Following S P Setia’s mega township development (Setia Fontaines) at Bertam,  more developers are now taking advantage of the spillover effect by proposing affordable landed homes within the vicinity.

Here is yet another proposed residential development at Tasek Gelugor by Pavilion Everise Sdn. Bhd. (a subsidiary of GSD Land). It is located along Jalan Kubang Menerong, just a stone’s throw away from Setia Fontaines and Bandar Putra Bertam.

This housing scheme comprises mostly single-storey landed houses, some of which are categorized under low-cost housing.

Phase 1

• 2-storey terrace (23 units)
• 1-storey terrace (304 units)
• 1-storey low-cost house (104 units)

Phase 2

• 2-storey shop office (49 units)

Phase 3

• 2-storey terrace (16 units)
• 1-storey terrace (209 units)
• 1-storey low-cost house (63 units)

The project is still pending for approval. More details to be available upon official launch.

Project Name: (to be confirmed)
Location: Tasek Gelugor
Property Type: Terrace & low-cost house
Tenure: (to be confirmed)
Total Units: 338
Indicative Price: RM42,000 (low-cost)
Developer: Pavilion Everise Sdn. Bhd. (GSD Land)

Location Map:

Vocal pressure group CAP has warned that a promotion drive by local developers to attract Hong Kong investors to buy properties in Malaysia in the wake of the political crisis in the island city could push house prices beyond the reach of ordinary citizens.

“Encouraging foreigners to acquire properties here have undesired impacts such as causing property prices to skyrocket because of demand, aggravating the current shortage of land, and causing an increase in the cost of living,” the Consumers Association of Penang said in a statement, amid reports of Malaysian developers planning a promotion drive in land-strapped Hong Kong.

CAP president Mohideen Abdul Kader said the floor price set in Penang, Selangor and Johor for foreign property buyers will not discourage them.

In Selangor and Johor, the bare minimum price for foreigners to buy residential units is RM2 million. In Penang, foreigners are barred from buying landed houses less than RM3 million and high-rise units less than RM1 million.

Mohideen said the prices were still affordable for foreigners especially in Hong Kong, where the average price of a home is more than US$1.2 million, according to a global real estate report released this year.

“For those with US dollars or Singapore dollars to spare, our RM3 million is equivalent to US$718,787 or S$995,405 respectively. With RM3 million, a Hong Kong resident is able to buy an almost 2,000 sq ft luxurious bungalow in Tanjung Bungah and that is almost 11 times the size of Hong Kong’s 178 sq ft micro-home,” he said in a statement.

Last month, FMT reported that wealthy property buyers from Hong Kong were looking to Malaysia as a possible second home as the special administrative region of China struggles with widespread protests.

The report said Malaysian property agents and developers had been collaborating with agents in Hong Kong for data on buyers there.

“In the next one to two months, many developers are expected to go to Hong Kong to sell Malaysian properties,” Toh Chin Leong, the chairman of the Penang chapter of the Real Estate and Housing Developers’ Association (Rehda), had told FMT.

Mohideen said the move could make Penang “another Hong Kong”, with the poor being forced to live in slums and small flats.

“Are we having a fire-sale?” he asked.

He said Putrajaya should focus on the development of rent-to-own flats as well as affordable housing “instead of pandering to developers wanting to build luxurious houses and condominiums that few locals can afford”.

“Could the current property overhang be caused by developers’ over optimism about the housing market without looking at the economic reality and the inability of potential house buyers to obtain a bank loan?”

Mohideen said when George Town was declared a Unesco World Heritage site in 2008, Penang property prices skyrocketed as Singaporeans went on a “shopping spree for pre-war houses”

“As a result the prices of houses in the inner city of George Town soared beyond the affordability of most locals to rent or buy,” he added.

Source: FreeMalaysiaToday.com

Many of you must be wondering where will be the next affordable housing located? Can the government control or influence the developer’s decision?  Listen to the sharing from our Chief Minister on the challenges in approving affordable housing by developers.

