Senjayu To Match Eco Meadows

Today, The Star published an article about some upcoming property launch in Penang next year.

Projects worth RM41bil in Penang next year

What caught my attention is this:

IJM Land’s pipeline of projects for next year in Penang included the RM232mil Waterside Residence in The Light Waterfront project next to Penang Bridge, the RM64.7mil Trehaus Condo Villa scheme in Bukit Jambul, and the RM118.4mil Senjayu Terrace project in Jawi, South Seberang Prai.

The Trehaus and the Waterside Residences scheme would be launched in the second quarter of 2016, while the Senjayu Terrace would be introduced in late 2016.

“The price of the three property schemes ranged between RM730,000 and RM1.3mil,” he said.

IJMLand has purchased a 70-acre land in Jawi in 2013. Now we know that it will only launch its first project there in late 2016.

The first phase is known as Senjayu Terrace, which I think should be double storey terrace houses.

Its price will start from RM730,000 according to The Star report above, though it is still about one year away from the launch.

Few months ago, Eco World priced its Eco Meadows double-storey terrace from RM708k.

Wow, will RM700k become a common price for DST in mainland Penang soon?

After "unaffordablelised" the properties in Penang island, those giant property developers have certainly shifted their sight to Penang mainland, especially in southern area aided by the IKEA hype.

How much should Tambun Indah price its DST in Pearl City?

Stocks To Watch In 2014

Saw this chart in i3investor which is obtained from Nanyang finance. I think I better keep it in my blog for future reference.

This chart from JF Apex list out the companies/stocks that have the potential to benefit from various events at the moment.

Translation to English

• Improving sales of semiconductors and electrical appliances
• MPI, GTRONIC, KESM, VITROX, UCHITEC

• Export-orientated companies who can benefit from global economy recovery
• WELLCAL, TONGHER, CHINWEL, LATITUD, POHUAT, EKOWOOD

• Companies that supply construction materials may benefit from booming property market
• LBALUM, WTHORSE

• Recovery of global trading
• FREIGHT

• Implementation of GST and electronic payment
• CENSOF, MYEG, GHLSYS

• Mega projects may benefit security system provider
• WILLOW

• FIFA World Cup in June
• ASTRO, GAB, CARLSBG, BAT

• Pengerang RAPID and its related projects
• SKPETRO, DAYA, BARAKAH, PANTECH, MHB, DIALOG, WASEONG, MUHIBAH, PCHEM

• Property development around Pengerang
• GADANG, IJM, WCT, SENDAI, IJMLAND

• MRT Line 2 & WCE
• GAMUDA, MMCCORP, IJM, KEURO

• Menara Warisan Merdeka & TRX
• SENDAI, IJM, WCT

       TRX - Tun Razak Exchange

• MAS-SG third link may benefit property developers
• MAHSING, ECOWLD

• Federal development plan at RRIM, TRX & Bandar Malaysia
• GLC: SPSETIA, UEMS, MRCB
• Private: IJMLAND, MAHSING, TROP, SUNWAY, IOIPG

• Development in Seberang Perai Penang (Relocation of RMAF base, re-development of Teluk Air Tawar, Penang Sentral)
• TAMBUN, PJDEV, ECOWLD, SUNWAY, MAHSING

       Penang Sentral, Butterworth

Batu Kawan Lifted To New High By IKEA

Finally... Penangites' dream comes true. 

After years of "rumour", IKEA is edging closer to open its first store outside Klang Valley in Batu Kawan.

Just in this morning, Penang CM Mr LGE has announced in a press conference that the state government and Penang Development Corporation (PDC) will sell a piece of 245-acre land in Batu Kawan to a joint venture company Aspen Vision Land Sdn Bhd-Ikano Pte Ltd for RM483.9mil.

Ikano owns & operates IKEA franchises in Malaysia, Singapore & Thailand, while Aspen Vision Land is a 51% subsidiary of Aspen Group & 49% associate company of Ivory Properties Group. Thus, Ivory has gained an indirect access to Batu Kawan development.

Aspen Group seems to be a new property developer with a few upcoming condo projects in Penang.

       Upcoming condo in Penang by Aspen Group

The 245-acre development planned in Batu Kawan will include:

• 30 acres for IKEA store and phase 1 shopping mall
• 45 acres for phase 2 shopping mall
• 170 acres for mixed development

If not mistaken, IKEA & Ikano Power Center in Mutiara Damansara measure about 13 acres.

