Share This

Showing posts with label Construction. Show all posts
Showing posts with label Construction. Show all posts

Saturday 23 February 2019

Flat property market seen for Penang

https://img3.penangpropertytalk.com/wp-content/uploads/2019/02/pptrends.jpg

Resilient values: Geh believes that both landed and high-rise units in prime locations will hold their values.

Research house says it will be buyers’ market over the short term

THE Penang property market is expected to remain flat yet resilient this year and could bottom out within the next two years.

CBRE|WTW Research in its Real Estate Market Outlook 2019 says it will be a buyers’ market over the short term, particularly for residential properties.

“Under the prevailing subdued market, launches of smaller, single phase developments would reduce in the short-term but larger integrated mixed developments or townships would carry on.

“The property market is anticipated to remain generally soft and flat in 2019. This is in consideration of the challenging global and domestic economy, rising cost of living, as well as supply-demand imbalances, particularly in the high-rise residential sector.”

The property consultancy however adds that Penang’s property market still demonstrates resilience, aided further by recovery in the economy.

“Meanwhile, the current excess in supply will effectively be absorbed by the market. Benefits of reforms undertaken by the new government could also trickle down to the local property market.”

Raine & Horne Malaysia senior partner and FIABCI Malaysian chapter president Michael Geh says transactions and values will most likely remain flat, at best.

“As residential market activity, in terms of transacted units, has been falling over the last few consecutive quarters, at best the year-on-year levels will hold. In light of the overall soft market, property values are not expected to rise in 2019,” he tells StarBizweek.

Malaysian Institute of Estate Agents Penang chairman Mark Saw says the Penang residential market will see “some correction” this year.

“However, long-term planning on infrastructure improvements will go some way towards ensuring those locations currently only accessible by cars are better served with public transport.

“For those who have been holding back their launches the past few years, there may be a need to start selling, especially if land were bought on loans.”

He adds that measures taken by the state government will help to spur the Penang property market.

“With the waiver of the 3% approval fee for foreign purchasers starting from Feb 1, Penang must be seen to be investor friendly and foreign buyers should be encouraged to come.”

Meanwhile, Knight Frank Malaysia in its latest research report Real Estate Highlights for the Second Half of 2018 says the general outlook for the Penang property market “remains mixed without a dominant overall trend”.

“However, resulting from the interplay of supply and demand as well as the general economy, different sectors are performing differently. The residential sector, which is the leading sector in terms of total volume and value of transactions, has shown some improvement during the first half of 2018. “It registered a 5.4% increase in the volume of transactions year–on-year. This trend is expected to continue.”

Saw says prices of landed property in Penang are unlikely to drop.

“However, the high-rise market will remain challenging and developers will need to continue to offer incentives as well as alternate options of home ownership.

“Developers with deeper pockets or less loans may look into rent-to-buy schemes in tandem with the recently-announced National Home Ownership Campaign by the government.”

Geh believes that both landed and high-rise units in prime locations will hold their values, while speculatively-purchased condominiums will be affected.

“Government announcements on transportation plans, infrastructure and stimulus plans are among actions that can help stimulate the Penang property market tremendously,” he says.

Easing overhang

CBRE|WTW Research says the overhang within the Penang residential property market is likely to ease over the next two to three years, with developers offering special packages and postponing launches, all of which would allow demand to catch up with supply.

“The medium to long-term outlook remains positive given that various policies and efforts are being undertaken by the government,” it says.

Citing data by the National Property Information Centre, CBRE|WTW Research says there are over 2,200 high-rise overhang units worth nearly RM1.6bil as at the second quarter of 2018. “This is due to the abundant apartment and condominium units launched, constructed and completed within the past three-to-five years, coupled with the high rejection rate of end financing, unreleased bumiputra units and low demand for units in secondary locations.”

In terms of unsold residential units, CBRE|WTW Research says around 34% or 1,300 of the overhang units are in the RM500,001 to RM1mil per unit price range.

“On the other hand, units priced at RM1mil and above form the bulk (58%) of the total overhang valued at approximately RM1.75bil.

” The property consultancy adds that high-rise projects, particularly, are experiencing increased sales pressure amidst an oversupply situation.

