Penang Transport Master Plan

Previously we heard about Consortium Zenith, now it is Gamuda. Who is actually "in charge" of the multi-billion Penang Transport Master Plan (PTMP)?

PTMP first started in 2009 after a change in state government to replace the rejected Penang Outer Ring Road (PORR) project by previous government.

PTMP has 3 components:

Public transport

• Bayan Lepas LRT
• Air Itam Monorail
• Tanjung Tokong Monorail
• Georgetown Tram
• Raja Uda - Bukit Mertajam Monorail
• BRT (Bus Rapid Transit)

Highways & Roads

• Pan Island Link (PIL) 1
• PIL 2/2A
• BKE - PLUS Interchange
• Juru - PLUS Interchange

Penang Major Roads & Third Link (PMRT)

• North Coastal Paired Road (Tanjung Bungah - Teluk Bahang)
• Air Itam - LCE bypass
• Gurney - LCE bypass
• Penang Third Link (Undersea Tunnel)

PTMP is not a dead project. It has already started with PMRT, which consists of 3 major roads & an undersea tunnel third link. This RM6.3 billion project was awarded in 2013 to Consortium Zenith Construction Sdn Bhd (CZC) which is not a listed company. 

However, Vertice Bhd which is a listed company, has 13.21% stake in CZC.

CZC has awarded its first contract in Sep 2018 to a joint-venture company Buildmarque Construction which is 50:50 owned by Vertice and Vizione, another listed company.

This Package 2 PMRT contract involves a 6.0km Air Itam - Lebuhraya Lim Chong Eu bypass. It is worth RM815mil and will be completed within 36 months in year 2023. There is a 4.2km elevated portion but no tunnel.

Groundbreaking has been carried out in Nov 2019 and early works are reported to have started in the first quarter of 2020. However, due to Covid-19, the work will be postponed towards end of 2020.

Recently we read that Gamuda has been confirmed to be the Project Delivery Partner (PDP) of PTMP. This PDP is actually SRS Consortium Sdn Bhd led by Gamuda (60%), Loh Phoy Yen Holdings Sdn Bhd (20%) and Ideal Property Development Sdn Bhd (20%).

Ideal Property Development Sdn Bhd should be related to listed company Ideal United Bintang. However, I can't find its name in IUB's subsidiary list, so it might not be a listed company.

SRS Consortium has already been appointed PDP of PTMP since 2015, so this is not a fresh news. It's reported that Gamuda (or SRS?) will be paid a fee of 5-5.75% base on the project cost which is estimated to be RM46 billion.

So there are 2 PDPs in PTMP, CZC gets the small portion in PMRT while SRS gets a big chunk of it.

For SRS, the first 2 priority projects should be the Bayan Lepas LRT and PIL 1 Highway.

The LRT line from Georgetown to Bayan Lepas is about 30km in length with 27 stations. Its estimated cost is RM8.4bil.

The 19.5km PIL 1 links Gurney Drive to Bayan Lepas and may cost as much as RM7.5bil. The relatively high cost is due to the presence of 10km tunnel.

PMRT by CZC will be funded by land swap deal at Bandar Tanjung Pinang, while sales of land in the 3 man-made islands in Penang South Reclamation project will be used to partly fund the SRS projects.

I read that the LRT, PIL & south reclamation projects are not officially approved yet, perhaps due to a sudden change in the federal government. These projects are subjected to objection by some locals as well, especially Penang South Reclamation. 

Even though not exactly part of the PTMP, this reclamation project should also be implemented early as the sale of industrial lands in Island A is essential to fund the LRT & PIL.

Once green light is obtained, RM15 billion worth of construction contracts will be handed out. I think this is the largest construction project I've ever seen in Penang. Previous second bridge construction cost was RM4.5 billion.

PTMP will certainly help to stir up construction sector and its related industries such as steel, concrete and construction materials. 

As a Penangite, I hope that PTMP can be carried out successfully without further delay.

Batu Kawan: Nothing Comes Cheap

I have been following the development of Batu Kawan for around 10 years. I witness it growing from an embryo to a toddler now.

