Friday, March 30, 2012

曹观友:地方政府成绩亮眼 槟崛起成4星级州


(槟城29日讯)槟州成为“四星州”!在槟岛市政局及威省市政局在今年的全国地方政府服务水平评审中颁四星级后,这相等于槟威两地的地方政府服务水平,已全面提升至四星级。
槟岛市政局及威省市政局在2008/2009年的地方政府星级服务水平评审中获颁三星级,在本月26日出炉的成绩更上一层楼,在全国98个地方政府中取得骄人成绩,在各方面即行政、服务、客户处理、社区参与及公众看法的各项评分中取得进步,其中槟岛市政局的分数从68.75分提高至83.96分;而威省市政局的分数从72.05分提高至75.16分。
槟州地方政府委员会主席曹观友周四于市政厅举行记者会,在槟岛市政局主席芭缇雅及威省市政局主席麦慕达等陪同。曹观友表示,不同其他州,一个州有多个地方政府,反之槟州只有两个地方政府,这意味任何人踏足槟州,即会获得四星级的地方政府服务水平。
他表示,上述评审是由联邦地方政府部进行,评分由政府官员进行,对于两个地方政府服务水平的爬升,曹观友认为是对市政局员工的认同,也是一种鼓励。他表示,有关星级分数,分为一至五星,其中五星分数是100至88分,四星介于75分至89分,三星分数介于60至74分,二星分数介于46至59分,一星级是45分以下。
曹观友表示,有关评审两年期限进行,唯他说获颁三星或四星级服务水平的地方政府也可向地方政府部提出提早评审的要求。
槟岛地方蓝图或9月前出炉
引起关注,迟迟不出炉的槟岛地方发展蓝图,有望在9月前出炉。
在威北、威中已分别公开展示地方发展蓝图,紧接威南地方发展蓝图也将料在6月出炉及公开展示后,槟岛地方发展蓝图也将在乔治市特区蓝图(SAP)完成后,不久就出炉面世。
曹观友受问时,先是要求槟岛市政局主席芭缇雅回应,后者表示槟岛地方发展蓝图已获市政局通过,并已呈上槟州政府寻求接纳以进行公开展示。曹观友较后表示,槟岛地方发展蓝图的草本已呈上槟州策划委员会,然而为了避免与拟定中的乔治市特区蓝图相冲突,将在乔治市特区蓝图完成后才会有跟进行动。
他表示,乔治市特区蓝图是在联合国教科文组织(UNESCO)要求下必须拟定,后者也为该蓝图列下时间表,不同于特区蓝图,地方发展蓝图并没有一个时限压力。他说,乔治市特区蓝图已进入接受一个受委任委员会在聆听取公众反对的阶段,迄今已接获60个个案上书。在问及地方发展何时可出炉时,他希望可在年尾完成,唯问及是否可在全国大选前面世,他说大选可能在9月,相信蓝图可在之前出炉。
与太阳能工厂无关
威南(SPS)地方发展蓝图迄今未出炉与拟议中的光伏太阳能工厂无关。
曹观友反驳民青团公共投诉局主任朱笙鑫指责威南地方政府发展蓝图不出炉与光伏太阳能将在地当地建厂有关。他说,威南地方发展蓝图与已公开展示的威北及威中地方发展蓝图分开制定,引起关注的威南地方发展蓝图也已在记者会当天早上获槟州策划委会员(SPC)接纳通过。
他表示,威北及威中地方发展蓝图从3月15日公开展示至4月12日,他相信威南地方发展蓝图将在6月及7月进行公开展示,以聆听取公众的回馈及反对。他谴责民青团的指责是含有“恶意的猜测”(sangkaan jahat),意图指责槟州政府故意隐瞒。曹观友说,在已完成的威南地方发展蓝图中即清楚列出各工业区,他欢迎民青团可在蓝图公开展示时购买蓝图及光碟,提出意见。光华

Tuesday, March 27, 2012

Do a Little & Save a Lot

* Pantai Jerjak
* Freehold
* 2 storey Semi Detached
* Fully Renovated & furnished
* Priced to sell quickly

Click here to contact us, Penang I Property for more information or viewing

A Price to Brag About

* Freehold
* Tanjung Bungah
* 3,595sf
* 2 Storey Semi Detached
* Big Garden
* Corner Unit
* RM1.68 million

Click here to contact us, Penang I Property for more information or viewing


Saturday, March 24, 2012

Air Itam - Land For Rent

* About 8,000 sq ft
* Flat and along main road
* Cement
* Priced to rent quickly
* RM5,000 per month

Click here to contact us, Penang I Property for more information or viewing

At what price the pursuit of novelty?


