Teh: Hillslope projects a threat to the hills and greenery

GEORGE TOWN: A DAP assemblyman has lashed out against hillslope projects in Penang, particularly in the north-eastern coastal area, and the proposed construction of a 49-storey “super condo” on the Batu Ferringhi seafront.

Tanjung Bungah assemblyman Teh Yee Cheu, who is outspoken on environmental issues, said it was time to stop all hillslope development in Penang.

“Although the hills are not dying', certain developers want to maximise their profits and are trying to kill off the highlands. Be it hillslope development or illegal hillslope farming, the hills and greenery are under threat.

“Even the coastal areas are not spared,” he said in an interview.

Teh said there were over 10 high-rise projects planned along the hillslope and seafront areas in his constituency, adding that the “super condo” developer was in the midst of submitting planning permission to the Penang Municipal Council.

“My constituents do not want high-rise or high-density development, which threatens the environment and mars the scenic beauty of Tanjung Bungah and Batu Ferringhi.

“If the council approves these projects, it must bear full responsibility if an environmental disaster occurs,” he said.

Teh was commenting on “The Dying Hills” report in The Star on June 6 on protests against increasing hillslope development in Penang, which could damage the environment.

He also urged the two municipal councils in these areas to form a coastal and hillslope engineering department to monitor and prepare Environmental Impact Assessment (EIA) reports for such projects.

Currently, the engineering department's job scope was too general and not focused enough on environmentally sensitive development, he said.

Teh also claimed that there were instances in which decision-makers in the respective government bodies were not given a complete and detailed picture of the actual scenario, resulting in “biased decisions”.

“The state's stand is that hillslope development above 76m high will not be allowed but in my personal view, anything above 45m must also be controlled,” he said.

Teh also hit out at certain developers who were manipulating loopholes in the law for their own benefit and at the expense of the environment.

“I've heard of a developer in Tanjung Bungah who only submitted the necessary application for a high-rise condominium project after flattening the land. When they apply for planning permission, they would say that it's not on a slope and officers processing the applications aren't any wiser,” he said. - The Star

建平民组屋恐引发搬迁争议 槟政府暂不开发政府地

（槟城12日讯）在面对国阵“祭出”重夺政权后在槟岛打造上万平民组屋的攻势压力下，槟州民联政府为免引起搬迁风波，暂时不向一些政府地开刀进行逼迁让路发展平民组屋计划，这或缓和可能引发的搬迁争议，然而也造成民联与国阵在比拼平民组屋“数量”时，可能在战谋上处劣势。这也意味，槟州民联政府可能暂错过一些政府地，重新规划打造为平民组屋以解决房屋荒的黄金期。目前，在槟岛有多片隶属州政府及地方政府地段，有望重新规划下大兴土木推行平民组屋项目。这些地段，分布在亚依淡打枪铺、亚依淡天德园、亚依淡州回教堂后政府地，由于在这些土地上动土将衍生逼迁及高密度等负面社会问题，以致州政府暂时无意打这些地主意，反而放眼一些荒废的政府地，如齐来亚路等。
掌权即恢复搁置计划　空置单位无人问津
槟州政府上台后即恢复多项搁置计划包括天德园珍美园、白云山花地园发展计划（改名为云景园）发展计划及湖内安宁园计划、这些屋业提供近2000间的房屋单位。白云山一栋中廉价屋计划在完成两年后迄今尚有60间单位空置。黄汉伟即表示，他已针对上述白云山Puncak Erskine计划在数月前举行记者会，当时空置单位高达90间，可是在数月后再次向发展商询问时，只卖出30间，还有60间无人问津，令他感到不解；现垄尾绿园组屋也有数十间的单位空置。
居民搬迁大费周章　焦点关注无人栖身地带
槟州房屋委员会主席黄汉伟律师行政议员受访时，向本报记者透露槟州的房屋方向，并坦然道出民联政府的难处。针对国阵欲在槟岛建上万平民组屋一事，他相信也是前朝政府的国阵肯定对政府地库了如指掌，所以可提出规划平民组屋的政府地方案。他相信，这些国阵将圈定的政府地包括，前朝国阵政府拟作为槟州环球城中城（PGCC)计划下打造高密度中廉价屋计划的地段、亚依淡天德园赛玛达路（Jalan Shaik Madar)市政局地，及州回教堂后方的政府公务员宿舍。
然而，他说，民联暂不会动这地的主意，如打枪铺现已为全槟密度最高组屋区，州政府暂不会将上述土地改为房屋用途。“反之赛玛达路，我们先前也接获数项计划提呈，包括房屋及钟灵学院院址，然而在土地上还有数百间市政局租户，使我们暂时无意发展。”“至于在回教堂后方的大片公务员宿舍地也是有人栖身；我们了解到搬迁居民将大费周章，从城市发展局（UDA)丹绒道光的规划发展至威省青屋计划也使我们发现，搬迁会面对居民抵抗行动，即使是青屋，还是面对获安顿居民拒绝搬迁情况，所以政府将暂时把焦点放在无人栖身地带。” - 光华

