I do not normally write on individual projects but RM1.5 Billion GDV is not a small one. The reason being this is Penang. Land is limited and thus GDVs do not normally become too huge for people to notice. Sunway Bhd has plans to buy four parcels of land in Penang for RM267.42 million. From these, they will develop it into commercial shops, SOHO and high rise residential units with an estimated gross development value of RM1.5 billion. I had hoped that Sunway may be buying lands in the mainland but apparently, it is located near Kek Lok Si temple. I would say quite a matured area and thus should have very high demand if the concept and pricing is attractive.
It would be very interesting to see what’s the price psf that they would be launching their SOHO. In KL, for a lot of matured areas, SOHO is already at RM700psf or higher. A Mah Sing SOHO in PJ area is over RM900 psf, though it comes with some discounts. In Penang island where the land is limited, what would be a good benchmark price for SOHO? The particular area that their land is located is also not known to have any luxury condos, more on landed properties which are not new ones. Nevertheless, my advice is to read about news of people queuing up when it’s launched. Unless of course they priced it higher than the sky. Haha.
Penang transactions has fallen and market continued to be slow and with new 2% levy being introduced, it should slow down the market further. At this point of writing, my friend is looking to negotiate for a better pricing for the condo that she wants to buy. For projects where a lot of units are available, the market is now on the buyers’ side. The bright point is, majority of all these sellers already profit a lot. Question now is just whether they want to profit lesser when they sell. Not a question of loss or profit.
written on 20th dec 2013.
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