Pressure piling on builders

Penang Barisan Nasional is now claiming that the DAP-led state government is piling on the pressure on developers here by demanding that they contribute more funds to Penang.

This has inadvertently led to the rise in property prices as the builders have to pass on the additional costs to the buyers, Penang Barisan working committee chairman Datuk Dr Teng Hock Nan said.

Dr Teng claimed that the state also “arm twisted” the developers to maintain and to landscape open grounds, beautify roundabouts as well as to conduct more corporate social responsibility (CSR) programmes.

As a result, he said, house buyers were charged higher prices as the developers had to spend extra to meet the state’s requests.

“This state policy is burdening the rakyat. The prices of houses today are definitely beyond the reach of many, especially those from middle down to low-income groups,” said the former state executive councillor.

“The costs of maintaining open spaces should be borne by the local authorities, not developers.”

Dr Teng said Penang’s property prices had recorded an average increase of between 50% and 100% over the last three years because of the state policy and consent to the increase in land premium charges.

The state government is reportedly charging developers a premium of RM40,000 for each low-cost housing unit not constructed in a given quota.

This is much higher than the RM8,000 penalty imposed by the former government for each unit.

Dr Teng noted that market prices of condominium units in 2008 were RM250 to RM300per sq ft, but the rate is now RM350 to RM600per sq ft,

“Whereas the terrace house price in 2008 was RM400,000 to RM550,000 per unit, it is now RM700,000 to RM1.4mil per unit.”

“The state is also imposing development charges of RM5 to RM15, which is three times higher,” he said before leading a Barisan walkabout at a Pasar Ramadan here yesterday.

Present were Bukit Gelugor MCA division deputy head and state Barisan working committee treasurer Loh Nam Hooi, Penang Barisan Information head Datuk Dr Loga Bala Mogan as well as state Umno liaison deputy chairman Datuk Musa Sheikh Fadzir and Teluk Bahang assemblyman Datuk Seri Dr Hilmi Yahya.

Penang Rehda chairman Datuk Jerry Chan Fook Sing, commenting on the claims, said the previous state government had also asked developers to make similar commitments.

He said many developers were willing to play their part in the CSR programmes voluntarily such as to adopt roundabouts and beautify open grounds.

“The main factor in the rise of housing prices is the jump in land prices of between 100% and 200%.”

Penang Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai could not be reached for comment. - By Kow Kwan Yee (The Star)


August 16, 2011 at 1:01 PMDD

Not sure if State BN took economic classes before. It is supply and demand. If there are no willing buyers, the high price will not sustain. And I am sure developers are not doing charity and not jacking up profit high enough. Look at the latest financial reports from IJM, Mahsing, SP Setia. All having record profit. To blame the high property price solely on state gov is ridiculous.

August 16, 2011 at 2:16 PMck

Dr Teng is also referring to the incapability of BN, cause KL housing price is even higher..

August 16, 2011 at 3:47 PMpetestop

Penang property price goes up 50~100% ??

Dr Teng, can I sell you my apartment at 50% price up ? No need 100%, I'll be happy with 50% only.

August 16, 2011 at 5:00 PMbeehui

probably the developer should stand out and clarify this.... can we hear from REHDA?

August 16, 2011 at 5:52 PMsad

DD, you didn't know meh? cronies cronies involved in those co. that you mentioned. so tak apa lah..record profit,they also profit mah.

August 16, 2011 at 6:54 PMewelee

cronies dun care about profit lah, they only care about money from developers. those money cronies enjoy, now new system, penangnites enjoy.

August 16, 2011 at 7:47 PMKevin

This Dr Teng is really useless... He is no better than dr. koh anyway... What is wrong with CSR? That is something good that we should encourage all companies to do... Is he complaining that making Penang clean and beautiful is not good for Penang lang?

My effing a$$.... i think this dr. Teng should just shut least ppl wont realize he is useless...

August 16, 2011 at 9:19 PMconcern

This stupid Mr.T trying to brainwash people mind, playing tactic, trying to add fire and wood but nowadays people know how to think & differentiate, no more like 20years ago.

Election coming soon.

