city&country THE SHIFTING MARKET

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1 city&country S P E C I A L R E P O R T N O V E M B E R 28, 2016 THE SHIFTING MARKET Scarcity of land and high property prices are some of the problems faced by the island. Experts say the centre of growth is moving to the mainland, driven by new catalysts.

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4 special report S4 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 Penang property market not immune to the general malaise BY E JACQUI CHAN EDITOR -IN-CHIEF AZAM ARIS CITY & COUNTRY EDITORIAL TEAM EDITOR ROSALYNN POH DEPUTY EDITORS E JACQUI CHAN, WONG KING WAI SENIOR WRITER RACHEAL LEE WRITERS CHAI YEE HOONG, HANNAH RAFEE, ETHEL KHOO ADVERTISING & MARKETING CHIEF COMMERCIAL OFFICER SHARON TEH (012) GENERAL MANAGER KINGSTON LOW (012) SENIOR SALES MANAGERS FONG LAI KUAN (012) GREGORY THU (012) KAMALESAN PARAMA (012) MICHAEL TAN (012) ACCOUNT MANAGERS CK TAN (016) LEE SOO SIN (012) LUM WAI FONG (016) LUQMAN AB RAHIM (017) SHANNON LEONG (012) SHAUN LEE (012) CREATIVE MARKETING CHRIS WONG (016) HEAD OF MARKETING SUPPORT & AD-TRAFFIC LORRAINE CHAN advertising@bizedge.com Penang Island, in particular, has been seeing a lively and resilient property market for a long time. However, it is not immune to the current property market slowdown. According to data from the National Property Information Centre (Napic), last year, the number of transactions in Penang declined 15.7% and their value 15% from There were 21,555 transactions worth RM11.7 billion last year. The residential market continued to be the most active subsector last year, capturing 71% of the the total volume of property transactions, an increase from 68% in The commercial subsector increased to 10% compared with 8% last year and development land remained status quo at 7%, says Henry Butcher Malaysia (Penang) in its Penang Property Market Outlook 2Q2016. In view of the soft market conditions, new launches in Penang were down 47.5% (2,348 units) last year from 2014, says Napic. The current situation shows a soft and challenging market. Nevertheless, developers with projects in the right location and at the right price are still able to sell. On the island, properties priced between RM400,000 and RM800,000 are still possible to sell, while developers on the mainland are focused on landed properties in prime locations, says IJM Land Bhd northern region senior general manager and Real Estate Housing Developers Association Penang branch chairman Datuk Toh Chin Leong. PPC International (Penang) Sdn Bhd executive director and the Malaysian Institute of Estate Agents Penang branch chairman Mark Saw concurs with Toh that developers with the right products are still able to sell. The slowdown of the property market over the past few years, due to the federal and state government s cooling measures, which together with Bank Negara Malaysia s tougher mortgage approval policies have led to higher rejection rates. And there was a period when sales in the primary market were slower. However, those developers that launched the right products, especially those in the affordable housing category, in the past two years have been able to continue to sell despite the tougher market, says Saw. Raine & Horne International Zaki + Partners Sdn Bhd senior partner Michael Geh is optimistic about prospect of Seberang Prai, in particular Batu Kawan. With the opening of Penang Design Village (PDV) on Nov 23, there is excitement in the air. Curious people will go to Batu Kawan to PDV, including yours truly, says Geh. He expects as more developments are completed in Batu Kawan, more people will move here to work, which means more demand for housing. Property prices are still a concern for the federal and Saw: In general, the gap between land values for well-located development land on the island and mainland has been known to differ by up to five times but over the past two years, the gap has narrowed to around three times state governments and a hindrance to genuine homebuyers, in particular first-timers. Henry Butcher notes that Penang, after Kuala Lumpur, Selangor, Sabah and Sarawak, has the highest average house prices. The value of residential transactions was stable throughout the last four years but declined 19% last year. Our research has found that the overall compound annual growth rate (CAGR) is about 9.6%, says Henry Butcher. Henry Butcher s analysis reveals that from 2006 to 2015, properties priced below RM500,000 had a negative CAGR of 4%, from RM500,000 to RM1 million it was 14.7% and above RM1 million, 21.3%. This showed that capital appreciation performed better for properties valued between RM500,000 and RM1 million and RM1 million and above, which transacted at even higher prices..., says Henry Butcher. Seberang Prai calling With the scarcity of land on the island, which leads to high land prices and costly land reclamation, more developers are looking at the mainland. Historically, the island has limited land with development potential. And with accessibility issues most developments have been concentrated in the northeast district. With the completion of Penang s second bridge in 2014, the southern part of the island as well as Butterworth on the mainland have seen rapid growth, says Saw. The mainland, or Seberang Prai, is split into the North, Central and South districts. It is three times the size of the island and, according to the Department of Statistics, had an estimated population of 909,600 last year, compared with 752,800 on the island. Saw notes that as land becomes more expensive on the ABDUL GHANI ISMAIL/THE EDGE Geh expects demand for housing to increase in Batu Kawan as more developments that will create jobs are completed Toh: On the island, properties priced between RM400,000 and RM800,000 are still possible to sell, while developers on the mainland are focused on landed properties in prime locations island, developers are moving to build on the mainland, with many succeeding with townships like Tambun Indah Land Bhd s Pearl City in Seberang Prai South. Pearl City is a proper integrated and self-contained township with its own amenities such as schools, a retail mall and other facilities, says Saw. Toh says that while high-rises are in demand on the island due to higher land prices, on the mainland, landed homes are more popular. The development environment on the island is no longer conducive. Due to the increase in land prices and the rising cost of development, developers are starting to buy land on the mainland, says Toh. According to Henry Butcher Penang, the state had an existing residential stock of 402,494 units as at 2Q2016. Of CORPORATE PUBLISHER & GROUP CEO HO KAY TAT CHIEF OPERATING OFFICER LIM SHIEW YUIN WE WELCOME YOUR COMMENTS AND CRITICISM. SEND YOUR LETTERS TO THE EDGE, PO BOX 8348, PEJABAT POS KELANA JAYA, PETALING JAYA PHONE (03) editor@bizedge.com PSEUDONYMS ARE ALLOWED BUT PLEASE STATE YOUR FULL NAME, ADDRESS AND CONTACT NUMBER (TEL/FAX) FOR US TO VERIFY. Aspen Group has teamed up with Ikano Pte Ltd, the owner of Ikea in Southeast Asia, to build the RM10 billion Aspen Vision City