A month or so ago, there was an advertisement marketing a new development comprising 88 villas located on about 80 acres.
In terms of density ratio, that works out to 1.1 villa per acre. That probably works out to one of the lowest density developments ever.
For comparison, an average bungalow development will have about four to five units to an acre. If it were a terraced house project, there will be about 20 units to an acre.
The built-up of the villas range from 2,200sq ft to 5,500sq ft with the smallest having one bedroom and the largest three bedrooms. Wow! You wonder, imagine 2,000 sq ft and there is only one bedroom.
This must be the biggest one-bedroom villa ever. Again, for comparison, a 1,200 sq ft apartment may have up to three rooms, on average. Some of the most luxurious 2,200sq ft KLCC condominium units come in 3+1 configuration.
So let us establish this, in terms of size and use of space, this project stands apart from the average development.
There are other features which set it apart from many other developments.
Instead of bricks and mortar, all the villas will be built from timber; some of the most hardy ever to be found in Malaysia. A large part of the units, from flooring to walls to roof will be built from timber.
The villas also come with heating and air-conditioning facilities. The heat generated from the air-conditioning and solar panels installed in the development will be used for heating purposes. So in some ways, the developer is alluding to elements of “being green”, or environment friendly.
The project is really private, located away from the hustle and bustle of the city. No industrial or traffic pollution, just fresh air and sunshine. After all, you will have about an acre of space to yourself.
The closest thing to civilisation is 15 to 45 minutes away, depending on how fast your transportation will allow you to go, and weather conditions.
The waste disposal system and the main support services like utilities will be located at one end of the development, which from end to end, spans 1.2km.
Each of the 88 villas will have its own swimming pool, or maybe it will be a lap pool.
Despite having a pool, which usually equates high maintenance and service fees, there is no service charges. It is things like lifts and swimming pool which jack up maintenance fees because these need constant maintenance.
Besides the free maintenance, the other attraction is the yield. It comes with a minimum 7% annual returns for the first five years with no management or management fees. There will be a 10% compounded interest every five years, which means from the sixth to the 10th year, the owner will receive 7.7% annual returns.
There is something you must know, though.
Unlike leases which either come with 99-year lease or freehold, the lease to this project expires in 2067, which is about 40 years away.
But despite that, some buyers are not bothered by this as about 40 units, or 50% of the project, has already been sold - three to foreigners and the rest to Malaysians.
Piling work has started and to ensure that construction and lifestyle is environmentally correct, the company has done an environmental impact assessment (EIA), which was approved after three years.
The entire development will be fitted with a special waste disposal system, what an environmental consultant calls a hydroponic waste water disposal system and the solid discharge will be transported away for use for fertilisers.
Each year, the owner will have a 21-day stay in his villa, which is expected to cost about US$700++ minimum a night.
By now, you will probably have guessed, this is a time-sharing development. So, how much are the villas? How does RM2.8mil to RM5.5mil sound to you?
There is one other thing, though.
The entire project is built in the sea, off the island of Mabul in Sabah, near the famed diving spot of Sipadan. Semporna will be the push-off point.
The managing director of Jewel of Mabul Development Sdn Bhd, Louise Lang, said the company “has acquired the submerged land title from the Sabah state government to build on the site.
The buyers will receive master titles to the villas.”
Ordinarily, when a jetty or a resort is built in the sea, a temporary occupational licence (TOL) is issued by the state, which means that the area on which a project is build can revert to the state.
A TOL is also issued for sea-farming activities, as when clams or fish was being bred for commercial purposes.
In the case of this development, because the villas are to be sold to individuals, the project will be built on a “submerged land title”, as in the land being underwater.
The price is for the villas but not the area it is located on.
Known as Alorie Lepa Lepa, the project is being initiated by three Malaysians who put up their resources to build the RM280mil project.
The developer's environmental consultant Don Baker said the project would be constructed on spun concrete piles of about a foot in diameter each.
About 4,000 of these piling will be driven as deep as 18 metres into the sea.
Baker says if a coral reef bed were in the way, the company will “move the coral reef out of the way.”
Since 90% of the development are on “shallow water of between two and three metres between low and high tides” there is every likelihood that a large part of the development will be sitting on a coral reef bed as they need sunlight to grow.
What is interesting is the impact of a project like this in such a pristine setting because the marine eco-system is a fragile one.
Whether it is from an investment, construction or environment standpoint, assistant news editor Thean Lee Cheng thinks the pursuit of novelty seems to be heading towards uncharted waters.

Tropicana Ivory’s RM10bil Penang World City to feature diverse cultural components