August 16, 2011 at 9:47 PMAnonymous

Election is coming soon, there will be politician starting to take advantage over certain issues. High housing price is one of the targeted issues.
What has been happening these few years is the panic irrational demand (fear of price is higher if not buy now), is not the real supply n demand. Property price is out of control because of lack of control of speculative activities. Try these 2 methods and see:
1) The prices for all units in any project are compulsory to be fixed by developer before openning for booking, once booking started, the same price will remain until all units are sold. (currently the price is moving upwards all the time by developer until the last unit in that project).
2) Implement RPGT tax like if sold within 1st year - 35%, within 2 years - 30 %, ...,. n within 5 years - 5 %.
(currently the cronies of developer can take up many units, n then sell to genuine buyer at a higher price, this is possible because the remaining units are set at a higher price by most of the developers in most of the projects, many genuine buyer can't get the unit directly or get it at a higher price)
Don't know true or not, I heard 1 buyer only (must be developer's crony) bought 36 units of Central Park n making money that way.

August 16, 2011 at 9:50 PMSCC33

No wonder prior to 2008 there're so few lost cost unit being built cause only penalty RM8k. If I'm a developer, I'd also just pay RM8k than building the low cost house. But with RM40k, if the developer refuses to built, then the 40k can be put to good use. That's call taking from the rich to help the poor.

This idiot has just proven himself again...haha..

August 17, 2011 at 12:59 AMcondomana

Poor Dr Teng, hit on the wrong note, kena left and right.

A big thank you to the blog admin for posting this article here, and giving the bloggers a one-to-one opportunity to f**k Dr Teng's backs*d* stroke-by-stroke for talking rubbish.

Dr Teng, with all due respect, gaining votes these days are no longer only about giving free door-to-door medical consultation anymore! You need to talk facts, make sense, and give the truth, the whole truth, not half truths..savvy?..;)

And same goes for DAP. Vincent Tan buying Penang Turf Club land? What is DAP's policy on making Penang a better place to live in terms of housing? Surely a better place to live doesn't mean a more expensive place to live! And the last thing Penagites want to see is the development of more expensive houses to be sold to foreigners! We are already running out of land, stop selling our land to foreigners!!!

August 17, 2011 at 5:45 AMCK

First it was Tan Cheng Liang with her utter rubbish, now it's Dr T turn with his smart ass comment... as usual la... both are from the same league... sad

August 17, 2011 at 6:56 AMThink again!

What a disgrace to the world of Medical field, title Dr. Should be Stripped from him. He is not worth it!

So desperate for Votes, any ass thinking ideas will be squeezed out from this bunch of useless politicians. The more he said the more he look like an ass!

August 17, 2011 at 8:31 AMAnonymous

Also, do not allow 5/95 or 10/90 arrangement, this arrangement allows :
1. developers to mark up the selling price in order to cover their interest for the 2-3 years period
2. investor/speculators to speculate with 5% or 10% commitment only within the first 2 years

August 17, 2011 at 3:47 PMSteve

first thing first this guy does not have a Medical (Dr)...dr. T's title ha to be striped from him.....

Next this step is taken to help the poor in penang in all ways...

Scrue Dr Teng left n Right

August 17, 2011 at 7:22 PMAnonymous

Dr Teng and Dr. Koh Tsu Koon are both no longer relevant and shld just retired

they were given a chance but failed .. they shld just move on

August 17, 2011 at 10:52 PMDD

Mah Sing reported record profit again 48% net profit increase.

Just like Nasi Kandar store, sugar increase 5%, roti canai increase 40%. But still complain roti canai increase due to sugar hike.

August 18, 2011 at 12:07 AMjeremy tan

sometimes i do wonder how stupid can politicians get. Dr. Teng is certainly a living prove of this stupidity. Period.

August 18, 2011 at 12:44 AMkucing


What a "classic" way of describing this idiot's stupid stunt here :- F*ck his back side stroke by stroke ! :) this is really f*cking brilliant !!

You make my day !!

August 19, 2011 at 1:02 PMcondomana

Dr Teng told the world in the newspaper today he is not contesting in the coming election. I guess you guys had just handed him the nail in the coffin after he read about his own analisation in Penang Property Blog.