5 THEEDGE MALAYSIA NOVEMBER 28, 2016 PENANG SPECIAL REPORT S5 special report the total, 217,467 units are on the island and 185,027 in Seberang Prai. Planned supply was 52,854 units with almost 38% located on the island and the remaining 62% in Seberang Prai. Incoming supply was 88,702 units with 46,686 located on the island and 41,386 in Seberang Prai, says Henry Butcher Penang. Lower house prices and the availability of landed homes, which is still the preferred property type, have made Seberang Prai more appealing. According to Toh, the differences in landed house prices between the island and Seberang Prai can be quite substantial. A 1,200 to 1,600 sq ft, single-storey terraced house costs RM770,000 on the island and RM180,000 on the mainland, on average. A 1,300 to 1,800 sq ft, 2-storey terraced house costs RM1.2 million on the island and RM330,000 on the mainland, while a 3,000 to 4,000 sq ft, 2-storey semi-detached house goes for RM1.68 million on the island and RM600,000 on the mainland, says Toh, adding that the gap between the prices on the island and the mainland is narrowing. In general, the gap between land values for well-located development land on the island and mainland has been known to differ by up to five times but over the past two years, the gap has narrowed to around three times, says Saw. There is an obvious preference for landed property in general but as land is more expensive on the island, most developments are high-rise stratas. On the mainland, land is still relatively more affordable, so developers are still catering for the preferred choice of strata landed homes. However, this may change as land values increase and developers relook at their profit margins, adds Saw. Geh says that the gap in prices has been narrowing over the past three years at an estimated rate of 10% to 20%. However, Seberang Prai is not about affordable housing, a very small percentage of people will move to Seberang Prai from the island simply because it s cheaper. I know a small group of people, less than 5% of total transactions, have sold their condos on the island to buy a terraced house in the mainland. People who live on the island will still want to stay there, says Geh. In terms of growth areas, Saw believes that Bayan Lepas, Batu Maung and Batu Kawan are new growth areas to look out for. Batu Kawan, in particular, is seeing exciting new developments that could serve as catalysts for the growth of the area. The 400,000 sq ft outlet mall, Design Village Penang, in Bandar Cassia opened on Nov 23. Developed by PE Land Group, it is the first outlet mall in the northern region. Aspen Group has teamed up with Ikano Pte Ltd, the owner of Ikea in Southeast Asia, to build the RM10 billion Aspen Vision City, which will include the first Ikea store in the northern region. The 245-acre freehold mixed-use development will comprise residential, commercial and retail components. It is located at the landing point of Penang s second bridge. Saw says KDU University College and Hull University will be developed in Batu Kawan in the next few years. On the island, the traditional growth areas remain Tanjung Bungah, Tanjung Tokong and Batu Ferringhi, says Saw. The prominent developments in Seberang Prai include the Utrapolis Batu Kawan by Paramount Corp Bhd, Bandar Sunway Penang by Sunway Bhd in Seberang Jaya and Eco World Development Group Bhd s Eco Meadows in Simpang Ampat. Established property players such as Hua Yang Bhd and S P Setia Bhd, which recently took the top spot in The Edge Malaysia Top Property Developers Awards 2016, have ventured into the mainland. Hua Yang makes its debut in Penang with the RM220 million Meritus Residensi in Jalan Baru, while S P Setia recently won the tender to purchase a 1,675-acre tract in Seberang Prai North for RM620 million. The latter is slated for an ecothemed mixed-use township development with a potential gross development value of RM9.6 billion. Geh is thrilled with S P Setia s purchase. It is a visionary purchase. It means S P Setia has a vision for the area and it augurs well for Seberang Prai North, he says. PICTURES BY SAM FONG/THE EDGE The next phase Congestion and limited accessibility in certain parts of Penang may be a thing of the past with the RM27 billion Penang Transport Master Plan (PTMP), which is expected to be a catalyst for the next stage of growth for Penang, including the property market. The PTMP is still waiting for approval from the federal government. The 7.2km Penang-Butterworth undersea tunnel, tram, sky cab, light rail transit and monorail, although still in the planning stages, have nonetheless provided a framework and direction for the state to remain competitive in the traditional sectors such as manufacturing and tourism, says Saw. This, coupled with the reclamation projects by Eastern & Oriental Bhd and consortium reclamation to the south of the island (for Seri Tanjung Pinang 2), will undoubtedly provide jobs and development for the next decade. Toh believes the PTMP will take Penang to a higher level in terms of accessibility and providing better traffic flow. With an enhanced transport system, all properties located around the LRT terminals will generate an increase in expatriates residing in Penang, which will result in more properties being purchased by expats, says Toh. The PTMP will help make undesirable locations desirable and makes the location and price more equitable as the further the location, the lesser the demand and the lower the prices. But the PTMP will change that, says Geh. According to Saw, the improved accessibility and connectivity to all areas will increase the values of properties in the immediate vicinity. It will also attract more tourists to Penang, which will increase employment opportunities and occupancy rates in the property market. Areas such as Paya Terubong and Teluk Bahang on the island will reap the benefits as their property values will increase once there is a good public transport system in place. And Batu Kawan will also benefit from the improvement in connectivity, says Saw. However, it may not be all positive, as Saw Above: New launches in Penang were down 47.5% (2,348 units) last year from 2014 Left: With scarcity of land on the island and high land prices, more developers are looking at the mainland notes that some properties will need to be demolished for the construction of the rails and roads. It might divert traffic and population to areas with stations, which will cause the values of commercial properties in areas without stations to decline and affect businesses. Also, during construction, the value of surrounding properties will remain static or only see slight increases, opines Saw. Affordability, however, remains a major concern as house prices will continue to rise. The state and federal governments have developed initiatives to help Malaysians buy their own homes but their effectiveness remains in question. There seems to be a supply and demand mismatch. The affordable housing formula needs to be revised so demand can be attained... The right products must be available. The government should negotiate with private developers to create a win-win situation for the government, purchasers and developers, says Toh. Geh feels there is a need to shorten the waiting period and make the processes eaiser for both homebuyers and developers. As for Saw, he feels that the current affordable housing initiatives by the state and federal governments are not in sync. Recent budget announcements on funding for affordable housing would have had more of an impact if they were to cover all first-time buyers irrespective of who they buy from as long as the criteria are met, says Saw. Among the affordable housing initiatives proposed in Budget 2017 was a step-up end-financing scheme for PR1MA buyers. The government will guarantee up to RM100,000 of the loan taken for purchase of homes under PR1MA. With a population of 1.72 million in Penang... there is demand for housing, be it affordable or not. It is incumbent on the government to ensure there is an avenue to buy these properties, either through soft loans or rent-to-buy schemes, says Saw. He feels private developers are already playing an important role in providing affordable housing. As time progresses, there will be more developments by both the state and private developers, provided loans are made available, says Saw. While the current outlook is gloomy, with the PTMP and active development of Seberang Prai, the catalysts are in place to usher in the next phase of growth for Penang. E

6 special report S6 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 PICTURES COURTESY OF MAH SING Pampered living at Ferringhi Residence 2 Ferringhi Residence 2 has a GDV of RM651 million BY MICHELLE CHAN Mah Sing Group Bhd, a top property developer in Malaysia, is looking to once again redefine the concept of pampered living with the launch of a new luxury resort condominium Ferringhi Residence 2. With a gross development value of RM651 million, the project will occupy 9.95 acres of freehold land in the tourist belt of Batu Ferringhi in Penang. Ferringhi Residence 2 the second phase of the gated Ferringhi Residence, which was launched in the last quarter of 2012 is expected to be completed in It will comprise three towers 10-storey Block A with 124 units, 32-storey Block B with 478 units and 4-storey Block C with 30 condo villas. Prices of the units, with built-ups of 1,208 to 2,910 sq ft, start at RM720,000 Designed to provide a resort living experience, Ferringhi Residence 2 offers the same unobstructed view of the sea as the international beach hotels and luxury condominiums in the vicinity. The concept of the development is resort-style living. The project is located strategically in Batu Ferringhi... near the beautiful beach and tourist attractions, says Mah Sing CEO Ho Hon Sang. Units of the ultra-contemporary project will have a north-south orientation, thus letting in light, but not heat. Their fenestration will also provide occupants with views of the landscape below. The condos glazed windows will enhance the seamless integration of the gardens and living areas, creating the ambience of resort living. The minimalist forms will be punctuated by balconies, sun decks and louvred terraces to give a Zen-like feel. To maintain a resort atmosphere throughout the development, there will be a five-star-hotel-standard grand lobby at each tower. Block C will face a lush garden. Every tower will be connected to a podium where the car park, facilities and clubhouse will be housed. The club- KENNY YAP/THE EDGE Ferringhi Residence 2 is registered with the BCA International Green Mark and is in the process of obtaining certification. Ho house will cater for both indoor and outdoor activities. A large semi-covered deck will open onto the pool, allowing residents to enjoy poolside activities as well as sunbathe. Among the facilities are a multipurpose hall, gym, sauna and steam room, tennis court, infinity pool, wading pool, playground, landscaped pond, semi-enclosed Jacuzzi, spa and barbecue pits. Mah Sing also recognises the need for a safe and secure living environment. We place great importance on the safety and security of residents. Ferringhi Residence 2 will be equipped with a multi-tiered security system, says Ho. The development will have perimeter fencing and a perimeter intrusion detection system. Residents can enter their units using access cards. Visitors will have to register at the guardhouse and will only be allowed to enter the condominium after permission is granted by the unit owner concerned via intercom. Access to the lifts and car park lobby is restricted to residents with access cards. Non-residents will only be allowed to enter if they have temporary passes. Movement within the common areas will be monitored by closed-circuit TV cameras. Emphasising the importance of sustainable development, Mah Sing has incorporated green innovations into their projects. Ferringhi Residence 2 is registered with the BCA International Green Mark and is in the process of obtaining certification, says Ho. The development will have an automated waste collection system, which is a cost-efficient method to manage refuse disposal. Since the launch of 120 units at Tower B in August, 84% have been taken up. So far, 92% of the units of Ferringhi Residence are sold. Mah Sing is confident that Ferringhi Residence 2 will see similar success. The development is targeted at young families and upgraders. The developer believes demand will continue to be strong because property investment is one of the preferred asset classes for wealth preservation in Malaysia. Apart from offering resort living, Ferringhi Residence 2 has other features that make it a much desired home. There are various amenities and attractions nearby, including the Batu Ferringhi beach, Straits Quay Retail Marina, Gurney Drive, George Town, Penang Bridge and Penang International Airport. Uplands International School, a leading boarding school in the country, has bought two blocks of condo villas at Ferringhi Residence for the use of its students. The school is located just 500m away. To ease traffic concerns, Ferringhi Residence 2 is also accessible via Jalan Sungai 1. The development will offer a complimentary bus shuttle service for residents to Gurney Drive and Gurney Wharf, which is scheduled to be completed by An artist s impression of the wading pool at Ferringhi Residence 2 Mah Sing is a trusted name in property development in the country, having built quality homes and commercial properties for more than two decades. The group first made its mark in Penang in 2007 when it developed Residence@Southbay, its first gated and guarded superlink homes with a clubhouse amid lush gardens in the state. The project was completed in Mah Sing s ongoing projects in the state include Legenda@Southbay, a gated and guarded residential enclave comprising 76 units of 3-storey resort bungalows on a acre site; and Southbay City, a 33-acre integrated development consisting of residential properties (The Loft and Southbay Plaza) and commercial units (retail podium of Southbay Plaza). It has 13 completed and 33 ongoing residential, commercial and industrial developments in Johor, Sabah and the Klang Valley. Mah Sing has won numerous awards, both domestic and international, for outstanding performance and quality products over the years. It was ranked fifth in The Edge Top Property Developers Awards E

