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Showing posts with label developers. Show all posts
Showing posts with label developers. Show all posts

Tuesday, September 15, 2020

All steady on the home front in Penang residential properties

Sales done: According to Knight Frank Malaysia, there are pockets of success by some developers reporting bookings and sales for their affordable homes during the movement control order period despite the fact that physical viewings were disallowed.

DEMAND for residential properties in Penang is expected to remain steady during the second half of 2020, especially if the homes are from renowned developers with good quality products.

Knight Frank Malaysia executive director Mark Saw says there are pockets of success by some developers reporting bookings and sales for their affordable homes during the movement control order (MCO) period (from March 18 to May 3), despite the fact that physical viewings were disallowed.

“In this challenging environment, developers with a strong brand name and good delivery of quality products should still achieve decent returns and the gap between higher and lower quality properties will become more evident with better sales for those able to deliver.

“These factors will play a critical role in determining the success of developments. It has become a buyer’s market and many deals are being offered by developers to attract first-time buyers as opposed to investors who have been temporarily sidelined, ” he tells StarBizWeek.

Due to the Covid-19 pandemic, Saw says buyers’ preferences and timings may change, with decisions being put on hold due to job security, ample choices and rentals being more competitive.

CBRE|WTW director Peh Seng Yee says the pandemic’s impact has been softened in the second half of the year with the recovery MCO (which was implemented from June 10).

CBRE|WTW director Peh Seng Yee says the pandemic’s impact has been softened in the second half of the year with the recovery MCO (which was implemented from June 10).CBRE|WTW director Peh Seng Yee says the pandemic’s impact has been softened in the second half of the year with the recovery MCO (which was implemented from June 10).

“As housing is a necessity and with the bank loan moratorium, the residential property sector has been cushioned from the worst impact.

“Hence, the residential market is expected to remain resilient for the second half of 2020. Significant growth is not expected yet as the issue of property overhang, lack of spending confidence by consumers and stringent lending policies by banks are expected to still linger for the remainder of the year.”

Additionally, both Saw and Peh agree that the reintroduction of the Home Ownership Campaign (HOC) was a much-needed boost to the local property market. The government reintroduced the HOC in June under the Short-Term Economic Recovery Plan (Penjana).

Mark Saw: In this challenging environment, developers with a strong brand name and good delivery of quality products should still achieve decent returns and the gap between higher and lower quality properties will become more evident with better sales for those able to deliver. 
Mark Saw: In this challenging environment, developers with a strong brand name and good delivery of quality products should still achieve decent returns and the gap between higher and lower quality properties will become more evident with better sales for those able to deliver.

Peh says the HOC is expected to continue to spur the buying momentum for residential properties in Penang over the short term.

“Developers are experiencing a pick-up in bookings by buyers compared with the first half of 2020, which was mainly affected by the MCO.

“However, the encouraging bookings have yet to be fully translated into good actual sales, due largely to stringent lending policies by the bank and the challenges and uncertainty in the economy and job market.”

Saw also believes the HOC will be a short-term reprieve for the local property market.

“The HOC initiatives will only be a temporary measure. For the long term, developers should carry out proper feasibility studies to determine the marketability of their products before commencing developments and ending up with unsold units.”

According to Saw, the volume of residential transactions in Penang decreased 19.7% to 2,748 units in the first quarter of 2020 compared with 3,422 units in the fourth quarter of 2019.

“The value of transactions in the residential sub-sector during the first quarter (RM1.06bil) indicated a drop of 17.2% compared with RM1.28bil in the fourth quarter of last year, ” he says.

Under the HOC, stamp duty exemption will be provided on the transfer of property and loan agreement for the purchase of houses priced between RM300,000 and RM2.5mil.

Meanwhile, the exemption on the instrument of transfer under the HOC is limited to the first RM1mil of the home price, while full stamp-duty exemption is given on loan agreement effective for sales and purchase agreements signed between June 1 and May 31,2021.

The government has also announced real property gains tax (RGPT) exemption for Malaysians for the disposal of up to three properties between June 1,2020 and Dec 31,2021.

The HOC was kicked off in last January to address the overhang problem in the country. The campaign, which was initially intended for six months, was extended for a year.

It proved successful, generating total sales of RM23.2bil in 2019, surpassing the government’s initial target of RM17bil.

