theSun Property July 2016

6 / 6

20
theSun ON FRIDAY | MARCH 11, 2016 28 theSun ON FRIDAY | JULY 29, 2016
Email your feedback and
queries to: propertyqs@
X
LAST week our property
column shed light on the
2016 residential market in
Kuala Lumpur and Greater
Kuala Lumpur, along with the
windows of opportunity they will
bring. This week, we highlight
similar favourable circumstances
but in the northern and southern
purlieus of Penang and Johor.
NORTHERNHIGHLIGHTS
According to a report by Jones Lang
LaSalle (JLL), Penang is on its way to
further transformation. Those who
often visit the state would have
noticed the vast changes both the
island andmainland have undergone.
However, further transformation is
under way, especially with a couple of
major developments in progress and
in the state’s expansion blueprint.
We first look at the 2014 opening of
the Penang Second Bridge which has
seen economic activitymushrooming.
With the bridge connecting Batu
Kawan in Seberang Perai on the
mainland and BatuMaung on the
island, newhousing projects have
flourished in the once quiet locales of
Batu Kawan.
Prices of vacant land also rose on
the announcement of the construction
of the second bridge in 2006. Prices
have increasedmore than five-fold,
hovering between RM40 and RM50
per sq ft. The recently completed
Bayan Lepas Expressway – four-lane
elevated portion of the Tun Dr Lim
Chong Eu Expressway that passes
through the Bayan Lepas Free
Industrial Zone – can accommodate
70,000 vehicles a day. Built to ease
traffic congestion during the
construction of the second bridge, it
has, at the same time, benefited
QueensbayMall in Sungai Nibong and
surrounding hotels.
UP NORTH
Forthcoming developments include
the opening of Ikea’s third store in
Malaysia, this one in Batu Kawan, plus
a shared services hub in Bayan Lepas
and Batu Kawan, the result of a
partnership between Singapore’s
Temasek Holdings and the Penang
Development Corp.
In addition, Penang’s first LRT line
(which is still being considered under
the Penang Integrated Transport
Master Plan) will connect Komtar
with the Penang International Airport
in Bayan Lepas. On approval, the areas
around the airport and expressway
will seemore development and
construction, boosting economic
activity, in addition to a surge in
property demand, not tomention
rocketing prices and better
employment prospects.
Much as all eyes and ears are on
the south-eastern part of the island,
the JLL report highlights the northern
areas, a region already on the drawing
board for development. According to
the Penang Integrated Transport
Master Plan, in the pipelines aremore
highways linking the northern and
southern parts of Penang, along with
another to connect Bayan Lepas and
Tanjung Bungah, cutting through the
central hills via another newhighway
running somewhat parallel to the
north coastal road between Tanjong
Tokong and Teluk Bahang.
Another huge project that will
change the scene in Penang is the
undersea tunnel to link Bagan Jermal
on the island and Bagan Ajam in
Butterworth. Investors should take
note, if not already done their
homework and calculations to benefit
from all these developments.
SOUTHERN SPOTLIGHT
There have been concerns of
oversupply down south, especially in
high-rise residential projects due to
the lack of commercial activity and
population growth. However,
investors are asked to be patient as
there are signs that spell relief. Several
high-profile foreign companies are
said to bemaking their mark in
Iskandar Malaysia. These include:
Microsoft, which has announced
developing a data centre in
Sedenak;
Coca-cola, which is relocating
fromTuas in Singapore to
Iskandar Malaysia; and
China’s Alibaba, which is looking
to start a logistics hub in Johor.
JLL’s report also states that various
Korean, Chinese, Russian, US and
JapaneseMNC’s have verbalised
intentions to set up facilities in Johor.
PROS AND CONS
There aremany reasons to be
optimistic but onemust remember
that property investment is a long-
termventure. Moreover, Bank Negara
X
X
X
> Infrastructure projects and transportation networks to up themarket
Malaysia’s “Applied Loan for
Purchase of Property” figures report
an increase for the first time in 16
months. Thoughminiscule, it is seen
as one of the first signs of property
demand recovery.
Then again, the abrogation of the
Developer Interest Bearing Scheme
(DIBS) in Budget 2014 also expects
some unfavourable effects, i.e.
“housebuyers who face difficulty in
getting loans and finding tenants may
have to part with their properties”,
and at prices not to their advantage.
Considering the weak ringgit,
whichmany of us see as unpropitious,
it may be a blessing in disguise;
attracting foreign investors. On the
whole, JLL’s report looks at the long-
termprospects for property
investment inMalaysia and projects
that it will remain strong as the
countrymoves towards achieving
“developed nation” status by 2020.
All is not bleak especially for
property giant Mah Sing, which is
reported to have announced its game
plan for the second half of the year.
The developer is optimistic about the
market, which it believes will
improve.
Its groupmanaging director and
CEOTan Sri Leong Hoy Kum stated
that Mah Sing will launch “something
new everymonth for
the remainder of 2016”.
The developer also eyes working
with the state and federal
governments to build affordable
houses for themass market.
