Boon from E&O projects, STP phase 2 to generate RM9.8bil worth of jobs

BY DAVID TAN
DAVIDTAN@THESTAR.COM.MY

Crowd looking at the artist impression of the STP second phase project showing two bridge connecting Straits Quay and Gurney Drive to the reclaimed island during E&O public briefing on Seri Tanjung Reclamation project at Straits Quay.//CHAN BOON KAI/THE STAR/(24/8/2013)

   

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GEORGE TOWN: The second phase of the Seri Tanjung Pinang (STP) development project, which has a gross development value (GDV) of RM25bil, is expected to generate RM9.75bil worth of construction and renovation jobs for the local construction industry.

Penang Master Builders and Building Materials Dealers Association president Datuk Lim Kai Seng told StarBiz that about RM2.25bil would be generated from renovation works.

“The remaining RM7.5bil would be spent for construction and building materials,” he said.

Lim was commenting on Eastern & Oriental Bhd’s plans to undertake RM25bil worth of residential and commercial projects to be carried out over 20 years for the second phase of STP. This would involve reclaiming 307ha (760 acres) of landbank in Tanjung Tokong.

The first stage of reclamation involved reclaiming 102ha (253 acres) of land, while the second stage, 507 acres.

E&O managing director Datuk Terry Tham had said that the first stage of reclamation would take about 30 months to complete and 10 years to develop the residential and commercial projects with RM8bil GDV.

Lim says about 60% of the construction and renovation jobs could be tendered out to Penang based contractors.

The second stage of reclamation will take four years to complete and 14 years to develop projects with a GDV of RM17bil, according to Tham.

“The RM8bil GDV of projects for the 102ha (253 acres) land would generate RM2.4bil worth of business opportunities for the local construction and building materials supply industry during the 10 years development period, creating at least RM720mil worth of renovation jobs.

“The RM17bil worth of projects for the 205ha land would generate RM5.1bil worth of jobs for the local construction and building materials supply industry during the 14 years development period, generating at least RM1.53bil worth of renovation jobs,” he said.

Lim said that the value of construction jobs was about 30% of the project’s GDV, while the value of renovation work, about 30% of the construction cost. About 60% of the construction and renovation jobs could be tendered out to Penang-based contractors.

“Most of the jobs for Penang-based contractors would involve the supply of raw materials and the provision of mechanical and engineering jobs. “The remaining 40% would usually be outsourced to Kuala Lumpur-based contracting firms that provide specialised jobs, especially for the commercial projects,” he said.

On the latest Construction Industry Development Board Malaysia (CIDB) report, Lim said the number of projects from the private and government sector awarded in Penang would remain flat.

“For the first half of 2013, the number of construction jobs from the private and government sectors given out in Penang totaled 149, compared with 147 in the same period a year ago. “Last year the overall number of private and government jobs given in Penang was 543. We expect the figure to remain more or less the same for 2013. For the first six months of 2013, the value of the construction jobs given out registered at RM3.79bil, compared with RM1.33bil a year ago same period.

“Due to the rising cost of building materials, we can expect the value of construction jobs to rise significantly this year,” Lim said.

In 2012, the value of construction jobs given out in Penang was about RM6.1bil. - The Star

Homes measuring 1,000 to 1,500 sq ft are affordable now

The trend for developers in Penang is to build smaller-sized stratified homes which are considered affordable in view of a cooling property market.

Henry Butcher Malaysia (Penang) vice-president Shawn Ong says in an interview that the trend started last year.

“It is easier to market a 1,000 sq ft condominium priced at RM550 per sq ft compared with a similarly priced 2,000 sq ft unit, as the smaller unit falls within the income range of most investors.

“The smaller stratified homes usually have built-up areas ranging between 1,000 sq ft and 1,500 sq ft, and are priced from RM500 per sq ft onwards.

“There is at least a 20% difference between the asking price and the actual transacted price for sub-sales properties,” Ong says.

In the North-East district, the trend of developing “buy-to-let” high-rise properties, which have proven to be successful in United States, Hong Kong, and Singapore has caught on in prime locations such as Tanjung Tokong.

Developers such as BSG Property, the property arm of Boon Siew Group, see opportunities in building corporate suites which can be leased out for guaranteed returns in view of the growing tourism market and the shortage of hotel rooms inGeorge Town.

Most of the smaller sized stratified properties, with built-up areas between 1,000 sq ft and 1,500 sq ft, are being developed in the South-West district of Penang and are priced between RM530 per sq ft and over RM600 per sq ft.