FIND OUT MORE:
Penang CM speaks to Penang Property Talk on Vision 2030

Iconic Worldwide Bhd’s maiden property project Iconic Point has been 100 per cent taken up during its two-day soft launch at its sales gallery in D’Piazza Mall, Penang last weekend.

The company said Iconic Point is expected to become one of the key commercial centre and landmark in the Simpang Ampat township – a true game-changer for mainland Penang’s dining and entertainment scene. The freehold development will be completed by the first quarter of year 2022.

Iconic Point is a joint venture between Iconic Maison Sdn Bhd, a wholly-owned subsidiary of Iconic Worldwide, and Iconic Development Sdn Bhd.

“This is the first time Simpang Ampat has seen such a development, with semi-detached & detached shop offices with individual shared lift concept, and the price we have set is very close to what we offered for Icon City when it was launched seven years ago,” said Iconic Worldwide Bhd managing director Datuk Tan Kean Tet in a recent statement.

Strategically located near the junction of Jalan Permatang Tinggi and Jalan Bukit Tambun, just off the North-South Expressway, Iconic Point will enjoy great visibility to thousands of motorists passing by daily. The development is also a stone’s throw away from the nearby KTM station, and in close proximity to mature residential neighbourhoods.

Sprawling across 8.7 acres, Iconic Point will feature 49 units of modern semi-detached & detached shop offices with individual shared lift.

There will also be three drive-thru food and beverages outlets with tenants such as Starbucks.

An elegant 4-storey boutique hotel sits at the end of the Iconic Point belt, providing visitors a place to rest their weary body while still remaining in close proximity to essential service outlets and loved ones, perfectly encapsulating the definition of an integrated lifestyle hub.

The 49 units of modern three-storey shop offices maximise convenience and efficiency by incorporating specially-designed shared lifts. Its commodious layouts make units flexibly suited to a vast spectrum of business – from retailed store, cafes, restaurants and pubs, to beauty salons, boutiques and more.

Source: NST Online

Housing and Local Government Minister Zuraida Kamaruddin plans on taking Malaysia’s Home Ownership Campaign (HOC) to Hong Kong and China.

Speaking to a press conference at the outskirts of the 2019 Smart Cities Asia Annual Conference and Exhibition, she explained that properties in Malaysia are far cheaper than those found in Hong Kong.

At the same time, she believes this will go some way to addressing the issue of expensive, overhung properties.

“I was thinking of our unsold units which is about RM100 billion worth of the higher market, I’m not talking about the lower market, so I was thinking about organising this HOC campaign in China or in Hong Kong where we can attract these people to come and buy homes here,” she said.

Over a five-year period between 2014 and the end of 2018, the number of unsold, completed residential units grew from 11,816 to more than 45,000 by the end of 2018, including serviced apartments and small offices home offices (SoHos).

In ringgit value, the rise is even greater. The value of residential overhang snowballed by a massive 635 per cent, according to the National Property Information Centre (Napic) records.

Despite her plans to promote Malaysia’s more expensive properties, Zuraida pointed out that they are still cheaper compared to property prices in Hong Kong.

“In fact, it’s cheaper to buy homes here instead of there and to fly, with the price of travelling making it cheaper to have homes in Malaysia than in Hong Kong. I went to one unit of flat there at 250 square feet; it cost RM3 million. Even a minister can’t afford a home there,” said Zuraida.

At the moment, the federal minister wants to take her proposal to the Cabinet and have it discussed because she wants to promote the plan under the Malaysia My Second Home (MM2H) programme.

She plans on roping in Tourism, Arts and Culture Minister Datuk Mohamaddin Ketapi as MM2H is under his purview.

However, she confirmed that currently, local developers are already making sales pitches in Hong Kong and China.

Source: MalayMail.com

Penang’s first LRT project has been approved by federal government on 16 July 2019, with 30 conditions for the state to comply. A three-month public inspection process started Aug 19 to obtain the views of Penangites. The public can now find out more about the LRT project at four fixed locations during office hours, namely, Komtar, Seberang Prai Municipal Council in Perda, Land Public Transport Agency (LPTA) at One Precinct, here and the LPTA headquarters in Putrajaya.

