While Perak, particularly Ipoh, is seeing an upturn in property developments, developers are not quite happy about the new premium rate system imposed by the state administration.

"The Perak government should be more sympathetic to the property development sector as it is the locomotive' for economic growth in the state," said San Chak Chun, Honorary Secretary at the Perak Chapter of the Real Estate and Housing Developers' Association Malaysia (Rehda).

He added that the property sector plays an important role in over 140 industries and trades in the economy and creates many job opportunities for locals.

"But the cost of doing business for property developers has been on the rise since the state government changed its method of calculating the conversion premium from nett saleable area to gross area of a housing scheme which saw a 100 percent increase in the premium rate payable by the developer even for his own land. The capital contribution charged by the National Water Services Commission or SPAN (Suruhanjaya Perkhidmatan Air Negara) is another burden."

The developer is entitled to pay a premium of one percent of the land psm on residential property and 10 percent for commercial property.

On residential property developments, San said projects located in Ipoh city and nearby towns are still selling well and have seen prices grow 20 percent to 40 percent for double-storey terraced houses.

"A standard two-storey linked house in Ipoh city is selling about RM390,000, whereas in other areas and in suburban localities, such a property can now fetch RM240,000 and upwards," he added. Meanwhile, semi-detached houses are priced at around RM800,000 per unit having built-up space of 3,500 sq ft and a land size of 45 ft by 80 ft.

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