Bank Negara to keep key interest rate unchanged

Domestic demand still very strong, says Zeti

KUALA LUMPUR: Bank Negara will maintain its key benchmark interest rate at 3% due to robust domestic demand unless the country's export growth is affected sharply by global developments, including the eurozone sovereign debt crisis.

Its governor Tan Sri Dr Zeti Akhtar Aziz said the central bank was closely monitoring the global situation.

Domestic demand was still very robust; it was the trade that had been affected by the developments in Europe, she said.

Zeti: Domestic demand was still very robust; it was the trade that had been affected by the developments in Europe.

Bank Negara would maintain interest rate at the current level unless export growth was affected sharply, Zeti said on the sidelines at the launch of the Financial InstitutionsDirectors Education Forum here yesterday.

“The domestic demand comprising of consumption is still strong, investments are robust and loan growth is also strong. These are the factors that will be taken into consideration in deciding the overnight policy rate (OPR),'' she said when asked whether Bank Negara was prepared to cut interest rates at its next monetary policy committee (MPC) in the event of any disruptive global growth.

Zeti said consumption was currently growing by 6% to 7% while investments, on the other hand, were growing by more than 10%. This, she said, was positive for the country's economy to remain in the range of 4% to 5% growth for this year .

The MPC maintained the key benchmark interest rate or OPR at 3% for the sixth consecutive meeting, citing that domestic demand had continued to support growth, driven by firm consumption and investment activity and expected this trend to continue.

Data released by central bank for the first quarter showed that gross domestic product expanded by 4.7% year-on-year supported mainly by domestic activities.

Malaysian exports contracted for the second consecutive month in April from a year earlier on weaker electrical and electronics products, and commodities sales to developed economies.

Exports for the month fell 0.1% to RM57.74bil from RM57.8bil previously, while imports rose 7.4% to RM50.23bil. - The Star

