Eco Meadows: In A Class Of Its Own

The sales office of Eco Meadows in Simpang Ampat has quietly opened to public last weekend.

This 60-acre freehold development will be Eco World's second project in Penang state after Eco Terraces, and first in mainland Penang.

The site is visible from North-South Highway near Penang second bridge interchange.

First project to be launched, probably very soon within July 15, will be gated & guarded double-storey terrace houses.

If not mistaken, there are total 375 units of DST planned for Eco Meadows and there is no semi-D or bungalow.

The facilities provided include swimming pool, gym, kindergarten, park and clubhouse.

Four types of DST are available which are Type 1A/1B and 2A/2B, with land size of 20 x 70 and 22 x 70 feet respectively.

The final layout plan is still not available at this moment but some units will come without a balcony.

Type A is called Bay Window Collection which is without balcony. Type B is Balcony Collection.

There will be no other landed residential property after this. Future launch will be shop offices, service apartments and probably a shopping mall.

Here comes the most important question... What is the price?

In Oct 2013, I predicted that DST in Eco Meadows will start from RM500k, while DST in Pearl City is about RM350k at that time.

Obviously this prediction is already outdated.

One year ago in mid-2014, Asas Dunia priced its DST in Hijauan Valdor, which is about 2km from Eco Meadows, at RM550k.

Apparently Eco Meadows will certainly price its DST at at least RM700k now to show that it is in different class. Agree?

True enough, though  official selling price of Eco Meadows's DST is not confirmed yet but according to sales person, it will be approximately RM700k.

Management fees is expected to be around 15-20sen per sq ft.

Now, gated DST (22 x 60 ft) in Raintree Park of Pearl City is priced from RM478k. If Eco Meadows sells its DST at RM700k, then it really makes Tambun Indah's DST looks cheap.

Despite its premium price, I think Eco Meadow's DST will still sell like hot cakes due to its brand power and lots of its well-to-do fans.

Anyway, what are the difference between Eco Meadows and Pearl City?

Location wise, both are located in Simpang Ampat but Eco Meadows is closer to PLUS Bukit Tambun toll and Batu Kawan while Pearl City is closer to Bukit Mertajam, AEON & Tesco Alma.

Pearl City is a big 1,000 over acres township which houses a new KTM station while Eco Meadows is just 60 acres though it will have its own commercial component.

Pearl City will be much more crowded so traffic and safety might be an issue. However, it will be more happening & convenient as GEMS International School, Pearl City Mall & Jit Sin SPS branch have been confirmed. Future plan includes a medical center as well.

Eco Meadows brings with it luxury and high quality feel in which buyers expect high quality materials, fittings and finish, on top of tastefully designed landscape.

Pearl City will also have its own high-end gated projects such as Raintree Park. However, it is not expected to match those" quality" & "features" offered by Eco Meadows.

Do you think it is worth to pay RM200k more to get Eco Meadows DST over Raintree Park DST?

       Location of Eco Meadows, Pearl City & Hijauan Valdor

If you are keen to get your dream homes in Eco Meadows, just prepare a RM10k cheque and go to the sales gallery at the actual site to book a priority of unit selection.

The RM10k is fully refundable if you can't get your preferred unit, but please reconfirm with sales person before you hand in your cheque.

Frankly speaking, my wife and I dream of staying in a community like Eco Meadows.

However, I know that it is not worth it and also not possible that at this stage of my life.

Should I buy for investment?

How much is the expected rental? RM2000 rental per month will be great I guess, but monthly loan repayment and management fee should be at least RM3000.

How fast will it appreciate? Do you think Eco Meadows DST price will appreciate to RM1mil upon completion in 3 years time?

Hijauan Valdor: Setting A New Benchmark In Sungai Bakap

After being taken private, Asas Dunia has just launched its first major property project named Hijauan Valdor.

Valdor is a small town located between Simpang Ampat and Sungai Bakap in Seberang Perai Selatan. It is known for its Chinese new village and also as the largest poultry farm in Penang.

Location wise, Hijauan Valdor is quite strategic as it is situated just beside the Ipoh-Butterworth federal trunk road and opposite the upcoming link to the southern part of Batu Kawan where all the industrial and commercial activities are concentrated.

       Location of Hijauan Valdor

However, it also has its drawback as it just sits beside the railway track and next to the big poultry farm of Valdor.

Hijauan Valdor is a freehold guarded community (not gated), with individual title. It has altogether 6 phases and currently phase 1 is launched to certain guests or registrants only.

I might be one of the earliest registrant for this project as I inquired about this since 2 years ago. At that time the sales person said that there is no concrete plan for this area yet.

       Phase 1 Hijauan Valdor, with lower cost component marked in blue

Phase 1 offers single storey terrace & semi-D, as well as double storey terrace & semi-D. The pricing is quite ambitious as it starts from RM350k.

Below are the initial pricing of the properties at Hijauan Valdor (excluding rebates)

Single storey terrace (land area 2,003 sq ft) - from RM350k

Single storey terrace (land area 2,455 sq ft) - from RM405k

Single storey semi-d (land area 2,885 sq ft) - from RM464k

Double storey terrace (land area 2,003 sq ft) - from RM550k

Double storey semi-d (land area 2,745 sq ft) - from RM680k

There is no facility such as club house, swimming pool or gymnasium as it is not a gated community. However, buyers have to pay between RM100-RM150 a month as maintenance fee mainly for guard service.

With its many lands at Seberang Perai Selatan, Asas Dunia has been known earlier to be Tambun Indah Pearl City's major competitor. 