The whole development is expected to be completed in 10 years but IKEA store is to be completed in 5 years or sooner.

       IKEA Batu Kawan - at southern part?

Of course this is the best news for Batu Kawan so far, compared to other earlier investment like Honda, Premium Outlet, KDU & University of Hull.

While property may start to cool down in the country, I don't think this is the case for Seberang Perai, especially SPT & SPS. The mixed development by Aspen-Ikano will surely sell like hot cakes.

Direct beneficiaries of increased property demand in Batu Kawan are GOB, Ivory, Malton & Paramount, who already have lands in this area. Other surrounding listed property developers include Tambun Indah, Ecoworld, Mahsing & IJM Land.

It will not be a surprise when the news of other developers acquiring land within or nearby Batu Kawan start to flow in later.

Now people may start to imagine Batu Kawan to be like Damansara.

More Excitement In Seberang Perai Selatan

Mahsing officially joins Seberang Perai property feast by acquiring 76.38acres of freehold land in Jawi for RM42.6mil, or RM12.80 psf.

The land which is said to be opposite the Bukit Jawi Golf Resort, will be developed into a mixed township with an estimated GDV of RM400mil known as Southbay East.

Southbay East... It is quite confusing with its Penang island development, isn't it?

The location of the land should be very close to IJM Land's recent acquisition in Jawi (70 acres at RM18.50 psf).

Ecoworld (60 acres at RM30 psf) and Tambun Indah (24 acres at RM14 psf) recent land purchase is at a totally different area, which is close to Tambun toll, while IJM & Mahsing's land are close to Jawi toll.

With two powerful developers in Jawi, it is expected that the roads connectivity of this area to Batu Kawan & Penang Second Bridge will be improved. Currently if you wish to go to Batu Kawan or second bridge from Jawi or Nibong Tebal area, you need to enter North-South Highway via Jawi toll and exit the upcoming Batu Kawan toll.

If you do not want to pay for the toll, you need to travel a long way north to Tambun area, which is not worth the time and petrol money spent. In the future, there might be a route joining Changkat area (between Jawi & Nibong Tebal) to the south of Batu Kawan.

For me, the location of Mahsing's land is the least strategic among all 4 developers mentioned. It is like in the middle of nowhere. If other ABC developer wish to launch high-end project there, I guess it will have a hard time selling it.

I estimate that a standard size double storey terrace in a gated community in this area should be about RM300k. If Mahsing is going to launch the project now, RM400k a unit is not a surprise. However, Southbay East is expected to be launched only in year 2015.

Since it is Mahsing who has a lot of fans and builds premium quality homes, surely it will not face a big problem selling its products there.

       Bukit Jawi Golf Resort

What I am more concern is, how will the recent influx of branded property developers into mainland Penang affect Tambun Indah's Pearl City?

From experience, township planning & ability to attract business investment point of view, I think Tambun Indah may lose to Mahsing, IJM and Ecoworld.

The advantages that Pearl City has include big land size, location and overall lower land cost, which translates into more competitive selling price.

Fortunately for Tambun Indah, the lands owned by the other 3 developers are not very big and can't be developed into a true mixed township that include shopping complex, medical center or large commercial area. So this is an advantage of Pearl City.

However, Tambun Indah may not have the same ability as Mahsing & IJM in attracting good business investment into its Pearl City business park.

       Proposed Pearl City Mall

Secondly, the location of Pearl City is closer to Bukit Mertajam and those many industrial parks in Seberang Perai Tengah such as Penang Science Park, Bukit Minyak and Perai. Ecoworld shares the same benefit but Mahsing and IJM don't.

In term of distance to Batu Kawan & Penang Second Bridge, all are quite similar but Ecoworld and Tambun Indah have the slight benefit of no need to pay for extra toll.

Ecoworld, IJM and Mahsing surely will build gated & guarded communities which are likely to be priced higher. Thus, Tambun Indah who build gated and non-gated community, can have more flexibility in its pricing.

For me, Tambun Indah will get better if property outlook in Seberang Perai Selatan gets better.

Asas Dunia is another major mainland developer that should not be overlooked, although it has been privatized. It has lots of land in Seberang Perai Selatan bought at very low cost and also starts to build better quality houses to target middle income group. Thus, Asas Dunia is probably the ultimate winner in Seberang Perai Selatan property boom.