Hear from Penang Chief Minister on the 2,924 responses received in four display centre.

FIND OUT MORE:
Penang CM speaks to Penang Property Talk on Vision 2030

All Seasons Park, is a completed landmark development in Ayer Itam, ushering in a contemporary modernity that subtly resonates with the busy, colourful vibe of this well-known Penang suburb. This integrated development promises a complete lifestyle experience to those born and bred in Penang, who may be returning to their roots, as well as new comers to the community.

The development is anchored by a thriving 3-level podium “strip mall” – All Seasons Place, that include key tenants such as Hero Market, MR DIY, Maxis, Guardian, Sushi King, Summer Bakery, Starbucks and Black Ball.

Prominently located along Lebuhraya Thean Teik, a major road on the island city, this residential project is accessible via Lorong Batu Lanchang. It is only a short drive to hypermarkets such as Giant Farlim and Sunshine Hypermarket Farlim.

There are several schools less than 600m away, including Chung Ling High School, SMK Air Itam, SK Seri Indah, SJK Chiao Nan, SK Batu Lanchang and others.

Limited freehold penthouse units are now up for grab from the developer. The available units feature a spacious built-up size of at least 1,602 sq.ft., with starting price from RM825,000 onwards.

For more details, please contact Belleview Group at 016-422 6006 / 04-229 1999.

Penang’s two local councils will be increasing the assessment rates on all properties within the state in 2020.

State local government, housing development and town and country planning committee chairman Jagdeep Singh Deo said the hike was due to higher spending costs.

“It has been 15 years since we reviewed the assessment rates and we are reviewing it now in accordance with the provisions of the law,” he told a press conference here today.

He said the Penang Island City Council (MBPP) and Seberang Perai Municipal Council (MPSP) have been recording an annual deficit budget since 2016.

Jagdeep did not disclose the percentage of increase in the rates when asked, saying instead that the hike will depend on the property type, location and size.

But Chinese newspaper Sin Chew Daily had previously reported that the rates could rise as much as 30 per cent.

The properties that will be reviewed total 322, 549 on the island and 327,401 on the mainland.

Notices on the increase will be sent to all property owners this month and property owners are given until October 14 to submit appeals against the new rates.

Jagdeep said the higher assessment rates will mean additional revenue of RM54,338,822 for MBPP and RM39,743,077.02 for MPSP next year.

However, he added that the extra revenue will barely be able to cover the expenditure of both councils.

“MBPP will be implementing 31 infrastructure projects between 2020 and 2022 at a cost of RM179.03 million so the extra RM54 million from the assessment rate increase does not cover this full sum,” he said.

Similarly, MPSP will be implementing 46 project between 2020 and 2022 at a cost of RM169.74 million which is more than the extra RM39 million from the increase in rates.

He said MBPP saw an increase in overall expenditures by RM196.391 million or 291 per cent in 2019 compared to 2005 while MPSP saw an increase of RM107 million or 784 per cent compared to 2005.

Jagdeep said that Penang’s assessment rates are still the lowest nationwide in comparison to properties in Kuala Lumpur, Petaling Jaya, Shah Alam, Subang Jaya and even Kota Kinabalu.

Source: MalayMail.com

The proposed Penang undersea tunnel project report submitted for review by the technical consultant is over 90% complete and there’s no plan to stop the projects. We have also touched on the Penang Sky Cab cable car project, which will link Seberang Prai to the island.

In the interview below, Penang Chief Minister shares with us the latest status of the undersea tunnel and sky cab projects.

FIND OUT MORE:
Penang CM speaks to Penang Property Talk on Vision 2030

All parties should stop the polemic over the issue of unsold luxury properties in the country as they are being promoted abroad under the procedures and conditions of Malaysia My Second Home (MM2H) programme.

Deputy Housing and Local Government Minister Datuk Raja Kamarul Bahrin Shah Raja Ahmad Baharuddin Shah (pictured) said MM2H is not a new programme as it has been established since 2002.