“Under the challenging market, developers have resorted to offering incentives such as rebates on selling prices, zero or low downpayment, easy instalment payment of up to 24 months, deferred payment of (say) 30% of the selling price over five years at 0% interest, free legal fees and one year’s maintenance fee.

“Complimentary packages include interior design package, kitchen and electrical appliance vouchers as well as referral and reward schemes.”

Office and retail markets

Knight Frank Malaysia says the office sector is still enjoying stable rents and high occupancies, pointing out however that the overall occupancy rates in some buildings have dropped marginally.

“This favourable state of affairs is expected to continue for the next few quarters as new supply is only expected to come on-stream beyond 2020.”

CBRE|WTW Research says pent-up demand for newer and prime offices persists in Penang.

“New supply of offices in Penang in the past ten years was limited. New prime purpose-built office buildings completed within the past three years such as HunzaTower and Straits Quay Commercial Suites are enjoying commendable occupancy rates, although charging new benchmark rentals.

“Newly set-up offices, as well as offices relocated from older office buildings, comprise the tenants in these new buildings. Office occupiers are seeking newer office buildings that serve their contemporary needs and enhance their corporate image.”

It adds that pent-up demand for newer and prime offices would continue in the short-term, as most of the upcoming purpose-built office buildings are scheduled for completion in year 2020 and beyond.

“Older buildings are likely to experience a slide in demand thus lower rentals and capital prices.”

CBRE|WTW Research says stable occupancy rates can be anticipated, adding that rentals will increase.

“As at mid-2018, the overall occupancy rate of purpose-built office buildings in Penang declined slightly to 77% from 82% year-on-year. Occupancy rates are anticipated to generally remain in the region of 80% in near future.

“Rentals of prime office space in Georgetown were between RM2.50 and RM3.50 per sq ft. Prime offices outside George Town, particularly newer buildings in Bayan Lepas/Bayan Baru and Tanjung Pinang (Tanjung Tokong), registered higher rentals of RM3.30 to RM4.50 per sq ft.”

Due to increasing maintenance cost, CBRE|WTW Research says rentals of office space in most buildings are expected to increase in the short term.

“The overall average rental of prime offices would also increase, pulled-up by new entrants with higher asking rentals.”

As for the retail sub-sector in Penang, Knight Frank Malaysia says the current supply remains unchanged, adding that a more challenging scenario is anticipated for this sector with new supply to come on-stream with the expected opening of IKEA in Batu Kawan in the current quarter and the extension of Penang Times Square.

“Other retail centres/expansion of retail centres will be adding on the supply in 2020 and 2022.”

CBRE|WTW Research says the retail sector in Penang is likely to be flat, buffered by cautious optimism.

“Mixed performances will be more evident between the better and under-performing retail complexes, of which the latter is likely to drag down the overall occupancy and average rental rates.

“With abundant supply in the pipeline, shoppers can look forward to exciting shopping experiences.”

It says the overall occupancy rate stood at 72% as at mid-2018, with 79% for Penang island and 63% for Seberang Prai.

“Retail lots on the ground floor of selected prime retail complexes on the island commanded higher gross rental rates of up to RM45 per sq ft.”

Meanwhile, Geh says better-managed malls in prime locations are sustainable.

“These malls have sustained rental rates but vacancy factors have certainly increased by 5% to 10%.

“There is no oversupply but a rise in vacancy factors. Going forward, the general population’s purchasing trend remains cautious and wary of big-ticket items.”

Saw is less optimistic about the Penang retail sector, saying “this sector has been saturated for a few years and there is no end in sight”.

By Wugene Mahalingam, The Star

Related:


Real Estate Market Outlook 2019 - CBRE | WTW - C H Williams Talhar ...


Property sector expected to recover in first half
Property sector expected to recover in first half



 



 

 

 

 

 

Property sector may take up to two years to recover



 

Malaysian REITs: Key financials based on various segmentsScepticism over housing policy


Property goodies with Govt and developers offering various incentives

A new challenge for the EPF

 

 
MANY international experts and organisations have expressed concern about the global economic outlook this year.

Tighter monetary policy, weaker earnings growth and political challenges are confronting major economies.

The long-running US-China trade war and uncertainty around the UK’s exit from the European Union have soured business and consumer sentiment in recent months. However, the risk of a recession remains small, say economists.