Yes, it is growing. It's not a miscarriage. 

If you check the label of "Batu Kawan" in this blog, you'll know how much my interest is in its development since it was an empty land with shit everywhere. 

This Batu Kawan is not a plantation company. It's the next satellite town in the mainland of Penang.

I always have a plan to own a property in Batu Kawan and I watched closely those property companies involved.

I quickly signed a cheque to book a unit in Eco Horizon, only to give up after the price of 2 storey terrace was confirmed to be over RM800k.

I went to the initial launch of Aspen's Vertu Resort Condominium in early 2016. The price of those half-furnished units were around RM400 psf, which was not too bad but the total units launched were almost 1,300!

Paramount property also launched their first project of Utropolis Batu Kawan at the end of 2016 called "Sensasi". Even though the price tag was "affordable" at below RM300k, it's only a 500 sq ft single room unit which was more than RM500 psf.

Now 4 years have passed, Eco World has launched 3 phases of its landed projects there, namely Ashton, Byrdon & Camdon. 

Camdon is promoted as "New landed home ONLY from RM426k". Well, you only get one floor of a 2-storey townhouse, not even one and a half floor... I think this starting price of RM426k is only for the upper floor, so it's a "landed home" without a land except car park. 

Aspen has added Vivo & Vogue high-rise & high density projects, as well as a rare landed development Viluxe which was priced almost similar to Eco Horizon. Paramount has come up with two more high-rise projects Suasana & Sinaran.

I read that people queued overnight to book a unit of Vivo Executive apartment in 2019. I thought this only happened in 2010-2012? 

Luckily this Vivo project offers 1,530 units to fulfill the needs of so many people.

Let's check out how many units of apartment have been launched in Batu Kawan now, excluding the low-medium cost Pangsapuri Suria by the state government.

Utropolis @ Batu Kawan

Utropolis Sensasi

2 blocks

Size: 500 - 729 sq ft

Total units: 612

Utropolis Suasana

2 blocks

Size: 926 - 1313 sq ft

Total units: 491

Utropolis Sinaran Residence

2 blocks

Size: 667 - 1044 sq ft

Total units: 982

Aspen Vision City

Vertu Resort Condominium

5 blocks

Size: 740 - 1290 sq ft

Total units: 1282

Vivo Executive Apartment

3 blocks

Size: 730 - 830 sq ft

Total units: 1530

Viio Executive Apartment

2 blocks

Total units: 980

Vogue Lifestyle Residence

2 blocks 

Szie: 530 - 1750 sq ft

Total units: 627 

In total there will be 6,504 high-rise units available when all these 7 projects are completed. Surely, there will be more to come, as Eco World hasn't started its high-rise project.

If you are buying for own stay, there is no problem. If you are buying for investment, then you might face some problem in renting or selling it. 

However, I think long term should be alright if you have the holding power.

I foresee Batu Kawan as a thriving township in the future. That's why I always wish to get a property here either for own stay or investment. 

Before that, everything was blur, you heard the news but not sure whether they were going to materialize. 

We have a 18-holes golf course & Eco Marina cancelled. Bosch's initial RM2bil solar project was called off. The UK Hull University is also nowhere to be seen.

Columbia Asia Hospital, in which its construction was initially expected to be completed in 2019, might see its plan postponed or whatever. 

We saw Ivory divested from its partnership with Aspen to develop the prime land surrounding IKEA, and also Malton exited the land currently occupied by Eco Horizon.

Nevertheless, now we have IKEA up and running, that's the main thing, along with the decent Penang Design Village. 

Hull University is now The Ship Peninsula College who partners with another UK-based University of Plymouth, while KDU is now University of Wollongong (UOW) Malaysia KDU Penang University College. 

Peninsula College is starting their student intake now in Jun 2020, while UOW has done so earlier this year.

SJK(C) Kuang Yu is also said to be relocated to Batu Kawan from Kuala Muda.

For me, the catalyst for Batu Kawan development is its modern industrial park (BKIP). There are Honda, VAT, hp, Flextronics, Western Digital/Sandisk, Micron Memory, Haemonetics, Jabil, Boston Scientific, Hotayi as well as local companies stock market investors are familiar with such as Inari, Pentamaster, Vitrox, UWC, Mi Technovation, Greatech etc.