世界级演出 庆典闹足１个月●来瞧乔治市

（槟城11日讯）长达一个月且备受国际关注的“2012乔治市庆典”，汇集80项国内外精彩艺术活动与演出项目，其中包括比去年更多的世界级大型演出，即将于6月15日（周五）正式引爆。你准备好赴这一场盛大、精彩、热闹的大型艺术飨宴了吗？
3年前在槟州政府主催下，以实验性质进行活动策划的“乔治市庆典”（Georgetown Festival），是为了纪念乔治市于2008年7月7日，正式被列入联合国教科文组织世界文化遗产名录。此活动是为了展现本地及国际艺术、音乐、歌舞及电影等艺术形态，藉此使槟城成为一个文化艺术及文化遗产的精致游览首选。值得一提的是，这项庆典广受国际媒体的竞相报道，其中包括《纽约时报》、《CNN有线新闻》、《读者文摘》及《亚洲华尔街日报》等。
节目总监祖西迪对《光华日报》记者指出，这项庆典已进入第3届，综合本地文化及国际演出，让本地民众及外国游客能够以最低的价钱欣赏最棒的世界级演出，同时藉此机会互相交流与学习，从而激发本地艺术的潜能，进而培育及发展本地的国际品牌。他指出，今年的世界级演出项目比去年多，初步估计有10项，其中3、4项是首次到大马演出，实属难得，其中包括来自印度，去年杪受邀在墨尔本艺术节压轴演出的“曼加尼亚的诱惑”（The Manganiyar Seduction），以及曾参演旧金山国际艺术庆典并广获好评的现代舞“Blinded Mind”，则是由芬兰国际舞团Susanna Leinonen Company呈献。
“今年总开销达300万令吉，我们致力于引入最好的国际演出，丰富本地观众的视野，并激发本地艺术的灵感。‘乔治市庆典’广受国内外媒体的关注与报道，这或许可称为是国内其中一项最棒的大型艺术庆典。”尽管官方网站的点击率达到200万次数，但今年的各项演出售票状况却异常缓慢。已经熬到生病但仍坚持亲自坐镇，以确保各项工作赶在庆典正式开启前顺利进行。他说，槟城人习惯在最后一分钟才买票，但今年的售票状况却比去年慢很多，令他有点担忧。他冀望本地公众能够给予“乔治市庆典”最鼎力的支持，因为这是特地为槟城人民创造及打造的文化品牌。- 光华

City&Country: Belleview plans REIT for its properties

After nearly three decades as a developer, Belleview Group managing director Datuk Sonny Ho has not lost any of his passion for the property industry. Meeting the suave and confident gentleman recently to discuss the group’s future plans, one is immediately drawn to his willingness to share how the challenges faced by the company have only made it all the more resilient.
This resilience has seen the group embarking on numerous and varied projects from affordable housing, such as the Pangsapuri Desa Nipah in Balik Pulau, to luxury products such as the condominium Bellisa Court, as well as commercial and retail projects like the All Seasons Place — all in Penang. To date, the developer has completed RM2.5 billion worth of projects with the majority of its projects in Penang and Kedah. 
“In its 28 years of operation, Belleview has gone through many challenges,” Ho says. “In 1991, it was the impact of the Gulf War; in 1997, it was the Asian financial crisis; in 2001, it was 9/11; 2003 was the SARS [epidemic]; and 2008 was the US subprime crisis. Through these challenges, the group has become stronger. When you survive a crisis, you get more experienced and become stronger.”
And now, with its experience and expertise, the developer is planning to enter a new real estate arena — real estate investment trusts (REITs). The group plans to park some of its commercial and retail projects under the proposed REIT in the near future.
“Belleview has found its niche, being able to now own, develop and manage commercial retail properties and all this we plan to combine into a REIT,” Ho says. 
“In 24 to 36 months we are going to complete a total of RM2 billion to RM3 billion worth of commercial and retail projects with an estimated total net lettable area of 2.7 million sq ft. They will not be for sale. It is the group’s intention in two to three years’ time, if market demand for REITs is still strong, to list a REIT for our commercial and retail components.
“The REIT structure will provide us with an effective mechanism to unlock value for our shareholders and the proceeds can be reinvested in new opportunities with higher prospects or used to strengthen the balance sheet.