Wednesday 22 August 2018

ECRL and pipeline projects cancelled !

https://youtu.be/NyNXOirQ2F0
https://youtu.be/nyQIyNLQ4-o
https://youtu.be/7zyP1xE9glo

It added to the country's debts and we cannot afford it, explains Dr. Mahathier

Headline News

THE cancellation of two multi-billion dollar projects in Malaysia awarded to companies from China ends months of uncertainty, besides marking new parameters for investment by companies from the world’s second largest economy.

Tun Dr Mahathir Mohamad announced the cancellation of the RM55bil East Coast Rail Link (ECRL) and two gas pipeline projects worth RM9.41bil at the end of his five-day visit to China.

The Prime Minister said the projects only added to Malaysia’s debts and had to be cancelled until the country could afford it.

He said China’s leaders understood Malaysia’s plight and their response was positive.

He said he explained to President Xi Jinping, Premier Li Keqiang and chairman of the National People’s Congress Li Zhanshu why Malaysia could not go on with the projects.

“It is all about borrowing too much money, we cannot afford it, we cannot repay and also because we do not need them.

“The Chinese see our point of view and none of the three leaders said ‘no’.

“They understand why we have to reduce our debts,” Dr Mahathir told Malaysian journalists here yesterday before wrapping up his official visit.

Asked about compensation, he said details including the amount would have to be negotiated and worked out by officials later.

“If we have to pay compensation, we have to pay. We cannot afford it, so we must find a way to exit it at the lowest cost possible,” he added, blaming the previous government for entering into such unfair agreements with huge exit costs.

Both projects were awarded under the previous government in November 2016 during an official visit to China by former prime minister Datuk Seri Najib Tun Razak. Since Pakatan Harapan took over, China’s investments in Malaysia and large-scale infrastructure projects have come under intense scrutiny.

Both the railway and gas pipeline projects were mired in controversy with huge advance payments made not corresponding with ground work.

Dr Mahathir also laid out the types of investments that Malaysia wanted to attract, citing foreign direct investments (FDIs) which brought in capital and technology, and hiring of locals to produce goods for local consumption or export.

“This is the meaning of FDI, not buying land and setting up new cities. We want our people to be employed and they (China) agreed,” he added.

Criticism on previous construction projects undertaken by companies from China was that it had little multiplier effects on domestic economy because almost everything was brought in from there.

As per the ECRL project, most of the railway track work was slated to be handled by companies from China despite Malaysia having many companies with such expertise. And as for the two pipeline projects, an average of only 13% of the work was done but the amount drawn down was a staggering 88% of the total cost of RM9.4bil.

No local company was known to be undertaking the gas pipeline jobs.

Dr Mahathir in the past also criticised land and reclamation rights being sold to property developers from China to build large-scale property projects, especially in Johor.

Asked what happened to the money that had been drawn down, he said it should be recovered from Najib.

“He was the one who entered (into the agreement), I have never heard of a contract in which you pay on time without any condition that the work must be done,” he added.

Economists said investors had been waiting for some kind of direction on China’s investments here with Pakatan in power.

Socio Economic Research Centre executive director Lee Heng Guie said the impact of the cancellation of the projects to the Malaysian economy would be manageable, although there would be some negative effect on consumption and investment.

“There could be some impact on the job market with the expected layoffs.

“But I don’t think the cancellation will pull down investment and consumption significantly.

“Whatever contraction of the economy that we will likely see because of the ECRL cancellation should be cushioned by ongoing projects,” Lee added.

Credit: Beh Yuen Hui in Beijing

Cancellation of ECRL comes as a shock to workers


All quiet: Workers at the ECRL site in Bentong, Pahang, are waiting for an announcement from their management after Dr Mahathir cancelled the project .

BENTONG: While some workers involved in the East Coast Rail Link (ECRL) are in shock over the scrapping of the project as announced by the Prime Minister, some areas have yet to see any work despite the launch of the 688km line about a year ago.

Several construction workers said they were left in the dark over the matter.

“Right now, we don’t know what the actual status of the project is.

“We are still waiting for an announcement from the top management,” a senior construction worker told The Star on condition of anonymity.

Another construction worker also expressed a similar sentiment, saying that the ECRL project consisted mainly of Malaysian workers.

“Workers from China comprised 18% to 20% of the staff,” he said.

