Secondary market remains strong

THE Penang secondary property market continues to perform well as developers hold back launches due to new and unbudgeted infrastructure charges, says Raine & Horne International Zaki + Partners Sdn Bhd director Michael Geh in presenting the Penang Housing Property Monitor for 3Q2014.

“Activity in the market is limited to people who really need to buy a house … Short-term investors, speculators and flippers have left the market, allowing serious long-term players to come in,” he says.

Based on National Property Information Centre figures, Geh points out, secondary transactions accounted for 84% of the market last year while newly launched products made up only 16%.

He also highlights that developers have been hit by a new infrastructure charge that he noticed being implemented at the beginning of the year, resulting in some of them holding back their launches and most likely adjusting their selling prices. “Developers have to pay an infrastructure charge of about RM15 psf on the gross area. Some of them will have to pay maybe RM3 million to RM7 million extra up front. This is an unbudgeted expense.”

Thus, the primary market may soften in the coming months while the secondary market keeps climbing steadily.

“I think the sentiment in the third quarter in Penang will continue into 4Q2014 because there have been no major inspiring announcements from Bank Negara Malaysia or changes in policy,” remarks Goh. “Moreover, people are anticipating affordable housing and may wait until next year to buy.”

PPPs for affordable housing

The Penang government is looking to incentivise developers to build affordable housing based on new guidelines and criteria. Jagdeep Singh Deo, a member of the Penang state executive council for town and country planning and housing, revealed in a speech on Sept 13 that private-public partnerships will be formed between the state and private developers on affordable housing.

Under the new guidelines, the affordable homes will have built-ups of 750 sq ft, 850 sq ft and 900 sq ft and be priced at RM200,000, RM300,000 and RM400,000 respectively. Developers that wish to build affordable houses will be exempted from the requirement to build low-cost or low-medium-cost units and see a reduction in the development charge to RM5 psf.

According to Geh, these developers will also be given a high plot ratio for high-density products, depending on the location. “I’ve seen many serious private developers make submissions. The state government has been proactive in the issue of affordable housing. The new guidelines are considered among the most significant policies for the quarter.”

In his speech, Jagdeep said in their project submissions to the state government, developers could propose to build only affordable homes but these had to be the 850 sq ft/RM300,000 units. Alternatively, they could build a selection of affordable homes: 20% of 750 sq ft/RM200,000, 60% of 850 sq ft/RM300,000 and 20% of 900 sq ft/RM400,000.

To ensure quality control, there are guidelines as to what each unit should have, such as ceramic tile floors in all the living spaces and at least minimum fittings in the kitchen and bathrooms.

Landed properties

As the market waits to see the result of the Penang government’s push for more affordable housing, the secondary market grew overall in 3Q2014.

On the island, the 1-storey terraced homes in Green Lane showed the highest growth of 28.21% with prices rising to RM780,000 year on year. Prices rose 26.92% to RM780,000 in Jelutong and 14.29% to RM700,000 in Sungai Dua while in Tanjung Bungah, they remained unchanged at RM750,000.

On the mainland, there was no y-o-y change in prices in Seberang Perai Utara, although there was growth of 11.11% to RM180,000 in Seberang Perai Tengah and 3.33% to RM150,000 in Seberang Perai Selatan.

Q-o-q, prices rose only in Green Lane (+3.85%), Jelutong (+3.85%) and Seberang Perai Tengah (+11.11%).

In the 2-storey terraced house category, homes in Green Lane led the way with prices growing 16.67% to RM1.2 million y-o-y. Coming a close second were houses in Sungai Nibong, which saw prices rise 15% to RM1 million, followed by those in Sungai Ara (up 14.77% to RM880,000) and Pulau Tikus (up 14.29% to RM1.4 million).

On the mainland, the prices of 2-storey terraced houses rose in Seberang Perai Utara (up 6.25% to RM320,000), Seberang Perai Tengah (up 14.29% to RM350,000) and Seberang Perai Selatan (up 14% to RM250,000) y-o-y.