Belleview has found its niche, being able to now own, develop and manage commercial retail properties - Ho

“It is our objective that, with the REIT as a platform for our continuing real estate business, Belleview will ultimately provide the REIT unitholders with long-term and sustainable distribution of income and capital growth.”
Belleview is looking to acquire more land in Penang, Kedah, Johor’s Iskandar Malaysia and Kota Kinabalu, Sabah, for commercial and retail development with the aim of injecting them into the proposed REIT at a later date. At present, the developer’s landbank is mostly in Penang and Kedah. 
Belleview will continue developing residential projects, “the bread and butter” of the group, but in terms of gross development value (GDV), Ho sees the developer moving to a 70% commercial to 30% residential ratio from the present 50:50.
Belleview’s completed commercial projects to date — all in Penang — include Belissa Row, Burmah House, Burmah Place, Harmony Square, Heritage Club, Maju Utama, Taman Kheng Tian Business Centre, Vantage Point, 1st Avenue and Island Plaza. 1st Avenue and Island Plaza have been sold to an international investment fund.
Of the lot, the 4-storey Burmah House and the 5-storey Burmah Place are providing the best returns to the developer. “They are in prime locations on Jalan Burmah,” says Ho. “The land was purchased at a very cheap price many years ago, and both have always been 100% occupied. We have a ROI of 8.5% yield.” Both buildings are anchored by financial institutions such as AmAssurance in Burmah Place, and Maybank and RHB in Burmah House. The former has a net lettable area of 35,000 sq ft while the latter has 50,000 sq ft.
This year, the developer has two commercial and retail projects along with five residential developments for launch with a total GDV of RM1.84 billion. 
The commercial projects are Aman Central mall and Star Avenue commercial centre, located in Alor Setar, Kedah. The residential developments include the Autumn Tower — the last of four towers — at All Seasons Park in Ayer Itam, Penang; Moulmein Rise, Pulau Tikus; W Residence in Jesselton, Penang; Kulim Techno City Phase 2C3 in Kulim Hi-Tech Park; and Amansuri Residences in Alor Setar (see box). 
On the prospect of Belleview being listed, Ho says that is no longer a priority. “We are comfortable with the company staying private,” he explains. “Raising funds and capital is not an issue at all because the support of the banks is good, so we have no problems with financing.”


Hospitality plans
For the future, Ho says the group is considering another new sector — hospitality. “We are going to build our first hotel — a four-star hotel — in Alor Setar and tie up with a hotel operator to run it. We are not looking to be a hotelier as we can’t become one overnight. So it is better to be a hotel owner and find the right brand to synergise with the group.” More details will be announced next year, he adds.
Ho reveals that in the future, Alor Setar will be one of the group’s key development locations. “We are looking at expansion beyond Penang and Kedah provides the best location in terms of proximity,” he explains. “Belleview’s development concept in various condominiums, hypermarkets, commercial properties and hotel has given Alor Setar a refreshing look and status, and therefore we have received very positive response to all our development projects.
“The people of Alor Setar are looking forward to an upgraded lifestyle which comes with better facilities, synonymous with developments in Penang and Kuala Lumpur, to cater to today’s increasing lifestyle demand.”
As for the overall property market in the country, Ho says the next 24 months are crucial because many projects will be completed by then and, depending on what happens in Europe and the US, it could directly affect our economy and consumer confidence. In Ho’s opinion, consumer confidence is the most important indicator of how the local property market will perform. So in the next 12 to 24 months, if all is well in Europe and US then there should not be any adverse situation in Malaysia.
Ho is also concerned with the loans taken for residential projects under the deferred interest-bearing schemes offered by developers in the past few years. “Most developments are currently under construction and you won’t see the real effect until completion, whether the purchasers can service the loan.”
With so many projects to oversee, how does the group ensure quality and delivery of the products?
“You need a whole team of in-house professional managers, supported by a very strong team of consultants and builders, not just a main contractor but a pool of specialist contractors,” Ho explains.  Over the years, the group has shortlisted the right people to work with and thus has been able to maintain quality and delivery times, he adds.  
“Another forte of the group is we can identify the right location for the right type of development. Over the last 10 years, after the lessons from 1997, we have become very accurate in our survey and reading the right timing and audience to target.” 
Ho also selects his own team whose members on average are in their 40s. “This is the best age because they are dynamic, have the energy, are willing to learn and have at least 10 years of work experience.”
Building the right team to manage Belleview’s projects will certainly stand Ho in good stead when it comes to achieving success.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 910, May 14-20, 2012

Property prices increase at slower pace

PETALING JAYA (June 11): Property prices in Malaysia increased, albeit at a slower pace in 4Q11 from previous quarters, according to data on Bank Negara Malaysia's (BNM) website.