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8 special report S8 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 Visionary integrated living at Paramount Utropolis Batu Kawan PICTURES COURTESY OF PARAMOUNT BY MURSH MATSOM Paramount Utropolis Batu Kawan the latest integrated development by Paramount Property Sdn Bhd, a subsidiary of Paramount Corp Bhd is envisioned to mirror the success of Paramount Utropolis in Glenmarie, Selangor. The latter, designed as a university metropolis, was launched in early As Penang s first university metropolis, Paramount Utropolis Batu Kawan is expected to set the benchmark, with KDU Penang University College as its cornerstone. The developer plans to build a self-contained township, where living, learning, playing and working go hand in hand. In an to City & Country, Paramount Corp group CEO Jeffrey Chew says Paramount Utropolis Glenmarie is a visionary development that successfully showcased the group s strength-through-synergy business strategy. It is anchored in generating maximum value by bringing together its two core businesses of Paramount Property and Paramount Education in one location. Three years and two property awards later, Paramount Utropolis is fast transforming the industrial area of Glenmarie, with its unique live-andlearn, work-and-play lifestyle, he adds. According to Chew, the Batu Kawan campus will be the new flagship campus for KDU Penang University College, in line with Paramount Corp s objective to widen its catchment area to outside Penang Island. The campus will be able to accommodate 5,000 students when completed. This is our vision for [Paramount] Utropolis Batu Kawan to support Penang s aim of making Batu Kawan its third satellite city, and the central business district and lifestyle hub of the northern region. At over 6,000 acres, Batu Kawan is not just a major development but also the only land bank in Penang and the entire northern region that has had infrastructure completed ahead of property developments, says Chew. Batu Kawan, an island and a town in Penang, is situated off Seberang Prai, which is on the mainland. New industrial sites, commercial areas and residential schemes are developing there. Multinational companies have taken note of its potential to evolve into a bustling commercial hub. Chew says the town was chosen as Paramount Utropolis offers lifestyle facilities such as a gymnasium and swimming pool on the landscaped recreation deck the site for the group s integrated project for four reasons. First, as Penang s third satellite city, it has been earmarked to serve as the central business district and lifestyle hub of the northern region, with commercial districts, residential developments and educational hubs to complement the industrial and affordable housing projects. Second, the master-township is well planned with ready infrastructure to spur development and to achieve the state s vision of transforming the once industrial location into a vibrant lifestyle destination. Third, its strategic location just off the Second Penang Bridge makes it accessible to those from Penang Island. And last but not least, Batu Kawan has a strong industrial base, which contributes to its population growth. The residents and working population in the area are projected to grow to 250,000. This is in addition to the 5.5 million people in the northern region, which includes Penang, Perak, Kedah and Perlis. Chew believes the aforementioned reasons, in turn, provide a good platform for property development activities. Very soon, this new growth hub will attract shoppers, job seekers, students, homebuyers, investors and travellers. Another catalyst With Ikea and Design Village (a premium outlet mall) opening their doors for business in Batu Kawan, Chew says Paramount Utropolis Batu Kawan will be another catalyst to spur the already booming economy of the area. Here s how: Based on the award-winning concept of a university metropolis, [Paramount] Utropolis Batu Kawan will have a constant infusion of new students who will act as a catalyst to attract lifestyle businesses and support services, creating a dynamic and evolving community. This, in turn, will create a vibrant real estate market, with a constant demand for investment and rental residential properties, as well as commercial, re- PATRICK GOH/THE EDGE This is our vision for [Paramount] Utropolis Batu Kawan to support Penang s aim of making Batu Kawan its third satellite city, and the central business district and lifestyle hub of the northern region. Chew tail and office spaces, explains Chew. He says as property development is a new activity in Batu Kawan, there is no precedent for rental market comparison. But he is confident that the rental market there will be as competitive as that on Penang Island when the area fully matures. Phase 1 of Paramount Utropolis Batu Kawan will be built on 5.24 acres. It will have 196 units of retail shops and offices, and 612 studio residences with a 5-storey car park. Its flexible layout and different built-ups will Utropolis Marketplace complements the self-sufficient development with retail options that meet the everyday needs of residents cater for a wide range of business and residential needs. Two blocks of residential suites will be launched in January. There will be 306 units in each block, all furnished, with built-ups of 500 to 729 sq ft. The price is RM709 psf (gross) on average. In October this year, Paramount Property soft-launched the commercial component. Phase 1a is a 3-storey commercial block comprising offices and retail shops with both single and dual-frontage units for maximum visibility. The 196 units will have builtups of 420 to 3,509 sq ft. Prices start at RM326,600 (gross). Paramount Utropolis Batu Kawan will also have green features that support efficient consumption of energy, water and other resources. A pneumatic vacuum system for waste disposal will be installed throughout the township, while the residential suites will be equipped with a rain harvesting system for common usage to maximise water conservation. Facilities such as a garden with an open deck, WiFi garden, gym nasium, swimming pool with a pool deck, jogging track and outdoor sport station will be available for residents to maintain a healthy lifestyle. Recognising the need for a safe and secure living environment, Paramount Utropolis Batu Kawan s commercial component will be equipped with car park security and CCTV surveillance systems. The residential suites will have three-tier card access, CCTV surveillance and car park security systems. With its award-winning university metropolis concept, and KDU Penang University College as the linchpin, the development has all the characteristics to echo the success of its predecessor, Paramount Utropolis Glenmarie. As a pioneer participant in the Batu Kawan vision, Paramount Property is well positioned to take advantage of the growth opportunities this address offers with this unique university metropolis concept, Chew concludes. E

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10 special report S10 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 Realising a collective vision A man on a mission with great ambitions for his state, Penang Chief Minister Lim Guan Eng is all smiles as he strides into his office in Komtar. His solid handshake embodies his steadfast commitment to bringing competent, accountable and transparent governance to the state since he assumed office in During his tenure, Penang has ranked among the highest recipients of investment in the country. According to Henry Butcher Malaysia (Penang) Sdn Bhd s research report for 2Q2016, Penang recorded the highest foreign direct investment of RM4.5 billion, which contributed 20% to the country s total FDI. While the manufacturing sector, in particular the electrical and electronics (E&E) industry, remains Penang s core contributor of gross domestic product growth, followed by the services sector, BY CHAI YEE HOONG the goal is for the growth of both sectors to converge. While the country s overall economic health will have an impact on Penang s growth this year, Henry Butcher says the resilience of the state s economy is expected to continue. Last year, the unemployment rate was a healthy 1.6%. The property consulting firm notes that unemployment stood at 3.5% as at June this year. According to Henry Butcher s report, property prices in Penang remained stable despite a decline in total volume and value of residential transactions last year. According to data by Henry Butcher Research and the Valuation and Property Services Department, the total value of transactions in 2015 registered a 15% drop to RM billion from RM13.77 billion in Last year saw a drop in total volume of transactions of around 4,000 compared with 25,555 units sold in Existing residential stock in the state stood at 402,494 units as at 2Q2016, with 217,467 units on Penang Island and 185,027 in Seberang Prai. With a population of 1.66 million as at last year, Penang s highest population density is in the northeast of Penang Island, with an average annual growth of 1.4%, followed by central Seberang Prai district on the mainland. As Penang thrives as a popular location for property, investment and tourism, the state government is seeking to accommodate the growing population and address rising property prices with its RM27 billion transport master plan and affordable housing scheme. The target is to build 26,255 affordable homes in the state. Lim talks to City & Country about his ambitions for Penang and what he hopes the future will bring for the state. SAM FONG/THE EDGE