Q-o-q, the only areas that achieved double-digit growth in prices were Sungai Nibong (10%) and Seberang Perai Selatan (12%). Prices also grew in Green Land (+8.33%), Seberang Perai Tengah (+5.71%) and Sungai Ara (+3.41%).

As for semi-detached houses, the prices of those in Island Park climbed 15% to RM2 million while in Minden Heights and Sungai Nibong, they gained 13.33% to RM1.5 million and 11.76% to RM1.7 million respectively.

It is worth noting that all semidees in Penang went past the RM1 million mark in 4Q2012.

Q-o-q, there was no price growth in this category, according to the monitor.

In the 2-storey detached house category, the Green Land homes saw the highest price gain — up 42.86% y-o-y to RM3.5 million. Next were those in Island Glades (+28.57% to RM2.8 million), Minden Heights (+15.15% to RM3.3 million) and Pulau Tikus (+10% to RM2 million).

Detached homes in Tanjung Tokong and Tanjung Bungah saw no change in price y-o-y while q-o-q, only the Minden Heights homes achieved a 3.03% increase.

High-rises

In the high-rise segment of the secondary market, the prices of standard 3-bedroom flats in Relau gained 20% y-o-y to RM250,000 while in Green Lane and Sungai Dua & Lip Sin Gardens, they rose 6.25% to RM320,000 and 6.67% to RM300,000 respectively. Flats in other areas did not show any price growth from the previous year. Q-o-q, only the flats in Relau showed price growth of 4%.

The highest y-o-y gain in 3-bedroom condo prices was seen in Tanjung Tokong (up 18.18% to RM550,000) while in Pulau Tikus and Batu Ferringhi, prices rose 16.67% to RM540,000 and 16.28% to RM430,000 respectively.

There was also double-digit price growth in Tanjung Bungah (15.79%), Island Park/Glades (11.11%) and Batu Uban (10.81%).

Q-o-q, the only price growth was in Island Park/Glades (4.44%), Pulau Tikus (3.7%), Batu Uban (2.7%) and Tanjung Bungah (1.75%).

Overall, the property market in Penang is continuing to grow, although rents are not moving much, resulting in low yields. According to Geh, investors are awaiting the launch of new affordable houses. Will this change the property market landscape in Penang? Only time will tell.

Penang property market outlook in 2014

Property prices in Penang have risen by leaps and bounds since about seven years ago. The announcement of the second bridge in Penang in late 2006 is a key reason for the increase in property prices.

Raine & Horne Malaysia director Michael Geh said that the price of vacant land on the island has increased from around RM250 per sq ft to RM300 per sq ft in Batu Maung. This southern part of the island where the second bridge is located could fetch about RM50 per sq ft to RM60 per sq ft prior to the announcement of the second bridge in late 2007. Geh pointed out that the pricing depended on whether the land had been zoned for agriculture, commercial or residential use.

For landed properties, new two- to three-storey terrace houses now cost from RM1.2mil south of the island, compared with about RM450,000 prior to the announcement.

“The new condominiums in similar locations are now priced at RM700,000 to RM800,000, compared to RM250,000 to RM300,000 prior to the announcement.

“In the prime locations of the north-east district such as Tanjung Bungah, Tanjung Tokong, and Pulau Tikus, the pricing of new lifestyle high-rise unit starts from RM800,000 onwards, about RM400,000 prior to the announcement,” Geh said.

The sub-sales market in 2013 saw the highest transaction for a landed property at RM4mil for a 5,000sq ft semi-detached house with a land area of 3,800sq ft in Tanjung Tokong. Terraced properties sold in the sub-sales market in 2013 saw the highest transaction at RM1.8mil for a 2,700sq ft linked home with a 1,900sq ft land area in Tanjung Tokong. Property prices in the sub-sales market are about 10% to 15% more than two years ago, Geh said.

“The highest transaction for a condominium in the sub-sales market in 2013 was RM1,200 per sq ft. This was for a 1,200sq ft lifestyle condominium in Tanjung Tokong.”

In Seberang Prai, Henry Butcher Seberang Prai associate director Fook Tone Huat said vacant land prices in Seberang Prai, especially those in South Seberang Prai where the second bridge is located, is now hovering at RM40 per sq ft to 50 per sq ft, compared to RM8 per sq ft to RM9 per sq ft prior to the announcement of the second link project in 2006.