For the second half of 2013, some RM1.32bil worth of smaller affordable condominiums are being developed in the South-West district, which comprises residential-cum-commercial neighbourhoods such as Batu Maung, Balik Pulau,Sungai Ara, Bayan Lepas and Relau.

Ideal Property Sdn Bhd is launching the second phase of Imperial Residences which is located on a six-acre site in Sungai Ara. It will have a gross development value of RM470mil and the RM250mil Solaria condominium scheme in Bayan Lepas later this year.

“There are 816 condominiums in the three towers for the second phase of Imperial Residences while the Solaria project comprises 285 condominiums and 20 double-storey shops,” its managing director Datuk Alex Ooi says.

The Solaria units have built-up areas of 1,130 sq ft and are priced from RM600 per sq ft onwards.

Ideal is currently undertaking some 1,200 condominiums in Bayan Lepas andSungai Ara, which are over 80% sold, and are scheduled for completion in three years.

These are condominiums with built-up areas of 1,000 sq ft and above and are priced from RM400 per sq ft onwards.

SP Setia Bhd plans to launch the RM600mil Setia Sky Vista condominium project later this year in Relau.

“The Setia Sky Vista, comprising 400 condominiums in four blocks, is located on a 15-acre site,” SP Setia Property (North) general manager Khoo Teck Chong says.

The built-up areas of the units ranged between 973 sq ft and 1,500 sq ft and the selling price starts from RM550 per sq ft.

Khoo says the group will also be launching the RM140mil Setia V Residence Tower B on a 1.8-acre site in the fourth quarter this year.

Besides these projects, the group will still have 56.8 acres of land in the South-West district to launch some RM1.13bil worth of properties.

“This includes projects for a RM148mil landed property project on a 20-acre site inBalik Pulau planned for next year,” he says.

In the higher-end category, Mah Sing Group Bhd plans to launch a RM200mil project for Southbay City in Batu Maung comprising 100 condominiums, 126 office suites, and 12 two-storey shops in the fourth quarter 2013.

Group deputy general manager Yeoh Chee Beng says the residential units, in a 30-storey block, have built-up areas of 1,200 sq ft onwards.

“The offices, in an 18-storey tower, and shops have built-up areas that starts respectively from 600 sq ft and 1,050 sq ft onwards.

“The selling price for the properties are approximately RM1,000 per sq ft,” Yeoh says.

BSG Property business development manager Chong Hock Aun says the group is undertaking the development of 242 corporate suites for The Landmark commercial-cum-residential scheme in Tanjung Tokong. This is scheduled for completion in 2017.

The 242 corporate units are in a 41-storey tower, which also has 66 residential condominiums. The residential units will have their own separate lift lobby.

The fully-furnished corporate suites, which have built-up areas ranging between 799 sq ft and 1,899 sq ft are targeted at investors who are looking for steady returns, as there is a 6% guaranteed rental returns per annum for two years, according to Chong.

“They can either live in the units, which are designed for family dwelling and corporate use, or lease it.

“This is a low-risk real estate investment scheme, as the properties will be rented out on a daily basis by a reputable hotel operator.

“The targeted segments are the tourism and the corporate markets.

“This scheme has been tried and tested and proven to be successful in countries such as United States, Hong Kong, and Singapore.

“We will explore more such ‘buy-to-let’ schemes in the future,” Chong says.

According to the Penang Valuation and Property Services Department report, the volume of residential property transactions for the first quarter 2013 declined by 15.7% to 4,200 units from 4,981 units in the same period of 2012.

Henry Butcher Penang vice-president Shawn Ong says the slowdown in residential property transactions will continue in the second half due to tighter credit conditions imposed by banks.

“There is still interest in property purchases. However, due to the high and unreasonable pricing, property investors are waiting for prices to readjust before buying,” he says.

Raine & Horne Malaysia (Penang) director Michael Geh says that both the value and volume of transactions will contract this year by double-digits.

According to the latest National Property Information Centre’s (Napic) report, there is an existing stock of 367,158 units of residential properties in Penang in the second quarter 2013, compared with 366,265 units in the previous quarter.

The report says until the second quarter of 2013, there is an incoming supply of 48,076 units, while 45,153 units are under construction.

The planned new supply for the second quarter is 46,610 units, the report adds.

According to NAPIC, the total transactions of residential properties in Penang dropped to 23,266 in 2012 from 30,674 in 2011.