Bosch is making a comeback after recently signed a deal to set up a manufacturing facility here for the testing of semiconductor components and sensors.

You can imagine how many thousands of people working in Batu Kawan. There will be demand in properties here.

At the moment only the Utropolis Sensasi is completed and put on sales or rent. A simple search online shows that rental rate is not bad with 500 sqft asking for around RM1000, 729 sqft around RM1400 and studio around RM700 in average.

However, I'm not sure whether these rental rates have their market or not. If not, owners might need to drop it substantially to fight off the stiff competition. 

Vervea, the 3-storey shop offices next to IKEA & opposite of Eco Horizon, which were completed quite some time ago, are still mostly vacant even though the asking rental is quite attractive.

After giving up temporarily to grab a property in Batu Kawan since 2013, I do hope that I can get a cheaper one when a financial crisis strikes before year 2020.

Now it looks like the hope is slim.

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?

Huayang Joins The Bustling Jalan Baru

Huayang really surprised me by announcing another land acquisition in Penang mainland.

It will acquire all the shares of G Land Development for RM16.6mil, who will acquire 6 parcels of freehold land in Prai, Penang mainland for RM25mil.

So the total cost will be RM41.6mil, or about RM110 psf.

The land has an area of 8.59 acres (net 6.98 acres), is 3km from Penang bridge and is accessible through federal road (Jalan Baru).

Remember that in my last post about Huayang, I wrote that I saw Huayang's new sales office at The Frontage fronting Jalan Baru?

At that time I was a bit puzzled why Huayang sell its property in Bukit Mertajam but set up its sales office in Prai, though both location are actually not far away.

Now I know the reason.

          Huayang's new sales office at The Frontage, Jalan Baru

When talking about Bukit Mertajam, the hot area is Jalan Song Ban Kheng.

When talking about Prai area, the hot area now is undoubtedly Jalan Baru.

Jalan Baru is bustling right now, with new condos such as Pinang Laguna, Palma Laguna and The Signature completed.

Condos nearby include Prominence, BM City Mall, Kelisa Residence, K Residence & Primero Heights.

Besides, there are also other upcoming condos by Aroma & Wern Properties along Jalan Baru.

Mydin Hypermarket which was opposite of Huayang's new sales office, was just opened last month.

A new KFC drive-thru restaurant was also being set up recently.

Belleview Group, a famous private developer in Penang, planned a "bigger than Mid-Valley" shopping mall and office tower on the other side of the road.

This land that Huayang proposed to acquire is previously owned by GSD Land who has already planned a development called "The Presidence" here since 2012.

The Presidence comprises a 44-storey 480-unit services apartment and 15 units shop offices.

According to the announcement, Huayang's initial plan is to develop 480 units of service apartment, 148 units of condominiums and 16 units of double storey shops with estimated GDV of RM311mil.

Will there be any oversupply situation in Jalan Baru? May be there is, to be frank, but I think property here will have good demand because of its superb location.

While that stretch of Jalan Baru is a booming area, the land that Huayang acquires is not perfect as it is located next to high voltage powerlines.

          Huayang's land at Jalan Baru, Prai

So, there might be a concern whether Huayang's project here will sell well or not.

Definitely some buyers/investors will not consider this project just because of the powerlines.

However, this issue may not concern some other buyers/investors as long as the location, concept and price are good.

Tambun Indah's completed apartment Kelisa Residence launched in 2011 is also located right next to this high voltage powerlines but it is completely sold out.

In Klang Valley, there are quite a lot of projects developed next to the powerlines but it seems like it doesn't matter too much.

Anyway, we can only wait and see whether Huayang has made a correct or wrong decision.

Current subsale market asking price for adjacent Pinang Laguna is about RM300-350psf, while newer Palma Laguna is about RM350-400psf.

Huayang might price its project here at RM350-400psf I guess.

       Part of Huayang's land seen from Pinang/Palma Laguna

How many pieces of lands that Huayang has in Penang now?