       Asas Dunia: 1,118 acres land in SPS

Asas Dunia: Gimme Your Shares

In the 1990s, Asas Dunia built 2 large shopping complexes in Bukit Mertajam, Asas Center in Alma & Asas Parade in Bukit Minyak. Currently Asas Center has been abandoned more than 10 years, and Asas Parade has never been occupied. 

Because of "cold eye", most investors are aware that Asas Dunia has plenty of lands in the southern region of Penang mainland (SPS). It has about 1200 acres land in Tasek, Valdor, Sg Bakap, Jawi, Nibong Tebal etc, which is currently experiencing property boom due to Penang second bridge and Batu Kawan development. Those lands were acquired mostly in the 1990s and probably not re-evaluated. Conservatively estimating, now the value of those lands has at least tripled. 

Recently Asas Dunia tries to improve its image by building "higher-class" homes, such as Residensi Merbok in Nibong Tebal and the new Impian Ria / Impian Indah / Desa Impian in Alma. The area near Sg Bakap / Tasek / Valdor may not be able to generate good sales if the projects are launched there, due to poor accessibility and competition from Tambun Indah's Pearl City development. Most recent projects there comprises single storey houses which is quite rare in the market nowadays.

       Taman Seruling Emas, Sg Bakap

However, by donating a piece of land at Tasek for Jit Sin High School SPS branch, surely the value of its land at Tasek / Valdor will appreciate more once the school starts its student intake, targeted in year 2016. Furthermore, IJM Land has recently purchase a piece of 70-acre land at Jawi near the Jawi tol and plans to develop it into a small township. Together with Batu Kawan & second bridge factor, Asas Dunia definitely has a great prospect ahead.

Thus, for a zero debt company with an NTA of RM2.15 where its not-reevaluated-undeveloped land makes up of 50% of its total asset, it is not surprise that the major shareholders who already own 41% make a move to privatize and de-list the company.

They offer RM1.70, higher than the previous close of RM1.63 you know.

What do you think?

IJM Is Coming To Town

You better watch out, you better not cry, better not pout I'm telling you why, IJM Land's first project in Bukit Mertajam - Permatang Sanctuary is coming to town. 

Permatang Sanctuary is developed on a 130-acres freehold land at Alma area near Permatang Tinggi. It is a guarded but not gated neighborhood consists of 488 units of 2-storey linked semi-ds, 188 units of 2-storey semi-ds, 134 units of linked bungalows, 10 units of bungalows, a row of shoplots and low cost apartment. Phase 1 is made up of 78 units linked semi-ds and 92 units semi-ds. So far only part of phase 1 is open for sale.

      Permatang Sanctuary location

A special feature of this project is the retention pond in the middle of phase 1. The retention pond area is originally a playground with grass, but when it rains, the rain water will fill it up to become a pond.

      Retention Pond

From the brochure, the land size of linked semi-d is 32.8 x 82 ft, built-up 20 x 47 ft. For the semi-d, the land size is 32 x 98 ft, built-up 22 x 48 ft. I am not sure whether these are the standard land size or not. The price of  linked semi-d starts from RM438,000 while the semi-d starts from RM 485,000.

      Floor plan

There will be RM20,000 discount for early buyers and all the stamp duty, legal fees and disbursement are fully borne by developer (Zero Entry Package). Booking fee is RM10,000 and the rest of the 10% will be paid upon signing of S&P.

Alma is an area which sees lots of residential and commercial development at the moment. Nevertheless, the  concern for Permatang Sanctuary is the nearby broiler farm, which is just adjacent to its phase 1 development. No one will know exactly how it will affect the area until one start to live in there. Nearby Desa Impian 2 by Asas Dunia is also surrounded by a few broiler farms, but the sales is still good.

     AEON Jusco Alma site: land is already cleared

IJM Land does not provide Permatang Sanctuary's site map in their brochure and website yet. I just simply sketch the site map base on what I can remember from the showroom. However, this map is not very accurate and may be wrong.

      Possible site map, future phases will be further from chicken farm

From the sales chart, it seems like not many units are left in Day 1 except the bumi lots. All those with standard land size have been grabbed in the morning hours itself. Is it the IJM factor?