Tropicana Ivory Sdn Bhd's (TISB) RM10bil Penang World City (PWC) project in Bayan Mutiara will have affordably priced high-rise units and a world culture' component, featuring different cultural residential enclaves.
TISB is a joint-venture company in which Dijaya Corporation Bhd holds a 55% stake, while Ivory Properties Group Bhd the remaining 45%.
Ivory group chairman and chief executive officer Datuk Low Eng Hock says about 15% of the properties for the 800 to 1,000 high-rise units for the first phase will be priced between RM300,000 and RM500,000, depending on the built-up area which ranged between 600 sq ft and 800 sq ft.
The first phase, to be located on a 10-acre site and scheduled for launch in the third quarter of 2012, will have a gross development value (GDV) of around RM600mil to RM700mil.
Subsequent phases for PWC will also see 15% of the properties priced in the affordable range of between RM300,000 and RM500,000, Low adds. Low said the group might consider using the plot ratio guidelines introduced in 2010 for the island to build medium-priced properties.
Under the revised guidelines of 2010, developers have to allocate 5% of the total units in a development scheme to be priced at RM200,000, 10% to be priced at RM300,000, and another 5% not exceeding RM500,000.
The affordable components were in the planning of the entire master plan as a value-added component from the very early stage, even during the tender exercise, according to Low.
“As we are planning for a world class city within World City, economies of scale is of the essence.
“In order for this to happen, we need a huge number of Penangites to call World City their home.
On the world culture' component in PWC, Low says there will be residential enclaves where the properties will reflect the architectural and cultural themes of a particular country.
“For example, we will create Chinese, Korean, Middle Eastern and European villages in PWC, so that the properties can be marketed in that particular country through an appointed real estate agent.
“We want to create a world culture to attract tourism and foreign investors and to differentiate PWC from the other mega-development projects on the island.
“These parcels will be solely for en-bloc sales to expatriates,” he says.
On the impact of the global slowdown on PWC, Low says at present the group has not felt the impact of the global slowdown yet, at least not in the financial and real estate sectors.
“Our banks are well positioned and the central bank played a very proactive role to mitigate any possible impact or threat to our economy. The scale of foreign direct investments is very encouraging not only for Penang but for Malaysia as a whole,” he says, adding that the group does not foresee any slowdown in the next two to three years. “In fact, property prices in Penang are still very attractive and have yet to reach its peak. Many magazines, including those from Hong Kong, have been mentioning and promoting Penang as the ideal home destination.
“Investors from China, Japan and Korea, for instance, are very much interested in coming to Penang, particularly in the aftermath of the Japan earthquake and tsunami,” he notes.
Meanwhile, on Ivory's plans for 2012, Low says the company is targeting to launch projects worth approximately RM1.4bil in GDV this year, including The Latitude in Mount Erskine, Penang Times Square phase three and phase four, City Mall and City Residence in Tanjung Tokong.
“The company is targeting to rake in sales of some RM800mil this year.
“Last year, we only booked RM121.8mil of sales for completed and on-going projects besides having unbilled sales of RM227mil to be realised over these two years. We are expecting higher sales this year since we have more projects to offer this time and not forgetting the much anticipated PWC project,” he adds.
Last July, Ivory won the right to purchase and develop the site in Bayan Mutiara after edging out four other parties, including SP Setia Bhd, which were bidding for the land. Ivory won the bid after offering the highest price to buy the land for RM240 per sq ft or RM1.072bil for the entire site, securing with it the right to develop on the existing 67.56-acre site and another 35 acres that will be reclaimed over the next three years.
To date, about RM22mil or 2% had been paid as earnest deposit for the land. The remaining downpayment of RM80mil will have to be paid on or before April 10. In the agreement with Dijaya Corporation Bhd, Ivory is the turnkey builder for PWC and will thus be entitled to 48% of the project's gross revenue with the amount due to the company estimated at RM5bil. - By David Tan (The Star)
42 comments
Its a welcome news that at lease some units will be priced for the affortable range of real penangites. Its odd that developers 'like' to make units that is not affordable by the mass.
i think 3 bedrooms unit below 500k will be selling well. wonder it's freehold or leasehold?