It is interesting to compare the properties offered by these 2 development.

A more appropriate comparison should be between Asas Dunia's Hijauan Valdor and Tambun Indah's Rain Tree Park which was also launched recently.

Hijauan Valdor's double storey terrace is priced from RM550k, exclusive of rebates. Legal fees are free but stamp duties are not. Its land size measures 25'x80' (2,000 sq ft) while built-up area is 25'x50' each floor.

Tambun Indah's Rain Tree Park double storey link semi-d is priced from RM538k, inclusive of rebates, stamp duties and legal fees. Its land size is 29.5'x68.5' (2,020 sq ft), with a built-up area of about 21'x45.5' in lower floor and 21'x49' in upper floor.

So, both with almost similar price and land size but Hijauan Valdor's DST has 25% larger built-up area. However, Rain Tree Park's link DSSD is a link semi-d, and it is located in a more secured gated community with more facilities, and also with roads with interlocking tiles and underground cables.

Pearl City is a township development with commercial development, proposed shopping mall, international school and medical center. It is located at a more matured town of Simpang Ampat.

Meanwhile Valdor is somewhere between Sungai Bakap and Simpang Ampat, and Hijauan Valdor is a pure residential development. The future link to Batu Kawan might be the main selling point of Hijauan Valdor.

Anyway, the DST sold in Rain Tree Park starts from RM438k, which is RM100k less than its counterpart in Hijauan Valdor, but with lesser land and built-up area.

      Rain Tree Park 1 Site Map

As Hijauan Valdor is only a guarded community, by right the guard has no rights to prohibit anyone from entering the area. The landscaping and upkeeping of the area is still the responsibility of local council (MPSP). House owners can renovate their house as they like as long as it is approved by the authority.

Whether Hiajaun Valdor is a worth buy or not depends on each individual. Some may think that its higher selling price might be justified by its larger built-up area. If you do not buy now, the upcoming phases are almost sure to cost more than current price.

Eco World's land in Simpang Ampat is right in the middle of Pearl City and Hijauan Valdor. I wonder how will Eco World price its property here next year. RM650k for DST?

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?

Jelas & LekaS: The Plan Still On?

Besides the West Coast Expressway (Taiping-Banting) in which the concession agreement has been signed, there are 2 other proposed expressways in the northern region, which are the Jelas & LekaS. Both seem to be still under planning stage.

Jelapang-Selama-Batu Kawan Expressway (Jelas), as its name suggests, connects Ipoh (Jelapang) to Penang (Batu Kawan). 

Jelas connects small towns along the way, and will be linked to North-South highway (PLUS) at Jelapang & Batu Kawan, linked to LekaS at Selama and Penang 2nd bridge at Batu Kawan.

       The proposed route map of Jelas

One of the interchange of Jelas is Lima Kongsi, which is near Valdor & Sg Bakap of Seberang Perai Selatan. Asas Dunia has a lot of land in this area, while Tambun Indah's Bandar Tasek Mutiara is also not far away.

       Possible Jelas route at Lima Kongsi interchange

Lebuhraya Kulim Selatan (LekaS), not Kajang/Seremban highway, connects Sungai Petani, Kulim and Bandar Baharu. It is linked to PLUS at both ends, which are Sg Petani & Bandar Baharu. It is also linked to Butterworth-Kulim Expressway (BKE) at Kulim.

       LekaS propsed route

Jelas is a 6-lane 116km highway with 2km tunnel and provides an alternative route between Penang and Ipoh. I wonder how many motorists would like to exit PLUS highway at Batu Kawan, pay the tol 2 extra times to use Jelas to Ipoh and vice versa. From the map, the distance of Plus & Jelas between Penang & Ipoh is almost the same. Of course unless the tol rate of Jelas is significantly cheaper or during peak season, perhaps Jelas may face low traffic problem.

The project of Jelas & LekaS are given to a same company Beta Mutiara Corporation Berhad under the "build-operate-transfer" scheme. As long as the tol rate is acceptable, the construction of these two expressways should benefit the people.

Jit Sin Branch Finally Approved

On 9th November 2011, Deputy PM and Education Minister announced that the application for a new Jit Sin High School Seberang Perai Selatan branch has been approved.

In January 2010, property developer Asas Dunia has signed an MoU with Jit Sin board to donate an 8-acre land valued at Rm10million at Tasek to Jit Sin. This should be a win-win situation to both parties, as if Jit Sin is to be constructed there, the land value and property demand in that area will surely increase. Asas Dunia owns lots of land there. Part of the land beside Valdor and opposite the golf club has been cleared, probably for upcoming 2012 new projects.

      Proposed Jit Sin branch's location

The other property developer that will benefit from Jit Sin branch is Tambun Indah, who owns all the undeveloped land within Bandar Tasek Mutiara (BTM), which is previously being developed by Mutiara Goodyear (Nadayu). Tambun Indah already launched about 1000 residential units (Pearl Garden, Pearl Villa & Pearl Indah) successfully, as well as Pearl Square shoplots within the BTM. There are still a big chunk of land left, which include the planned commercial center in the rounded center of BTM.

       Jit Sin at Sg Rambai

Nevertheless, the exact location of new Jit Sin branch is not officially confirmed yet, and still could be subjected to change. Some people think that Nibong Tebal may be a more suitable location for the new school, as it is the biggest city in SPS with more population. To travel from Nibong Tebal to Tasek by car, it may take about 20 minutes time.

Updated on 11th Feb 2012: Jit Sin has finally received the official letter of approval from the Ministry of Education for Jit Sin SPS branch.