In Central and North Seberang Prai, the land prices then were between RM20 per sq ft and RM40 per sq ft. Now, the land prices in the prime locations of Central and North Seberang Prai are priced between RM50 per sq ft and RM100 per sq ft.

“New landed properties such as double-storey terrace units in South Seberang Prai are now priced between RM350,000 and RM400,000 compared to between RM150,000 and RM200,000 prior to the announcement of the second bridge,” Fook said.

In Central and North Seberang Prai’s prime locations, the prices for double-storey terraced are between RM400,000 and RM600,000, compared to between RM200,000 and RM270,000.

“We are also seeing a lot of lifestyle condominium projects being planned for development in Bukit Mertajam this year. The pricing of new condominiums in Seberang Jaya and Bukit Mertajam in Central Seberang Prai hover around RM300 per sq ft,” he said. As for the secondary or sub-sales property market, the prices for double-storey terraced houses hover around RM250,000 to RM500,000, depending on the location. “The landed properties in the sub-sales segment command the best pricing in Bukit Mertajam and in Butterworth town. The pricing of condominiums in the secondary market hover between RM250 per sq ft and RM300 per sq ft,” he added.

Property market outlook

Fook said the volume of property transactions in Seberang Prai is expected to soften this year, largely due to the difficulty in obtaining housing loans. “There will definitely be fewer transactions this year compared to approximately 12,000 registered in 2013. Since January, we have seen fewer enquiries for primary and secondary market properties, as the rejection rate of housing loans is currently hovering at about 60%.

“Property prices are expected to remain more or less the same as last year,” Fook added.

According to Geh, prices of properties in the secondary segment would remain stable, while those in the primary market might soften slightly. “Property prices will soften this year, unless Bank Negara changes its housing loan policies. There will definitely be a dip in the volume of transactions, due to the stringent loan conditions,” he maintained.

Besides the opening of the Second Penang Bridge on March 1, 2014, Seberang Prai is also drawing the attention of developers, as there are now plans to develop a RM200mil premium retail outlet known as Penang Designer Village and an integrated shopping mall, which will be anchored by an Ikea store.

PE Land Sdn Bhd will undertake the Penang Designer Village, while the integrated shopping mall with residential components will be developed by Aspen-Ikano.

Kuala Lumpur and Penang-based developers will undertake the development of RM4.559bil worth of residential and commercial projects in Penang amid a very challenging year for the local property market, which is expected to soften. Approximately RM1.862bil worth of residential and commercial projects are being planned in Seberang Prai, while the remaining RM2.697bil will be launched on the island.

The island, however, is seeing fewer residential property launches due to the growing shortage of land, higher land cost on the island, and a challenging property market environment, although the gross development value (GDV) of the projects launched on the island this year is still higher.

Developers with plans to undertake fresh projects include IJM Land Bhd (GDV of RM538.5mil); Mah Sing Group Bhd (RM280mil); DNP Land Sdn Bhd (RM800mil); Ideal United Bintang (RM935mil), a subsidiary of Wing Tai Malaysia Bhd; Tambun Indah Land Bhd (RM616mil), Sunway Bhd (RM290mil), S P Setia Bhd (RM300mil) and Eastern & Oriental(E&O) Bhd (RM800mil), MTT Properties & Development Sdn Bhd (RM250mil) and Ivory Properties Group Bhd (RM2.76bil).

Ivory Properties Group Bhd and Tropicana Corporation Bhd have also formed a joint venture company called Tropicana Ivory Sdn Bhd to develop Penang World City, an integrated waterfront development with a GDV of RM10bil.

Renowned developer, BSG property, with huge land banks in Penang is still embarking on projects despite the cautious market sentiment as its projects are mainly located in prime locations. In Seberang Prai, the biggest projects planned so far are DNP Land’s RM250mil BM Mahkota and the RM550mil Jesselton Hills landed property scheme in Bukit Mertajam and Tambun Indah Land Bhd’s RM616mil new landed property launches in Bukit Mertajam and Pearl City in Simpang Ampat, South Seberang Prai.

