Two main board listed companies are launching approximately RM2.131bil worth of property on Penang island from the fourth quarter 2011 until next year-end.
SP Setia Bhd is lining up residential properties with an estimated gross development value of RM1.131bil for launching beginning November 2011.
SP Setia Property (North) general manager Datuk S. Rajoo said the projects comprised a RM180mil commercial precinct for Setia Pearl Island, the RM62mil 11 Brook Residences, a RM175mil condominium project in Sungai Nibong, the RM412mil Setia V Residences in Jalan Kelawei and the RM302mil Setia Greens second phase in Sungai Ara.
This will be followed by launches in the second quarter 2012, which include the Setia Greens second phase, comprising bungalows, semi-detached, and condominiums, the condominium project in Sungai Nibong, and the Setia V Residences, a luxurious condominium scheme in Jalan Kelawei.
“These projects from Penang, planned for launching in November and the second quarter 2012 are expected to generate RM600mil in sales for the group’s 2012 fiscal year ending next October 31.
“For the group’s fiscal year ending October 31 2011, we expect the sales from Penang to be around RM350mil, compared to 250mil in 2010,” Rajoo said.
Suiwah Corporation Bhd is developing a mixed development project at Bandar Baru Air Itam (popularly known as Farlim) on the island with a gross development value (GDV) of RM1bil.
Group executive director Cynthia Hwang said that the project was strategically located on an over 3.64ha site within the Farlim township, which had direct access to a surrounding population of over 300,000.
“The entire project, which will have over 3.7mil sq ft of gross area spread over three blocks of 38-storey buildings, comprises 270 serviced apartments, 140 small home offices (Sohos), a hypermarket, 300 retail outlets, a medical specialist centre, a business class hotel, and cineplexes,” she said.
Hwang said construction work would start in November and scheduled for completion in 2013.
Listed on the main board, for the 2011 fiscal year ended May 31 2011, Suiwah posted RM20mil in pre-tax profit on the back of RM423mil revenue, compared to RM11mil and RM413mil achieved in 2010.
Headquartered in Penang, Suiwah is involved in the retail chain, flexi-circuit manufacturing, and property development businesses.
This brings the total GDV of the property launches planned for Penang in the second half of 2011 and 2012 to RM4.402bil.
In July 2011, it was reported that seven developers from Penang and Kuala Lumpur are launching properties, comprising largely residential projects with over RM2.271bil GDV, for the island and Seberang Prai beginning the second half of 2011 and in 2012.
Some 1,722 units of the properties with an RM1.899bil GDV are planned for the island, while the remaining 1,389 units with an RM372mil GDV are for Seberang Prai.
Sunway City Bhd, Mah Sing Group Bhd, Lone Pine Group of Companies, Ivory Properties Group Bhd, MTT Properties and Development Sdn Bhd, Asas Dunia Bhd, and DNP Land Sdn Bhd are the developers with plans for new launches. - By The Star
9 comments
With all these Penang is surely over saturated with properties. A sure lineup for a big bubble burst in Penang properties. Braise yourself!
i dun think so. if the present goverment continue to upgrade penang state and make it better, there are more new ppl moveing in penang and this will make penang properties even more expensive. but i concern is there are "TOM, DIC AND HARRY" also become developers, these are the setback as if some of those companies fail in their project, ppl will lost confident to developers and the developer cost willbe higher as they need to complete the project only can sell off.
Hi Penang Fan,
Thank you for the advise I think you meant to say Brace yourself but nevertheless you made my day.
Braising (from the French “braiser”), is a combination cooking method using both moist and dry heat; typically the food is first seared at a high temperature and then finished in a covered pot with a variable amount of liquid, resulting in a particular flavour.
My believe is property burst in Penang will not happen... stagnant yes. You will see less property launches from the established developers in the coming months. Good luck to the small time developers.
Those buyers of over 1 million properties are rich, and I believe most buy with cash. You will agree with me if you know how the bankers assess their clients. So, these speculators simply stop buying when bad time hits... so its means stagnant but no burst.
There will be 'small bursts' in some spots of the island, but you won't see the big burst that most people expect.
The coming months is a great test for Penang property market... note that there was no bursting in 1997 and 2008.
Just my 2 cents.
That's why the rich will be getting richer...
and the poor :(
... it's not fair, but we have to live with it.
more and more people will move to Penang under DAP's leadership. Almost all the shopping malls are owned by Singaporeans. Yes, that's right. Gurney Plaza, Island Plaza, Queensbay Mall, Penang Plaza etc.
Judging from the FDIs alone, you can roughly tell that foreign investors likes the new government a lot.
Penang is booming. Despite how the federal government tries to shunt away funds for development for our beloved state, just like Singapore it will shine way beyond anyone's expectations.
Hi Anthony Lim,
Maybe what Penang Fan meant was due to the oversupply of properties, if you keep speculating, you will BURN yourself sooner or later. But BRAISING is a more delicious word..:)
Hi Raymond,
I think be it stagnant or burst, it's good for Penang and it's people. The sterling performance of Penang property price in the past few years has attracted "foreigners" (developers from KL, speculators from outside Penang etc) to speculate and buy up properties here. Stagnation and burst will slow that process down.
We have been selling our precious land to foreigners. You sell Gurney Plaza to Capitaland, it is very likely you will never get to buy it back. You sell a piece of heritage property to a S'porean, and you loose that piece of heritage forever.
I love Penang for it's laid back and low cost life. It's a fairly modern city (but not ultra urban) with decent jobs. But this could change very soon with over development. People will suffer if their income is not catching up fast enough. Quality of life will then suffer.
A control has to be introduced by the state to manage property ownership by foreigners before it's too late.
Now E&O is controlled by Sime Darby. So all the prime and big parcels of land on the island are owned by government linked companies or tycoons linked to the government. These people can access to 1st hand information from the government... so what does it tells you?
The government will not control the property price hike in the island. Probably they know the foreigners (BIG ones) are coming!!
Perhaps Penang Outer Ring Road coming??
... bear in mind the outer ring road is linking The Light and Seri Tanjung Pinang, with the Berjaya's race course land right in the middle.