Meanwhile, Knight Frank in its Real Estate Highlights Research for the first half of 2020 says that amid the current global recession, Invest Penang has revised downwards its foreign direct investment (FDI) target for 2020 to RM5mil.

“This will be supported by the shift towards Industry 4.0 and the various tax incentives and reinvestment allowances as announced under Penjana that seeks to promote Malaysia as a choice destination for FDIs.”

To clear RM2.6bil worth of 3,043 overhang units in the state, Knight Frank says the Penang local government, housing, town and country planning committee has announced that the state will reduce the minimum price threshold for foreign property ownership by up to 40% starting from June 11,2020.

“Ceiling prices for stratified properties on the island will be reduced by up to 20% from RM1mil to RM800,000 and on the mainland, from RM500,000 to RM400,000.”

In the high-end condominium segment, Knight Frank says IJM Perennial has put on hold the development of The Light City.

“Prior to the Covid-19 pandemic, the group had indicated that it would resume development in August 2020. To be developed over a period of more than four years, Phase 1 will feature a mall with 680,000 sq ft net lettable area, the Penang Waterfront Convention Centre, a four-star hotel with 500 rooms, offices and the ‘Mezzo’ residential condominiums.

“Meanwhile, for Phase 2, there are plans for a 300,000-sq-ft mall, a five-star hotel with 250 rooms, offices, the ‘Essence’ residential condominiums and possibly an experiential theme park. It is worth noting that the commencement of Phase 2 will be determined by the sales of the Mezzo condominiums and the occupancy of the mall.”

As for the office sub-sector in Penang, Knight Frank says the average occupancy rate for four prime buildings monitored in George Town remained stable at 89%.

“According to the latest National Property Information Centre report, the average occupancy rate in the state continued to hold steady at 81.4% in the first quarter of 2020 (compared with 81.3% in the fourth quarter of 2019).”

 Source link

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Monday, January 29, 2018

Absorb New ways to prevent floods

Sponge City: Solutions for China's Thirsty & Flooded cities

 China's 'sponge city' projects may be worthwhile examples for Malaysia.


"Only about 20~30% of rainwater infiltrates the ground in urban areas, so it breaks the naturual water circulation.- Wen Mei Dubbelaar"

Last week, it was the turn of Petaling Jaya, Gombak and Sungai Buloh to be the latest major urban areas in Malaysia to suffer flash floods (Flash floods wreak havoc in PJ - Nation). Scenes of cars and buildings submerged in muddy water are now almost an everyday thing. The focus should now shift from the bad situations to the solutions.

It was also last week that I attended a briefing organised by civil society groups for Penang and Seberang Perai municipal officials and members. The briefing was on the recent floods.

Later, I came across several articles on how China is turning 30 of its flood-prone areas into “sponge cities” to prevent floods and retain rainwater.

The Chinese plan big and fast. It launched the sponge city project only in 2015, but it aims to retain 70% of rain in 80% of urban areas by 2020. The sponge concept is set to spread rapidly as part of global efforts to reduce the impact of increased rainfall and floods, and climate change.

The concept figured prominently at the briefing chaired by Penang state exco member Chow Kon Yeow. Scientist Dr Kam Suan Pheng introduced it when explaining the floods.

She contrasted the present situation when rain falls with what used to happen. In the past, 50% of the rain seeped through the natural ground cover (trees, grass, etc) and into the ground. There was 10% water runoff (to rivers and drains) and 40% evapotranspiration (water going back to the atmosphere).

The trees and green spaces act as a sponge to absorb the rainwater that infiltrates the soil, preventing the water from building up into flash floods.

Due to urbanisation, the green spaces have been paved over with cement and concrete. Now, only 15% of the rain infiltrates the soil, while the runoff has increased to 55% and evapotranspiration is 30%. The sponge now absorbs 15% of the rainwater compared to the previous 50%.

Dr Kam quoted former Penang Water Authority general manager Kam U-Tee as saying that the October 2008 Penang floods were caused by conversion of the valleys into “concrete aprons that do not retain water”. As a result, the water immediately flowed into streams, causing flash floods, even with moderate rainfall.

Given this analysis, a key part of tackling the floods is to reverse the loss of the sponge. In recent decades, Malaysia has seen the conversion of a lot of farms, parks, trees and grass areas into concrete jungles of roads, houses, commercial buildings and car parks.