GEORGE TOWN: Tropicana Ivory Sdn Bhd's (TISB) RM10bil Penang World City (PWC) project in Bayan Mutiara will have affordably priced high-rise units and a world culture' component, featuring different cultural residential enclaves.
TISB is a joint-venture company in which Dijaya Corporation Bhd holds a 55% stake, while Ivory Properties Group Bhd the remaining 45%.
Ivory group chairman and chief executive officer Datuk Low Eng Hocksays about 15% of the properties for the 800 to 1,000 high-rise units for the first phase will be priced between RM300,000 and RM500,000, depending on the built-up area which ranged between 600 sq ft and 800 sq ft.
The first phase, to be located on a 10-acre site and scheduled for launch in the third quarter of 2012, will have a gross development value (GDV) of around RM600mil to RM700mil.
Subsequent phases for PWC will also see 15% of the properties priced in the affordable range of between RM300,000 and RM500,000, Low adds. Low said the group might consider using the plot ratio guidelines introduced in 2010 for the island to build medium-priced properties.
Low: ‘We need a huge number of Penangites to call World City their home.’
Under the revised guidelines of 2010, developers have to allocate 5% of the total units in a development scheme to be priced at RM200,000, 10% to be priced at RM300,000, and another 5% not exceeding RM500,000.
The affordable components were in the planning of the entire master plan as a value-added component from the very early stage, even during the tender exercise, according to Low.
“As we are planning for a world class city within World City, economies of scale is of the essence.
“In order for this to happen, we need a huge number of Penangites to call World City their home.
On the world culture' component in PWC, Low says there will be residential enclaves where the properties will reflect the architectural and cultural themes of a particular country.
“For example, we will create Chinese, Korean, Middle Eastern and European villages in PWC, so that the properties can be marketed in that particular country through an appointed real estate agent.
“We want to create a world culture to attract tourism and foreign investors and to differentiate PWC from the other mega-development projects on the island.
“These parcels will be solely for en-bloc sales to expatriates,” he says.
On the impact of the global slowdown on PWC, Low says at present the group has not felt the impact of the global slowdown yet, at least not in the financial and real estate sectors.
“Our banks are well positioned and the central bank played a very proactive role to mitigate any possible impact or threat to our economy. The scale of foreign direct investments is very encouraging not only for Penang but for Malaysia as a whole,” he says, adding that the group does not foresee any slowdown in the next two to three years. “In fact, property prices in Penang are still very attractive and have yet to reach its peak. Many magazines, including those from Hong Kong, have been mentioning and promoting Penang as the ideal home destination.
“Investors from China, Japan and Korea, for instance, are very much interested in coming to Penang, particularly in the aftermath of the Japan earthquake and tsunami,” he notes.
Meanwhile, on Ivory's plans for 2012, Low says the company is targeting to launch projects worth approximately RM1.4bil in GDV this year, including The Latitude in Mount Erskine, Penang Times Square phase three and phase four, City Mall and City Residence in Tanjung Tokong.
“The company is targeting to rake in sales of some RM800mil this year.
“Last year, we only booked RM121.8mil of sales for completed and on-going projects besides having unbilled sales of RM227mil to be realised over these two years. We are expecting higher sales this year since we have more projects to offer this time and not forgetting the much anticipated PWC project,” he adds.
Last July, Ivory won the right to purchase and develop the site in Bayan Mutiara after edging out four other parties, including SP Setia Bhd, which were bidding for the land. Ivory won the bid after offering the highest price to buy the land for RM240 per sq ft or RM1.072bil for the entire site, securing with it the right to develop on the existing 67.56-acre site and another 35 acres that will be reclaimed over the next three years.
To date, about RM22mil or 2% had been paid as earnest deposit for the land. The remaining downpayment of RM80mil will have to be paid on or before April 10. In the agreement with Dijaya Corporation Bhd, Ivory is the turnkey builder for PWC and will thus be entitled to 48% of the project's gross revenue with the amount due to the company estimated at RM5bil. - The Star

UOA banks on strategic projects


PURSUING pocket developments in mature neighbourhoods will be the forte of UOA Development Bhd to build up a stronger presence in the Klang Valley property market.
UOA chief operating officer (development) David Khor says the Kuala Lumpur-based developer is also looking for opportunities to tap new growth markets like Penang and Johor.
Although the company's cash pile of some RM300mil and borrowing of only RM10mil would mean it has leeway to resort to bank borrowings should it decide to make sizeable land acquisitions, UOA is not in a hurry to ramp up its gearing because it prefers to acquire strategic parcels.
Khor: ‘It is our strategy to continue with our business model of having smaller parcels of land and building good quality projects at our own pace, instead of rushing through projects which may compromise on quality.’
Khor says the 40 acres of undeveloped land in Bangsar South and another 60 acres in other parts of the Klang Valley will keep the company busy for the next seven years.
“It is our strategy to continue with our business model of having smaller parcels of land and building good quality projects at our own pace, instead of rushing through projects which may compromise on quality,” Khor shares with StarBizWeek.
Smaller plots of land will mean a shorter turnaround time of between two and three years (for high-rise developments); and being located in mature locations also ensures a better premium and margin for its properties.
UOA projects yield net margins of about 30%.
He says the other option is for the company to form joint ventures with landowners, and preliminary negotiation is underway for two potential sites in the Klang Valley.
The UOA group also has a large presence in commercial development.
It has completed quite a number of office buildings of which six have been injected into the UOA real estate investment trust (REIT) which currently has an asset value in excess of RM1bil.
UOA Ltd, which is listed on the Australian Stock Exchange, owns 68% of UOA Development and 47% of UOA REIT.
Khor says UOA has about 100 acres of undeveloped landbank in the Klang Valley, with 40 acres in Bangsar South, and the balance in Kepong, Taman Desa, Segambut, OUG and Glenmarie.
Last year, it bought three parcels of land six acres in Sri Petaling, and 10 acres each in Segambut and Kepong.
Meeting market needs
The company recorded RM850mil in sales in 2011 and is expecting double digit growth in 2012.
On new project plans, it has lined up four to five projects worth a total gross development value (GDV) of RM1.5bil to be launched in the next12 months.
Khor concurs with industry observers that the high-end condominium market is moving into a glut situation, with a high number of projects scheduled for completion these one to two years.
“The over-supply situation is particularly acute in condominiums with a large built-up of more than 2,000 sq ft, when actually demand is greater for average sized units of between 1,000 sq ft and 1,200 sq ft,” Khor observes.
He points out that the issue of affordability could be one of the reasons for this situation, following Bank Negara's directive to banks to decide on the quantum of loan approved based on a borrower's net income instead of the previous method of using gross income.
“The imposition of a maximum loan to value ratio of 70% for third time borrowers has also impacted on the affordability level of property buyers.
“In such a situation, there is a need for developers to plan for more average sized houses that are more affordably priced at around RM400,000,” Khor notes.
Completed office buildings in Bangsar South – UOA’s flagship project.
Flagship project
Going forward, he says UOA would be focusing on that market range and designing its projects with more average sized residences to fit the affordability level of buyers.
Khor notes that UOA is among a handful of local developers that have undertaken projects under the build-then-sell (BTS) system.
Its two residential projects Villa Yarl and Halimahton were completed before they were launched for sale in 2007.
It has also completed a few boutique residential projects including Villa Mont'Kiara in Mont'Kiara and One Desa Residence in Taman Desa.
Khor says the company's flagship project is the 60-acre Bangsar South, an integrated mixed use development located on the former Kerinchi squatter colony, which is off the Federal Highway.
The land was acquired at RM35 per sq ft back in 2005, and today, the market price has reached RM300 per sq ft.
Khor says Bangsar South will comprise 29 office blocks, a retail block, and seven residential blocks with an estimated gross development value in excess of RM8bil.
So far the company has sold RM620mil worth of boutique office towers of 10 to 11 storeys to corporate buyers who will have the naming rights for the property.
The selling price for the office space is around RM800 per sq ft while the asking rental rate is RM5.50 per sq ft.
The residential properties were opened for sale since 2007 and so far RM476mil have been sold.
Khor says UOA will be improving the infrastructure access between the residential and commercial precincts by widening the roads, and has upgraded the Universiti LRT station.
Walking pavements and sheltered pavilions have also been built.
According to him, the Bangsar South project will continue to be the main growth driver for the company over the medium to long term.
“Going forward, the development in Bangsar South will remain the company's focus as it will contribute positively to the company's bottomline over the next seven years,” he adds. - The Star