According to the National
Property Information Centre
(NAPIC), it expects further softening
in the residential sub-sector in viewof
various internal and external
uncertainties. However, on the bright
side, affordable housing and
affordability of home purchases will
continue to be a priority in the
national agenda.
Napic’s report also concluded that
the property sector will be able to
endure the challenging period,
adjusting and correcting as it moves
along, fromboth demand and supply.
It expects several infrastructure
projects, including the country’s
public transport network, to help
boost economic activity (especially
property and real estate) where these
networks run across.
Change of scene PART2
Penang’s Proposed Detailed Transport Plan
Masjid
Terapung
Tanjung
Bungah Tanjung
Tokong
Tanjung
Pinang
Gurney
Quay BAGAN
JERMAL Gurney
Drive
Island
Plaza
GOTTLIEB
Waterfall
Jesselton
Scotland
Pulau Tikus
Dhoby
Ghaut
PANGKOR
Perak
STADIUM
PATANI
Batu Lanchang
Gembira
Taman
Cemerlang
Jelutong
USM
Taman Pekaka
Asia Hills
Bukit Jambul
Relau
Mahsuri
Airport
Sungai Tiram
FIZ 1
BAYAN BARU
FIZ 4a
FIZ 4b
FIZ 3a
FIZ 3b
Queensbay
SUNGAI
NIBONG
BATU UBAN
Kampung
Jawa
Bayan Point
Sungai Dua
Gelugor
BUKIT DUMBAR
The Light
Metro Avenue
Fortune Park
SUNGAI PINANG
Macallum II
Macallum
PRANGIN
Aceh
ClanJetty
GURDWARA
TIMESSQUARE
Lebuh
Farquhar CITY HALL
Kapitan BEACH STREET
Well
Quay
BUTTERWORTH
Kampung Gajah
PENANGSENTRAL
Bagan
Ajam Bagan
Lalang
Seri
Pinang Sungai
Dua
Merbau
Jaya Lahar
Yool
Pokok
Sena Koskam
Sri
Indah
Kepala
Batas Bertam
Putra
Bertam
Kubang
Menerong
Gurun
Bedong
SungaiPetani
Sungai Petani Selatan
Pinang Tunggal
TASEK GELUGOR
Seri
Desa
Serai
Wangi
Padang
Serai
Penanti
Kulim Bukit
Awi
CherokTokKun
TamanSepakat
St.Anne
Kuari
Machang
Bubok
Hospital
BM
PermatangRawa
Bandar Perda
Permatang
Pauh
Taman
Kerjasama
Polytechnic
UITM
Kampung Permata
Ciku
Taman
Janggus
Sunway
Carnival Bagan
Bagan
Luar
Chain
Ferry Limbungan SeberangJaya
Inderawasih Chai Leng
Park
MEGAMALL
Auto
Prai
Taman
Pauh
BUKIT TENGAH
Bukit Tengah Industrial
Bukit Minyak
Titi Panjang
Taman Sukun
Pala
Permatang Tinggi
Taman TiongMas
Taman Merak
Valdor
Sungai Bakap
Jawi
SIMPANG
AMPAT
Bayu Mutiara
BUKITMERTAJAM
Retrieved from
WeldQuay-PenangSentral(Ferry)
WeldQuay-MasjidTerapung(LRT)
WeldQuay-PayaTerubong(LRT)
WeldQuay-Airport(LRT)
GurneyCircleLine(LRT)
BayanLepasCircleLine(LRT)
HeritageCityOrbitalLoop(Tram)
TimesSquareOrbitalLoop(Tram)
PenangSentral-Gurun(KTM)
PenangSentral-Taiping(KTM)
PenangSentral-Kulim(BRT)
PenangSentral-TamanDamai(BRT)
PulauTikus-PenangSentral-Padang
Serai(BRT)
0
1
2
3
4
5
6
7
8
9
10
11
12
Bayan Lepas Expressway
TAMAN UTAMA
SUNWAY BUKIT
GAMBIER Universiti
Sains Malaysia
DESA PERMAI
INDAH
KAMPUNG
BATU UBAN
THE
CENTURY
TAMAN BATU
UBAN 2
PANTAI
JERJAK
TAMAN LIP SIN
BAY AVENUE
BAYAN BARU
BAYAN LEPAS
FREE INDUSTRIAL
ZONE PHASE 3
Queensway
Mall
PULAU JEREJAK
Legend
Bayan Lepas Expressway
Retrieved from JLL
ISLAND A
ISLAND C
ISLAND B
Jambatan Sultan Abdul
HalimMuadzam Shah
(Second bridge)
LCE IC
AWANG IC
RELAU IC
Penang bridge
(First bridge)
PAYA TERUBONG IC
GOTTLIEB IC
GURNEY EXP IC Sea tunnel
Penang Transport Master Plan
Retrieved from JLL
Dato
Keramat
KOMTAR
Penang
Plaza
Penang
Road
CARNAVON
Paya Terubong
Bandar Baru
Air Hitam
Desa
Permata
Air Itam
Bukit
Bendera
Kampung
Baru
Boundary MASJID
NEGERI Free School