Have you all considered 500k is just can get 800sqft?
for mega integrated projects like this, below 500k is considered ok. look at other mega projects like seri tanjung pinang, baystar, southbay, the light. all above 500k already.
The plan should say 5% units at RM300k must have at lease THREE rooms.
Yes, there is a possibility RM500k for 800sf. That would be funny...
The price will be RM500/sf for 600sf and RM625 for the 800sf units respectively ! The prices look affordable but the built-up are getting smaller. In 2-3 yrs time, Penang will be like Hong Kong.
sounds good. when launching? freehold or leasehold?
Penang is different, there are lot of 700sf at RM200k+-. To pay half a million Ringgit to get a 800sf, there are many options out there for half a million ringgit!
Hong Kong have many millionaires, Ferraris everywhere. How is Penangites earning power comparing to Hong Kong or Singapore citizens? So we going to earn Penang salaries and pay for units as expensive as Hong Kong's?
The idea of paying RM500k for 800sf condo won't sell, to me it is a funny idea.
People queu to buy 1000sf at Vertiq for half a million because they think it will become like Bayswater but for half a million there are many choices out there.
you must compared like to like, for new condo with lifestyle, new design and integrated development, where to get 500k? and i don't see why penang people cannot afford MYR500k condo. we are not talking about SGD or USD.
MYR5k(salary) buy MYR500k(condo)
SGD5k(Salary) buy SGD500k(HDB)
USD5k(HK salary) buy USD500k(HK condo)
Its true that penang got a lot of 700sqf @ RM200K+...but their conditions are very old already and facilities are not up to date anymore...so I personally think youngster for first home, will go for 800sqf @ RM500K+.....
When talk about penangites afford or not to buy half million property? My personal opinion is certainly yes. Because the gruoup of earning 5k and above is a lot. Moreover penang life style is unlike other big cities. Penang people will spend money wisely. You don see a lot of ferraris on the road not because penang people not afford to buy...but penangites think no necessary to buy...
just called the office. not launch yet. it's going to be very attractive for 200k, 300k or even 500k if there are freehold (i think it's leasehold). i suspect behind the scene the well connected ones already booked up.
I think regarding properties, Penangites buy it due to fear and panic.
For half a million Ringgit there are many options nearby or in the island, why go for 800sf and need to wait for 3 years+?
800sf is quite similar to 700sf, maybe a larger yard and larger dinning area.
I think regarding properties, Penangites buy it due to fear and panic.
For half a million Ringgit there are many options nearby or in the island, why go for 800sf and need to wait for 3 years+?
800sf is quite similar to 700sf, maybe a larger yard and larger dinning area.
Can others chip in to quote whether they willing to pay RM500k for 800sf for "new condo with lifestyle, new design and integrated development".
My wild guess....600sqf@200K ; 900sqf@300K and 1200sqf@400K ; 1500sqf@500k......
if really 600 sq ft for 200k. that's cheap even for a leasehold. cheaper than sunnyville, n-park. will definitely sold out before launch. i better find insider first. or book bangla to queue.
some more this project so integrated. can sleep, eat, shop, work, play, and fall sick there (coz got medical center). good for medical tourism. sounds like best deal of the decade.
Leasehold in QB area is easily >400psf already. These 300k-500k for 600-800sqft size means 500-600+psf.
The selling price will depend on the density allowed to build on the land. I believe Ivory is lobbying for highest density possible and sell cheap for the initial phases (expecting selling like hot cakes)... and the profit generated can be used to pay for the land cost. That's the reason Ivory asked for 5 years time frame to pay for the land.
Initial phases cannot fail, or our LGE will surely lose face.
Would you call a RM20k Rolex affordable, since most people can afford to buy one nowadays? Well, I guess so. But it is considered expensive as you can buy a Tissot at RM600, which is as reliable in terms of tracking the time...:)
Now, Datuk Low is trying to sell a Tissot at the price of a Rolex. Therefore, he calls it affordable (but conveniently forgot to mention the word expensive) because most people can afford it, but I guess it would take a big sucker to fall into his trap...:)) Look at the photo, and his cunning smile! ..;)
Using 10 millions to make billions... this kind of opportunity is rare.