“There is a confusion…the glut of luxury houses is not being promoted under the Home Ownership Campaign (HOC) but through MM2H…the people need not worry about it as MM2H will not affect house ownership by them.

“The primary focus of the ministry is still on providing affordable homes for Malaysians… this is our commitment,” he told reporters after opening a Merdeka @Komuniti programme for Terengganu Chinese community at Kampung Cina here last night.

About 400 members of the Chinese community in Terengganu attended the function organised by the Information Department to highlight the National Month celebrations.

On Thursday, Housing and Local Government Minister Zuraida Kamaruddin in a statement clarified that the sales of houses priced more than RM1 million would be carried out under the MM2H campaign and not through HOC.

She said the MM2H programme is open to all foreigners while China and Hong Kong were singled out as the price of properties there are very high.

With the explanation, Raja Bahrin hopes the people would not be easily influenced by propaganda of opposition who are taking the opportunity to create confusion.

Source: EdgeProp.my

Penang property owners have to be prepared to pay higher assessment rates next year as the state’s two local councils review the rates to counter increased expenditures.

All property owners will receive the notices on the increase this month, and they have up to October 14 to send in appeals against the new rates, reported the Malay Mail today.

“It has been 15 years since we reviewed the assessment rates and we are reviewing it now in accordance with the provisions of the law,” state local government, housing development and town and country planning committee chairman Jagdeep Singh Deo said in a press conference today,

He revealed that higher spending costs have led to an annual deficit budget since 2016 for the Penang Island City Council (MBPP) and Seberang Perai Municipal Council (MPSP).

Jagdeep refused to reveal the rate of the raise, but merely said it would depend on the property type, location and size.

However, Sin Chew Daily had earlier reported an expected hike of up to 30%.

A total of 322,549 properties on the island and 327,401 on the mainland will fall under the review.

The increase has been calculated to bring in an additional revenue of RM54,338,822 for MBPP and RM39,743,077.02 for MPSP next year, but Jagdeep said “the extra revenue will barely be able to cover the expenditure of both councils”.

“MBPP will be implementing 31 infrastructure projects between 2020 and 2022 at a cost of RM179.03 million so the extra RM54 million from the assessment rate increase does not cover this full sum,” he explained.

MPSP will also be carrying out 46 projects between 2020 and 2022, costing RM169.74 million.

Compared to 2005, MBPP’s and MPSP’s 2019 overall expenditures shot up by 291% (RM196.391 million) and 784% (RM107 million) respectively.

Jagdeep pointed out the state’s property assessment rates are still the lowest in Malaysia compared to Kuala Lumpur, Petaling Jaya, Shah Alam, Subang Jaya and even Kota Kinabalu.

Source: EdegeProp.my

Seberang Perai became the nation’s 14th city today, and its outgoing municipal council president, Datuk Rozali Mohamud, was appointed mayor.

The Seberang Perai Municipal Council (MPSP) was officially declared the Seberang Perai City Council (MBSP) by Penang Yang di-Pertua Negri Tun Abdul Rahman Abbas in conjunction with Malaysia Day.

The declaration was made during a historic ceremony at Dewan Millenium in Kepala Batas, near here.

The event kicked-off with the arrival of Abdul Rahman and his wife Toh Puan Majimor Shariff; and the singing of “Negaraku” followed by the state anthem, “Untuk Negeri Kita”.

Urban Wellbeing, Housing and Local Government minister Zuraida Kamaruddin then handed over the declaration letter by Yang di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah on Seberang Perai’s new city council status, to the Penang Governor.

“It has been granted by the Yang di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, who declared, established and directed the MPSP, which… from Sept 16, 2019, will become a city called MBSP and not MPSP, with all the rights of a city,” Abdul Rahman said in reading out the declaration.

Next, Chief Minister Chow Kon Yeow read out the letter of appointment of MPSP President Datuk Rozali Mohamud as Seberang Perai Mayor before the Governor.

This was followed by Rozali taking his oath as the first mayor of Seberang Perai, before being presented with the Chain of the Office and the Official Mace (Cokmar).

Speaking after the ceremony, Rozali thanked and congratulated the residents of Seberang Perai on the milestone event.