Tighter screening of loans


THE local property sector is expected to see some “cooling down” in the number of transactions this year following the implementation of the responsible lending guidelines by Bank Negara on Jan 1.
According to Real Estate and Housing Developers Association (Rehda)president Datuk Seri Michael Yam, transactions are now taking a longer time to crystallise as banks are grappling with more data required for processing loan applications.
Yam says transactions are taking a longer time to crystallise.
“Buyers are also not committing to purchases until they get clearance from banks that they will be offered the loan applied for, which may or may not be sufficient for them to purchase the property they desire.
“The first segment to be affected is obviously the residential component. For the non-residential, especially commercial properties which may be bought by companies or partnerships, we understand the new formula is not applicable,” he tellsStarBizWeek.
Yam feels that the new ruling will have a huge impact on the middle-income segment.
“However, it is common for this group to actually have double (or even) triple incomes from their second and third jobs, but may not have documents to support higher loan eligibility. While prudent risk management is good, financial institutions must also play a facilitative role in the home ownership agenda by assessing each application on its own merit and not blanket applications across the board.”
He adds that the affordable housing segment will probably be the most affected segment as borrowers are likely to be less affluent, with lower income and disproportionately higher expenditure.
“We predict headwinds for sales in this critical segment, which is contradictory to the wish of the Government to encourage home ownership,” Yam says.
Chang says the entry level market will be the most affected.
In light of this situation, Federation of Malaysian Consumers Association (Fomca)chief executive officer Datuk Paul Selvarajis urging the central bank to perhaps ease the loan application process, such as making it easier for consumers to switch banks if necessary.
“Consumers, if they feel that they can get a better deal with another bank for their housing or car loan, should be able to do so with ease and at minimum costs. Consumers often feel overwhelmed at the procedures for changing banks. The process should be simplified. The ease of bank switching would promote better quality of services from the banks through competition.
“There should be greater emphasis not only on policy measures but on financial education. Not enough is being done to provide appropriate financial knowledge and skills to consumers,” he says.
One industry observer concurred that the responsible lending guidelines will have the biggest impact on the lower income group.
“This group of people are already earning a low salary and with stricter lending rules, getting loans could be made more difficult.”
National Housebuyers Association (HBA) secretary-general Chang Kim Loong says the responsible lending guidelines will have an impact on the local property sector, especially in the entry level market where aspiring job seekers purchase their first home and for married couples hoping to be able to purchase or upgrade their homes.
Selvaraj urges the central bank to ease the loan application process.
“Depending on location and from state to state, the price ranges from RM150,000 to RM500,000. This is the price range that speculators have been targeting in the past and have artificially inflated such property prices, but it's still too early to gauge the effectiveness or effects of the responsible lending guidelines.
“It is hoped that as property speculators are denied financing to purchase such homes and with only real demand in the picture, the prices of such properties will gradually decline to more realistic prices.”
According to reports, applications for loans for the purpose of purchasing residential properties contracted 6.3% in January from a growth of 11.3% in December 2011.
Yam says Rehda understands that the implementation of the rationale for responsible lending guidelines was due to the large household debts and the 40% increase in transaction value (from RM100bil to RM140bil) between 2010 and 2011.
“On the short to medium term, this restriction would ultimately cause a slowdown in borrowing which is the intended effect, and it will cause a negative effect on home ownership.
“The mixed signal arising from this new lending rule is that while on the one hand the Government is encouraging the building of more affordable medium-cost housing by introducing “My First Home Scheme” and “PR1MA” homes to stimulate demand, on the other we have this Bank Negara announcement,” he says.
Yam feels that the central bank's new lending criteria seems to be in contradiction to the earlier Budget announcement in October last year.
“This does not sit well with developers who are taking the cue and feel positive about home-buyers being offered greater opportunity and various incentives to own homes only to be somewhat dampened by this new requirement,” he says.
Positive measure?
Khong & Jaafar Sdn Bhd managing director Elvin Fernandez says he is supportive of Bank Negara's responsible lending guidelines.
“The new rulings are good because they are pre-emptive measures to prevent a housing bubble. The measures are making themselves felt as price increases in some hot spots that were a cause for concern have now stalled and also the trend from it spreading down the line or to other areas have also been curtailed.
Fernandez supports the guidelines as they prevent a housing bubble.
“House prices rising are not good. Prices rising with fundamentals such as household income and rental returns are good,” he says.
Chang also applauds Bank Negara's responsible lending guidelines.
“The guideline requires the financial services providers (FSPs) to provide assessment of individual affordability and provide suitable and responsible advice to customers on their capacity to take on additional financing,” he says.
According to Chang, the FSPs or banks will be required to undertake a comprehensive assessment on borrowers' sources of income and verify against independent sources to ensure that they have the ability to repay the loans throughout the tenure of the loan.
Income assessment shall be based on the borrowers' net income, which is the gross salary minus the statutory deductions such as Employees Provident Fund contributions and tax deductions.
“HBA has been advocating for a very long time for FSPs to exercise prudence and good judgment when disbursing loans. Due to stiff competition and key performance indicators set by the board and senior management, (FSPs) have been too lenient and aggressive in providing financing, resulting in artificially inflated property prices and many young adults being declared bankrupt due to their inability to repay their debt obligations,” says Chang.
Chang says that as part of the responsible lending guidelines, Bank Negara has repealed its requirement of a maximum debt service ratio (DSR). For the uninitiated, the DSR means that the debt repayments are divided by the borrower's income.
According to him, prior to the responsible lending guidelines, the maximum DSR was set at one-third (or 33%) of gross income for single loan repayments and half (or 50%) of gross income for all loan repayments combined.
The exception was given to civil servants who could borrow from the cooperatives with a DSR of up to 60% of their gross income.
“Hence, if the borrower's gross income is RM3,000, the maximum single loan repayment is RM990 and maximum aggregate of all loan repayments cannot exceed RM1,500 per month,” Chang says.
Under the responsible lending guidelines, the DSR based on gross income has been repealed and FSPs are now free to set their own DSR based on the net income of the borrower.
Chang says the issue now will be that prospective borrowers do not know if they would qualify for a loan as different FSPs have different DSR guidelines.
“There is a shock-effect with FSPs being told to totally disregard all forms of variable income such as discretionary bonuses, commissions and overtime and prospective borrowers that are dependent on these types of income are adversely affected.
“Based on our market sources, some FSPs are willing to consider these types of income but at a discounted rate and this causes great confusion to prospective borrowers as they attempt to shop around for loans,” he says.
Rehda feels the affordable housing segment will probably be the most affected.
Chang says HBA is urging the central bank to retain its “maximum DSR” requirement “to set a cap” as guidance for FSPs to follow.
“As it is, even with the previous guidelines on one-third and half, many FSPs have openly flouted the guidelines with reckless financing, resulting in artificially-inflated property prices and many young adults being declared bankrupt due to unmanageable debt levels.
“With the caps removed and FSPs being free to set their own lending policies, the situation of reckless financing may get even worse. Although HBA agrees that market forces are the best form of regulation, it has been shown that we operate in an imperfect market and hence the need to retain DSR limits for FSPs to follow,” he says.
As a means to improve lending, the HBA is also calling on the central bank to issue additional guidelines on the recognition of variable income, where the borrower can show a good track record for such income.
“This is because certain industries such as in the sales and manufacturing sectors, the basic income is often very low and the discretionary income serves as an incentive for employees to perform.
“If such discretionary income is to be totally disregarded, it is feared that such employees may never qualify for any sort of loan from legal channels and end up resorting to loan sharks.” - The Star

CM: We’ll ensure all projects abide by environmental rules


THE Penang Government will ensure that all the projects comply with environmental guidelines before proceeding, said Chief Minister Lim Guan Eng.
“We will not proceed with any projects without an Environmental Impact Assessment (EIA) report, the state will not proceed with the projects,” he said.
He was commenting on the Escape Theme Park Resort located near a forest reserve, the Teluk Bahang Dam and the Penang State Park.
Lim said the Department of Environment had already conducted a study and found that it (theme park) is located downstream so there would be no contamination of the Teluk Bahang dam.
The resort located on a 17ha site was being developed by Sim Leisure Consultant Sdn Bhd. The project, which started on Oct 18 last year, will take about six years to complete.
Lim, who was speaking to reporters in Balik Pulau, said the state would ensure that everything was in accordance with environmental guidelines and there would be no damage to the dam.
He also said the eventual outcome of the solar panel factory to be built in Batu Kawan on the mainland would be clean energy.
“If they (Barisan) want to talk about processing or if it is clean, then what about Lynas? Not only the processing is questionable, the waste product is also questionable.
“When they (Barisan) do it in Malacca, there was no issue. But when in Penang, there is issue,” he said, adding that this showed double standards.
Lim was referring to the US-based SunPower Corporation which invested some RM2.3bil to set up their solar cell fabrication plant in Alor Gajah, Melaka. - The Star