There now has to be high sensitivity to the valuable environmental and economic roles of trees, gardens, fields and grasslands, and parks. The aim of garden cities is not just to be pleasing to the eye but to be a very important part of development as well.

Now comes the role of sponge cities. The world is applauding the Chinese initiative to counter floods and improve water security by building up the natural cover (or sponge) in its cities.

In 2010, landslides during flooding killed 700 in three quarters of China’s provinces. Last year, rains flooded southern China, destroying homes and killing around 60 people.

In 2015, China launched the Sponge City initiative, which now covers 30 cities, including Shanghai, Xiamen and Wuhan. The target: by 2020, 80% of its urban areas will absorb and re-use 70% of rainwater.

The many types of projects include:

  • > Constructing permeable roads that enable water to infiltrate the ground;
  • > Replacing pavements on roads and parks to make them permeable;
  • > Building wetlands to absorb and store rainwater;
  • > Constructing rooftop gardens (for example, 4.3 million square feet in Shanghai);
  • > Plant trees on streets and public squares;
  • > Build community gardens and parks to expand green spaces; and
  • > Build manmade lakes and preserve agricultural land to hold water.

“In the natural environment, most precipitation infiltrates the ground or is received by surface water, but this is disrupted when there are large-scale hard pavements,” said Wen Mei Dubbelaar, water management director at China Arcadis, in words similar to Dr Kam’s.

“Now only about 20-30% of rainwater infiltrates the ground in urban areas, so it breaks the natural water circulation and causes water logging and surface water pollution,” said Wen in an interview with The Guardian.

In Shanghai’s Lingang district, the streets are built with permeable pavements. There are rain gardens filled with soil and plants, buildings feature green rooftops and water tanks, and a manmade lake controls water flows, reports The Guardian.

Prof Hui Li at Tongji University said the first thing is to preserve or restore natural waterways as that is the natural way to reduce flooding risk.

The problem in Wuhan is that a lot of small rivers were filled in during building. But Lingang still has agriculture land and a lake to hold more water during heavy rain.

What about the cost factor? So far the cities have received over US$12bil (RM47.4bil) for sponge projects. The central government funds 15-20% of costs, and the rest is from local governments and private developers.

But compare this to the US$100bil (RM395bil) of direct economic losses due to floods in China between 2011 and 2014, plus the human lives lost.

Sponge cities are the way to go for the future. Our own governments – federal, state and municipal – should study this option seriously, as the public braces itself for more floods ahead.

- Global Trends by Martin Khor

Martin Khor is executive director of the South Centre. The views expressed here are entirely his own.


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Sunday, January 28, 2018

Make environment our 2018 priority

Our Environment is Our Life - YouTube

THE year has barely started, and already we have so many reports of weather and climate-related events.

Heavy wind, snow storms and below-freezing temperatures paralysed cities in the United States’ East Coast. New York’s John F. Kennedy International Airport was in chaos with hundreds of flights suspended.

Yet, just weeks previously, big fires linked to a heat wave were sweeping through parts of California on the West Coast, burning 112.000ha of forest and threatening lives and homes.

Colder weather in one place and hotter temperatures in another are signs of global climate change, which can also cause heavier rainfall and drought in different regions.

While it is difficult to pin down any particular incident as a direct result of climate change, it is recognised scientifically that climate change generally exacerbates extreme weather events and may cause some of them.

We can expect the weather, and more broadly the environment, to figure prominently this year.

The alarm bells sounded long ago on the environmental crisis. But it is not easy to achieve a continuous high level of concern among political leaders.

After a calamity and public outrage, there are pledges to correct the situation. However, the interest fades after a while, and not much action is taken, until the next disaster happens.

In Malaysia, people are now looking at the sky constantly to anticipate whether it is going to rain.

Heavy rainfall has been causing floods in Kelantan, Terengganu, Pahang, Johor, Negri Sembilan, Kedah, Selangor, Sabah and Sarawak.

In Penang, severe state-wide flash floods seem to be occurring every few months, with localised flooding in several areas in between. The mud brought down from eroded hill-slopes into overflowing rivers and then into houses, makes floods an even worse nightmare for those affected.

For some unlucky ones, hardly have their houses and furniture been cleaned than they are under one metre of water again through a new flood.

