11.8 billion acquisition of NXP Semiconductor by Freescale.

4. In Penang, 5 multinationals recently announced their M&As:

[a.] AMD joint venture with Nantong Fujitsu Microelectronic Co.

85% share in AMD's manufacturing sites in Penang and Suzhou, China were sold to Nantong Fujitsu Microelectronics for $371 million cash; with AMD retaining 15% stake. The manufacturing site in Penang will remain in operation. The JV is the “latest step in AMD's strategic transformation to further sharpen focus and operations on designing high-performance products." The company announced that "there are no planned workforce reductions in Penang AMD facility”. The deal expected to be closed first half 2016, as long as regulatory and other  approvals are obtained.

[b.] Sanmina Corp to take over Motorola Solutions’ manufacturing facility in Bayan Lepas.

Motorola's manufacturing in Technoplex facility will be taken over by Sanmina Corp, a leading integrated manufacturing service provider; whilst it focuses on R&D in Penang. They confirmed that the "sale does not change Motorola's commitment in Malaysia" and ”allows Motorola Solutions to deliver best in class service to its partners and customers”. They also reported in a local press on Oct 14th, 2015 that the "transfer does mean there will be a reduction in staffs". Employees will be transferred to Sanmina at no lesser terms than what they currentlv have. The transaction is expected to be finalized by early 2016.

[c.] Western Digital acquiring SanDisk

WD announced on 21 Oct 2019, its plan to acquire SanDisk for $19B cash and stock. The deal is scheduled to be closed by Q3 2016. There are currently 1042 employees in SanDisk Penang.

[d.] Amphenol to close one part of its business.

Amphenol is consolidating its mobile consumer products division in Asia Pacific, closing one of its plants in Penang. 150 employees will be affected. The Company will continue manufacturing of high speed connectors in 2 other plants in Penang, employing 800 staffs.

[e.] Dell acquired EMC at $67billion

Acquisition, announced on 12 Oct, 2015, was made to ‘evolve the company into the most relevant areas where lT is moving’.

From the above, it can be seen that only 150 jobs in Penang are affected. More job consolidation could be happening due to other M&As but there are no news of closure to date. Corporate movements will impact Penang, as host to many MNCs, and also other States in Malaysia.

5. In Penang, investments in the manufacturing sector remain robust. Recently, Jinko Solar as well as JA Solar, both multinational Chinese companies, started operations in Penang offering a total of 1,900 jobs. HP is currently constructing their factory in Batu Kawan and will employ 1,000 staff when it is in full operation. Overall, according to MIDA (Malaysian Investment Development Authority) , a total of 17,896 new jobs will be created in Penang via approved investments in 2014 and 13,199 new jobs via approved investments in 1H 2015.

6. Penang managed to attract RM48.2 billion worth of investments from 2008 to 2014, which is 93% higher than the RM24.9 billion invested on a similar 6 year period from 2001 to 2007.

7. In addition to manufacturing, the services sector, especially Global Business Services and Shared Services Outsourcing continues to offer high value job opportunities. HP recently started a finance centre at PDC Technoplex. Others include Osram‘s GBS center employing 150 staff and Jurong Engineering Design Center with 200 staff.

8. The Penang Career Assistance and Talent (CAT) Center continues to provide assistance to job seekers and employers looking for right candidates. As at 26 Oct, 2015, a total of 3,246 vacancies in Penang can be found in job portals linked to the CAT Centre.

9. The State government via investPenang is working closely with companies that have made announcements to assist and smoothen transition. However, for companies that have yet to make any official statements, due to confidentiality requirements at this stage or other reasons, whenever they can, we urge them to clarify matters to quell the spread of rumours. Further updates and clarifications will be given by investPenang when necessary.

10. As an international city where many multinationals are located, Penang will be subjected to vagaries of global business trends directly. We however remain positive in facing these challenges and steadfast in assisting all our investors and employees.

Source | Mutiara Buletin

You should also read related articles:

Penang | Silicon Valley of East losing position?