11 THEEDGE MALAYSIA NOVEMBER 28, 2016 PENANG SPECIAL REPORT S11 special report City & Country: You aspire for George Town to become an international city. Can you elaborate on your plans to achieve that and the progress of that vision? Lim: To transform George Town into an international and intelligent city, a government has got to get a few things right. First and foremost, it must have good governance and clean leadership. Second, it must build and modernise infrastructure. Third, it is critical to build human talent, and fourth, the city has to be liveable it has to be clean, green, safe and healthy. Penang is greener than in the past. We are the greenest state with the highest recycling rate of 32%, compared with the national average of 10.5%. George Town is also one of the more healthy and safe cities in Malaysia with bicycle lanes and sports facilities. We ve got over 10km of bicycle lanes and we want to do more to encourage people to cycle. We saw that the number of cyclists had increased and we feel dedicated bicycle lanes are needed for public safety. Plus, we will have a common bike-sharing system. To be an international city, we must achieve international benchmarks. And to be an intelligent city, we must combine the latest technologies and human talent the hardware and the software. This is where the fifth thing comes in, to make Penang an entrepreneurial and welfare state as we believe that both can coexist, where those who work hard can succeed, but not forgetting those who are left behind such as the sick, poor and disadvantaged who also need a safety net. The state s investments increased significantly from 2008 to What is the target for 2017 and how do you intend to meet it? Our target is around RM4 billion, subject to global conditions. Between 2008 and 2015, we received about RM55 billion in investment, almost a 100% increase from between 2000 and 2007, when investment was RM29 billion. The investment has been mainly in the manufacturing sector. Even though we are an industrialised state, whose manufacturing and services sector combined contribute 95% to the state s gross domestic product, the services sector also contributes to the state s tourism sector. We are currently promoting and prioritising the MICE [meetings, incentives, conventions and exhibitions] industry, which is an important aspect of tourism in the state because those who come here for MICE spend four to five times more than regular tourists. I think we can see extensive public facility and property development in Penang. And in terms of convention facilities, we are going to have Asia s first subterranean exhibition centre with SPICE (or the Subterranean Penang International Conference & Exhibition Centre) by S P Setia Bhd on seven acres in Bayan Baru, next to the Penang International Sports Arena. Another convention centre is being built by IJM Land at The Light Waterfront. For an island like Penang to have two new, large convention centres is quite something. And the fact that [developers] are willing to build convention centres shows that they are confident of Penang s future. What efforts are being made to continue to attract investment in the long term and in which sectors? In terms of the manufacturing sector, our bedrock is the E&E industry. We hope to broaden our manufacturing base but will remain focused on E&E. Apart from retail, medical and educational tourism are very important too. Coming to Batu Kawan are hospitals, international schools, shopping malls, and Ikea. Other than that, our heritage and local cuisine play important roles in tourism too. Your plans with the Penang Transport Master Plan are very ambitious. How do you intend to implement them and manage any unforeseen limitations? We are a victim of our own success. Our success in growing our manufacturing sector by almost 100% and in increasing our tourist numbers has made Penang more congested due to the influx of investors and visitors, despite our efforts to add new roads and broaden existing ones. Even our airport has exceeded maximum capacity five years ahead of schedule. I feel the only way for the state to overcome traffic congestion is to have a big bang approach, combining the use of road, rail, air and water transport. When we talk about rail, it involves the Light Rail Transit (LRT), not just on Penang Island but across to the mainland, so, the whole state is connected. As an additional mode of transport, we plan to build cable cars not just on Penang Hill but across the channel from the island to the mainland. And, in addition to new and existing roads, we are planning to have water taxis. We hope these alternative modes of transport will be completed by 2030, connecting both halves of the state through this holistic and integrated plan. It s very exciting. Limitations would be if the approval for the master plan is withheld. Nonetheless, we are expecting to obtain the approval by the end of this year or early next year. What are the approaches taken and the progress in addressing the rising property prices and unaffordability concerns in Penang? Property prices have escalated due to the growing number of investors and tourists in Penang. We are building affordable housing and providing incentives for private developers to build affordable homes. And we have set aside RM500 million for our public housing and affordable homes programme. Public housing ranges from low-cost homes to low medium-cost homes ranging from RM42,000 to RM72,500. Affordable housing has a ceiling price of RM300,000 after we reduced it from RM400,000. Our target is to build 26,000 units of affordable housing. Together with another 26,000 from the private sector, we will have 52,000 units of affordable homes and public housing, which I think will be enough to meet demand for new homes. While development is important for the state, how do you strike a balance between development and the preservation of heritage and the natural environment? Both must be sustainable. The preservation of heritage in the state is governed by very strict guidelines within the George Town heritage enclave. But there are some who want to extend these guidelines outside the heritage enclave, which would create problems because then how are we going to have development outside the heritage enclave? There has been a lot of misinformation about the government wanting to build the LRT within the heritage enclave. We are building the LRT at the edge of the heritage enclave, and trams within the heritage enclave. The LRT is outside and does not go into the heritage enclave. As for the preservation of the environment, for example, we don t allow developments above 250 ft [above sea level] although there are those who received approval from the previous government under the special projects category. But we have not approved any private housing projects above 250 ft. Also, we don t cut down our forests. Not a single tree in the forest reserve has been cut down. When we want to remove trees to build new roads, for example, we don t remove them by chopping them down, we replant them. We have recently replanted 16 trees, but that has attracted controversy and we don t understand why. As I ve mentioned earlier, we are the greenest state in the country with the highest recycling rate. We want to be the first green state, the first bicycle state, and the only state to have no free plastic bags in shopping complexes. We have banned polystyrene [packaging], we have our [waste] separation at source programme, and we are also a signatory to the no shark s fin campaign. Can you share with us the short and long-term strategies and implementation of Seberang Prai s development? We will focus on the same vision we have for the island, to have good and clean governance and to build talent and infrastructure. The mainland has been neglected but we are now doing a lot of public works projects, such as roads and public facilities. More money is being spent on the mainland now, about 55% to 60% compared with 40% to 45% previously. And then there is Batu Kawan, which will be a new growth area. When the LRT connects the mainland and the island, both will be on par. How do you plan to improve the quality of life and standard of living in other outlying fringes in Penang, bringing them on par with the more developed parts of the state? Apart from bringing better connectivity and infrastructure, we must also provide for equitable and sustainable economic growth by building human talent that has the ability to compete globally. Education is the only way forward and we must train our people to not only be competitive but also to be smart. To drive the economy, we are also thinking out of the box by encouraging art, for example. We hope that by having an art district, we will attract people. We hope to improve and enhance creativity and innovation by marrying art and technology, both being creative subjects. We believe an artistic person can also be creative and innovative. What about the efforts to cultivate heritage, culture and art in Penang and what has proven successful? Art and culture is a game changer in Penang. For example, the [street art] murals throughout George Town have attracted a lot of tourists. Also, we have the annual George Town Festival (GTF) that was introduced in celebration of George Town s designation as a Unesco World Heritage Site. The festival has grown into one of the premier art and cultural events in Southeast Asia and is considered a top event in Malaysia. I think the GTF has become a success, despite limited funds, because people here enjoy one important aspect the freedom of expression. Even though the event is [partly financed by public funds], the state government does not interfere with GTF director Joe Sidek in running the event artists and performers have the freedom to express themselves through performance. The festival has attracted many visitors. The GTF has expanded its reach to the mainland with the Butterworth Fringe Festival [that started last year]. George Town used to be a sleepy town, especially after 6pm, but now it is bustling with many nice little cafés, museums, art galleries and not forgetting our well-known local cuisine. Now, even Western fine dining has emerged in Penang. What measures have been put in place to ensure that the long-term vision is realised regardless of any change in leadership? One of our efforts was to end the privatisation of garbage collection and cancelling the recruitment of foreign workers. We then employed 2,500 Malaysians. Doing this has cost the state an additional RM20 million but I think it s worth it because we are providing jobs for our people who are willing to work and do a good job, provided you give them a reasonable pay. At the end of the day, we are feeding 2,500 families. Another one of our proudest achievements is agriculturerelated. When we first came into power in 2008, we had no fish What is most important is to have a stable government with team spirit and the sharing of a common goal and vision. So, even if I m no longer here, the goal and vision for Penang to be an international and intelligent city remains. Lim farms. Now, we have over 300 valued at RM1.2 billion a year. In terms of fish farming in the sea, we are now the biggest in Malaysia. All we did was simplify the process with three conditions the fish farms must be owner-operated, they must be run by the owner who has obtained the permit or tendering occupation licence, and the farm cannot be more than 8,000 sq m. The farms come with a yearly rental of RM3,600, and the entire application process takes three months. And there s the Penang Transport Master Plan, for which we are expecting approval by this year or early next year, as I said earlier. If we don t get the approval, we have to look for an alternative model. But there is no reason to reject the plan if the federal government has the national interest at heart, as we have ensured all the rules are complied with. We have reason to be proud because we have managed to improve despite not getting assistance from the federal government, not just on the island but also the mainland. We have been building better roads and better infrastructure. And in future, our transport master plan, which is a life changer, can really put Penang on the map. What is most important is to have a stable government with team spirit and the sharing of a common goal and vision. So, even if I m no longer here, the goal and vision for Penang to be an international and intelligent city remains. Even my anointed successor shares the same vision, as we make decisions collectively as a team. There is collective leadership and we support each other. We are focused on the fourth industrial revolution, which will be the future of the state. The first industrial revolution saw the invention of steam engines, the second was mass production and the introduction of electricity, the third was computers and the internet and the fourth, happening now, has got to do with the Internet of Things and big data analytics. To be a part of that, we have to have better infrastructure, connectivity and talent. There is a positive buzz and a sense of optimism here because Penangites feel they can express themselves fully and realise their best potential. The people here know that they belong, the government is working for them and we are looking to the future. E