He said without the residents’ cooperation, it would not have been possible for Seberang Perai to achieve its new-found city status.

“That’s why I am going to announce a few goodies for the people, which includes 18 programmes and six guidelines that would give (Seberang Perai) the feel of an upgraded city.

“I am sure the incentives and programmes will fulfil the wishes of the people, as they are (the result of) townhall sessions and discussions with the people,” he added.

Talk of Seberang Perai being upgraded to a city began right after the Penang Island City Council obtained its city status in 2015.

The state government’s formal application for MPSP to be upgraded to a city was approved by Cabinet in May this year.

MPSP was the largest municipality in the country, administering three districts with 54 localities.

Its elevation to city status now makes Seberang Perai the country’s largest city council, covering 747.8 sq km, with a population of 946,200.

With today’s declaration, both local authorities in Penang are city councils.

They join 12 other cities in Malaysia: Kuala Lumpur, Ipoh, Petaling Jaya, Shah Alam, Alor Star, Johor Baru, Melaka City, Kuala Terengganu, Kota Kinabalu, Miri, Kuching North and Kuching South.

Source: NST Online

Land is a scarce resource on Penang island.

Luckily, in these modern times, we do not have to go to war to seek territorial expansion.

There is something called reclamation, which is common in the world nowadays.

For Penang, reclamation is nothing new as it was done in Bayan Lepas back in the 1970s.

The state’s economy was effectively transformed, with people getting jobs and enjoying a good life as a result of the existence of the Bayan Lepas Free Industrial Zone (FIZ) then.

Thanks to the late Tun Dr Lim Chong Eu, we were branded the ‘Silicon Valley of the East’.

Fast forward to 2019, I feel Penang is no longer a force to be reckoned with.

We have been left out in the race to be a major player in the technologically advanced industries, losing out to the likes of Singapore and Taiwan.

We have even lost to countries like Vietnam and China, which have adapted fast to new technologies and appealed more to international investors.

Yes, we still have the Bayan Lepas FIZ, and the Prai and Batu Kawan Industrial Estates.

But to put things into perspective, Penang never moved forward, and the ‘old’ free industrial zones and industrial estates are testimonies to this sorry state of affairs.

Just take a quick trip to the Prai Industrial Estate, and one can see how dilapidated the roads are, coupled with factories that barely have cutting-edge technology.

Penang should have embraced the Industrial Revolution 4.0 but according to Muhamed Ali Hajah Mydin, who heads the Penang Skills Development Centre (PSDC), many companies have yet to tap into the RM2 billion allocated by the government towards achieving IR 4.0.

So when the Penang South Reclamation (PSR) was mooted, I was excited over this proposed development near Teluk Kumbar.

It is set to change the entire landscape of the island with development shifting to the south.

There will be three man-made islands measuring 1,800ha in total or the size of 3,600 football fields.

On July 5, the state government announced that the PSR had obtained Environmental Impact Assessment (EIA) approval with 72 conditions to be fulfilled.

It is expected to generate RM70bil, of which RM46bil will be used to fund the Penang Transport Master Plan.

No doubt critics will say that land is abundant on the mainland and it is needless to reclaim more land that could harm the environment and marine life.

But those on Penang island will agree that the ‘action’ is always here and the PSR augurs well to push the state to become a global industrial player once again.

We have a lot of catching up to do but it is better late than never, as the entire project will only be realised in years to come.

The first island – known as Island A – is touted as a continuation and expansion of the Bayan Lepas FIZ while Island B will be ‘a playground for city planners and architects’ with a tram system and green spaces.

As for Island C, it is meant for a mixed development project.

As pointed out by Chief Minister Chow Kon Yeow, the Bayan Lepas FIZ, in the past 50 years, had provided job opportunities, trained and produced small and medium enterprises to support multinational companies.

He said the state had moved from low-cost mass production to high-tech research development.

Such a continuity can help us grow with our neighbour Kedah, which has embarked on the development of the Special Border Economic Zone, a catalyst for the Kota Perdana development project near Bukit Kayu Hitam.

