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Penang Housing Board identifies 14 affordable housing projects

Property News/ 30 November 2021 No comments

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A total of 14 housing projects have been identified by the state government through the Penang Housing Board, says state Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo.

According to Jagdeep, these projects come under the state government’s housing masterplan called the ‘Penang Affordable Housing (PAH) 2021 – 2025’.

It comprises nine affordable housing projects and five urban regeneration programmes (Urban Regeneration City- URC).

“This master plan will be known as the Penang Affordable Housing (PAH) and is expected to contribute to a total of 28,751 units of type B (9,043) and C (19,708).

“It will enable us to achieve our target of building 220,000 units of affordable homes by 2030.

“At the same time, the Penang Housing Board will also conduct a study on the suitable sites so as to develop more affordable homes,’’ Jagdeep told the State Legislative Assembly yesterday.

Jagdeep said that the first project to take off under the PAH is the Bukit Gedong (Jalan Mayang Pasir) affordable housing project which will provide a total of 801 residential and 15 commercial strata units respectively.

“Meanwhile, the first urban regeneration project to commence in Penang is the ‘5 Point Blocks’ flats in Lorong Mahsuri 10, Bayan Baru located at the southwest district.

“The project is currently in the process of appointing a consultant and licensed land surveyor,” he added.

In a reply to Nor Hafizah Othman (BN- Permatang Berangan), Jagdeep said he was thankful to Local Government and Housing Minister Datuk Seri Reezal Merican for verbally approving two PPR housing projects for Penang although the state has proposed five PPR projects – one in each district.

He also told the assembly that he has often advised developers to concentrate on building affordable homes to tackle overhang issue.

Jagdeep revealed that there are a total of 4,638 units of unsold residential properties worth RM3.666 billion in the state with 3,872 units involving condominiums and apartments.

“Out of this, only 347 units for the affordable homes priced from RM300,000.00 and below are facing with overhang issues.

“This is why I always advise the developers to build more affordable housing especially during this time, ’’ he said.

Apart from that, Jagdeep also said from 2008 to Oct 31, the state government has spent a total of RM285,684,065.76 million under its various maintenance programmes for both the public and private housing schemes.

“The expenditure includes maintenance works for housing schemes under Penang Island City Council (RM24,457,461.35), Seberang Perai City Council (RM4,435,956.21), public housing schemes maintenance (RM210,847,206.28) and the Penang Maximum 80% Maintenance Fund (RM45,943,441.92),” Jagdeep said.

Jagdeep also shared that from 2008 until now, there is an increase in the supply of affordable housing at 126,816 units, thus reaching 57.64% of the target of 220,000 units by 2030.

“A total of 38,190 units have been completed so far, 19,640 units under construction and the remaining 68,986 units still in the planning stage.

“The state government is committed to ensuring that there is adequate supply of the affordable homes,’’ he said.

Source: Buletin Mutiara

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RM3.66 billion worth of unsold houses in Penang

Property News/ 29 November 2021 No comments

Penang bridge view

A total 4,683 units of completed houses with a value of RM3.66 billion were reported unsold in Penang to-date.

The number puts Penang at the second highest state with unsold houses after Johor at 6,509 units (RM4.89 billion), Federal Territory of Kuala Lumpur at 3,863 units (RM3.1 billion) and Selangor at 3,376 units (RM2.9 billion).

State Housing, Local Government and Town Planning Committee chairman Jagdeep Singh Deo said, of the total unsold housing units in Penang, only 347 units or seven per cent involved affordable houses priced at RM300,000 and below.

Based on the statistics, he said, the state government had always reminded developers not to think only of profit but also to increase the construction of housing projects for units below RM300,000.

“In the current economic situation, with many people affected by the Covid-19 pandemic, developers should open their eyes and take the opportunity to build more affordable homes.

“What is the point of them building a house priced at RM300,000 and above or up to RM1 million if it cannot be sold because buyers cannot afford it?” he told the state legislative assembly sitting here today.

According to Jagdeep (DAP-Datuk Keramat), the state government, in encouraging developers to build affordable housing, and has introduced various incentives such as reducing charges involving development and others.

“What is important is we control the prices of affordable housing so it does not exceed the set price, which is below RM300,000. This is because if left in the open market, the price of such units will be sold higher.