It's a bit confusing to me.

Initially in Jan15, Huayang first invaded Penang by acquiring 2 parcels of land in Bukit Mertajam (4.9 acres + 3.14 acres), though it seemed to announce only one of them (4.9 acres).

Then penangpropertytalk website in Sep15 revealed an upcoming development by Huayang in Bukit Minyak, which is within Bukit Mertajam.

This is confirmed as Huayang's subsidiary Tinggian Development has submitted planning permission to develop 90 units strata-titled landed houses and one block medium cost 41-storey apartment with 268 units in Aug15, and it has actually been approved in Oct15.

Initially I thought this Bukit Minyak land is the 3.14 acres land that Huayang acquired in Jan15, even though it seems too small to accommodate such development.

In Nov15, it was reported that Huayang has aborted one of the earlier land deals in Bukit Mertajam, which is the land with size 3.14 acres.

Is this aborted deal referring to Bukit Minyak land? I'm not sure but I don't think it is. The planning permission was actually approved by the authorities.

One day after Huayang submitted its application of planning permission for Bukit Minyak land through Tinggian Development, a company known as G Land Development also submitted its building plan for its phase 1 project at Jalan Baru which comprises a 44-storey 480-unit serviced apartment.

This building plan has been approved since early Oct15.

Now we know that G Land will be acquired by Huayang. So Huayang might start to sell this project as soon as when the land deal is completed in the first quarter of calendar year 2016.

It should contribute to its sales in FY17 starting from 1st Apr 2016.

As a shareholder of Huayang and a Penangite, I view this acquisition positively and hope that the deal will not be terminated like the previous two.

Huayang's Land In Bukit Minyak?

In January this year, Huayang announced that it has acquired a piece of 4.9-acre land in Bukit Mertajam (BM) town center for RM22mil.

However, according to TA research at that time, Huayang will acquire 2 pieces of land in BM. The other land measures 3.14 acres and costs RM9mil.

I think Huayang did not announce the acquisition of "Land 2" above until today, or did I miss it somewhere?

In its latest FY15 annual report, Huayang mentions that it has acquired 8.04 acres land in BM for RM31mil, which is exactly the same as reported by TA.

The lands are planned for a condominium block and serviced apartments respectively, with estimated total GDV of RM314mil.

It is obvious that Land 1 has commercial title while Land 2 has residential title.

The location of Land 1 is confirmed at BM town center near Jit Sin Independent School but there is no mention on the location of Land 2.

Recently penangpropertytalk website reveals an upcoming property development by Huayang in Bukit Minyak which is pending approval by the authority.

This development comprises: 

• 28 units 3-storey terrace  (gated & guarded)
• 62 units 2-storey terrace  (gated & guarded)
• 41-storey condo with 268 units

The location of the land is at Bukit Minyak/Juru area, next to a driving school which I used to get my motorcycle license.

       Huayang's Land 2 in BM?

Bukit Minyak/Juru area is notorious for congested traffic & foreign workers as it is sandwiched between lots of industrial areas.

However, I opine that it is still a good buy for Huayang if the location is really as shown.

The question is: Can a 3.14-acre land accommodate 90 units terrace houses and a block of 41-storey condominium (and also a block of low cost apartment)? It is about the size of 2-3 football fields.

I think it should be OK if the land shape is good.

For comparison, the land area of Huayang's Mines South condominium project is 3.7 acres.

This proposed 41-storey condominium is even higher than the 39-storey Exo Horizon at Juru Sentral not far away. It could be the highest building in the region.

If Huayang can get the approval to build gated & guarded landed community and condominium on this piece of land, then I think the potential GDV should be much higher than RM70.7mil. It could be above RM150mil.

Huayang should not face too much difficulty selling landed G&G houses here, but it needs to come out with something special in order to make the condominium a success.

That cross junction in front of AEON Big in Bukit Minyak should get a flyover ASAP...