12 special report S12 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 Ensuring affordable homes for Penang folk BY CHAI YEE HOONG As main cities in the country continue to urbanise, the provision of affordable homes remains a major concern. Penang is no exception. Currently with a population of 1.66 million, Penang is one of the most populous states in the country and remains a highly desired location for property growth and investment. With half its population concentrated on the 293 sq km Penang Island, the state will only get more crowded as the Department of Statistics Malaysia has forecast the population to increase to 1.86 million by To address population growth in Penang, the state government, through the Penang Development Corporation, has made the provision of affordable housing a priority, with the launch of its affordable housing scheme in February The scheme has 14 projects in all five districts in the state, with 26,255 affordable homes on offer. The state government is allocating RM500 million to provide affordable housing under this scheme, state executive councillor for housing, town and country planning Jagdeep Singh Deo says in an interview. He notes that the state s current household size of 3.98 will require an additional 22,613 homes by 2020 and another 27,638 by At present, works under the affordable housing scheme have commenced for projects in Teluk Kumbar (Daerah Barat Daya), Kampung Jawa (Seberang The entire Bandar Cassia development is slated to complete in the next 10 to 15 years Prai Utara) and Phase 1 of Bandar Cassia in Batu Kawan (Seberang Prai Selatan). Phase 1 of Bandar Cassia, which has 520 homes, will be the first project to be completed in December this year. The entire Bandar Cassia development is slated to complete in the next 10 to 15 years. The types of affordable housing range from Type A (formerly known as low cost) to Type B (low-medium cost) and Type C (units costing RM150,000 to RM300,000). Types A and B units have a minimum floor size of 650 sq ft and are priced at RM42,000 and RM72,500 respectively. Type C homes come with a minimum floor size of 750 sq ft, and are capped at RM300,000 on the island and RM250,000 on the mainland. To meet the projected 50,251 homes required by 2030, the state government has embarked on pub- lic-private partnerships. Private sector developers will contribute an equal number of affordable homes as the state government to ensure there are sufficient houses to cater for the growing population. With the introduction of the 100% affordable housing guidelines in August 2014, the participation of the private sector has been overwhelming. This clearly shows there is a large market for such a category of housing, says Jagdeep. To date, the state government has approved applications by the private sector to build some 11,550 homes in accordance with the guidelines. Ongoing affordable housing projects by the private sector are Tri-Pinnacle by Aspen Group, Ramah Pavilion by M Summit Group, One Foresta and I-Santorini CONTINUES ON PAGE 14 KENNY YAP/THE EDGE PENANG STATE GOVERNMENT With the introduction of the 100% affordable housing guidelines in August 2014, the participation of the private sector has been overwhelming. This clearly shows there is a large market for such a category of housing. Jagdeep A skyline of Bukit Mertajam SAM FONG/THE EDGE

13 THEEDGE MALAYSIA NOVEMBER 28, 2016 PENANG SPECIAL REPORT S13 special report PICTURES COURTESY OF SUNWAY The RM1 billion expansion will include an extension and refurbishment of the Sunway Carnival Shopping Mall Sunway set to expand in Penang BY LLEW-ANN PHANG Sunway Bhd first made its mark in Penang more than two decades ago with the completion of the 56.4-acre Bandar Sunway Penang. It comprises two and four-storey shop offices, Sunway Hotel Seberang Jaya and lifestyle mall, Sunway Carnival Shopping Mall, in Seberang Jaya. The mixed-use development has a thriving commercial centre for its surrounding communities, with many amenities and facilities offered there. With the completion of the project, among others in the state, Sunway Property can attest to its expertise in integrated developments, powered by its build-own-operate business model. This has enabled the group to be the largest co-investor in integrated developments and townships, which emphasise its lifelong commitment to grow with the communities. The developer takes pride in its properties, comprising some 1,900 residential and 485 commercial units on 214 acres in the state. Its other projects across the island include Sunway Tunas, Sunway Mutiara and Sunway Bukit Gambier. Sunway Property is geared up to launch more projects on its undeveloped land bank of 410 acres. In maintaining its presence in the state and keeping up with the changing times and designs, Sunway Property is not shying away from new projects despite the deceleration in the property market. Sunway Bhd managing director of property development division for Malaysia and Singapore Sarena Cheah says, Despite the current gloomy economic outlook, prices of property in Malaysia have remained resilient. She points out that the average fiveyear compound annual growth rate of transaction prices has held strong at 12% through the Asian and global financial crises. In the first half of 2016, Penang saw a decline in the volume and value of transactions of residential property but at a marginally slower pace of 13% and 16% respectively, compared with the previous year. The same cannot be said of commercial transactions as they appear to have taken a nosedive, with a drop of 37% and 59% respectively in volume and value. All other segments are also in negative territory; unit launches have been scaled back significantly and the increment in stock is rather dismal and is seen slowing down to only 1.2% for 1H2016, adds Cheah. However, she says, the increase in existing house supply has not kept pace with the increase in household numbers in Penang, thus implying that there is not yet an oversupply. We still have confidence in the [property] market due to our product range, which covers different components in our developments. We also trust that our pricing is appealing to Penangites, she adds. Besides the projects in the pipeline, which include the introduction of the townhouse concept to Bukit Mertajam in Sunway Wellesley, Sunway Property is also working on expanding its landmark Bandar Sunway Penang. The RM1 billion expansion will see an extension and refurbishment of the Sunway Carnival Shopping Mall, its maiden healthcare entry in the north, a new hotel to complement its existing one and an office tower. In all, Bandar Sunway Penang will encompass a total of acres. The expansion is in tandem with Seberang Prai s growth as a development hot spot and economic hub as well as the state government s vision of developing it into a new tourism and investment destination by Its proximity to the Penang Bridge and accessibility to highways are also distinct advantages. Cheah says the transformation of Sunway Carnival Shopping Mall will be undertaken by Sunway Real Estate Investment Trust (REIT), another of the 42-year-old Sunway Group s business divisions. The work will be carried out in three phases. The first will see an extension of the shopping mall, the second will involve a refurbishment exercise, and the third phase will see the development of a 10-storey office block. SAM FONG/THE EDGE We still have confidence in the [property] market due to our product range, which covers different components in our developments. Cheah The whole exercise will cover over acres and once completed, will offer about 1.5 million sq ft in gross floor area (GFA) for working and shopping. The extended shopping mall will have bowling alleys and more food and beverage outlets. The upcoming Sunway Medical Seberang Jaya will be Sunway s first foray into healthcare in the northern region. Work on the first phase costing RM260 million will commence in 3Q2017 and will be completed in 2Q2020. It will have 180 beds housed in a nine-storey building with a GFA of 290,000 sq ft, says Cheah. The nine-storey hotel, costing about RM100 million, will occupy some 116,000 sq ft and offer facilities such as a gymnasium, spa and a club lounge. It An artist s impression of Sunway Property s three-storey designer shop in Sunway Wellesley Precinct III, which is open for registration is being built to complement the existing 15-storey Sunway Hotel Seberang Jaya, which houses 202 fully-renovated deluxe and club guestrooms. Besides the expansion in Seberang Jaya, we are also working on master plans for Sunway Wellesley Precinct III in Bukit Mertajam and Sunway Valley City in Paya Terubong, which sits on a combined 24 acres of integrated developments on both the island and mainland, says Cheah. The project in Paya Terubong aims to rejuvenate the area as a community hub for the existing mature neighbourhood with an integrated development of a shopping mall, serviced apartments, shop offices, offices and an education component. The gross development value (GDV) of the project stands at RM2.3 billion. The expansion of Sunway Wellesley comes on the heels of its success of its previous launches. The RM800 million, nature-rich integrated development, covering over 82 acres of freehold land, comprises residential (70%) and commercial components (30%). In the last quarter of 2017, investors and potential home owners can look forward to a mixed-use development centred on community living amid green landscapes. This is also part of Sunway Property s grander expansion scheme to be completed in 2020, which will offer Penangites the opportunity to work, shop, stay, and pursue health living within a single compact and convenient development. Sunway Property s projects will likely have direct and indirect benefits on the state s well-being. Cheah cites Bandar Sunway Penang, saying its expansion will augur well for the state s economy as far as medical tourism is concerned. The medical centre will benefit communities in Penang as well as those from nearby states. With the hotel and mall conveniently located near the medical centre, it will definitely help promote medical tourism in the state, she says. The upcoming integrated development in Sunway Valley City, complemented by the Penang Transport Masterplan, which will have five connection points between the island and the mainland, will certainly be an economic booster. It will in turn lead to an increase in the state s population. Penang Sentral in Butterworth, which is slated to be the state s transport hub is a mere 12km from Sunway Carnival Shopping Mall. The development will benefit from some of the spillover effect of improved public transport on the island, she adds. E