The Kota Perdana-Asean Industrial Metropolis is a joint project between Malaysia and Thailand, where 3,515ha of land is to be developed.

Upon completion, it will provide world-class facilities for manufacturing and commercial sectors, including free trade zones to encourage bilateral trade between Asean member countries.

The project has seven phases and is expected to be completed in 20 years.

I strongly believe the PSR can actually jump-start Penang’s advance into the industries of the future.

It will provide the much-needed transformation under the Penang 2030 vision.

It is not the time to ask ourselves whether the PSR is needed.

We should ask ourselves if we can afford not to have the PSR which is vital for the state’s economic progress in the next 30 years.

Source: TheStar.com.my

Penang Island is sometimes known to have some resemblance to Singapore. Both Penang Island and Singapore are separated from the mainland by a narrow strait with a lack of land for development. The government in both Penang Island and Singapore generally encounters similar challenges whenever there is a need to have a balance between economic development and environmental protection; making many individuals often use Singapore as a reference in topics related to urbanization in Penang.

Let’s hear from Penang Chief Minister on his views whether will Penang mirror Singapore by 2030.

FIND OUT MORE:
Penang CM speaks to Penang Property Talk on Vision 2030

Green City Garden Hotel & Residences, a proposed luxury development in the centre of George Town by Green City Garden Development Sdn. Bhd. Strategically located on a half acre land along Macalister Road, adjacent to the People’s Movement Party headquarter building in Penang. It is only 2km away from KOMTAR, less than 15 minutes drive to Penang Bridge.

This luxury development will see the demolition of the existing building, for the construction of 29-storey building. It will feature a 100-room hotel and 52 units of luxury suites. Automated robotic parking system will be built to allow more car parking bays.

Project is still pending for approval. More details to be available upon official launch.

Project Name : Green City Garden Hotel & Residences (to be confirmed)
Location : George Town, Penang
Property Type : Mixed development
Built-up Size: (to be confirmed)
Land Area: (to be confirmed)
Total Unit: 52 (suites), 100 (hotel rooms)
Indicative Price : (to be confirmed)
Developer : Green City Garden Development Sdn. Bhd.

Location Map:

Celesta Residency is a modern and low density with 89 units condominium that exudes a high level of opulent sensation for those who seek for distinctive and luxury lifestyle.

Filled with opulence in every aspect, Celesta Residency exudes great excellence in style fits for individuals and families that long for ultimate luxury and relaxation in lifestyle. The gated and guarded living environment provides soothing freedom with serenity.

Celesta Residency offers a strategic development located along Jalan Sultan Azlan Shah, diagonally opposite three public schools, namely SJK(C) Kwang Hwa, SJK(C) Shih Chung and SMK Sungai Nibong, in the established township of Sungai Nibong.

As the development is under the privilege of Home Ownership Campaign (HOC), it offers an amazing experience to all house buyers. Despite its limited 89 units of residential condominium and the mix of commercial components surrounded, Celesta Residency is a freehold property with residential title.

Celesta Residency takes this opportunity to invite you to their Official Launch on 21-22 of September 2019 (11.00am – 5.00pm) at 1-2-10, Elit Avenue, Jalan Mayang Pasir 3, 11950 Bayan Baru, Penang, understand more of this perfect residency for yourself.

Project Details

• Project Name: Celesta Residency
• Location: Sungai Nibong, Penang
• Property Type: Condominium
• Indicative Price: RM652,800 onwards
• Developer: Red Blue Development Sdn. Bhd. (Subsidiary of TGB Group)

Key features

• Freehold with Residential Title.
• 25-storey Condominium equipped with polished facilities.
• Super low density with 89 units only.
• With only 6 units per floor.
• Gated & guarded development.
• Located exclusively along Jalan Sultan Azlan Shah in the heart of Sungai Nibong is in close proximity to Penang International Airport and Georgetown.
• Prime location of ultimate convenience with amenities such as Queensbay Mall, Setia SPICE Arena, schools, petrol station and many infrastructures located nearby.