The total value of transactions has also dropped to RM7bil in 2012 from RM7.7bil in 2011, the Napic report said.

“However, the average price of a unit has increased by 21% in 2012 compared with 2011,” Ong says. - The Star

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贷款条件更苛刻 年轻人叹买房难！

（槟城19日讯）今年上半年槟州产业交易量比去年同期跌18%，其中一个原因是许多房屋贷款申请从今年初开始很难被银行批准，换言之，很多人借不到钱买房子，尤其是刚踏入社会的年轻人，买房子对他们而言几乎已是天方夜谭。

根据亨利行最近推出的“槟州产业市场分析报告”，槟州住宅产业交易量比去年同期跌18%。根据《光华日报》记者向发展商、银行职员和财务规划师等方面了解，发现银行今年开始严格审批房屋贷款，是产业交易下跌的主因，这也导致许多年轻人借不到钱买房子。

林先生：银行今年起严批申请

在一家银行房贷部任职的林先生说，各家银行从今年初开始严格审批房屋贷款申请。“以前，我们审批房贷申请时，只需要从申请者的家庭收入扣除公积金和社会保险，便可考虑发放贷款。”

他说，但今年开始，则必须扣除公积金、社会保险，以及申请者目前的其他承担，如汽车和房屋每月供期。他指出，扣除上述项目之后的净收入，其中3分之1才可被用来供新屋。

“低收入者的净收入本来就很低，3分之1更微不足道，如何供房子？比如一个收入1600令吉的家庭，净收入可能只有1000令吉 ，那他只买得起每月供期330令吉的房子。除了廉价屋，他几乎没有别的选择。”

建议联名购房

对于低收入者，他建议申请者与亲戚联名购买房子，或缴付更多的头期钱，这样就比较易获贷款。此外，他说银行现在也追踪申请者的过往金融纪录，如拖欠信用卡债和汽车贷款偿还记录不良的人士，难获银行批放房屋贷款。光华

Penang property market to contract

GEORGE TOWN: Penang’s property market is expected to contract further by double digits this year, similar to the trend in 2012, according to Raine & Horne Malaysia (Penang) director Michael Geh.

He said that both the value and volume of transactions would contract this year due to stringent bank loan conditions.

In 2012, according to the National Property Information Centre (Napic) report, total transactions of residential properties in Penang fell by 23% to 23,266 from 30,674 in 2011, while the total value of transactions was down 7.5% to RM7bil from RM7.7bil in 2011.

A report from the valuation and property services department (Penang) said the volume of residential property transactions for the first quarter this year declined by 15.7% to 4,200 units from 4,981 units a year earlier. The value of transactions during the period increased by 3.5% to RM1.54bil from RM1.49bil previously, the report said.

“Last year was the first time that there were contractions in both value and volume transactions. This hasn’t happened in the past four years,” Geh said.

Henry Butcher Malaysia (Penang) vice-president Shawn Ong also said the tighter credit conditions would continue to slow residential property transactions in the second half of 2013.

“There is still interest to purchase properties. However, due to the high and unreasonable pricing, property investors are waiting for prices to re-adjust before buying,” he said.

According to the Napic report, there was an existing stock of 367,158 units of residential properties in Penang in the second quarter of 2013, compared with 366,265 units the previous quarter.

Of the 367,158 units, some 40,843 were condominium and apartment units, the report said.

The report said that till the second quarter of 2013, there was an incoming supply of 48,076 units, while there were 45,153 units under construction.

The planned new supply in the second quarter was 46,610 units, the report added.

Geh said the existing stock of residential properties that had been built had increased, compared with a year ago, which meant that the market was spoiled for choices.

“If the incoming supply of properties that have been approved materialised at the same time, there be may be a correction in housing prices.

“Affordability is the key word here. There are many people who are keen to buy properties, but the pricing today falls out of their income range.

“Compounding the problem further is the high rejection rate of housing loans nowadays, which has increased from last year,” Geh added.

In the north-east district, current condominium prices from developers directly hover around RM800 to RM1,200 per sq ft.

“For the secondary market in the district, the prices are around RM500 to RM800 per sq ft.

“As for the south-west district, condominium prices from developers directly range from RM550 to RM900 per sq ft while for the secondary market, they are between RM500 and RM800 per sq ft,” Geh said.

According to Geh, condominium prices directly from developers have increased by about 20%, compared with a year ago in both districts, whereas in the secondary market priceshave increased by over 5%, versus 2012. - The Star

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