“Because of this, we find that the unsold affordable houses in Penang are currently only at seven per cent compared to 93 per cent of other housing units,” he added.

Source: NST Online

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Residential property market performance over 20 years

Property News/ 29 November 2021 No comments

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By Zerin Properties Corporate Valuers

We analysed the growth of average house prices over 20 years for eight states in Malaysia. The average house price data was collected from the year 2000 until the first quarter of 2021. These eight states analysed were Kuala Lumpur, Selangor, Johor, Penang, Perak, Pahang, Sabah and Sarawak.

Penang

The average house price for Penang in 2000 was RM174,279 and RM300,000 in 1Q2021, with an average annual change of3.2% over the 20 years. There was a decline in 2018 and 2019 by 16.14% and 5.60% respectively, while prices stabilised in 2020.

The decreasing average house price in 2018 and 2019 might have been due to developers offering more affordable house units to reduce the property overhang in Penang. As a result, most property prices in Seberang Perai dropped by 5% to 10% in 2020. The increase in average house price in 1Q2021 could be due to a positive response from the reintroduction of the Home Ownership Campaign (HOC).

Kuala Lumpur

The average house price in KL for the year 2000 was RM245,249 and RM708,812 in 1Q2021, with a 5.6% average annual change over the 20 years. The most significant yearly change is in 2012, with a 17.48% increase. There were continuous declines in the pattern of price growth for 2018, 2019 and 2020 with -4.53%, -12.76% and -4.13%, respectively.

The contraction of house prices was due to property overhang in 2019, with KL experiencing one of the highest property overhang in the country. The situation prompted developers to lower the pricing of affordable housing units, reflecting the contraction of average house prices. On the other hand, the annual change in 1Q2021 increased by 2.82% due to favourable government initiatives, such as the 1.75% Overnight Policy Rate maintained by Bank Negara Malaysia.

Selangor

Selangor’s average house price in 2000 was RM204,105 and RM534,846 in 1Q2021. The average annual change over the 20 years was 4.8%. Double-digit growths were recorded for four years in a row in 2010 (12.88%), 2011 (11.20%), 2012 (10.46%) and 2013 (10.12%). The highest annual change for Selangor was in 2015 with 23.11%, while the annual change in 2020 increased by 3.63% and recorded an impressive growth of 5.55% for 1Q2021.

Being the most populous state in Malaysia and the highest contributor to the nation’s gross domestic product with a large proportion of manufacturing, warehousing and port-related activities, Selangor has been able to sustain the demand for residential properties over the years and provided a buffer against any drastic price drop in the state.

Johor

The average house price for Johor in 2000 was RM132,872, whereas in 1Q2021, it was RM350,000. The average annual change between the 20 years was 4.8%. There was a slight decline in the price growth in 2020 (-1.43%) due to the high overhang property in Johor, which caused developers to offer more discounts to clear the unsold units.

Johor recorded the highest property overhang in 2020, where most of them were condominiums or serviced apartments. The majority of the overhang property was located in the Iskandar Region where developers originally built the house units targeting the foreign market.

(You may find out more about the average house prices for four other states from the source below)

Summary

The average house price for the eight states in Malaysia has shown significant growth over the 20 years. KL and Pahang have the most notable average annual changes above 5%.

The incentives provided by the government to boost the property market that was affected by the Covid-19 pandemic have helped several states to achieve a steady increase of the annual change growth for the year 2020 and 1Q2021.

Source: EdgeProp.my (read more)

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New paired road to open partially soon

Property News/ 27 November 2021 No comments

The RM545mil Bukit Kukus paired road in Penang will be partially open to traffic next month.

Penang infrastructure and transport committee chairman Zairil Khir Johari said the 3.3km stretch from Lebuh Bukit Jambul that branches out to Jalan Tun Sardon and Paya Terubong was expected to be ready by late December.

He said the section cost Penang Island City Council (MBPP) RM275mil, adding that the project cost remained the same despite several delays earlier.

“The stretch by council will be open to traffic in late December.

“There will be two other portions which have yet to be completed by private developers,” he said when contacted.

The project consists of three sections.

Besides the section by MBPP, two more developers are responsible for the remaining 1.4km (RM150mil) and 0.7km (RM120mil) stretches.