If there is any enquiries, feels free to contact us or visit our website:

Contact number: 012-497 0009
Website: www.tgbgroup.com.my

Ideal United Bintang International Berhad (IUBIB) has announced to Bursa Malaysia its proposed acquisition of 1st Avenue Mall in George Town at RM153 million last week.

The company’s subsidiary, I Homes Properties Sdn Bhd (IHomes), entered into a conditional sales and purchase agreement with 1st Avenue Mall Sdn Bhd (1AMSB) for the proposed acquisition of the property located along Magazine Road based on a willing-buyer willing-seller basis.

IUBIB, in a statement issued last week, said the agreement was signed after taking into account the market value of the property of RM220 million and the purchase consideration was at a 30.45 per cent discount of the market value.

1st Avenue Mall, opened nine years ago, has 407,076 sq ft of net lettable space and is sited within the inner city of George Town. It is connected to Komtar and another mall, Prangin Mall, through indoor pedestrian bridges.

In the same announcement, IUBIB said the proposed acquisition will result in the diversion of 25 per cent or more of its consolidated net assets into property investment holding, which is different from its core business of property development operations.

“As such, IUBIB will seek approval from the shareholders of the company at an Extraordinary General Meeting (EGM) for the proposed diversification in conjunction with the proposed acquisition,” it said.

It added that the proposed acquisition is the group’s first venture into property investment holding and it is confident that it will generate positive returns from appreciation in real estate prices and also from rental income from the mall which currently has a 90 per cent occupancy rate.

“The group intends to continue renting out 1st Avenue as a source of income and recognises that the property has potential to be redeveloped in future as it is in a prime location within the city of Penang,” it said.

The proposed acquisition and diversification are subjected to approval of shareholders at an EGM and other relevant authorities.

Source: MalayMail.com

Sinaran Avenue @ Utropolis is the third phase of 44.3-acre master-planned Utropolis development by Paramount Property at Batu Kawan, Penang. Strategically located along Bandar Cassia Expressway, about 5 minutes walk to Design Village outlet mall and KDU University College, the first intake of which will commerce Q1 next year. It is only 29km to the Penang International Airport.

This development will feature 16 units of 2-storey shop offices, with a standard built-up size of 3,875 sq.ft. Each unit has an indicative price of RM2.3mil onwards, expected to be ready by 2023.

OFFICIAL LAUNCH

29 September 2019, 11am – 5pm
Utropolis Sales Gallery @ Design Village Outlet Mall

– Please call 012-501 0733 to RSVP by 25 September 2019 –

Project Name : Sinaran Avenue @ Utropolis, Batu Kawan
Location : Batu Kawan, Penang
Property Type : Shop office
Built-up Area : 3,875 sq.ft.
Total Units: 16
Indicative Price: RM2.3mil onwards
Developer : Paramount Property

Location Map:

While the Real Property Gains Tax (RPGT) is not likely to be removed in the upcoming Budget 2020, Alliance Bank Malaysia Bhd expects the rate to be reduced amid the current lacklustre property market conditions.

Group’s chief economist Manokaran Mottain said the current rate at 24% was slightly higher than the average capital gain tax rate in Asean, which stands at 23%.

“We do not expect the RPGT to be removed during Budget 2020 since the RPGT has only been revised recently. The government requires the additional revenue stream from the RPGT, ” he said.

“Removing RPGT will not likely be helpful to address the large property overhang as well, given that the government has already introduced various home ownership programmes to tackle the overhang issue, ” he told StarBiz.

Apart from that, the digital tax that would be implemented next year would likely be introduced at a single-digit rate of around 5% to 7% during the initial stage of implementation, Manokaran said.

He said the digital tax should be implemented at a moderate rate during the initial stage so as not to hinder the growth of the digital economy in Malaysia.

It was noted that the digital economy had been growing at a rapid pace, averaging at 9% annually in value-added terms, between 2010 and 2016.

According to Manokaran, the minimum wage issue would likely be another matter to be considered.

He said the government would likely look into increasing the minimum wage once again to tackle the rising cost of living.