Bertam to be Cyber City 2


BERTAM town in Kepala Batas will be developed as the second Penang Cyber City (PCC 2) by 2020, following the declaration of the Bayan Lepas/ Bayan Baru industrial hub as the state’s first cyber city back in 2005.
The PCC 2 would lead in research and development (R&D) activities, especially in Information and Communications Technology (ICT), provide world-class ICT infrastructure and be a catalyst for development in Kepala Batas.
According to the North Seberang Prai Local Plan 2020 Draft, the Kepala Batas-Bertam-Kubang Menerong enclave has also been identified as one of four development corridors as outlined in the Penang Structure Plan 2020.
The other three corridors are Butterworth-Bagan Ajam-Teluk Air Tawar (including Sungai Dua) enclave, Penaga-Kuala Muda enclave and Tasek Gelugor-Ara Kuda enclave.
Former Prime Minister Tun Abdullah Ahmad Badawi, who is Kepala Batas MP, first declared the launch of Penang Cyber City (PCC 1) on Jan 29, 2005.
At that time, former Penang Chief Minister Tan Sri Dr Koh Tsu Koon had said that the state government had plans to establish two more cyber cities by 2008, one in Bertam and another in Batu Kawan.
The Bertam township, which is home to a number of educational institutions and Federal Government offices and agencies, would also be developed as a special industrial centre, a semi-regional centre and as north Seberang Prai’s district administrative centre.
Apart from emerging as a Centre for Excellence in Higher Education, Bertam would also be home to a cluster of companies in the automotive industry and an integrated farming-cum-processing centre.
The draft says that more landed property is encouraged in the township compared to high-rise buildings according to the suitability of the land area there.
To further enhance public transportation in Bertam, an integrated monorail service has been proposed to connect Kepala Batas with Bagan Ajam, Butterworth, Sungai Dua and Tasek Gelugor.
The North Seberang Prai and Central Seberang Prai Local Plans 2020 Draft are currently on display for public viewing and feedback since March 15 till April 12.
The documents are available at the MPSP headquarters in Bandar Perda here, the north Seberang Prai and central Seberang Prai district offices and at the Town and Country Planning Department office on Level 57, Komtar, George Town.
The exhibition is open from 9am to 5pm on Monday to Friday.
Visitors can buy copies of the local plan drafts, which are available in CD-ROM format, at RM10 each. - The Star

RM1.68mil grants for 28 more projects in heritage zone


TWENTY-EIGHT grants totalling about RM1.68mil have been approved in the fifth round of the George Town Grants Programme (GTGP) under Think City Sdn Bhd, a subsidiary of Khazanah Nasional Bhd.
Think City executive director Hamdan Abdul Majeed said that out of the 28 projects, 16 involved physical conservation and restoration while the remaining 12 involved five technical grants and seven cultural mapping initiatives.
“Out of the 16 physical conservation projects, 10 are located in the core zone of the George Town World Heritage Site while the other six are in the buffer zone,” said Hamdan.
He added that feedback from George Town World Heritage Incorporated and the Department of National Heritage had also been taken into consideration for all the physical conservation projects reviewed by Think City’s technical advisory panel of experts.
“Our goal is to improve the World Heritage Site as a whole,” he told a press conference at the Menara KWSP in Jalan Sultan Ahmad Shah.
Among the physical rejuvenation projects approved under the grants are the restoration of Loke Thye Kee restaurant in Jalan Burma which is popularly known as Penang’s oldest restaurant as well as several heritage houses along Malay Street and Bishop Street.
As for the technical assistance grants, Sri Mahamariamman Temple in Queen Street will undergo restoration works while funds will be made available for the conservation of the Church of Assumption.
Launched in December 2009, the three-year programme is a seed-funding initiative for urban rejuvenation projects within the George Town World Heritage Site.
To date, Think City has used up RM12.9mil out of the RM20mil worth of grants under the programme.
With the funds, more than 50 physical rejuvenation grants have been approved so far as well as 24 cultural mapping initiatives. - The Star

