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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.]