Tambun: Another Surprise

Tambun Indah FY15Q2 Financial Result

TAMBUN	FY15Q2	FY15Q1	FY14Q4	FY14Q3	FY14Q2
Revenue	60.0	130.4	110.1	116.8	128.0
Gross Profit	28.0	47.6	38.8	43.8	38.1
Gross%	46.7	36.5	35.2	37.5	29.8
PBT	22.2	41.3	35.1	34.8	33.1
PBT%	37.0	31.7	31.9	29.8	25.9
PAT	17.1	29.9	25.9	25.5	25.4
Total Equity	417.1	427.5	397.0	377.9	351.0
Total Assets	733.7	667.5	661.8	636.8	676.1
Trade Receivables	125.0	146.0	118.0	117.0	106.8
Prop dev cost	67.6	59.5	72.5	83.9	57.2
Inventories	2.2	2.2	2.4	0.3	0.3
Cash	143.4	116.0	131.5	151.1	194.4
Total Liabilities	314.0	237.1	262.4	256.6	323.0
Trade Payables	104.2	95.9	103.9	93.1	102.0
ST Borrowings	39.2	30.9	35.2	13.8	38.3
LT Borrowings	165.0	119.1	117.7	133.2	164.7
Net Cash Flow	12.0	-12.3	17.7	37.3	80.6
Operation	3.6	28.8	-5.5	3.0	-23.1
Investment	-28.3	-11.6	-12.8	8.5	2.4
Financing	36.7	-29.6	36.0	25.8	101.3
Dividend paid	12.6	12.6	26.8	26.8	7.9
EPS	4.05	7.10	6.24	6.22	6.34
NAS	0.99	1.01	0.94	0.92	0.86
D/E Ratio	0.15	0.08	0.05	Net cash	0.02

After a pleasant surprise in FY15Q1, Tambun posts another surprise in FY15Q2, but this time it's a negative surprise.

FY15Q2's revenue (RM60mil) and PATAMI (RM17mil) drop 54% and 43% respectively QoQ.

I don't expect FY15Q2 to match FY15Q1's result but I actually expect a PATAMI of RM20-25mil.

At 1H15, revenue and PATAMI drop 21% and 7.3% respectively compared to 1H14.

Net debt/equity ratio increases to 0.15 as it has completed acquisition of land worth RM39.4mil in Bukit Mertajam in Jun15.

Besides, another surprise is about its new sales achieved in FY15Q2 which is just RM25mil. It is a far cry from RM146.3mil a quarter ago.

According to Tambun, the reason for poorer FY15Q2 is because of the timing of billing, in which a few projects are near completion while 2 new projects launched in end of 2014 are in early stage of construction.

Pearl Avenue shop offices have got its OC in mid Aug while Pearl Residence, Permai Residence & Pearl Harmoni should follow very soon.

The 2 new projects launched in end 2014 mentioned here should be Raintree Park 1 and Pearl Avenue 2.

Construction of Pearl Avenue 2 is running quite well now but progress of Raintree Park 1 is rather slow and is still at very early stage.

Average projects take-up rate is at a good 89.2% which is not a surprise to me, while unbilled sales at end of 1H15 drops from RM443.6mil to RM408.1mil.

Tambun has started to sell other new projects in Pearl City such as high-rise Avenue Garden (2 blocks), Pearl Tropika (DST) and  Raintree Park 2 some time ago.

It seems like these projects are still yet to be approved by local authority by mid-2015 but most of the units have already been snatched up by buyers.

From a visit to Tambun's sales office, I think these projects should register at least 70% take-up rate, especially Avenue Garden.

Earthwork and piling have already started at the site of Avenue Garden, and the show houses of Raintree Park 2 are being constructed now.

When these projects are approved later, then new sales figure is likely to jump.

Avenue Garden & Raintree Park 2 are said to have a combined GDV of RM300mil.





According to the latest Pearl City master plan, there are a few new additions to its residential projects such as Pearl Botanik (gated & guarded) and non-gated Pearl Saujana I, II, III & Pearl Impiana.

I expect these projects to be launched in 2016.

After this, vacant land in Pearl City will be about half the size when Tambun started its first project Pearl Garden here in 2009.

However, high-rise projects such as apartment and retirement village in the future will help to boost its GDV.