Wednesday, March 21, 2012

Skyrocketing shophouses


THE cost of buying a pre-World War II shophouse in George Town, Penang, has reached RM2,000 per square foot — equivalent to the price of the poshest Kuala Lumpur City Centre (KLCC) condominium units.
An entrepreneur, who declined to be identified, has just paid RM4mil for a 2,000sq ft shophouse along Lebuh Pantai (Beach Street) in order to continue an existing business located on the premises which she had been renting.
Before 2008 — the year George Town was jointly listed with Malacca as Unesco World Heritage Sites — pre-war shophouses in Penang were generally going for about RM200,000 to RM800,000 depending on size and location.
In 2009, an unrestored shophouse of 10ft by 36ft in Lorong Chulia only cost RM150,000, but the asking price has since jumped to over RM300,000 of late.
Now, the asking price of even the smallest shophouse that spans only 11ft by 30ft in Lorong Toh Aka is already RM600,000.
Nearby, in Lorong Carnarvon, one unit of 17ft by 100ft has been sold for RM1.2mil, while Lebuh Amernian shophouses can fetch RM3mil each.
Heritage value
Contrary to the popular notion that foreigners and investors from Kuala Lumpur are pushing up prices of Penang heritage property, recent transactions show that Penang investors are the ones who are buying in a substantial way.
This is particularly true among those who have lived abroad and recognise the heritage value.
Stand tall: Bought for RM2mil in 2008, Campbell House in Jalan Campbell is a 10-room hotel owned by Malaysia-born Nadya Wray and her Italian husband, Roberto Dreon.
According to informed sources, one businessman from Bukit Mertajam recently snapped up RM20mil worth of pre-war property, including shophouses, in one day.
Even derelict property is now seeing interest. The defunct Nam Wah Hotel & Bar, located at a prime location in Lebuh Chulia, was sold for RM7mil last year. The property comprises double-shophouse units with a land area of 14,000sq ft.
Such shophouse properties are often turned into “heritage” hotels, charging an average of RM300 to RM400 per room per night.
Local entrepreneur Seah Kok Heng, 42, says he spent RM3mil in 2008 to acquire three derelict, triple-storey shophouses located at Rope Walk or Jalan Pintal Tali.
Then, he spent another RM10mil to restore and transform the adjoining units into the Chinese-themed 1881 Chong Tian Hotel, where certain suites sell for over RM2,000 a night.
Probably the best-known heritage projects are by Penang-born businessman Christopher Ong, who has lived in Australia, as well as in Sri Lanka, where he once operated an award-winning hotel.
Together with business partners, he now owns and operates Muntri Mews, a nine-room hotel, which was formerly a stable on Lebuh Muntri.
Sold: The Nam Wah Hotel property on Lebuh Chulia was sold for RM7mil recently.
This street has some of the finest Straits Eclectic shophouse facades in George Town.
Ong, who is in his late 40s, is currently working on similar projects on Lorong Stewart and Lebuh Noordin, among other sites in George Town.
He also used to own a colonial-era double-storey detached house built located on Jalan Clove Hall.
It was recently sold for close to RM8mil to Penang-born Jim Lim Teik Wah.
Having lived in the UK for 40 years, Lim has returned to settle in George Town together with his English wife, Jo.
Another row of nine shophouses in Jalan Ariffin, just off Jalan Transfer, has been bought by a local lawyer for an undisclosed sum.
The units are being restored for another hotel project by the owner.
The Penaga Hotel project — which occupies Jalan Transfer, Jalan Hutton, and Lebuh Clarke — is another well-known development owned by veteran architect Hijjas Kasturi and his wife Angela, who reportedly spent RM50mil on it.
Obviously, such properties have also been bought by investors from Kuala Lumpur and from overseas.
Old is gold: Located within the heritage zone, the centre shophouse (painted in yellow and white) in Lorong Carnarvon was sold for RM1.2mil while the derelict unit on the left sold for about RM700,000.
Bought for RM2mil in 2008, Campbell House in Jalan Campbell is a 10-room hotel owned by Malaysian-born Nadya Wray and her Italian husband, Roberto Dreon.
Nadya’s mother’s great-granduncle was Tunku Abdul Rahman, Malaysia’s first Prime Minister.
No. 23 Love Lane is another multi-million ringgit restoration project owned and funded by the art-loving wife of a former Cabinet Minister from KL, who declined to be named.
Nibong Tebal
While such buyers are tight-lipped, especially over the total costs of their acquisitions, lumber yard entrepreneur Gooi Kok Wah, 43, has no qualms about revealing the reasons for acquiring such properties.
The Nibong Tebal-based businessman has been eyeing and buying such shophouses since 2008, after the Unesco World Heritage Site listing.