A security guard at the Bentong ECRL project site said the workers’ quarters were already deserted a month ago.

In July, Singapore’s Channel NewsAsia reported that the fallout had already seen half of the workforce, mostly Malaysians, being retrenched.

A source from the Malaysian Rail Link (MRL), the project owner of ECRL, confirmed that the retrenchment did indeed take place.

“The China Communications and Constructions Company (CCCC) started layoffs a month ago when the project was suspended.

“Half of them are already retrenched and the Chinese workers were told to leave,” said the highly placed source.

Top officials in the MRL are said to be shocked by Tun Dr Mahathir Mohamad’s announcement as it was understood that they were in discussion with the Council of Eminent Persons (CEP) and the Transport and Finance Ministries to come up with several options to scale down construction costs.

“The MRL has paid more than RM10bil to the main contractor, the China Communications and Con­struc­tions Company and there is a claim of RM9bil for work done.

“So it will be quite a waste because the figure to compensate them is quite high,” he said.

The project was launched on Aug 9, 2017, and scheduled for completion in 2024.

In Kuantan, at the site in KotaSAS where the project was launched with much fanfare, all that remains is an empty swathe of land.

Besides the ongoing construction to build the new Pahang administrative centre nearby, it was all quiet at the site where former prime minister Datuk Seri Najib Tun Razak performed the ground-breaking ceremony.

A security guard at the site said no actual rail construction had been carried out since the launch.

The guard, who declined to be named, said there were no workers from China or an ECRL office located at the site.

He was surprised when told of Dr Mahathir’s announcement.

“But then again, there was never any railway construction here. So, there’s nothing to stop,” he said.

A large signboard near the site stated that the KotaSAS Central station would open in 2021.

Credit: Tarrence Tan, Ong Han Sean, Mahadhir Monihiuldin The Star



Related stories:

Construction, material stocks take a dive - Business News


Southeast Asia not a stage for Washington’s game 

 

Related posts:




hhttps://youtu.be/Kb266n1yH8M https://youtu.be/aG6Sup8qo8g Wow! China's most impressive Guard of Honour for Tun Mahathier
h...

Wednesday 1 November 2017

Floods hit Bujkit Jambul & Hong Seng Estate in Penang

Wet, wet woes: (Above) Bukit Jambul is flooded once again after an evening downpour.



Firemen installing a pump to draw floodwaters from one of the affected houses on a slope in Hong Seng Estate, Mount Erskine.

GEORGE TOWN: A blocked underground drainage saw six houses located on a slope in Hong Seng Estate, Mount Erskine, flooded during an evening downpour.

Firemen and Civil Defence Force personnel had to install a water pump to draw out the rainwater which flooded some of the units to waist-level.

Rojak seller Tan Swee Hoe, 56, said she was shocked to see her kitchen and living room submerged in water at 7pm yesterday.

“I rushed home after receiving a call from a neighbour, saying my house is flooded.

“But I did not expect such a sight. I did not manage to move my furniture and electrical appliances to the upper floor, thus incurring several thousand ringgit in losses.

“I have been staying here for 17 years and this is the first time my house is flooded,” she said at her house.

Pulau Tikus assemblyman Yap Soo Huey said 17 people from five houses were affected while the sixth house was unoccupied.

She said the Fire and Rescue Department and the Civil Defence Force personnel moved in to install a 400m pipe to pump the water out from the house manually.

“The water is channelled to a nearby river and it may take a few hours if the weather is good,” she said, adding that the district office will evaluate the losses.

Late last month, seven houses in the estate were affected by soil erosion. A consultant engineer Datuk Lim Kok Khong had said the soil erosion was due to water seeping under the ground.

Penang Gerakan secretary H’ng Chee Wey urged the state government, with the aid of the experts, to look into the cause of the problems.

“The state government needs to ensure that the existing infrastructure, including the drainage system, can cope with the demand before it approve new development projects.

“We hope the local authorities can be proactive in the matter,” he added.

Rising waters also flooded the Bukit Jambul area, reducing traffic to a crawl.

Bayan Baru MP Sim Tze Tzin said a RM400,000 flood mitigation project started last month.

“The project will create a shortcut for the floodwater to be discharged directly to Sungai Nibong river instead of passing through Jalan Tun Dr Awang,” he said, adding that the project was expected to be completed at the end of next month.