IJM Land will be launching RM236.5mil worth of properties comprising double-storey houses in Jawi, South Seberang Prai and double-storey linked bungalows in Bukit Mertajam, Central Seberang Prai as well as what is said to be the most expensive villa in Penang.

Sunway Bhd also plans to launch some RM150mil worth of residential and commercial projects for the second phase of Sunway Wellesley in Seberang Prai, a mixed-development project in Bukit Mertajam at the end of this month while the RM60mil third phase, comprising resort condominiums, will kick off in Oct 2014.

Sunway Bhd general manager Tan Hun Beng said it will be launching properties in Seberang Prai as the lower land prices allow the group to price its properties affordably.

DNP Land (North) general manager K.C. Tan said that the exclusive landed property scheme will feature the first high-end condominium project for Bukit Mertajam with over 200 units of semi-detached and terraced houses in Jesselton Hills, Alma.

Tan said the condominium scheme, known as BM Mahkota, has a GDV of RM250mil, while the GDV of the Jesselton Hills landed properties is about RM550mil.

“The projects are strategically located in between the first and second bridges, and is close to Jalan Song Ban Kheng, a prime residential district. They are also surrounded by the Prai and Bukit Minyak Industrial Parks and Penang Science Park.

“We expect buyers to come over from Kedah, especially from Kulim High Tech Park, as Bukit Mertajam is the main connecting point beween Penang and Kedah,” he said.

Tan added that when the Aeon BM Department Store opens in mid-2014, the appeal of the projects will be enhanced.

“The Aeon BM Department Store, sitting on a 19-acre (eight hectares) site, has a 1mil sq ft of gross retail area,” he said.

On the island, Ideal United Bintang has planned the most number of projects to be launched this year. This includes approximately RM935mil of residential projects in the south-west district, which include mixed-development projects such as the RM265mil Solaria and the second phase of the RM220mil Ideal Vision park project. The second phase of the RM450mil Imperial residences residential project will also be launched.

The other sizable project is E&O Bhd’s RM800mil Andaman Edition 18 East condominium project, which will be launched in the first half of 2014.

IJM Land will introduce the RM125mil Trehaus@Bukit Jambul, comprising condominium villas and semi-detached villas in this first quarter, and a yet-to-be-named medium-and low-medium cost project, which have a GDV of RM177mil in the fourth quarter of 2014.

In the second half of this year, S P Setia will launch its RM300mil Setia Sky Vista, a condominium project in Relau. Meanwhile, Mah Sing will undertake the development of the RM280mil The Loft condominium scheme in Southbay City in Batu Maung, which has been launched this January. Sunway Bhd will kick off the third phase of the RM80mil Sunway Cassia comprising two-storey semi-detached and three-storey terraced houses in Batu Maung in June 2014.

S P Setia Property (North) general manager Khoo Teck Chong said the group is launching fewer projects this year because of the softening property market, due in part to banks tightening the loan conditions.

E&O marketing and sales head Christina Lau said the greater access afforded by the second bridge and a host of new investments pledged by multinational corporations were positive indicators for the state of Penang going forward. “E&O is fortunate to possess development land on Penang Island including Seri Tanjung Pinang 1 in Tanjong Tokong and over 300 acres at Gertak Sanggul and realising the development potential of these land parcels will keep us busy for several years to come.”

二桥带动檳威產业

檳岛与威省之间因为第二大桥的衔接，带动附近地区的產业发展，在檳岛、峇都茅、直落公巴及直落登布雅等地区，预料將有更多產业发展计划。

由檳城发展机构开发的Cassia城，位於峇都交湾佔地2千670公顷的土地，准备推行10亿令吉的发展计划，发展项目包括一间拥有300客房的国际酒店、主题公园、高球俱乐部，项目皆与住宅及商业发展计划有关，预料將把峇都交湾发展为一个集购物与旅游的景点。
配合州政府发展教育城的计划，赫尔大学（Hull）及伯乐大学（KDU）已宣佈，將在峇都交湾建立他们的大学校园。