Recall, the minimum wage was last revised in Budget 2019 to RM1,100 per month, effective Jan 1,2019, from RM1,000 per month for Peninsular Malaysia and RM920 per month for Sabah and Sarawak.

On Malaysia being a potential beneficiary over the trade conflict between the United States and China, Manokaran said the government should focus on its developmental budget for the external trade segment, particularly with the infrastructure and trade systems to encourage more trade diversion through Malaysia, as well as ease complications and regulations for foreign investors to reallocate their production and businesses in the country.

Meanwhile, in line with the potential relocation of production facilities outside of China due to trade tensions, OCBC Ltd chief economist Selena Ling expected some tax incentives in Budget 2020 to increase Malaysia’s attractiveness as a foreign direct investment (FDI) destination.

“While Malaysia may not be able to compete well with the likes of populous Indonesia and Vietnam, it has carved out a niche in medium-to-high-end manufacturing sector that is more technologically-focused, such as chipmakers.

“That should be safeguarded and enhanced further with potential tax breaks, among other initiatives.

“This would not only capitalise on the China-relocation impetus, but would also allow the country to ride on the secular technological shift towards the Internet-of-Things era, ” she said.

Ling also expected a degree of fiscal consolidation posture from the government in the upcoming budget, with fiscal deficit coming in at about 3.2% of gross domestic product (GDP) in 2020, which would strike the right balance between fiscal consolidation and the reality of growth slowdown.

According to Manokaran, Malaysia’s GDP would likely to expand 4.5% in 2020, from the expected range of 4.5% to 4.7% this year, driven by the steady services sector and manufacturing sector growth.

“The manufacturing sector is expected to remain resilient and supported by the electrical and electronics industry, despite the fact that the sector is currently being weighed down by headwinds arising from the US-China and Japan-South Korea trade wars, ” Manokaran said.

The agriculture and mining sector, on the other hand, was expected to remain subdued, given the volatility in commodity prices, he added.

As for construction, Manokaran said the sector would likely trend higher in the second half of 2020, due to short-term boosts from approved mega projects such as the East Coast Railway Link, land reclamation works of the Penang Transport Master Plan and Pan Borneo Highway.

Source: TheStar.com.my

Condominium and apartment units priced between RM200,000 and RM300,000 dominate the list of property overhang in the country, mainly contributed by those in Perak and Kedah.

Deputy Finance Minister Datuk Wira Amiruddin Hamzah said condominium and apartment units made up 43 per cent of the total property overhang in the country, whereby a majority of these real estate were in the ‘affordable’ range.

“The indicators of overhang property are important to ensure that the housing supply is consistent with the demand, while the mismatch issue can be minimised.

“Hence, I urge the developers and authorities, who approved project developments and their selling prices to pay attention to the overhang data,” he told a press conference after announcing the real estate market performance in the first half of this year, here today.

Property overhang units must not be confused with unsold stock. The government has defined overhang units as properties that are completed and issued with Certificates of Fitness for Occupation or Temporary Certificates of Fitness for Occupation, but remain unsold despite having been put on the market for at least nine months.

Amiruddin urged developers to build houses that caters to the demand of buyers in terms of the property type, location and price range.

In the first half of this year, 23,591 new residential units were launched, which were 49.4 per cent lower over the same period last year.

Perak recorded the highest new launches with 4,557 units, capturing almost 20 per cent of the national total, followed by Johor (4,233 units), Penang (3,216 units), Kuala Lumpur (2,565 units), and Selangor (2,387 units).

Amiruddin said the residential subsector alone contributed 32,810 units worth RM19.76 billion to the overhang, while the shop subsector overhang contributed 5,760 units valued at RM4.98 billion.

He said the government’s main agenda going forward is to address the need for more affordable housing and finding the right solutions to the property overhang.

The government had taken steps towards that direction with the launch of the National Housing Policy 2.0 and introduction of incentives under the Home Ownership Campaign 2019.

At the event, Amiruddin also launched the Valuation and Property Services Department’s Unsold Property Enquiry System Malaysia (UPESM) 2.0, a system that allows users to get information on real estate in the country.

Soource: Bernama