Why Tropicana was dragged in? Your guess.
condomana,
i am a little bit confuse. less than RM400/sq ft (assuming the price is correct) or 600sq ft for RM200k, you also said is expensive, somemore good location, integrated. i am already picky or "niau". going from penang down to KL, to S'pore, and finally think that this is something worth considering (other than foreclosure home in US and UK) but you disagree. if this is also expensive then we have to go Alor Setar already.
sorry, i don't mean to be rude but i really want to learn how you look at property. can you share with me?
Hi 'Aku', I like your price quoted.
I would try to be abit more realistic, below are my suggestions considering the location and the concept.
600sqf@240K ; 800sqf@300K and 1100sqf@500K
Hi twyeow88,
"Ivory group chairman and chief executive officer Datuk Low Eng Hock says about 15% of the properties for the 800 to 1,000 high-rise units for the first phase will be priced between RM300,000 and RM500,000, depending on the built-up area which ranged between 600 sq ft and 800 sq ft."....so I take it as RM300,000 / 600 = 500. Where did your RM400/sqft come from?..:)
from "Aku". also the news says price starts from RM200,000 but did not mention about the space. but it's leasehold i think.
Thanks to Melaka born and bred, Penangites are losing the ownership of their state land piece by piece! Well i guess nothing much we can do, as both BN and LGE is also full of shits. How i hope the CM post is held by either Kit Siang or Karpal.
ps: LGE care to explain why are all the illegal hawkers allowed to operate freely from this area till Queensbay? Look at the massuve structure they build? Are PDC or developer going to compensate them when they vacate the land? If yes, are buyers going to foot the bill for your weak standing on illegal hawkers?
sometimes we got to think about the social consequences and livelihood of the less fortunate. we wouldn't want to end up having too many on the streets doing nothing.
btw, lands are meant for sale for profit and not to be kept as antique. this process is called "Development"
Twyeow88,
LGE likes to emulate Singapore. So, do you see Singaporean goverment allowing hawkers to set up anywhere they wishes? LGE can always build proper foodcourt ( eg: sunshine market, gurney food court etc) and moves these hawkers there. Many hawkers protested when they are force to move to the current Gurney foodcourt, but look what happen now? These is what we call proper town planning!
On the subject on state land, why cant PDC being state own developer joint venture with other major developer to develop the Prime Land? Selling land for quick ONE OFF PROFIT is called STUPIDITY and not development!
you are right but it takes time. and money. how long it takes b4 gurney has a proper food court. i am sure govt will move them one day but it has other priority now.
govt cannot do everything by themselves especially if they have no expertise. even in s'pore, the govt or govt linked company don't participate in all major projects. look at resort world and marina bay sands casino.
Hi twyeow88,
I guess you are right to say gov doesn't have all the expertise needed for development, therefore "joint venture" and "outsourcing" are sometimes needed. But the gov should be clear on what they want to achieve in order to maximise the benefit for the people.
For example, since you mentioned the casinos in Spore, do you know how much money Spore gov is forcing those companies (namely Genting & Sands) to put in Spore in order for them to get the licenses? They would have to put on table during the tender process what the development plan is in detail, the schedule, the regulations etc. They don't simply let them build the casinos based on best price offer.
Now, the Spore gov wants the investments, but they are smart enough to at least put in laws to discourage Sporeans from going in there. So in a nutshell, they are saying to the casinos..."I want your investment, you figure out how to make money, but let me tell you first, don't take advantage of Sporeans"...:)
I have no problem with LGE coming up with innovative ways to generate cash for development, but he has to make sure the locals are not taken advantage of by the developers by putting in specific terms. He must make sure at the end of the day, these investments would translate to higher income levels, high enough for the general locals to catch up with property price (the cost of living) in order to maintain standards of living, failing which he would be just a rat (in the race)....:)
i don't believe by staying sideline, one can benefit even though govt has put in a lot of effort to help them. penang is an island, land price is definitely going up when population grow even nothing major has happened. but if projects like this is successful in attracting investment, it is going to speed up price growth. don't forget globalisation is adding pressure to this also. construction material price also increase. there is no way can stop the price from increasing, at least not in the long run. we have to help ourself also.
govt play its part, we have to play ours. just like our parents only provide education, the rest depends on us. so, to grow in tandem with the country, we have to tag along. in other words, to enjoy the fruit of development, taking RISK is unavoidable, along with hardwork, stress, etc.
i still think that this is the BEST buy. it's really affordable for that quantum of 200k or 300k. plus it's in good location. not many affordable homes are built in good locations these days. LGE has done a good job.
