Seberang Prai is expected to be the next big thing in the north

Affordable: Tan showing the model of Amandra gated community three-storey semi-detached model at the company showroom in Alma, Bukit Mertajam.

TWO major development projects with an approximate gross development value (GDV) of RM2.6bil will set a new benchmark for modern lifestyle schemes and their pricing in Seberang Prai next year.

DNP Land Sdn Bhd, a subsidiary of Wing Tai Malaysia Bhd, and the Penang-based Tambun Indah Land Bhd are the two developers with plans to develop high-value mixed-development projects, normally found on the island, in Central and South Seberang Prai.

Seberang Prai is able to attract such investments because of the availability of large plots of land for development that are attractively priced.

“In Seberang Prai, the average price per sq ft for prime development land is around RM40 to RM50, which is roughly 20% more than two years ago.

“Wheras on the island, the present price is RM120 to RM150 per sq ft.

“The size of the land and the lower pricing allow developers to maximise land usage to introduce innovative concepts and themes for their projects and price them competitively against those high-end projects on the island, which are priced 50% higher,” Henry Butcher (Seberang Prai) associate director Fook Tone Huat said.

Since 2010, property prices in Seberang Prai have appreciated because of the second bridge that is being constructed to connect Batu Maung and Batu Kawan and also because of foreign direct investments pledged to Penang.

Bosch Solar Energy, Bose, Aviation, Philip Lumileds, B Braun, Western Digital and AMD are some of the multi-national corporations that have announced investments in Penang since 2010.

“These new investments will generate more executive-level jobs, increasing the demand for housing in Seberang Prai, where property prices are not as high as on the island,” Fook said.

DNP Land plans in the first half of 2013 to launch the RM1bil BM Impiana township in Alma, Bukit Mertajam in Central Seberang Prai, which has a fast growing population.

Condos: An artist’s impression of the 38-storey RM100mil Palma Laguna Water Park Condo, touted as the tallest building in the mainland.

The project comprises over 900 units of landed residential properties, 360 condominiums, and 100 commercial lots on 200-acres of land.

DNP Land (North) general manager K. C. Tan said BM Impiana would be launched in progressive stages over a five-year period.

DNP is kicking off with the launch of the RM70mil Sentinelle Ville and the RM120mil second phase of Jesselton Hills on 150-acre in the first half of 2013.

The Sentinelle Ville is a gated project situated within the prestigious neighbourhood of BM Utama, comprising 66 units of three-storey semi-detached homes.

It comes with four-tier security and a clubhouse that has a gymnasium, lounge, function hall and roof top garden.

“BM Utama is a well-known residential district in Alma, similar to that of Pulau Tikus on the island.

“The Jesselton Hills is a guarded project comprising 198 double-storey super-linked homes. These linked homes, with over 2,400sq ft of built-up area, are as big as semi-detached houses.

“Normally a conventional linked house will have about 1,600sq ft of built-up area.

“Jesselton Hills is designed to provide a five-star living experience, as residents will get to enjoy the thematic landscaped parks, man-made lake garden, jogging tracks, community hall and a clubhouse with roof-top garden,” he said.

Pricing for the three-storey semi-detached houses is expected to start from RM1mil onwards, while the super-linked homes are priced from RM578,000 onwards.

Tan said the future launches for BM Impiana township would include plazas, hotels, luxurious service suites, high-end condominiums, bungalow homes, semi-detached and super-linked houses.

“The existing Tesco hypermarket in Alma and the upcoming Aeon Jusco department store cum supermarket in the same area will further accelerate the property value and economic activities in Alma,” he said.

“The lower land cost in Seberang Prai allow us to develop high-value properties that are about 50% lower than those properties of similar range on the island.

“As the land available for development in Seberang Prai is larger, we can provide better layout planning, landscaping and introduce innovative concepts for housing projects, maximising the usage of the space available,” he said.

Tambun Indah Land Bhd will start the final phase of the RM1.64bil Pearl City project, which comprises the RM640mil Pearl City Business Park and over 5,000 gated and guarded residential properties on 583-acre site in Simpang Ampat.

“The residential component that we will launch in the first half of 2013 is the Pearl Residence, comprising 2,085 double-storey terraced, semi-detached and bungalow houses scheduled for completion in 2015 and 2016.

“These Pearl Residence homes will be launched in 2013 and 2014.

“We will be kicking off with the launch of over 400 homes in the first half of 2013,” Teh said.

The Pearl Residence properties to be launched next year will be priced around RM368,000 and RM568,000 respectively for double-storey terraced and double-storey semi-detached units.