Apparently, that declaration fuelled the interest of astute locals as well as “outsiders” including Swiss, French, Australian and Singaporean investors.
“Current prices for such properties in prime areas like Beach Street can command RM2,000 per square foot, and RM1,000 per square foot and above, for touristy areas such as Chulia Street, Love Lane, Muntri Street, Stewart Lane and certain heritage core zone sections.
Good buy: In the middle of 2011, Gooi paid about RM2mil for his double-storey shophouse at Lebuh Kimberley.
“And even in less known areas like Prangin Lane, the asking price is at least RM400 per square foot,” explains Gooi, a former accountant.
To-date, Gooi has bought six pre-war shophouse properties.
His latest RM2mil purchase was for a two-storey shophouse at Lebuh Kimberley that spans 20ft by 200ft, with a built-up space of 6,000sq ft.
Heritage zone
He points out that George Town World Heritage Incorporated — an organisation under the State Government — listed only 3,800 units of pre-war shophouses in the heritage core and buffer zones on the island.
The core zone covers an irregular-shaped area of 109 hectares on the north-east section of the island city.
It is bounded by the sea on side and cocooned by the heritage buffer zone on the other side. The buffer zone covers 150 hectares.
The core zone is roughly hemmed by Pengkalan Weld, Jalan Tun Syed Sheh Barakbah, Lebuh Light, Lebuh Farquhar, Lorong Love, Lebuh Carnarvon, Lorong Carnarvon, Lebuh Melayu and Gat Lebuh Melayu.
And the buffer zone extends to part of the sea in front of Weld Quay and bounded by Jalan Prangin and Jalan Transfer. (Refer to www.penang-traveltips.com/george-town-unesco-world-heritage-site.htm)
“Such heritage property is in a classic supply-and-demand situation. The supply side is limited and cannot be increased in tandem with the increase in demand,” says Gooi.
“Furthermore, supply can and will be reduced, due to accidents like fire and vehicle mishaps.
“There are also cases of misguided re-development, with insensitive modifications or illegal alterations destroying the heritage value of such property, as well as neglect and natural deterioration.
“However, demand is always increasing due to business opportunities with the increasing number of tourist arrivals as a result of more low-cost flights from other countries.
“Also, the rising interest of heritage buffs from outside Penang who desire to own such a property will further fuel demand.”
City residence
Born in Nibong Tebal, Gooi has lived and worked in London, Glasgow and Jakarta as well as Kuala Lumpur, Klang and George Town, before deciding to relocate back to his hometown.
With his latest shophouse, the entrepreneur intends to restore the Kimberley Street property for his city residence.
As to the costs involved in restoring such shophouses, Gooi says there is “no limit on the expenditure for heritage-building restoration” .
“It depends on how fine you desire the quality to be,” says the father of three, “However, for ordinary or minimal-cost restoration work, it would cost about RM300,000 for a shophouse unit of 1,400sq ft.”
Asked if it would be wiser to invest the total costs of buying and restoring a shophouse in a newly developed landed property or condominium unit, Gooi says, “No, I would say, heritage houses can command a much higher rate of return compared to other types of property.”
High Court Case
One factor that contributed to the current high prices for pre-war shophouses in George Town can be traced to an incident at the High Court in Penang on Sept 29, 2010.
On that day, a property auction by CIMB Bank attracted an unusually large crowd of over 70 people. The highlight of the sale was an unrestored shophouse of 20ft by 125ft located on Armenian Street.
There were only five actual bidders including Gooi.
The reserve price was RM450,000 and furious bidding pushed the price up to an astonishing RM1.1mil, setting a new benchmark in Penang.
The eventual buyer was a veteran real estate consultant.
And that property is now reputed to be worth at least RM2.6mil, as it is, without any restoration.
Observes Gooi, “Penang heritage houses and their strategic location are a unique combination.
The value of pre-war shophouses still hasn’t been fully realised.
“One thing for sure, prices will continue to go up,” predicts Gooi, who is still on the prowl for such “heritage” property.
Think City
There have been efforts by the local authorities and Federal Government-backed bodies like Think City, a special-purpose vehicle established by Khazanah Nasional Bhd, to help enhance the heritage value of these old buildings.
These organisations aim to engage stakeholders to improve the environment by maintaining the right architectural features as well as improve cleanliness and the drainage system, encourage more greenery, build pedestrian walkways and offer tourism attractions.
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No fun living in a shophouse