Hi twyeow88,
Just curious, when you say "govt play its part, we have to play ours", what part are you playing now actually?...:)
Anyway, I am not sure what will the total development plan be for this PWC, and someone has rightfully pointed out the lack of blue print in LGE administration. LGE should have awarded the land sale to 2 competing developers to create healthy competition. Has LGE been too lenient with developers, selling 100 acres of land (land of this size is surely difficult to come by in Penang) to one single developer, and risking price monopoly, and ultimately victimizing the people?....cheers!
every govt has master plan. i have seen Greater KL but not penang. maybe can buy from MPPP or PDC. but it's also about choose to believe or not and taking risk like i mentioned earlier. when everything (blueprint, development plan) is too clear, it's probably too late to buy already.
i play my part by choosing to believe in LGE and ......
LGE may not doing well but it is MUCH better compared to the corrupted barison and useless KSK.
*sigh*, dear twyeow88, I think we are not on the same page. Anyway, wish you luck, and have fun kissing the mat salleh's b*lls!..:)
Hi Roman,
In a way I couldn't agree with you more. But we should never write off BN, as they could serve as a very good check and balance to current PG PR. Having said that, it is most unfortunate to see BN leaders in Penang weak, not knowledgeable, not interested and not able to articulate real issues that affect the future of Penang, issues that affect the standard of living.
LGE's team has probably done a good job in day-to-day operations, but I don't have a good feeling about what they can do to Penang's future prospects..:)
twyeow88,
That is why i send my kids to SRK instead of SRJKC. I have observed for years the product of SJKC students. They are all hardworking and are what will be best describe as army ants. They work and work and follow orders blindly, and when the queen is killed, whole lot will die off. They dont have their own opinion and vision, and are naive. They will forever be in the working class, and some lucky few will manage to be promoted to be junior management position. But very rarely will you see them in senior management position/Director/CEO etc.
Sorry, i know this is blunt, but its a fact that MAJORITY of SJKC student is NAIVE and IGNORANT to their surrounding.
Ok, i have gone way off topic.
Now, you don't really get the point put forward to you, don't you? All you do is to believe in LGE, and close your eyes and march forward? IS selling such a huge piece of prime state land at such a cheap price makes sense to you?
Do you need me to direct my staff which is an Ang Mo to talk to you, so you will nod your head in agreement?
As Condomana says, Good Luck in sucking up to Ang Mo's mate ;)
very interesting topic, ah!
let me sum up my point.
-any education is as good, SRJK, SRK, doesn't really matter as long as one end up with a basic degree to earn a job
-job may not be forever but we ride on the opportunity, boss and the PAYSLIP/ to make money
-salary may not be as important as the payslip. we leverage 7 to 10x more from the bank by producing payslip. salary is only good to help us sustain the day to day
-we ride on demographic growth, coupled with sentiment like development plan. don't get me wrong, we are talking long term investment, not speculation
-and job may not be that important after all
btw, i believe if one knows chinese, he/she understands more eg.
"crisis" means "危机" in chinese but,
"危机" carries 2 words "crisis opportunity"
To Pgkia88,
I would like to point out that your comment above about SRJKC has nothing to do with the Penang World City (perhaps this is not the right place for your parenting talk), and it was INAPPROPRIATE, RUDE, BIAS, and UNTRUE.
Well said @C said about comments made by Pgkia88 on SRJKC. Although everyone is free to have own opinion on anything under the sky (or beyond, in the universe if you like); sweeping statement like this reflects the immaturity and ignorance of the person. In my course of work I hired thousands of people from low level right up to vice president positions across the regions. In Malaysia, I don't see anyone from SRJK background consistently demonstrate what Pgkia88 said. Similarly, I wouldn't simply make a conclusion people like Pgkia88 might be product of SRK. Let's focus on World City Project as it is intended here. Chill :)