The Edge, 22 August 2011 - Hot grabs outside Klang valley,Surge in Penang planned projects
The Edge, 22 August 2011
Economic growth in other regions prompts developers' buying spree.
RM10.7 million or RM117 psf.
|Tan says Dijaya will be launching quality properties in the region|
According to group Ceo, Tan Sri Danny Tan Chee Sing, DIJAYA will be launching more quality properties in the region to ride on its proximity to Singapore.He said Iskandar Malaysia will drive up demands for properties in the region as more investments will be pouring in,
especialy from neighbouring Singapore. The rising cost of doing business in the island republic has prompted many of its small and medium enterprise to relocate to Johor due to its Proximity to home and lower costs according to a recent research.
So will the property markets in the prime area such as Kuala Lumpur, Petaling Jaya and Penang island disappear from the property developers radar?Not quite, but with limited large tracks of prime land, developers have beeen focusing niche, higher end projects.
Hua Yang also has several projects in the pipeline in Kuala Lumpur, especially those under its RM 840 million One South intergrated development located in Sungei Besi, south to the city centre. The project spreads over 16.7 acres and is currenlty enjoying high take up rates with its phase one comprising retail and office units more than 80% sold.
The group has also acquired 1.55 acres of leasehold commercial in Desa Pandan, which is located near Jalan Tun Razak and the proposed Kuala Lumpur International Financial District ( KLIFD ). The land was purchased for RM32 million and the group plans to develop it into affordable service apartments with the pricing in the range of not more than of RM400 thousand and GDV of RM160 million.
With limited prime land left in the urban centres, property developers should have to look much further out to build new townships. And thats where SP Setia went to Hulu Langat, where it hopes to recreate another "Setia Alam" - its successful transformation of a backwater palm oil estate to a thriving township in less than a decade.
SP Setia acquired 409ha of freehold landin Beranang, Hulu Langat for RM330.1 million or RM7.50 psf. The oil palm land will converted into a mixed residential township with an estimated GDV of RM3.5 billion.
Upnorth Penang continues to draw attention. Confidence in this status was summed up by Berjaya Group tycoon Tan Sri Vincent Tan. He said he was impressed with the level of cleanliness in Penang; The state has done well economically over the past few years, having attained the highest level of investments in the last year with RM12.2 billion.
Berjaya Land Bhd acquired 23ha of land in the famous Penang Turf Club area for RM459 million cash or RM184 psf for a high end residential property development. The group said the project with an estimated GDV of Rm1.52 billion will be a low destiny exclusively gated housing development comprising of bungalows, semi-detached units, and low-rise condominiums. The development will take up five years to complete.
Not only is the Penang island property market red hot now, the same could also be said about the property market on the main land, Seberang Perai.Other than Tambun Indah land Bhd, which has firmly positioned itself on the mainland Penang property after successfully building several notable townships such as Taman Tambun Indah, Juru heights, Pearl garden and Pearl villas, Hua Yang is also making its forey into the market.
According to the group's chief executing officer Ho Wen Yan, the group is currently scouting for landbanks on mainland Penang as well as in Kota Kinabalu, Sabah. He said that the group is going to raise RM100 million to fund land bank acquisitions in these two keys market.
"Penang is one of the most high growth states in terms of economy and population. It is a target market for us to build affordable housing in the state. In Kota Kinabalu we will look at building High - rise affordable residential property in the urban centres, whereas if it is outside the urban centre it would be viable for us to build more landed properties," he said during the press conference after the companies AGM last Friday.
However there are concerns over the various property projects in the more mature markets of Kuala Lumpur and Penanag islands, giving rise to fears that there will be an over supply of housing.
Datuk Jerry Chan Fook Sing the Real Estate and Housing Developers Association (REHDA) Penang Chairman had said property launches should be perfectly timed to suit demand so the manyt projects would not lead an oversupply in the islands property market which will
" The right property in the right location will see an increase in demand, and hence pice, whereas the wrong property in the wrong location will see a lower demand, and the price will decrease," he told The Edge Financial Daily.He amintained that property prices in Malaysia
are still generally affordable as only about 20% to 25% of a buyers monthly disposable income is spent on rent or mortage payments as opposedto buyers in other countries who would have to spend almost 30% of their monthly disposible income on mortages.