WHILE new buyers of Penang’s pre-war shophouses wax lyrical over the romantic notion of restoring and staying in a “heritage” home, those who grew up in such houses, don’t fancy living in one again.
Tune Hotels strategic developments director Anwar Jumabhoy, from the well-known Indian Muslim Jumabhoy family in Penang, recalls less than romantic memories of living in an old shophouse.
“Yes, I do remember living in Jalan Greenhall, Penang, just off Lebuh Light,” says Anwar, who is in his 50s.
He is bemused that new buyers are willing to pay so much money to restore such shophouses and even want to live in them.
“In those days, we were one of the few houses with a toilet inside and I used to watch in amazement at the ‘night soil’ trucks that used to come in the morning, and kids — without toilets — had to do their ‘business’ in the street.
“My parents’ office was downstairs and we lived upstairs and learnt how to be well-behaved children — you had to, as the floor was wooden, so too much running around meant a lot of noise for those in the office.”
To the jetsetting corporate executive, a terraced house in those days meant, no windows except for the master bedroom.
And the courtyard or air well was where the toilets and kitchen were located — at the back of the house.
For a young child, going to the toilet at night was a scary experience especially through dimly-lit and long corridors.
“Now, would I consider living there again? Not really, wooden floors, rickety stairs and a very, ‘nice’ attic,” says Anwar.
“With options available today for modern comfort, the nostalgic experience might be nice for a couple of days, no more.
“For a more permanent home or hotel accommodation, I would much rather have a room with lots of windows and a view.”
A Chinese owner of a new double-storey, linked-house in the upscale neighbourhood of Seri Tanjung Pinang, who declines to be named, says she doesn’t ever want to go back living in an old shophouse.
She grew up on Lebuh Kimberley.
“Why would I ever want to live in such a home again? There’s not much privacy especially when you have a big family,” says the mother of a teenage girl.
While there are those who don’t have fond memories of living in rickety, old shophouses, a new generation of owners can’t wait to occupy their expensively restored heritage properties. — By Johnni Wong