In 4Q11, the Malaysian House Price Index grew 6.6% compared with a 9.9% increase in 3Q11, and in contrast to gains of 10.6% in 2Q and 9% in 1Q.

Five out of six states under the House Price Index — Selangor, Johor, Penang, Negri Sembilan and Perak — recorded slower growth in house prices in 4Q11 compared with 3Q.

In contrast, Kuala Lumpur registered higher growth with a 13% increase in 4Q11 versus 11.3% in 3Q11.

Selangor saw a growth of 7.2% in 4Q11 compared with 11.6% in 3Q11. For 2Q11, Selangor's growth was 13.9% and 12.1% in 1Q.

In Johor, the quantum of increase in house prices was 5.4% in 4Q11 against 7.4% in 3Q11, while in Penang, it was 9.9% in 4Q11 versus 10.2% in 3Q11.

House prices climbed 3.2% in the final quarter of 2011 in Perak, which was much lower than 11% in 3Q, and 12% in 2Q. In Negri Sembilan, house prices grew 2.6% in 4Q11 compared with 10.2% in 3Q and 10.5% in 2Q.

According to BNM's Financial Stability and Payment Systems Report 2011, house prices have continued to increase at an annual average of 5.9% on a quarterly basis in the recent three years, compared to the long-run average of 3.9% for 3Q11.

The bulk of the loans extended for the purchase of residential properties was for those priced above RM250,000.

In 2010, the central bank started implementing measures to mitigate excessive investment and speculative activity in the property market as well as to ensure rising household debts did not pose financial stability concerns.

Household debts in Malaysia became a concern as they started to balloon hitting 77.6% last year. The bulk of household debts came from home financing.

As such, BNM was quick to implement measures for the property sector. A 70% loan-to-value (LTV) ratio was applied to individual borrowers with more than two housing loans in 2010, while capital charges on banks were raised for residential property loans with LTVs exceeding 90%.

Last December, residential property loans taken by non-individual borrowers were also subjected to a LTV ratio of 60%.

There were also guidelines for credit cards, which included higher income eligibility. In addition, effective this year, banks are using net income instead of gross income to calculate the debt service ratio for loans.

This story appeared in The Edge Financial Daily on June 11, 2012.

发展商借用地段非法建设 地主交槟市局拆除

（槟城11日讯）天公坛后1618地段（lot）的地主抽回原本让发展商借用土地作为临时通道的协议，并全权交由槟岛市政局拆除非法的建筑结构。该地主的代表陈海森说，地主赞同收回较早前跟发展商的协议，即允许对方使用有关地段充作临时通道，代表更透露，地主不曾知道对方在该地段内进行建筑及围篱笆的工程。
赞成开通路段　非进行建设
他说，地主完全不知道发展商在地段内进行非法建设，希望对方能即可停工，更全权交由槟岛市政局进行拆除。他是于周一出席由槟州首长政治秘书黄伟益所召开的记者会时，如是表示。尽管如此，他多番强调，有人愿意开路通往山顶，当然是无任欢迎，因为这方便地主及居住在山上的居民进出。
陈海森向记者形容，这段遭开发的山路原是岩石地段，若要使用这条道路通往山顶，必须攀越岩石才能到达山顶。不过，这段已经遭开发的山路已允许车子直接通往，而且也铺满石子，相信这段路程是经过炸石后，才出现这段通行无阻的山路。另外，在路旁的水池，也是经过设计后才出现。
黄伟益是于5月11日突击这地段，才揭发发展商非法开发山路。当时，他说发展商是在没有获得任何批准之下先行开发有关地段，并给予对方30天的时间自行清理及拆除，否则槟岛市政局官员将派执法人员前来拆除。事经1个月后，黄伟益再度返回该地段召开记者会，而地主也派出代表陈海森力挺黄伟益，也允许执法人员拆除。尽管如此，黄伟益说，没有任何证据证明发展商在接到停工令后仍继续工程。“槟岛市政局援引第1974年道路、沟渠及建筑条例，在于5月29日发出2张罚单，指示发展商必须在30天内搬空，否则槟岛市政局将进行拆除。”他说，发展商也通过律师发出信件，指出在该地段前筑起围篱，主要是避免车子进入，而坠下水池中。- 光华

