More well planned property projects needed

More well planned property projects needed
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By ANGIE NG

PENANG, being one of the most urbanised states in the country with more than 80% of its population residing in the urban area, needs to have more well planned property projects to cater to the needs of a broad spectrum of buyers.

The premium in the prices of and strong demand for landed residential properties on Penang island are the main magnet for Klang Valley-based developers to venture there.

In order to turn in decent profit after absorbing the high land cost, the developers have to launch more high-end products.

According to Raine & Horne, Zaki and Partners senior partner Michael Geh, there is a mismatch between the types of properties planned or launched recently with what the market actually needed.

He said the current trend of launching very large condominiums of 3,000 sq ft to 5,000 sq ft did not serve the needs of many local buyers and foreign long-term stayers as they were way too large.

“The foreign investors and participants of the Malaysia My Second Home programme, who on the average stay for between three and six months to escape the winter in their country, will need small and cosy residences, especially service apartments of between 1,200 and 1,500 sq ft,” Geh said.

However, Henry Butcher (M) chief operating officer Lim Ewe Tatt disagrees with Geh's views on product mismatch.

“Developers conduct feasibility studies before launching their products in the market to ensure there is no mismatch between what is supplied and what is demanded.

Lim said the luxurious lifestyle projects launched in Penang therefore met the needs of house buyers.

“The most popular type of residential properties are terraced houses priced from RM500,000 onwards and high-rise properties priced from RM150,000,” Lim said.

Sunway City Bhd senior managing director Datuk C. K. Wong said the constraints of land availability would result in a change in designs and project concepts by housing developers.

“More Penangites are looking for properties with bigger land areas, innovative design, big built-up areas and better finishes.

“Good security and safety features as well as homes that are user-friendly for the elderly folks are also important criteria for the Penang market,” Wong said.

E & O Property Development Bhd marketing and sales director K. C. Chong said the Penang market comprised a mixed bunch of people.

There are those that prefer the more traditional forms and styles while the more travelled buyers are happy to adopt new architectural styles, in keeping with their changing lifestyles.

“We also have the various foreigners of different nationalities, which have their own preferences. Hence, it is really up to the developer, the purveyor of style, to offer the right blend of product, concept and environment to his chosen target markets,” Chong said.

SP Setia group managing director Tan Sri Liew Kee Sin said demand for landed properties had always been strong on the island due to the limited land bank available.

“Buyers are becoming increasingly discerning and sophisticated. Lifestyle concepts are very much in demand now due to a lack of such developments in the past.

According to Mah Sing Group Bhd president Datuk Leong Hoy Kum, most Penangites are prudent spenders who seek good value for their purchases.

“Generally, there is a preference for landed residences, especially medium to medium-high end products, although high-rise living is also becoming a popular option,” he said.

The Penang market would welcome well designed landed properties including bungalows and semi-detached homes in good locations.

“For the commercial sector, we believe that projects that tap on Penang’s tourism appeal would do well. These include well planned offices, retail outlet, shopping complexes and dining facilities,” Leong said.