14 special report S14 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 Tackling abuse, addressing current issues FROM PAGE 12 by Ideal Property Group and Granito by BSG Group. To encourage private sector participation, Jagdeep says the state government has agreed to reduce the compliance costs. The state has offered to waive the compliance component which requires 30% of homes built by the private sector to be priced less than RM72,500, he adds. A reduction has also been offered on development charges. For regular housing developments, such charges are RM15 psf, whereas those stated in the guidelines are only RM5 psf, he adds. Jagdeep says the state government welcomes applications under the 1Malaysia People s Housing (PR1MA) programme. PR1MA Corporation Malaysia had submitted several applications in December 2015 and three applications have been approved to date, namely for 2,387 homes in Tasek Gelugor, 905 in Bukit Gelugor and 1,450 in Batu Feringghi. However, he adds that PR1MA has withdrawn its application to build 29 blocks of 23 to 27-storeys in Kuala Sungai Pinang, Balik Pulau, in April this year. The blocks consist of 9,904 housing units priced up to RM510,000. Jagdeep says that PR1MA withdrew its application on the advice of the state government as Balik Pulau has a [16-storey] height limit for buildings and under the guidelines, affordable units on the island have a price limit of not more than RM300,000. Just like all other applications for developments, the guidelines relating to affordable housing must be complied with, he says. Nonetheless, the state government will duly process such applications expeditiously and hopes that PR1MA will continue to submit them for more affordable housing projects in Penang, he adds. To prevent applicants from abusing the affordable housing system, Jagdeep says the state government is consolidating the procedure to take legal action against those who rent out [Type A and Type B] homes, which are supposed to be owner-occupied. We now require applicants to execute a statutory declaration that gives us the right to repossess the unit if it is rented out. Jagdeep, who also chairs the nine-member selection process enhancement committee, says the stringent vetting process will ensure only those who are truly eligible will be selected. Besides submitting their central credit reference information system (CCRIS) record, applicants are also required to attend several sessions with the credit counselling and debt management agency (AKPK) to iron out issues related to housing loans. Additionally, owners of Types A and B homes are not allowed to sell their properties for 10 years. Owners of Type C housing costing RM150,000 to RM300,000 cannot sell them for five years. The state government is also addressing the problem of high loan rejection rates. Getting a loan is the biggest hurdle, Jagdeep says. For example, one of the projects in Bandar Cassia has 520 homes. We submitted 800 eligible names, but only 200 signed the sales and purchase agreement because the rest were unable to obtain a bank loan. Bank Negara Malaysia needs to address this problem. If we do not solve it, then the homes built will be a waste because the people are unable to buy them. As a result, Malaysians cannot fulfil their dreams of owning their first home, he says. Nonetheless, Jagdeep says the state government has discussed the problem with Bank Negara and stakeholders. The recent announcement of a reduction in bank loan interest is a positive step forward. We hope this would result in more loans being approved, particularly for first-time home buyers. The state government will continue to engage with Bank Negara to consider introducing better loan packages, for instance disbursing 100% loans; extending the repayment period, reintroducing the developer interest bearing scheme [DIBS] for firsttime home buyers, and introducing accelerated and flexible tiered repayment, he adds. Ongoing affordable housing projects by the state government PENANG STATE GOVERNMENT NO PROJECT NAME NO OF UNITS COMPLETION 1 Teluk Kumbar 694 Dec Cecil Street 348 Sept SP Chelliah 2,093 Dec Bandar Cassia 11,800 Dec 2016 (Phase 1) 5 Kampung Jawa 707 Aug Ampang Jajar 1,200 Feb Mak Mandin 187 March 2022 PENANG STATE GOVERNMENT To assist developers participating in the 100% affordable housing scheme in the current soft economic environment, the state government has allowed 30% of the affordable housing units to be sold on the open market. But the buyers must be Penang voters, and they are only allowed to purchase one unit. Thus, developers can achieve at least 60% sales. This in turn will ensure that eligible applicants have a roof over their heads, Jagdeep says. E PICTURES BY PENANG DEVELOPMENT CORP Above: An artist s impression of the Teluk Kumbar affordable housing project Below: An artist s impression of the Kampung Jawa affordable housing project State government s affordable housing projects in the pipeline NO PROJECT NAME DISTRICT TYPE A TYPE B TYPE C TOTAL UNITS (LOW COST) (LOW MEDIUM COST) 1 Teluk Kumbar DBD Jelutong DTL Pintasan Cecil DTL SP Chelliah DTL ,323 2,093 5 Sandiland DTL Perak Road DTL ,225 2,425 7 Bandar Cassia SPS - 3,372 8,428 11,800 8 Kampung Jawa SPU Ampang Jajar SPU , Mak Mandin SPU Kampung Main Road SPT , Bukit Mertajam SPT Juru SPT , Ujung Batu SPU 600-1,108 1,708 TOTAL UNITS 787 8,388 17,080 26,255 DBD Daerah Barat Daya; DTL Daerah Timur Laut; SPS Seberang Prai Selatan; SPU Seberang Prai Utara; SPT Seberang Prai Tengah Type C affordable housing ISLAND MAINLAND PENANG STATE GOVERNMENT CEILING PRICE MINIMUM FLOOR CEILING PRICE MINIMUM FLOOR SIZE (SQFT) SIZE (SQFT) RM150, RM150, RM200, RM200, RM300, RM250,

15 THEEDGE MALAYSIA NOVEMBER 28, 2016 PENANG SPECIAL REPORT S15 special report Left: Alila 2 embraces modernity while retaining the wonders of mother nature Below: Alila 2 offers a peaceful, low-density environment away from the hustle and bustle of the city. PICTURES COURTESY OF HUNZA Above: Alila 2 is designed to meet the stringent standards of the Green Building Index Luxurious green living at Alila 2 BY MURSH MATSOM Situated in upmarket Tanjung Bungah in Penang, the resort-style high-rise development, Alila 2, embraces modernity while retaining the wonders of mother nature. These bungalows and semi-detached houses in the sky are unique, with lush landscaping and an eco-friendly concept. The developer is Hunza Property Bhd s subsidiary Nilai Arif Sdn Bhd, whose other significant developments include Bandar Putra Bertam Phase 3, Gurney Paragon Mall, Alila Horizon and Seri Bayu II. Designed with contemporary elegance and offering views of the natural surroundings, Alila 2 s 270 residences are housed in a pair of 33- and 34-storey towers. The structures are built at optimum heights and front the ocean to embrace all the elements of good Feng Shui. The lush greenery will bring good fortune in abundance and comfort to the residents for many generations. Built on 9.8 acres of freehold land in Tanjung Bungah, Alila 2 offers a peaceful, low-density environment away from the hustle and bustle of the city. Hunza group managing director Datuk Khor Siang Gin says in an reply to City & Country: Alila 2 stands tall at 68m above sea level. One can enjoy the beauty of nature and the serenity of the sea breeze, even in the lobby or on the lower floors. It is quite difficult to find a low-density property like Alila 2, with only 270 units on quite a big piece of land. With only five units per floor, sizes range from 1,905 sq ft for a regular unit to 5,789 sq ft for a penthouse. Prices start from RM775 psf. There is a choice of 3-bedroom, 2-bathroom to 5-bedroom, 6-bathroom units with additional room for domestic help in the penthouse units. Alila 2 offers nine different configurations with wide open, contemporary spaces to suit individual needs and budgets. Set for completion at end-2017, Alila 2 is within minutes of Batu Ferringhi and Gurney Drive. Ever since it was recognised as a Unesco World Heritage site in 2008, Penang s global profile has risen and Tanjung Bungah, once a sleepy fishing village, has gained in popularity as well to become one of Penang s most popular destinations. Two popular attractions are the Toy Museum and the unique Floating Mosque. International schools, medical facilities, shops, banks and dining choices are a short distance away. Eco-friendly initiatives Residents of Alila 2 will benefit from the green features that are aimed at reducing its environmental impact. Designed to meet the stringent standards of the Green Building Index, residents can take comfort in knowing that measures have been taken to reduce the consumption of precious resources like electricity, water and materials. The prestigious green-living haven that is Alila 2... is rare to see in today s market. Hunza [is preserving] the lush greenery of the entire development [and] covering 47% of the property with trees and gardens, making it not only pleasing to the eye, but considerate to the planet, says Khor. Specialised glass and shading devices that conform to MS1525, Malaysia s Code of Practice on energy efficiency, are incorporated into the design, allowing natural light into the units while reducing direct sunlight to create a comfortable environment with less need for air conditioning. The car park, corridors and other common areas are fitted with energy-efficient T5 light fittings with photocells and timers so they only light up when necessary. Low VOC, sustainable, and eco-labelled building products are used wherever possible and 50% of the wood-based materials It is quite difficult to find a low density property like Alila 2 with only 270 units on quite a big landscape. Khor are approved by the Malaysian Timber Certification Council. Furthering Hunza s commitment to green living in lush, peaceful surroundings, is Alila 2 s eco-friendly rainwater collection system that features a built-in retention pond to collect precipitation, which is then used for landscaping purposes. Where luxury meets comfort Alila 2 is designed to make residents feel like they are on a never-ending holiday, with facilities that include a cascading waterfall in a vast infinity pool, aqua gym and indoor and outdoor Jacuzzis. To keep the children busy there is water play equipment and a wading pool, alongside forest-themed playground equipment that encourages spending more time outdoors. Alila 2 has a two-storey lounge area with barbecue and dining facilities, as well as a green deck area, excellent for entertaining family and friends. Timber decks with hammocks, a sky gourmet area, mini theatre, WiFi lounge, and terraced garden reflect the unique lifestyle offered at Alila 2. And to relax and unwind from a stressful lifestyle there is a water massage room, steam bath, yoga deck and games room. Not forgetting sports lovers, a tennis court and half basketball court are also available. And to provide a safe and secure living environment, Alila 2 is equipped with round-the-clock security with smart card access to the units, video intercoms and smart home features. E

