theSun Property February 2016

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ON FRIDAY FEBRUARY 19, 2016
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Property overview 2016 PART2
>General outlook of the property scene up
north and down south
WHILE last weekwe
shared the general
Malaysian property
market outlook as
reported by CHWilliams Talhar &
Wong’s (WTW), this weekwe take
a closer look at what can be
expected in the northern purlieus
in Penang and down south in Johor.
PING-LANG-YU
Documented as the earliest
reference to Penangwhichmeans
Island of Betel nut, Areca or Pinang;
did you also know that Penang (or
Pulau Pinang) was previously part
of the Sultanate of Kedah? Often
calledGeorge Town (its capital),
Penangwas the first of theMalay
states and the first state in
Southeast Asia, to be ruled and
possessed by the British. Due to its
long colonial history, there are
many English-inspired buildings,
some of which aremaintained as
colonial heritage property.
Generally, property in Penang is
on the high side. Consisting of the
island and part of the peninsula,
Penang island itself comprises 293
sq kmwhile themainland bit
amounts to 760 sq km. As if
property prices were not already
high, prices increasedwith the
opening of the second bridge in
2014. The year 2015 was also a
challenging year for property
developers as residential property
transactions declined, due to the
enforcement of coolingmeasures,
tight credit measures, a sluggish
rental market and various
economic factors said reports.
Nonetheless, affordable housing
took off last year with the bulk of
the projects slated for completion
in 2018.
According toWTW, although
the general market and business
sentiments in Penang have been
comparativelyweaker than the
recent preceding years, transaction
of properties in 2015 did not show a
conspicuous decline in prices. “In a
relatively lacklustre demand for
property acquisition, asking prices
by sellers have just reduced to a
more reasonable level,” reported
WTW.
The report also stated that
property owners still have the
holding power to retain their
properties and not sell themat
“bargains”. Rentals have also not
shown a notable decline as
landlords have to either maintain or
means precious gems. While the
southern state has many fascinating
places to visit, its cuisine that
includeMi Bandung and Laksa
Johor are also crowd pullers.
Another interesting facet that
draws people to Johor is Iskandar
Malaysia, along with its theme
parks, movie studios, property
development and tourismprojects,
not tomention the government and
state development initiatives.
IskandarMalaysia is an area in
the southernmost region in
Malaysia and themain southern
development corridor of the
country. The area encompasses
2,217 sq kmand comprises adjoining
towns of Pontian, Senai, Pasir
Gudang and Johor Baru.
IskandarMalaysia was
established onNov 8, 2006. It was
founded and developed froma
government requested feasibility
study and is administered by the
Iskandar Regional Development
Authority (IRDA). Iskandar
Malaysia is envisioned to become
an economic hub – carefully
envisaged, by 2025, to have a
population of threemillion, a
workforce of 1.46million, and a
GDP per capita of RM31,100.
IskandarMalaysia is already
entering into the second half of the
20-year Comprehensive
Development Plan (CDP). While
things have been looking bright for
the region, the propertymarket has
not been as exciting from2014,
especially in the high-rise
residential sector as stated in
WTW’s report. The report also
claimed that with the increased
level of cautiousness in the overall
propertymarket, there still is
interest in land acquisitions. Other
means of development cooperation
were also reported to be active in
2015.
Generally, themarket is
expected to thrive once the
proposed high speed rail between
Malaysia and Singapore gets going.
Contracts are reported to be
PENANG
MARKET INDICATOR
2015 2016
Overview X X
Landed
residential
X X
High-rise
residential
X T
Landed
residential
The hike in prices is
expected to taper
off in the near
future, with more
incoming new
houses.
High-rise
Residential
The market is likely
to experience
slower growth
with transaction
activities expected
to slow down.
awarded by 2017 and the project
completed by 2022. Another major
infrastructure to boost the property
sector is the RapidTransit System
whichwill connect with
Singapore’sWoodlands, expected
to be operational by 2019.
Furthermore, a recent discussion
withUnitedMalayan Land Berhad
(UMLand)’s Datuk Charlie Chia
revealedmuch excitement soon (if
not already) brewing in Iskandar
Malaysia, with the likes of UMCity
Medini Lakeside in particular. Chia
shared about the company’s
projects that included renowned
“brands” like Citadines (part of the
Ascott Group), the luxurious
Sharma which is famous inHong
Kong, Thai brandOzo (part of the
Amari and Sharma Groups).
“Medini in Iskandar is getting very
popular among the tourists
especiallywith its close proximity
to Pinewood Studios and Legoland.
Many tour operators are putting
tourists up in this area. It is a viable
option as it is close to Singapore
and accommodation rates here are
verymuch cheaper than in
Singapore,” he said. Another
venture to boost the property
market and economy of the state is
the Johor Halal Park in Pasir
Gudang, a collaboration between
UMLand and the Johor state.
JOHOR BARU –
MARKET INDICATOR
2015 2016
Overview X X
Landed
residential
T X
High-rise
residential
T T
Landed
residential
Demand for houses
in established areas
remain healthy. It
is expected to be
a buyers’ market in
the short term.
High-rise
residential
The market will
remain subdued
in the near future
with lesser new
launches.
Watch this section for upcoming
features that includeUMLand
projects in IskandarMalaysia.
increase rentals to cover for the
rising outgoing of properties. For
2016, WTWstates that Penang
property prices and rentalsmay be
affected and the property sector, in
general, is expected to remain
challenging.
Some notable on-going projects
include the acquisition of reclaimed
land, a 32.76-acre sitewhichwill be
used for Phase Two of The Light
Waterfront Penang inGelugor. The
large scale, integratedmixed-use
development is designed to offer a
shoppingmall, thematic shops,
residential blocks, an office tower,
two hotels and a convention centre.
Major land reclamation is also
actively been pursued for new
growth centres andmixed
development projects reports
WTW. The area involved is
adjacent to Penang Island ,
involving approximately 891 acres
which is expected tomete out two
man-made islands.
The state is also looking into
unveiling several newpolicies to
make affordable housingmore
accessible. It aims to do this via
raising the nett household income
cap apart from introducing a new
RM150,000 per unit category of
affordable home units.
GANGGANU
Not short for Terengganu, instead a
name often referred to Johor by
visitors and traders fromSiamback
in time, meaning gems. Word also
has it that Johor was named after
the Arabic word “jauhar” which
PHOTO/WWW.ISKANDAR360.COM
Penang Bridge
Penang Undersea
Tunnel (proposal)
George Town
ferry
Butterworth
Jelutong
Bayan
Lepas
Penang Second Bridge
Bukit
Tengah
Balik
Pulau
Penang Island
Bukit
Mertajam
[Information and charts courtesy ofWTW]