Heavier rain and more floods is the new normal in Malaysia. There has been an increase in rainfall for most parts of the country in 2000-2009 compared to 1970-1999, with the major increase in 2005-2009, according to a 2012 paper by Yap Kok Seng, then the head of the Malaysian Meteorological Depart­ment (MMD), and his colleagues.

The global temperature increase has led to changes in weather including major wind patterns, amount and intensity of precipitation, and increased frequency of severe storms and weather extremes, according to the paper, Malaysia Climate Change Scenarios.

In Malaysia since the 1980s, there had been increasing number of days of extreme rainfall events, extreme wind events and annual thunderstorm days, added the paper.

Unfortunately the situation will worsen. A study published on Jan 10, whose authors are affiliated with Germany’s Potsdam Institute for Climate Impact Research, predicted that millions more people will be affected by river flooding as global warming increases severe rainfall in the next 20 years.

In Asia, the most affected region, people at risk from floods will rise to 156 million from the present 70 million in the next 20 years.

Global warming increases the risk of flooding because rain during an extreme downpour “increases exponentially” as temperatures rise, the institute’s Anders Levermann told Reuters.

“We have to adapt to global warming. Doing nothing will be dangerous,” he said.

Countries will have to act urgently and make major investments in flood protection to boost their flood defences, according to the report.

This advice surely applies to Malaysia as one of the countries already being affected by heavier rainfall and extensive river flooding.

Flood mitigation measures must be increased, including de-silting, widening and deepening rivers, improving urban drainage, strengthening river banks, redirecting water flows, constructing tidal gates, and pumping excess water into ponds.

Even more important is flood prevention. A main cause of the floods is deforestation, leading to the loss of the forests’ valuable roles in soil and water retention and climate regulation.

It is really short-sighted and irrational to damage and destroy forests, especially forest reserves and water catchment areas.

Exposed soils are swept by rain into rivers, clogging up streams and drains with mud and causing floods downstream in the towns and villages, while also depriving us of much-needed water supply.

There is a great deal of public concern over recent developments that threaten forests and hill lands in the country.

These include the de-gazetting of the Ulu Muda water catchment area in Kedah; the de-gazetting of hill lands in Penang that previously were protected under the Land Conservation Act and which are now being “developed” with the aid of higher permitted density ratio; the conversion of 4,515ha forest reserve to cultivate oil palm plantations in Terengganu (being opposed by WWF-Malaysia); and protests over the imminent loss of a forested park in Taman Rimba Kiara in Kuala Lumpur to make way for housing.

Federal, state and local governments should give priority to environmental rehabilitation of damaged forests and hills, prevent damage to the coastal ecosystem including mangroves, and take comprehensive flood prevention and mitigation measures.

They should stop approving environmentally harmful projects in ecologically sensitive areas.

They must make major financial allocations to protect and rehabilitate the environment, and implement finance measures to prevent and manage the floods.

As so many scientists are warning, and as more and more local communities and citizen groups are demanding, the time to act on the environment is now. Let us hope that in 2018 these calls will be heeded.

Global trends by Martin Khor

Martin Khor is executive director of the South Centre. The views expressed here are entirely his own.

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Sunday, November 12, 2017

Wanted: Leaders who listen !

Turning a blind eye: The grumblings over exposed hills are growing louder but little is being done to rectify the situation


 

Grievances from residents warning of environmental damages must not fall on deaf ears


“Leaders who don’t listen will eventually be surrounded by people who have nothing to say.


MY family home in Kampung Melayu, Air Itam in Penang, is more than 56 years old. That’s about my age, and it has never been hit by floods. Not once!

But last week, my parents – dad is 92 years old and mum, 86, – had their sleep rudely interrupted sometime after 1am by water gushing into their home.

They have been sleeping on the ground floor for years now because they are too old to climb the stairs to their bedroom.

The water that flowed into their room almost touched the top of their bed but fortunately, one of my nephews and his wife from Kuala Lumpur were staying over that night.

It was so fortunate that they were there to calm my anxious parents down and assure them all would be fine. They managed to comfort my stunned folks, who had never experienced such an unpleasant situation before. My father had to be carried to the room upstairs as the house remained flooded throughout the early morning.

Our home was filled with layers of mud the next day and the cars parked outside were all damaged. They sadly look like write-offs.