The works include the junction improvement of Lebuhraya Thean Tek, widening of the existing Jalan Bukit Kukus, construction of new roads and an elevated road from Jalan Paya Terubong to Jalan Tun Sardon and an intersection of new paired road to Lebuh Bukit Jambul with a dedicated right-turn ramp.

Zairil said the entire project was scheduled for completion in 2025, which was the original date.

“However the date could change as the private developers will need time to complete their portions.

“We will open the roads in stages as at when it is completed over the next few years,” he said.

Work on the project was delayed due to a few reasons that included the movement control order (MCO).

There were five extensions of time given due to land acquisition issues, slope stabilisation work, relocation of utility lines as well as landslide and blasting permits.

One of the contractors was reportedly cash strapped and work was also stalled due to an objection hearing.

The paired roads project is touted to be the highest elevated route in the country which rises to its highest point of 59.4m from the pile caps.

The project also had its fair share of mishaps since it began in 2018.

In October 2018, 14 beams meant to be a platform for a section of the highway fell, leading to the Department of Safety and Health issuing a stop-work order.

Two days later, a landslide mangled 12 container cabins, killing nine foreign workers and injuring four.

The main contractor Syarikat Yuta Maju Sdn Bhd, was fined RM35,000 in February last year for failing to provide a safe work procedure.

Source: TheStar.com.my

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Cancelling or postponing reclamation project will have huge impact on Penang’s economy

Property News/ 26 November 2021 2 comments /中文版

psi-zairil

Penang will not face heavy financial implications if the implementation of the Penang South Reclamation (PSR) project in the southern tip of the island is cancelled or postponed.

State Infrastructure and Transport Committee chairman Zairil Khir Johari said the impact of the loss of the project on the Penang economy however would be huge in the long run.

He said, as an industrial state, Penang needed to provide land to attract new foreign investors in the future.

He added that the absence of industrial sites such as the Green Tech Park for future high-tech industrial development meant that Penang would lose the opportunity to attract investments worth tens of billions of ringgit.

“This will affect Penang’s reputation as an investment destination and the state’s economic growth in the future.

“In fact, another implication for Penang is the loss of employment, business and income opportunities to the people and local companies which are awaiting for the opportunity,” he said when responding to a question by Lee Khai Loon (PKR – Machang Bubuk) at the state legislative assembly sitting here today.

Zairil (DAP – Tanjung Bungah) said the absence of the project also meant a loss of opportunities for the southern Penang area to enjoy progress.

“The fishing community is also unable to enjoy the benefits that are being planned and arranged under the Social Impact Management Plan (SIMP) and the community involvement programme branded as Pelitaku,” he added.

Yesterday, the Penang Fishermen’s Association (Pen Mutiara) reaffirmed its earlier decision to reject all reclamation projects in the state.

Two massive reclamation projects currently on the cards are the 1,800ha Penang South Reclamation (PSR) project and the RM2 billion reclamation project in Bagan Ajam, Seberang Prai Utara.

Its chairman Mahadi Md Rodzi had said that all delegates present were united in rejecting any reclamation project in the state.

The PSR, now known as the Penang South Island (PSI) project, covering 17 sq km involves the development of three man-made islands covering an area of 1,800 hectares in the waters off Permatang Damar Laut, near Bayan Lepas.

It was introduced as a funding module of the Penang Transport Master Plan (PTMP) worth about RM46 billion.

It was reported that the coastal landscape in north Butterworth, between the North Butterworth Container Terminal (NBCT) and Jalan Tunku Putra, Teluk Air Tawar, was set to change with the construction of a new waterfront within the next few years.

This followed a supplementary agreement inked between the Penang government and Rayston Consortium (Butterworth) Sdn Bhd to reclaim 650 hectares of the land there.

The signing would push Rayston to start the long-delayed reclamation works since the first agreement was signed back in 1999.

Meanwhile, Zairil said the Penang government had and would continue to adopt an open approach in the implementation of the PSR project, in terms of getting feedback from the various segments of society.

“As of Oct 31, this year, a total of 13,957 people were met through varous engagement programmes. The state government feels that the condition for public engagement has been met.

“And a huge number of those met had voiced their support for the project if it does not have an impact on the environment and the fishing community,” he said, adding that the state government would strive to minimise impacts.

Source: NST Online

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