国阵新竞选宣言●重夺槟政权 将恢复单轨火车计划

（槟城10日讯）国阵来届大选最新竞选宣言，一旦重夺槟州政权，将会恢复自民联政府执政后胎死腹中的单轨火车（Monorail）计划。槟州国阵主席邓章耀周日出席槟州国阵妇女组第13届大选策略说明会后在记者会上表示，若国阵在下届大选重夺槟州政权，将会再次实行单轨火车计划，但将会做出一些调整。
他说，由于当时策划的房屋密度跟现在已不同，但相差并不大，必须配合目前的发展计划。他也强调，恢复单轨火车计划，将是国阵在来届大选的竞选宣言之一。他指出，根据过去报导，国阵已非常明确的要实行单轨火车计划，但现任州政府却不要，然而他本身已不是州政府，不知道他们是否知道什么是第9大马计划或第10大马计划。“国阵过去承诺要在槟城实行单轨火车计划，但州政府却意见多多，无法做出抉择，一时说要地面火车，一时又说要空中巴士，他们到底要什么？”他解释，无论在第9大马计划或第10大马计划上，每个州政府将提呈计划给中央政府，并派出官员与中央部门交涉及争取。他指出，由于各州政府都有各自的计划，中央拨款也有限，州政府必须把整个过程告诉中央政府该如何进行，是否有能力实行及监督有关计划。
“每个部门完成第9或第10大马计划后，须呈上给经济策划组及财政部，再次向相关部门提出州政府的要求，当内阁及国会批准后便可执行，州政府必须确保有能力实行，每项计划将按照策划完成。”他表示，在第9大马计划进行期间，国阵已输掉槟州政权，但中央政府仍完成当时安排的策划，确保这些计划可带动槟州经济及提升人民的水准，一些较大型的计划已开始或完成。
另一新经济“火车头”
此外，他也澄清，服务业将是槟州另一个新的经济“火车头”，同时也会保留制造业这个原有的“火车头”，而不是将之取代，只是有人故意扭曲事实。他指出，制造业仍是继续发展的“火车头”，同时将制造出另一个新的经济“火车头”，即服务业，并用这两个“火车头”来提升州内经济。“我们不可能把已有很强基础的制造业关掉，这是不可能的，有经济知识的人是不会这么做，除非是要混淆人民的看法，这是不对的。”此外，他说，本月中至下个月中，将会与槟州国阵区部竞选机制见面