       Avenue Garden


In June last year, Tambun Indah announced that it planned to acquire 27 parcels of land measuring 209.54 acres south of its Pearl City for RM150mil.

Unfortunately, this proposed acquisition was terminated in November by Tambun Indah due to non-fulfillment of a condition precedent. 

Since early June15, I believe that the same plot of land has been put on sale online at Mudah.com. The location and size (209 acres) are similar.

The land is still on sale at the moment.

The red line in the map above marks the border of Tambun's existing land according to its latest master plan. It looks like there is an overlapping here...

The asking price for the land is now RM182.1mil, which is 21% higher than price offered to Tambun Indah last year.

The land which is mainly planted with oil palm trees, is accessible via Tambun's Pearl City and a new fly-over on the southern part of the land.

Which developer will get the land finally?

Meanwhile, the construction of GEMS International School is already completed, with internal renovation on-going. It will be the first international school in mainland of Penang.

It has a great list of facilities and those who are interested can arrange for a school tour. It will start operation on 7th September 2015.

       GEMS

I have toured the school and I would say that I am quite impressed.

It has 2 sports complex halls with 3 & 2 badminton courts respectively, 2 swimming pools, 2 basketball courts, a futsal court and a football field.

Other facilities are standard such as library, study corners, play corners, outdoor corners, dance room,  music room, science labs, black box theater etc.

There is a meal plan designed by dietitian as well.

Annual school fees range from RM24,000 to RM40,000, excluding books, uniform, resource fee, exam fee, meal plan etc.

       GEMS


I heard that there are already 170 students enrollment 2 weeks ago. I think it should get at least 200 students when the school starts next week.

Unlike Matrix who owns 100% of its private school, Tambun does not have shares in the operation of GEMS International school but will get rental income from leasing out the 3-storey buildings & land.

According to earlier analyst report by RHB, the rental for the first 8 years will be fixed at 8% of construction cost plus 4% of land value. The rental will increase by 2% annually from ninth year onward.

The construction cost for the school is reported as RM38mil earlier by RHB. If the 8-acre (350k sq ft) land is valued at RM35psf, then the potential gross annual rental will be RM3.5mil, which represents a good yield of 7%.

From latest cash flow statement, there is an addition of investment properties worth RM29.3mil and I believe that it should be the cost for GEMS International School construction.

So, Tambun will start to get full contribution from this rental income from FY15Q3.

       GEMS

Just opposite GEMS, the construction of Pearl City Mall is progressing well and phase 1 is expected to open for business in the first half of 2016.

Tambun has 50% shares in the operation of the mall as it is a 50:50 JV with a mall operator based in Kedah who also operates Amanjaya Mall in Sg Petani.

The construction cost for phase 1 (170k sq ft) is about RM45-50mil and could potentially offer a yield of 8% according to RHB analyst.

So in year 2016, Tambun will add another asset to its book.

Meanwhile, the construction of Jit Sin SPS branch is progressing rather slowly due to shortage of fund. It is expected to start student intake in 2017.

For me, it remains the most important catalyst for residential demand in Pearl City.

       Raintree Park 1

Everyone is concern about the slow down in property market.

In Penang, some may worry that the launch of so many affordable projects by the state government may affect developers who build affordable homes.

I'm not too worry though, as Seberang Perai Selatan is booming and Tambun mainly sells landed houses.

Though I won't define a DST selling at RM450k is affordable, it may still looks relatively cheap when Eco World launch its DST at Eco Meadows later.

If you visit Pearl City sales office, you can see that their new projects still sell very well.

Of course we won't expect Tambun to grow at the same pace like it did since 2010. Its earning may even fall in year 2016.

Like any other developers, Tambun needs to purchase more land to sustain its earning in the future.

Personally I'm still optimistic that Tambun's net profit in FY15 can reach RM100mil.

Tambun's share price has dropped quite a lot in the past one month. With this kind of quarterly result, it will surely succumbed to more selling pressure.

I just consider myself a "business owner" in Tambun who develops Pearl City and who now owns a 20-acre land in the bustling Song Ban Kheng road in BM.

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?