在工业產业方面，总部设在德国的Magneti Marelli汽车灯企业，是其中一家进入峇都交湾工业园的集团，该公司已宣佈將再投资5千万令吉，以便接下来5年扩展大马的业务，该公司將开设一家新的、耗资8千500万令吉的汽车灯饰公司。

此外，花旗集团已经与Invest Penang合作，以促进该州为“智慧型服务”策略中心，这些服务包括商务程式、金融与专业服务；州政府將兴建一个商务程式外包中心，该项计划分2阶段进行，预计需要5年时间，地点是在峇央峇鲁与峇六拜之间一块6.88公顷的土地。

该中心的发展计划包括商务程式外包办公大楼、服务公寓、商业单位、拥有A级设备的小型家居办公楼，至少可提供170万平方尺的办公空间。

一旦东方（E&O，3417，主板產业组）建议中的斯里丹绒檳榔第二期计划完工，檳岛东北部將呈现不一样的版图。

转手销售呆滯 价格稳定
怡保置地已推出The Light Collection IV计划，由3座5层面向海边的79个共管公寓，以及4层共有19个单位的海滨度假別墅组成。

共管公寓单位的面积，从1千991至4千435平方尺，推售价格介於160万至600万令吉，19个面向海滨水上別墅的单位，面积大小不一，建筑面积达7千平方尺的单位，售价1千500万令吉。

与2012年比较，2013下半年转手市场的销售比较呆滯，超大型的共管公寓面积介於3千500至6千平方尺，不过价格保持稳定。

在丹绒武雅与浮罗池滑一些產业单位的转手价，每平方尺介於450至650令吉，至於比较新的產业发展计划，售价比较高，每平方尺介於500至800令吉。

位於浮罗池滑新近完工的计划，標准单位面积介於1万平方尺，转售价格每平方尺在450至500令吉之间，在Gurney Paragon及斯里丹绒檳榔一些较新的產业计划，转手价格每平方尺介於850至1千100令吉。

此外，家具齐备的单位，每月租金介於9千至1万2千令吉，至於没有提供家具的单位，租金问价介於7千至8千500令吉，比较老旧的共管公寓，月租金要价介於5千至8千500令吉。

檳岛市中心2办公大厦出租率98%
檳岛Gurney Paragon办公大楼2013下半年完工，增加岛上办公空间的供应，不久前，檳岛的办公空间供应（10层楼或更高大厦），已增至563万平方尺，该办公產业是一座10层楼的大厦，建在Gurney Paragon广场之上，为市区增加9万4千平方尺的办公空间。

市中心2大办公大厦的平均出租率高达98%，比2013首半年的97.5%稍高，租金保持在每平方尺2令吉50仙至2令吉80仙的水平。

从2013年7月开张以来，Gurney Paragon办公大楼已享有80%的出租率，每月每平方尺租金大约是3令吉30仙。

另外，位於市区的2栋办公楼，即Suntech与怡保置地大厦，拥有94%的平均出租率，比2013首半年减少1%，其中一栋的租金比较高，每月每平方尺租金介於2令吉80仙至3令吉50仙之间，比2013首半年的每平方尺2令吉50仙至3令吉40仙稍高。

首要购物商场出租率保持96%
隨著Gurney Paragon广场在2013年7月进入檳州市场，檳岛量身订造购物大厦的供应介於669万平方尺，比2012下半年的609万平方尺多。

另外，檳岛首要购物商场的平均出租率，保持在2013首半年的96%水平，二级购物商场的出租率介於65%至90%之间，只有2家购物商场除外，出租率介於较低水平。

整体而言，购物商场底层的月租金，保持在每平方尺13至38令吉的水平，视广场的地点、规模与单位数目而定。

放眼接下来檳州的產业市场，市况料保持平稳，2014年財政预算案推出的抑制產业市场过热新措施，预料將衝击高档產业计划的发展，至於商业產业市况保持稳定。

另一方面，檳城第二檳城大桥的启用，加上州政府努力推动檳岛与威省南部地区的发展，很有可能带动这些地点的產业发展计划。