槟民联捉紧山坡地发展禁令 新港8亿发展计划腰斩

（槟城10日讯）槟州民联政府捉紧山坡地发展禁令，新港一项8亿令吉发展计划面对“沉船”命运！以槟州首长为首的槟州规划委员会（SPC），今日宣布插手新港一项引起争议的山坡地发展计划，紧守海拔250尺山坡地发展禁令，誓言执政一天，绝不批准任何抵触上述条规的山坡地发展。
林冠英周日联同地方政府委员会主席曹观友及阿都玛列行政议员等，与新港蒂沙丽雅反对山坡地发展计划的居民对话会上，多次拍敲桌子激动向居民派定心丸，只要民联政府执政一天，以他为首的槟州规划委员会绝不批准上述计划。他说，将会指示槟威两地地方政府，将任何250尺以上的山坡地发展计划向规划委员会提呈。他进一步指出，针对新港发展计划涉及在250尺山坡地进行发展，他也是从报纸上阅读后获悉，对此感到震惊及感到不悦。
他表明坚定立场，即使有关计划最终获市政局上诉局判决胜诉，居民面对败诉，又或者市政局已批准规划图测及发出动工令，然而上述计划在提交到槟州规划委员会后，也将不会过关。他在对话会后也向居民表示，州政府会在这计划引起的争议找出路。在上述新港发展计划涉及80依格的山坡地发展，发展地座落海拔250尺水平线，同时涉及坡度为25度的第三级山坡地，面对在地公寓及平地屋居民多次抗议。
居民要求撤销该计划
林冠英在与新港反对山坡地发展计划对话会上，被居民要求援引“1976年城乡法令第172项法令”第25（1）条文下赋予的权力，撤销有关发展计划的批准信。当时，林冠英强调，若引用上述条文，将造成州政府面对钜额的索偿，而政府不能为别人（前朝政府）犯下的错误，而担起责任。反之，他说现政府只能为其任内政府犯下的错误负责任。不过，当时一名居民即“提醒”，新港发展计划於2012年2月21日，由芭缇雅所批准，所以林冠英不该指计划是前朝政府批准，这与事实不符，林冠英一时“回不过神来”。在州规划委员会不批250尺以上山坡地发展下，涉及8亿令吉发展总值（GDV）的双溪威城（Sunway City）计划将面对难关重重。据了解，有关计划涉及在新港一块洛14345的海拔250尺山坡地发展，这引起州政府震惊及关注；有关发展商是于2010年9月27日，以3876万令吉购地，拟议在上述面积高达80依格的山坡地，打造14栋高级公寓计划，这些计划分别楼高10至21层，其中包括4-5层楼的地下停车场 -

KL land price too high?

Freehold land along Jalan Bukit Ceylon selling for RM700 per sq ft

KUALA LUMPUR: The three parcels of freehold land along Jalan Bukit Ceylon, Kuala Lumpur that was recently put up for sale are priced on the high side, property professionals said.

Last week, advertisements appeared for the sale by tender of three parcels totalling 36,563 sq ft with a reserve price of RM26mil, or about RM700 psf.

“On an as-is' basis, this is quite high. I would reckon a price of RM500-RM550 is more realistic considering its residential use status,” a valuer said.

Sources familiar with the sale said interested parties have to pay more if they were to convert it for commercial use.

The piece of land, which is located at the intersection of Jalan Bukit Ceylon and Jalan Ceylon, is situated on a hilly area.

“Commercial status fees can vary and it depends on a case to case basis by the authorities. It could be that after conversion, the cost of this piece of land may rise up to RM1,500 psf or more, which further adds to the costs of development,” sources said.

“If you are a developer, you must ask yourself whether you will be able to make a profitable sum,” he said.

However, a valuer said RM700 seems fair and the residential status was a non-issue.

“A developer can still build residential units and owners will not have to pay commercial rates for utilities. Although it may not be close to rail links, it is located in the city,” said a source.

StarBiz understands that the piece of land, which is located at the intersection of Jalan Bukit Ceylon and Jalan Ceylon, is situated on a hilly area and prospective developers who may be eyeing the piece of land will need to carry out additional levelling works, which will further add to the costs of development.

“I would reckon a 20% margin is comfortable before developers actually decide to do this (carry out development work).

“Ground works will definitely add a substantial amount to the costs as well,” a developer said.

Another property consultant used the example of a piece of prime freehold land measuring 50,063 square feet located in nearby Jalan Tengah, which is just next to Eastern & Oriental group's St Mary's Residences.

This piece of land is being transacted at about RM100mil, which prices it close to RM2,000 psf.

However, this piece of land has a commercial status, which does not require any additional costs for conversion.

It is also located in a relatively more centralised area nearer to public transport facilities. - The Star