Source: The Star by chong Kah Yuan

Related Links



Deluge brings chaos to northern states

 

Related posts:


Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project.  Approximate Coordinates : 5°20'38.47"N,100°16'

Council should not bow to development or political pressure, says city councilor, Khoo ‘Politicians should be ‘wakil rakyat’ and n...
Seeking solutions: Penang Forum member and soil expert Dr Kam Suan Pheng giving her views during the dialogue session themed ‘Penang Fl.
(From left) Dr Kam will deliver a talk on ‘Understanding the Causes of Floods and Seeking Solutions. State assemblymen expressing inter...
https://youtu.be/4qaOB1n5tgA GEORGE TOWN: The Penang Island City Council has lodged a police report against the consultant of the aff...
Speaking out: Penang Forum members protesting outside the CAP office in George Town. Don’t just make it about worker safety issues ..
https://youtu.be/QB45Q2_mOG0 Suspicious activity: A photo taken from Penang social activist Anil Netto's blog showing an active s..

Sunday 22 October 2017

Penang landslide tragedy, plea went unheeded, no one listened !


https://youtu.be/QB45Q2_mOG0
Suspicious activity: A photo taken from Penang social activist Anil Netto's blog showing an active stone quarry about 500m directly behind the site of the landslide.
https://youtu.be/yqtdkBsipCU

GEORGE TOWN: As the landslide tragedy takes its toll with three workers killed and 11 others feared dead, DAP state assemblyman Teh Yee Cheu said there are still 10 other development projects pending, but his plea to save the hills has been constantly ignored.

Some of the projects will be near hillsides and more are planned along the coastline. A few are projected to be 50 to 60 storeys high, said the Tanjung Bungah assemblyman.

“I objected to each one. I always use the words Saya membantah sekeras-kerasnya (I strongly object) and some city councillors laughed at me and said the approval authority ‘menyokong sepenuh-penuhya’ (fully supports).

“Now see what has happened,” Teh told The Star.

He was referring to the one-stop centre at the Penang Island City Council (MBPP), which is in charge of approving property development plans on the island.

Teh, who rushed to the scene of the landslide shortly after it happened at about 8.30am yesterday, did not hide his discontent over the spurt of development projects in his constituency.

“Not all those development applications have been approved yet.

“But after the general election, I expect a mushrooming of approvals,” he added.

Tanjung Bungah is one of the few residential areas on the island with a low population density.

The Lembah Permai area, locally called Hillside or Vale of Tempe, is a coveted location for its semi-detached, terraced and bungalow homes.

But in recent years, developers have been submitting plans for high-rises that rival even the height of Komtar, in the area’s unoccupied hills and seaside.

Yesterday’s landslide happened at a construction site near Lorong Lembah Permai 3.

Tens of thousands of tonnes of laterite earth slipped down from a height of about 35m, burying the workers.

Firemen told reporters that the search operation had to be carried out slowly because the slope was unstable.

Teh said he objected to the project’s planning permission about two years ago because the original hill slope had a steepness of 30 to 40 degrees.

“I apologise to my voters in Tanjung Bungah. I objected to the construction, but my words were only taken as a personal view by the MBPP and state government.

“I also apologise to the family members of the victims buried by the landslide,” he said.

Asked about a stone quarry located some 500m further uphill from where the landslide occurred, Teh said that it was active, with rock blasting going on two to three times a week.

“I am against that too, but it was allowed to continue,” he added.

Source: The Star

Another call to stop all hill-slope development immediately



Why must it take a tragedy to happen in Penang before the Penang state and local governments wake up to the dangers of rampant and unsustainable development especially on hill slopes? Or will they wake up?

Two years ago, in December 2015, the Penang Forum, alarmed by such negative developments, organised a half-day event titled “Save Our Hills” in which engineering, planning and legal experts gave presentations on the dangers of hill-slope development. (The presentations are available on Penang Forum’s website.)

It then called on the government to review and stop further hill-slope projects. Very sadly, the call fell on deaf ears and the consequences are painfully evident today after an estimate of perhaps 15 lives are lost in a landslide at a hill-slope project in Tanjung Bungah.

