Penang developers plan RM4.7bil worth of affordable houses

Artist's impression of Ivory's mixed-development project in Tanjung Tokong.

GEORGE TOWN: The Penang property scene, which has seen prices soaring to new levels in the last two years, will see new affordable properties with a gross development value (GDV) of RM4.7bil entering the market in prime locations over the next three years.

Besides the pricing, which ranges between RM300,000 and RM650,000 depending on location, other attractions of these properties are their size, which ranges between 850 sq ft and 1,000 sq ft, and the facilities provided.

Raine & Horne director Michael Geh said the pricing was in response to the slower pace of property market impacted by the high rejection rate of housing loans.

Developers planning such new properties include Eastern & Oriental Bhd (E&O), Boon Siew Group (BSG), Tambun Indah Land Bhd and Ideal Property Group, which owns Ideal United Bintang Bhd and Ideal Sun City Bhd.

Ideal accounts for about 68% or RM3.2bil GDV of such projects that are slated for launch next year. The projects of the other three developers make up the remaining GDV.

Ideal is developing 6,508 condominium units in different locations over the next three years.

There are two categories – those priced between RM300,000 and RM400,000 and those priced at RM450,000, according to executive chairman Datuk Alex Ooi.

Condominium projects are currently priced at RM550 per sq ft onwards in Bayan Baru and Bayan Lepas, and RM1,300 per sq ft onwards for those in Gurney Drive and Tanjung Tokong.

Ooi said the attractive pricing would ensure that quality homes with decent built-up areas and facilities in prime and strategic areas fell within the disposable income range of house buyers.

“In Tanjung Tokong, we plan to launch, on a 9.9-acre leasehold site, 900 sq ft condominiums priced at RM450,000 in 2015 or 2016.

“We provide facilities such as pools, indoor and outdoor gymnasiums, a rest pavilion, a dining pavilion, a barbecue corner, a jogging track and a reflexology path,” he said.

New condominiums in the Tanjung Tokong area are priced between RM700 and RM1,300 per sq ft.

Ideal’s other projects are in Bayan Lepas, Sungai Ara and Balik Pulau.

Ooi said the group would kick off with the One Foresta project in Bayan Lepas next year.

“Subsequently, we will launch two more projects, in Bayan Lepas and Balik Pulau, over the next three years.

“The condominiums are priced between RM300,000 and RM400,000 and are equipped with a wide range of facilities.

“The units have built-up areas of 900 sq ft and 1,000 sq ft,” he said.

In Seri Tanjung Pinang in Tanjung Tokong, E&O is registering interested buyers for its Tamarind high-rise project, aimed at young professionals.

Located within the Seri Tanjung Pinang development, it is learnt that the Tamarind project will be competitively priced.

Each of the 1,042 sq ft units will have three bedrooms and two bathrooms. E&O’s condominium projects in Seri Tanjung Pinang are currently priced at RM1,100 to RM1,300 per sq ft.

BSG plans to launch 1,000 condominium units with 850 sq ft built-up in Tanjung Bungah in mid-2015.

The indicative pricing per unit is below RM400 per sq ft, according to a BSG spokesperson.

In Seberang Prai, Tambun Indah will launch 1,106 units of landed and high-rise properties with a GDV of RM469.6mil in its Pearl City mixed-development scheme next year.

The residential properties comprise double-storey terrace, townhouse, double-storey semi-detached and bungalow units.

Tambun Indah executive director Teh Theng Theng said that to ensure the properties were within reach of house buyers, the pricing would be lower than that of a similar range of properties in the other strategic locations of Seberang Prai.

Ivory Properties Group Bhd executive chairman Datuk Low Eng Hock said the group was now working towards providing affordable homes to cater to young adults and newly-wed couples by providing smaller units to suit their budget.

“Currently, we are in the planning stage of offering such units in the Batu Ferringhi area.

“Our current projects such as The Wave and Penang WorldCity are still affordably priced from RM700 and RM800 per sq ft onwards, respectively,” Low added.