Adios Fairchild Semiconductor (Malaysia) Sdn Bhd

Malaysia | investPenang | Penang Capital Investments 1QFY2015 In One Easy Step (Infographic)

Malaysia | investPenang | Penang State's Capital Investments From 2010-2014

Malaysia | Exclusive Penang Factory/Warehouse Rental and Sale Price Report FY2014/2015

Malaysia Investment | investPenang | PSDC | PDC | IT-BPO | 5 Reasons For Penang FDI Moving Forward?

Cause for concern: Is Penang on the cusp of losing its position as the Silicon Valley of the East following news of relocations, mergers, retrenchment and even plant closures involving several major foreign electronic players in the state? What's your opinion? (Before you form your opinion do read through the related articles above)

Boldly go. LLAP

VulcanInternational could be contacted at +6 016 451 1321 | #VulcanInternational | #VulcanFocus | #YouCallWeMatch

More details: http://vulcaninternational.blogspot.com .

You're welcome to write your constructive comment below.

Penang For Sale 11 Brook Residences | The Evolution

11 Brook Residences, Penang is luxury bungalow type which comprises of 11 bungalows with high wall gated and guarded community. Located at Brook Road (Off Jesselton Road). It enclave a stone's throw away to the prestige Penang Turf Club (PTC) that incorporated with golf section and equestrian club which was established in 1864 and Taman Jesselton which is well know for its tranquility and lush greenery. The project sits on 2.1 acres of land with very low density of 5 bunglows per acre and it acquires Gold GBI (Green Building Index). To know what is GBI refers to Question on GBI section. It's one of the hotspot masterpiece property in Penang Island.

11 Brook Residences, Penang is luxury bungalow type which comprises of 11 bungalows.

11 Brook Residences | Race course view.

A stone's throw away to the prestige Penang Turf Club (PTC).

This is last opportunity for you to own one of the luxury bungalows for sale. It has private garden and swimming pool for you and your family to enjoy. The 3-storey bungalow is internally service by lift and is facing race track view. 

View To Appreciate. 

For private viewing, do contact Mr Vulcan Lau, mobile no.: +6 016 451 1321 | #VulcanInternational

Note: If you've factory/warehouse/land/commercial building/condominium/house to sell/let or intent to buy/rent one, do call Mr Vulcan Lau +6 016 451 1321 . We will match the buyer/tenant or seller/landlord for you from our MLS. Interested party do contact Mr Vulcan Lau, mobile no.: +6 016 451 1321 | #VulcanInternational | http://vulcaninternational.blogspot.com 

Note: If you've factory/warehouse/land/commercial building/condominium/house to sell/let or intent to buy/rent one, do call Mr Vulcan Lau +6 016 451 1321 . We will match the buyer/tenant or seller/landlord for you from our Multiple Listing Service .

Penang Property Talk | Sell Buy Rent And Lease Property In 5 Easy Steps

Penang Properties | Factory | Warehouse | Land | Commercial Building | Bungalow | Condominium | Apartment | House | Storage Space | Cold Storage Room | For Sale, Lease And Joint Venture In Penang Malaysia. 

Step 1: Industrial Property location in Bayan Lepas, Butterworth, Seberang Perai, Juru, Bukit Mertajam, Bukit Minyak, Bukit Tengah, Simpang Ampat, Batu Kawan, Penang Science Park, Nibong Tebal, Jawi, Sungai Bakap, Kepala Batas, Kilang Perindustrian, Industri Kecil dan Sederhana (IKS) Pulau Pinang, Malaysia.

Step 2: Type of Penang Small Medium Enterprises (SMEs) factories for sale and to let: Secure storage space, warehouses, light industry, medium industry and heavy industry.

Step 3: Type of industry: Renewal Energy (RE), electrical, electronics industries, printing, plastic injection moulding, automobile service, engineering, warehousing, showroom gallery, storage and locker space, cold storage room. 

Step 4: Type of storage: Secure storage space and cold storage warehouse Penang cover northern region of Malaysia.

Step 5: Type of transaction: Selling, buying, renting, leasing and joint venture (JV).

Enquire about a property? Please quote the property and location. 

Note 1: For renting, the calculation is based on Build Up Area or Nett Lettable Area(NLA) in sq ft unless specify.