Penang Forum then started Penang Hills Watch (PHW), a citizens’ initiative to provide the state government, information on hill cuttings that it collects from the public. In January 2017, the PHW met with the state government; the present site where this tragedy happened was the first case that PHW highlighted to the state government. (Please visit the PHW website.) Photos of construction and hill cutting on this site were presented to the state government – to which it responded that the “earthwork is being monitored.”

The chief minister of Penang, in the Safety Guidelines for Hillside Development, said: “Penang Local Governments (MPPP and MPSP) are to strengthen their Geotechnical unit, which processes and approves applications for hill site developments, followed by strict enforcement. A monitoring team will be established to ensure compliance in construction and monitoring performance of slopes.”

The question is what happened then? Did the state and local governments follow through their own guidelines? Or was there gross negligence?

Such senseless tragedy could have been avoided. Penang Forum calls for an independent Royal Commission of Inquiry to investigate what went wrong and how such incidents can be avoided in the future. All parties beginning from the State Planning Committee that gave approval for all hill-slope projects, to the One-Stop-Committee of the Penang Island City Council that also approved the project, to the engineers who are supposed to monitor the projects, to the developers and contractors who carried out the project should be investigated and held responsible.

In the meantime, Penang Forum once again calls on the authorities to:

  • stop all hill-slope projects with immediate effect;
  • immediately amend the 2009 guidelines on ‘special projects’ to explicitly prohibit all development on hill lands, except if it is for essential public services;
  • rehabilitate all existing exposed and barren slopes and spaces to prevent further soil erosion;
  • undertake stern enforcement, effective and deterrent punishment on those who clear land illegally or do not abide by conditions imposed to prevent soil-erosion;
  • monitor frequently and effectively all hill slopes by the local authorities;
  • publicly declare and give warning on all hill slopes and areas that are not safe.

Sources: Penang Forum 
Sahabat Alam Malaysia
Consumers Association of Penang 
Residents associations and management committees of Penang

Related Links:

www.thestar.com.my/.../tanjung-bungah-landslide-penang-forum-highlighted-cases/
GEORGE TOWN: Landslides at hill slope projects in Tanjung Bungah have been highlighted to the state government since early this year, ..

Will fatal landslide spur state to protect hills?
Groups call for RCI to investigate tragedy
Missing supervisor transferred recently
DOSH and construction board to probe cause of landslide
Three bodies pulled out, 11 workers still buried in rubble

 

Consumers & Residents tell state govt, ‘We told you so’



https://youtu.be/znzduuH8Soc

GEORGE TOWN: The Tanjung Bungah Residents’ Association (TBRA) is demanding for a Royal Commission of Inquiry (RCI) on all hill slope developments in Penang, following a landslide at a construction site this morning that buried nearly 18 people.

TBRA chair Meenakshi Raman said the RCI would be a form of audit on all risky hill slope projects in the state, to prevent any tragedies from happening again.

She also said the TBRA had repeatedly appealed to the Penang government to put an end to hill slope developments as it would have a domino effect on flash floods in the state.

“We were called ‘irrational’ by the Penang government when we appealed for hill slope developments to stop. Who’s irrational now?

“Today’s incident is a grave and grim warning to the authorities to take heed of Mother Nature’s warning,” Meenakshi said when contacted today.

In the 8.50am incident, a 10m-high hill slope came crashing down next to a construction site not far from the Tunku Abdul Rahman College in Tanjung Bungah.

At the time of writing, two survivors were rescued, while two more bodies were retrieved from the mud and rubble. Although their identities are not yet known, they are believed to be foreign workers.

Meenakshi said during last month’s flash floods, TBRA and other residents’ associations made a collective appeal to the state government to end all excess developments and hill clearing in the state.

TBRA, concerned groups, and Sahabat Alam Malaysia (SAM) had also previously called on the Penang government to amend existing guidelines concerning hill slopes.

Meanwhile, SAM president S M Mohamed Idris said the NGO had written to the Penang government “several times” urging them to stop hillside developments.

“We have warned that hill slopes are fragile ecosystems and cannot be touched.

“And now, we are really shocked that the lives of many have been sacrificed. We support TBRA’s call for an urgent RCI,” he said when contacted.

Source: Free Malaysia Today

Related 

Sixth body pulled out from Penang landslide heap



Related posts:

Some representatives of the 24 residents associations and management corporations showing messages urging the state to resolve the flood is...

Rightways