16 special report S16 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 Preserving the charms of pre-war heritage buildings BY ETHEL KHOO At the time of the establishment of the Straits Settlement in Penang, local architecture was strongly influenced by British, Indian, Chinese and Islamic elements. Since 2008, when the state capital, George Town, was made a World Heritage site by the United Nations Educational, Scientific and Cultural Organisation, the property market has seen a steady demand for pre-war heritage sites and buildings, followed by an increase in value over the years. Many of these properties are being converted into commercial establishments that have become popular tourist attractions. According to Henry Butcher Malaysia (Penang) Sdn Bhd, prices of pre-war properties have shot up to as much as RM2,800 psf. It notes that there were only 54 transactions involving pre-war properties as at 2Q2016, with the highest at RM2,277 psf. Recent transactions of heritage properties were seen at Love Lane, Jalan Muntri, King Street, Lebuh Carnarvon and Lebuh Melayu. Here are some carefully conserved heritage buildings in Penang, where one can step in and go back in time to imagine life as it was then. PICTURES BY GTWHI SUFFOLK HOUSE Rumah Teh Bunga at 140, Jalan Hutton The double-storey historic building s Malay Straits Eclectic architectural style resembles the Syed Alatas Mansion. Called the Floral Tea Mansion in English, the name Teh Bunga comes from its exterior ochre colour. It was built around 1893 by a prominent Malay trader, M Z Merican, the son-in-law of Mohamed Ariff Mohamed Tajoodin, one of the richest Jawi Peranakan in the late 19th century. Restoration work began in At present, the house is an office for the National Heritage Department and gallery. Suffolk House at 250, Jalan Air Itam The detached double-storey building is considered the first Great House of Penang and was once owned by Captain Francis Light, who founded the British colony of Penang and its capital George Town in Its Anglo-Indian design holds architectural and historical significance. Campaigns to restore the building began as early as At present, it is a private event and dining space, used for private functions such as weddings and for official dinners. It was one of the locations for the filming of the British television series Indian Summers. Before 1881 Chong Tian Hotel at 38, Jalan Pintal Tali According to local residents, the ground floor of the property was used for businesses and the top two levels for residential purposes. The shophouse has been converted into a heritage-inspired hotel, named 1881 Chong Tian, and houses a restaurant. Wisma Yeap Chor Ee at Pengkalan Weld This building was once owned by Yeap Chor Ee, a rags-to-riches China-born tycoon. It housed mercantile offices related to the harbour. Subsequently, The Rainbow Art Gallery opened in the building, one of the few art galleries in Penang at the time. At present, it houses the Penang Science Cluster and acts as the base for start-ups in Penang. It also has a café and a small-scale retail outlet. The property was one of the filming locations for director Ang Lee s thriller titled Lust, Caution.

17 THEEDGE MALAYSIA NOVEMBER 28, 2016 PENANG SPECIAL REPORT S17 special report Whiteaways Arcade at Beach Street It was once known as the Whiteaways Building and it housed the first department store on Penang Island Whiteaway. The firm, Laidlaw & Co was established in Calcutta, India, in 1832, and had several branches in British India, Burma and Singapore. At present, retail outlets, restaurants, cafés and a tourist information centre can be found there. A new courtyard is used for artistic events. It also houses the state tourism agency, Penang Global Tourism. Sweet Chili Hotel at Gat Lebuh Melayu Local residents say the three shophouses which have now been converted into a boutique hotel, Sweet Chili Hotel were used for general purposes before they were abandoned for a long time. Loke Thye Kee (Restaurant) at 2, Jalan Burma Brothers Loy Kok Boon and Loy Kok Dai founded the restaurant in Initially named Loke Hai Kee, or House of Happiness in Hainanese, it served traditional Hainanese and Western cuisine. It was the venue of choice for birthday dinners, wedding parties and match-making arrangements. The iconic ship-inspired building was built and rented to the Loy brothers by local businessman and philanthropist Khoo Sian Ewe, who was a friend of the family. It remains a restaurant that serves Hainanese cuisine, though it does not belong to the Loy family anymore. The stretch of connected shophouses has been converted into luxury suites under the name of Loke Thye Kee Residences. George Town World Heritage Incorporated at 115 & 118, Lebuh Acheh Local residents say a hair salon once operated in the building and it subsequently became a maternity clinic or dispensary before it was abandoned. The property is said to have suffered a fire. At present, it is occupied by George Town World Heritage Inc, the state heritage agency. Before KENNY YAP / THE EDGE Syed Alatas Mansion at Lebuh Armenian The two-storey white mansion, built in the 1860s, is well known for its distinctive architectural style, which incorporates a mixture of Indian, European and Malay influences. The original owner was Syed Mohamad Alatas, an influential Muslim leader in Penang during the mid-19th century. At present, it is closed to public as it is undergoing conservation work. It once housed the Penang Islamic Museum. Sinkeh Hotel at 105, Malay Street Built in the 1920s, the back of this Straits Chinese shophouse was once used as a warehouse. The building has natural ventilation and lighting and boasts a traditional open courtyard. A new 3-storey steel pavilion was inserted into the back of the 33m-long shophouse while the traditional façade and timber floor structure were preserved. The boutique hotel s lobby and courtyard are also used as a performance venue or studio. E

18 special report S18 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 Food, glorious food BY E JACQUI CHAN PICTURES BY SAM FONG There must have been something in the Penang air that made us constantly hungry for more food. For the three days that we were there, meals of different varieties were consumed at an average interval of two hours. So, we concluded that it must have been the air or we could just be gluttons. Can you blame us? After all, Penang is famous for its street food for a good reason. Out-of-towners often drive several hundred kilometres to enjoy mini-vacations that revolve around the state s street food. Read on to discover all the yumminess that made our pants just that bit tighter by the time we left. Sisters curry mee at Air Itam It was drizzling when we arrived in Air Itam, home of the famous Kek Lok Si Temple. Our mission was to find what some locals call a piece of the town s history the Lim sisters curry mee. The sisters, both in their eighties, have been selling their signature noodles for over 60 years but their fame only spread beyond Penang in recent years, thanks to social media. It is easy to see why they and their curry mee are so loved by many. The setup is nothing fancy just two cheery aunties sitting on stools and surrounded by pots of steaming curry broth and baskets of cuttle fish, mee hoon and other condiments. There are a few small tables there or, if you prefer, you can sit at the stall across the street where there are more tables but only if you buy your drinks from the stall. The sisters are so used to being photographed and interviewed that the first thing they said after we introduced ourselves was, Eat first, then take photos, in Mandarin as they smiled brightly. Their curry mee is a little different from the thicker, richer variety sold these days and is just as, if not more, delicious. A mixture of thick yellow noodles and mee hoon swim in a fragrant broth of coconut milk, light curry and spices, and are topped with bean sprouts, bean curd puffs, coagulated pig s blood (you can opt to leave this out) and pieces of dried salty squid. The bowl comes with a spoonful of the sisters homemade chilli paste that has quite a kick to it. CHAI YEE HOONG Gan s o chien (fried oyster) and Loo s beef noodles at Kafe St Loo/Kafe OO White Coffee in Lebuh Carnarvon Gan s o chien and Loo s beef noodles used to be located at Lam Ah Coffee Shop in Lebuh Chulia before they moved to their sparkling new premises in Kafe St Loo/ Kafe OO White Coffee in Lebuh Carnarvon. Gan s o chien is different from the more common starchy and gooey version and is more similar to Sarawak crispy o chien. Super crisp with a nice amount of fresh oysters, you can hear the crunch with each bite. The oysters, we learnt, are bought fresh every day. It is served with a homemade chilli sauce that adds a touch of spice and tang to the dish. Right next to Gan s o chien is Loo s beef noodle stall, which we were told by some, is the best beef noodle in Penang. We can t confirm or deny that claim because we did not try any other beef noodles in the state but we can confirm that it is one of the best we have ever had. A generous serving of kueh teow in a light broth of beefy goodness is topped with juicy beef balls and slices of beef that are cooked just right. And, of course, it is to be eaten with Loo s sweet and tangy chilli sauce.

