GEORGE TOWN: Ideal Capital Bhd will develop about RM1.12bil worth of residential properties in Bayan Lepas, Penang, this year.

According to group executive chairman Tan Sri Ooi Kee Liang, these properties comprised projects that were launched in 2022 and 2023.

The projects, Lucerne Residences with a gross development value (GDV) of RM340mil and Maldives Residences (GDV of RM780mil), have already been 85% and 50% sold, respectively.

“We are optimistic that the Lucerne and Maldives Residences will be sold out by 2025 and 2027, respectively,” Ooi told StarBiz recently.

The Lucerne Residences, a semi-luxurious scheme, are priced from RM670,000 onwards, while the Maldives Residences, a mid-range project, are priced from RM498,000.

Ooi, who also helms Ideal Property Group as executive chairman, said Ideal Property would be launching the Queens Residences 3, a luxurious project with over RM1mil price tag, in the second quarter of 2024 (2Q24).

Queens Residences 3 will have a GDV of RM720mil.

“We are confident that Queens 3 will sell well. The responses to the first two phases of Queens Residences were overwhelming, although the price of the units ranged between RM940,000 and RM2mil.

“The Queens Residences registered solid sales because the condominiums are close to the Queensbay Mall, the first and second bridge as well as Pantai Hospital,” he said.

Meanwhile, Ooi said the selling price of properties would be adjusted following the 2% sales and service tax (SST) implementation in March.

“The move will raise the cost of building materials and property prices,” he said.

In addition, Ooi said due to the current value of the ringgit, foreign enquiries for high-end properties had surged by a double-digit percentage.

“There is also a shortage of high-end properties in strategic locations. The enquiries for the Queens Residences project are from Taiwan, Singapore and Hong Kong.

“Chinese nationals who buy properties in Penang have investments here.

“Despite the steep pricing, foreigners have been buying the completed Queens Waterfront Phase 1 and 2 in Bayan Lepas,” Ooi said.

According to Ooi, Ideal Property Group will launch in 4Q24 a commercial and office tower, a five-star hotel and super-condominiums with a GDV of RM900mil under the Queens Residences Phase 4.

One Asia Property Consultants (Pg) Sdn Bhd executive director Chandra Mohan Krishnan said residential property prices were currently at between RM630 to RM680 per sq ft.

“After the 2% SST implementation, the residential housing prices are expected to increase to between RM750 and RM800 per sq ft next year,” Chandra said.

He added that Penang currently has a property overhang of 2,947 units.

“There are 503 unsold units, or 17%, priced below RM300,000. Most of these units are unsold due to the applicants’ failure to obtain financing,” he said.

Chandra said the revised Malaysia My Second Home (MM2H) programme guidelines to allow foreigners to buy properties priced from RM500,000 onwards would help stimulate the local property market.

The National Property Information Centre (Napic) in a report said some 5,742 property deals were transacted in Penang in 1Q23, reflecting about 10% increase compared with the same period in 2022.

“The transacted deals in 1Q23 in the state was worth about RM6.12bil, depicting a significant growth of more than double the value transacted in the corresponding period of 2022 (RM2.82bil),” added Napic.

Ideal Capital recorded RM34.5mil in after-tax profit on RM387.3mil in revenue for nine months of its 2023 financial year, which ended on Sept 30, 2023.

Projects currently underway and in active progress include affordable housing such as Ideal Residency and Ideal Venice in Island Glades and Havana Beach Residences in Bayan Lepas.

“While we have the residential units under construction, our company is now concentrating on industrial land, underscoring a strategic shift towards fostering industrial growth and development,” said Ooi.

Barring any unforeseen circumstances, he said the company expects the property sector to contribute further to its future revenue and profits.