The clubhouse will be equipped with the biggest infinity swimming pool in Simpang Ampat.

“The remaining 3,000 units of Pearl City residential properties will be launched progressively from 2014, with the year 2020 as the targeted completion date,” he said.

The Pearl City Business Park, to be located on 107acre site in Simpang Ampat, is the biggest commercial centre in the northern region.

Phase one of the business park comprises a tenant-mixed control leisure mall with food and beverage and retail outlets, a karaoke and a cineplex.

“Phase one will also feature a RM140mil commercial project with 188 commercial lots, which will start construction in mid-2013, and an international school,” says Tambun Indah managing director K.S. Teh.

The Straits International School and the leisure mall are scheduled to start construction respectively in the first and second quarter of 2013.

“The Straits International School, which follows the Cambridge curriculum, is scheduled to have its first intake in January 2014,” says Teh.

Phase one is scheduled for completion in 2016.

The group is now planning for phase two of the business park which will include a hypermarket, medical and wellness centres, and a furniture village.

The Pearl City Business Park is located close to the second bridge, North South Expressway, and the double-tracking railway, connecting Padang Besar and Ipoh.

There are 12 established and growing industrial parks within a 15km radius of Pearl City Business Centre, providing support for the project.

The Prai Industrial Estate, Penang Science Park, Bukit Minyak Industrial Estate, Bukit Tengah Industrial Estate and Batu Kawan Industrial Park are among the well-known industrial estates.

“Seberang Prai will attract new home seekers who are looking for a quality lifestyle with pricing within their income range,” Teh adds.

Meanwhile, Fook said the total volume and value of property transactions in Seberang Perai recorded a significant decline in the first quarter of 2012 after an overwhelming performance in the previous quarter.

“According to the National Property Information Centre (NAPIC) for the first quarter 2012, the total volume of property transactions for Seberang Perai hit its peak at 8,807 transactions in the fourth quarter 2011, but declined to 3,893 transactions in first quarter 2012, a drastic drop of 126%, while the total value of transactions dipped by 110% from RM2.12b to RM1.01b within the same period.

“This was due to the global economic crisis, the uncertainty regarding the coming General Election and the new guidelines for loans to be based on net income.

“Property prices, however, still remain at the previous quarter’s level without any significant sign of declining. Sales response of residential or commercial projects in certain popular areas still recorded strong performance, despite tougher bank loan regulations,” he said.

Fook said property prices in Central Seberang Prai have appreciated by 20% since 2010.

“In prime locations of Seberang Prai, a semi-detached house is priced at about RM750,000. A terraced house in similar locations is now priced at about RM400,000 compared to about RM330,000 two years ago. A bungalow has a price tag of RM1mil now, about 20% more than two years ago,” he said.

The value of commercial properties in Seberang Prai has also appreciated by about 20% from 2010, Fook added.

“A three-storey shoplot in a business park in Bukit Mertajam is now priced at RM700,000, approximately 20% more than in 2010.

“People are buying properties on the mainland for investment, as the second bridge is scheduled to be completed soon. More funds are coming into the industrial park south of Seberang Prai,” he says.

On the secondary property market, Fook said the sub-sale prices of landed property in the prime locations of Seberang Prai are expected to increase by 5% to 10% this year.

“This is because of strong demand for landed property in the secondary market.

“In the secondary market, a terraced property in prime locations such as Bukit Mertajam, Simpang Ampat and Jalan Raja Uda is now priced around RM385,000, about 10% higher than a year ago but relatively reasonable and attractive, compared to a new terraced property which is now priced over RM400,000,” Fook said.

The stricter conditions of bank lending, a weak global economy and a higher pricing of new landed property would see transactions in Seberang Prai rising only slightly in 2012 over 2011.

“However, we expect more property transactions in the sub-sales market due to the attractive prices,” he said.

He added that last year, there were about 18,000 transactions of new and old properties in Seberang Prai.

“About 50% of the transactions were for new properties, while the sub-sales comprised about 30%,” he said.

Fook said that in general, the Seberang Prai property market for 2012 would be challenging in view of the uncertainty in the global economy and the new set of financing ruling imposed by Bank Negara.

“The take-up rate for those high-end categories is expected to gradually slow down but for those in the medium categories, the sales rate should still maintain,” he said.

However, prices would still be on the upward trend for landed houses priced below RM500,000 and for development land in the prime areas, but the rate would be at a slower pace.

“For those high-end property, prices are expected to be flat. Nevertheless, property prices are not expected to decline in view of the relatively resilient domestic economy and the long-term impact from the new economic transformation programmes,” he said. - The Star