19 THEEDGE MALAYSIA NOVEMBER 28, 2016 PENANG SPECIAL REPORT S19 special report Assam laksa at Taman Emas Kopitiam in Jalan Gottlieb One should not leave Penang without eating assam laksa. Sure, there are plenty of assam laksa stalls in the Klang Valley, but while they come close, none can measure up to the best in Penang in our opinion. The assam laksa at Taman Emas Kopitiam is now one of our favourites. With shredded fish, bits of cucumber, mint leaves and pineapple, shrimp paste and, of course, noodles, it is sour, spicy, sweet and savoury all at once. In other words, it is heaven in a bowl. The stall also sells deep fried popiah with coconut fillings, which goes surprisingly well with the assam laksa. Soak the popiah in the broth and pop it into your mouth. Yum. Duck kueh chap at Restoran Kimberly in Kimberly Street Kimberly Street is famous for its hawker stalls and the area comes alive in the evenings. One of the most popular offerings is Restoran Kimberly s duck kueh chap. The family-owned business has been selling its famous dish for more than three decades. Kueh chap, while hard to find in the Klang Valley, is popular in parts of Malaysia such as Sarawak and Penang. However, it is traditionally served with pork instead of duck meat. Just one taste is enough to understand why there is always a queue for this dish. The bowl is filled to the brim with large pieces of flat white noodles, duck meat, innards and a stewed egg. The broth, which has star anise and ginger among its ingredients, is packed with flavour and the meat is perfectly tender. Yam rice at Hong Keat in Jalan Raja Uda Yam rice is a popular dish in Penang and no doubt, there have been plenty of debates on which stall has the best offering. We were given several suggestions and in the end, opted to try the one at Hong Keat. We have no regrets. The rice is fluffy with chunks of yam and we could smell the fragrant rice even before it arrived. The dish is paired with a big bowl of delicious, sourish salted vegetable soup with pork meat, pork balls and innards. And the soup can be refilled for free! You can also order a bowl of stewed pork knuckles and innards to go with the rice. Restoran Tajuddin Hussain in Lebuh Queen Nasi kandar is synonymous with Penang and there are plenty of excellent (and some, world-famous) restaurants to choose from. For this round, we settled on Restoran Tajuddin Hussain, which has been around since the 1950s. The place was packed when we were there for dinner. We were greeted with the wonderful aroma of curry the moment we arrived. We ordered the kambing ros, curry ayam and curry sotong, along with tomato rice and capati. The curries are thick and spicy, and each has a distinct taste. They are all delicious. However, our favourite is the kambing ros. With tender meat and gravy to die for, it is excellent when poured on rice. E Restoran Ikan Bakar Din in Kepala Batas If you are unfamiliar with the area, just look for the smoke (from the grill) and long lines of cars parked illegally by the side of the road and you will find Restoran Ikan Bakar Din. We were there during lunch and the place was packed. The first thing that struck us was the variety of dishes on offer, especially the grilled fish and meats, including fish that we had never tasted before. The offerings range from keli, pari and terubuk to siakap, squids, crabs and prawns. The grilled fish is charred on the outside, and juicy and perfectly cooked on the inside with a nice smoky taste. It must be eaten with Din s special sauce which, from what we could tell, counts cili padi, shallots and lime among its ingredients. It was unfortunate that we went there just half an hour after our last meal, so we were too full to sample more dishes but we can say for certain that this will not be our last trip there.

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22 special report S22 PENANG SPECIAL REPORT THEEDGE MALAYSIA NOVEMBER 28, 2016 A vision of Batu Kawan BY MICHELLE CHAN PICTURES COURTESY OF ASPEN Aspen Group has a vision, one that will play a role in the future of Penang. A newcomer to the local property industry, the group is ready to make its mark on history through its joint venture with Ikano Pte Ltd, owner of furniture franchise IKEA in Southeast Asia, to build one of the most ambitious and biggest mixeduse developments in the state Aspen Vision City. It will be the leading integrated city in the northern region, believed by many to be able to change and accelerate the growth of the state. With a gross development value of RM10 billion and occupying 245 acres of prime freehold land in Batu Kawan, Aspen Vision City sits strategically at the landing point of the Sultan Abdul Halim Muadzam Shah Bridge, or more popularly known as the Second Penang Bridge. It is the central point that provides seamless connectivity and accessibility to both Penang island and mainland destinations as well as the other states. Comprising condominiums, shopoffices, serviced suites, hotels, an office tower, a financial hub, medical centre and international school complemented by first-class facilities and amenities, the project will be developed in 26 phases. At the forefront of the project are an integrated shopping centre and the region s first IKEA store, both of which will be managed by Ikano; and Columbia Asia Hospital, which will be expanding its affordable and effective healthcare services to Penangites with its second branch in the region. With emphasis on sustainability, the 25-acre Central Island Park with an urban, play and oasis concept will serve as the green lung and sanctuary in the midst of an urban life for the residents and visitors of Aspen Vision City. The expansive play areas that cater for all ages are specially designed with the wellness and enjoyment of its occupants in mind. The attractions of the park include adventure playground, play stream and the blue lagoon, lakefront F&B attractions and nature areas. The concept is inspired by Garden by the Bay in Singapore, Central Park in New York and Darling Quarter in Sydney. DP Green Pte Ltd of Singapore has been commissioned as the landscape architect. Vervéa The first phase of Aspen Vision City is the 35-acre Vervéa, an enclave with 441 three and four-storey shopoffices with sizes ranging from 3,300 to 7,830 sq ft. It will also be the largest guarded commercial precinct in Penang. Apart from being a great business space with a prominent address in an ideal location, Vervéa will also provide an array of business-centric features, including a private lift for every unit, business-friendly and column-free layouts, impressive glass frontage for a prestigious outlook and maximum exposure, high-speed broadband and fibre-optics-ready, the first-of-its-kind 300m covered high street for activities and events to boost business, linkages that connect to neighbouring establishments to increase business traffic, smart LED panels for advertising and promotions, and smart services with 24-hour real-time app support. Other draws worth mentioning are The RM10 billion development will include the region s first IKEA store Beacon Executive Suites is a SoHo development located in George Town 24/7 security control, over 2,500 parking bays, a dedicated drop-off area for each block, dedicated bicycle lanes and minimum 10ft shaded walkways. All these make Vervéa the ultimate commercial enclave for thriving businesses. With easy access from the Second Penang Bridge, North-South Expressway and other major roads, Vervéa will draw a continuous flow of high-value customer traffic from both Penang island and the mainland. About 300,000 visitors are expected daily upon its completion. To date, Vervéa has recorded a takeup of 95%. Some selected units are still available for booking with prices starting at about RM1.88 million. Poised to be the most vibrant commercial enclave in the area, Vervéa is slated for completion in 2018, together with the highly anticipated IKEA store. Vertu Resort This second phase of Aspen Vision City is the project s first residential development designed with extravagant facilities and luxury to complement every mood and need. It comprises five 29 to 42-storey towers with a total of 1,282 fully furnished units fitted with Teka s home and kitchen appliances, such as washing machine, refrigerator, built-in cooker hood and hob. There are only 8 to 12 units per floor, ensuring greater privacy for the residents. All of the 3 to 4-bedroom units have contemporary designs and conceptualisation. Purchasers can choose from seven layouts, starting with the compact Type A at 1,030 sq ft, Type B at 1,070 sq ft, Type C at 1,180 sq ft or the more spacious Type D at 1,290 sq ft. All units are oriented to face the north or the south for optimal natural ventilation and lighting. Most of the living spaces offer a scenic view of the sea, Penang island and natural surroundings. The open-plan concept adds to the airiness of the units and creates a seamless space for the occupants. Vertu Resort is fitted with a threetier security system that offers peace of mind in a safe and secure environment. It sits amongst the tropical forest-inspired landscape with a treelined boulevard that leads to the grand lobbies. There is also a dedicated green walkway that provides direct access to the Central Island Park. More than 50 facilities are offered in the 200,000 sq ft space, specially designed for the pleasure of the residents. The list includes a library, aqua play features, water swing, sandbox play area, stepping stones and play streams, gym, herb garden, reflexology corner, lawn games area, BBQ lawn, rock climbing adventure and many others. The development is targeted at a mix of first-time homebuyers, property investors, holiday or weekend homebuyers and neighbouring residents looking at upgrading their homes. Aspen Group is expecting 70% of the demand to come from owner-occupiers and 30% from mostly local investors. An artist s impression of a unit in Vertu Resort According to the group, Penang properties have enjoyed high capital appreciation and based on its development components, value proposition and competitive entry cost, it is expecting to do 20% to 30% above-average property valuation. Vertu Resorts is open for registration with prices starting at RM450,00 and is expected to be completed in Beacon Executive Suites Aspen Group s vision does not end with Aspen Vision City. Adding to its list of high-quality and affordable properties is Beacon Executive Suites, a one-of-akind small office/home office (SoHo) development located in George Town, Penang. A sky podium sits on the top floor of the 30-storey development, granting residents a panoramic 360 view of its surroundings. The podium also offers a full range of lifestyle facilities that are designed to satisfy everyone s leisure needs, which include an infinity sky pool, sky lounge and sky gym, among others. The SoHos are fully furnished and fitted with cutting-edge features, such as smart service platforms and on-thego mobile applications. They are also equipped with sensors that connect to the internet of things (IoT) platform of the occupants upon subscription to the IoT gateway and hub, which supports multiple standards and technologies like ZigBee and ZWave. Residents can choose any wireless device of their choice and equip it with sensors that are readily available on the market. With the on-the-go mobile apps, occupants can monitor and control their connected home anytime, anywhere. They can manage their stay in the building, grant entry to visitors, communicate with other units, management and guard services, and access other IoT services. With the comprehensive IoT smart service solutions and other provided necessities like the 24-hour real and virtual concierge services, real time mobile security alerts and so on, Beacon Executive Suites provides its residents connectivity, thus completing a much desired lifestyle. Always ahead of the trend, Aspen Group will focus on delivering IoT features for automation, security, energy management, safety, environmental monitoring and control, entertainment and more. With two types of layout to choose from, the 980 sq ft Beacon Executive Suites are priced from RM558,000 onwards. The development is now open for registration and is expected to be completed in Under the Aspen My Deposit Scheme, buyers are only required to pay 5% downpayment and nothing more until vacant possession. All firsttime homebuyers are eligible for the scheme. Qualified purchasers will also receive RM20,000 cash from the developer as a professional grant during the construction period. E

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