My father’s pride and joy, his first-generation Proton Saga car – which he bought in 1985 – is now unusable.

A week on, my brothers and nieces are still cleaning up the mess from the massive flood. They haven’t had the time or mood to even assess the financial losses.

And bound by a common sentiment as Penangites, they are tired of the blame game, a trade the state’s politicians have plied to near-perfection.

How many times can the finger be pointed at the previous government, with the incumbent almost 10 years in power? And how many more times can we blame it on torrential rain, which came from Vietnam – or wherever? Worst of all is, when discussions are mooted on flood issues, the voices of the people are swiftly silenced.

It appears that even to talk about hillslope development, one would have to contest in the elections, or be perceived to be challenging the state government, or more extremely, be some kind of lackey in cahoots with the Federal Government.

Blaming everyone else except oneself is simply a way of covering up one’s weaknesses. But the discerning public, in a maturing democracy with heightened transparency and a huge middle class like Penang, will not tolerate such short-term manoeuvring for long.

Suddenly, civil society – a buzzword among politicians – has vanished, with NGOs now regarded as irritants and an affront to the state establishment. Politics is apparently the monopoly of politicians now.

As the National Human Rights Society aptly puts it, “With the benefit of hindsight, we are sure that the Penang government now realises that they should not so readily malign civil society, howsoever obliquely – for the legitimate and well-founded articulation of matters of great concern to civil society.

“This is because it undermines the fundamental values of a functioning democracy and the fundamental human rights of the populace at large.”

Perhaps, the state political elites, many of whom aren’t pure blood Penangites, don’t realise the state is the home of a vibrant civil society, with many active NGOs and activists who are respected influencers of society.

Having walked through the corridors of power and appreciated power’s pleasures, perks and the adulation it brings, maybe it is becoming much harder for people to take criticism. This is, in fact, a reflection of the arrogance of power.

Many have developed thin skin now, with little tolerance for the slightest form of criticism. If anyone even dares raise their voice, an army of cybertroopers, hiding behind anonymity, are unleashed to attack them.

Freedom of speech, it seems, is only the domain of the opposition, with some media (regarded as unfriendly) unceremoniously ridiculed and questioned for their attendance at press conferences.

There are politicians from the Federal Government, too, who are shamelessly cashing in on the flood situation in Penang.

Their relief work must be splashed across news pages, and they have to be seen wading through the flood waters for dramatic purpose. Phua Chu Kang’s iconic yellow boots could likely be the hottest item in the state, as politicians bask in the media’s glare.

Ridiculous remarks have also been passed, one even blaming the state government, saying it has earned the wrath of God.

The rain and floods will go away, eventually. Penangites are stakeholders in the state, and they don’t only make up politicians. The state doesn’t belong to the state government or the opposition.

Caught up in the thick of the action, we seem to have forgotten that the hills are crumbling even without rain. As a stern reminder, just last month, a landslide buried some people in Tanjung Bungah. Investigations on that tragedy are still ongoing.

Basically, the trees – which act as sponge on the hills – are gone. We don’t need to be soil experts to know that.

The grumblings are growing louder because the hills have been progressively going bald in recent years. But the voice of discontent has fallen on deaf ears.

Penangites are alarmed at what they are seeing, and they don’t like it one bit, as much as they understand that land is scarce on the island and property developers need to source some to build homes on.

While it’s easy to hang the Penang state government out to dry for its follies, it’s difficult to ignore how the floods in the east coast states have become annual affairs, too. So, what effective flood mitigation plans have been put in place there?

Kelantan has suffered senselessly, and after more than a year of having been subjected to Mother Nature’s havoc, many victims have yet to recover from their losses. Flooding is obviously nothing exclusive and doesn’t discriminate. Every state has, unfortunately, experienced it in some shape or form.

So, irrespective of location, when life returns to normal, you can expect the politicians to resume their old denying ways.

If there’s a thread that binds our politicians – regardless of which side of the political divide they come from – it is their inability to apologise for their mistakes, despite waxing lyrical about accountability.

Don’t expect them to say sorry, because an apology would be admission of guilt, or worse, a sign of weakness in their realm of inflated egos.

And to put things into perspective, perhaps we could learn a lesson from a quote by prominent American pastor Andy Stanley – “Leaders who don’t listen will eventually be surrounded by people who have nothing to say.”


On the beat Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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