If you can't find the property that you want, talk to us. You can also call us if you've property in Penang to sell or to let. "You Call, We Match." Please contact Mr Vulcan Lau, mobile no.: +6 016 451 1321

This list is last updated on 3 December 2015. To check revised updated listing: 

http://vulcaninternational.blogspot.my/2015/10/penang-property-talk-sell-buy-rent-and_10.html

Note 2: Persons responding to this listing are not required to pay any estate agency fee whatsoever for properties referred to in this listing.

Property	Location	Price For Sale (RM)	Price For Rent (RM)	Land Area (sq ft)	Build Up Area(sq ft)	Remark
1. Semi-detach factory	Batu Maung	RM12 mil	RM2.00 psf	19,865	16,167
2. Semi-detach factory	Batu Maung	RM12 mil	RM2.00 psf	20,078	16,167
3. Warehouse	Mak Mandin	-	RM1.10 psf	2,500	2,500	Height:19 ft
4. Warehouse	Mak Mandin	-	RM1.10 psf	6,400	6,400	Height:15 ft
5. Warehouse	Mak Mandin	-	RM1.10 psf	3,930	3,930	Height:16 ft
6. Factory with warehouse	Bukit Minyak	RM20 mil	RM0.90 psf	3 acres	93,535
7. 3-storey villa	Bukit Jambul	RM3.8 mil	-	9,500	9,000
8. Land	Balik Pulau	RM6 mil	RM80 psf	1.73 acres	-	Joint venture
9. 2-storey bungalow	Scotland Rd	RM7.3 mil	-	10,800	4,700	Bed:5,Bath:5
10. 3-storey terrace house	Sungai Ara	RM990,000	-	1,840	3,000	Bed:4,Bath:3
11. 2-storey bungalow	Jln Sultan Ahmad Shah	-	RM21,000/mth	13,250	4,000	Commercial
12. Land	Batu Maung	-	RM0.60 psf	1.49 acres	-	Parking lorry, tractor
13. 3-storey terrace house	Minden Height	RM1.68 mil	-	2,107	2,065	Bed:4,Bath:4 [White Lily]
14. BayStar Condo	Bayan Bay	RM1.25 mil	-	-	1,560	Bed:3,Bath:3 Full reno
15. Scott Residences	Macalister Rd	RM2.25 mil	-	-	2,750	Bed:3,Bath:3
16. 4-storey villa [Moonlight Bay]	Batu Ferringhi	RM2.5 mil	-	2,500	4,500	Bed:4,Bath:4
17. 2-storey semi-detach house	Taman Jesselton	-	RM4,000/mth	4,725	2,699	Bed:4,Bath:4
18. 2-storey semi-detach house	Jalan Gajah	-	RM3,800/mth	4,300	2,035	Bed:4,Bath:4
19. 2-storey semi-detach house[Leasehold]	Gelugor	RM400,000	-	1,845	1,200	Bed:3,Bath:2
20. Flamingo Condo	Greenlane	RM640,000	RM1,400/mth	-	1,100	Bed:3,Bath:2
21. Cold storage room	Mak Mandin	-	RM2,109/mth	-	3,013 cu ft	RM0.70/cu ft
22. Duplex Condo (New)	Gurney Drive	RM6 mil	-	-	5,737	Bed:5,Bath:5  Full reno
23. Land	Western Rd	RM46.3 mil	-	1.33 acres	-	Residential
24. Bkt Dumbar Permai Apt	Bkt Dumbar	RM580,000	-	-	990	Bed:3,Bath:2
25. Sierra Residences (New)	Relau	RM530,000	-	-	1,000	Bed:3,Bath:2
26. Single storey bungalow	Pulau Tikus	RM9 mil	-	13,500	6,000	Bed:6,Bath:3
27. Factory / Warehouse	Sungai Lokan	-	RM1.10 psf	-	19,000	Height:35 ft
28. 3-storey bungalow [Brook Residences]	Brook Road	RM6.93 mil	-	6,024	5,423	Bed:4,Bath:5 Private Swimming Pool

Boldly go. LLAP

Interested please contact Mr Vulcan Lau, mobile no.: +6 016 451 1321 | #VulcanInternational

Note: If you've factory/warehouse/land/commercial building/condominium/house to sell/let or intent to buy/rent one, do call Mr Vulcan Lau +6 016 451 1321 . We will match the buyer/tenant or seller/landlord for you from our MLS.

You're welcome to write your constructive comment below.