Tan Sri Ong Leong Huat (OSK Property): Build homes according to buyers’ wants and needs

TAN Sri Ong Leong Huat is the group managing director and CEO of OSK Holdings Bhd (OSK) and OSK Property Holdings Bhd (OSKP). OSK Group was established as a small stockbroking company in 1963 before it became a financial services group in 1982. The group then diversified into property development under OSKP in 1997 and was listed on the main board of Bursa Malaysia in 2002.

Last year, OSKP and PJ Development Holdings (PJD) Bhd merged their businesses and operations into the OSK Group. Thereafter, a strategic decision was made to merge OSKP and the property arm of PJD under one business pillar, adopting one identity and coming under one brand — OSK Property.

OSK Property now has projects all over Malaysia in the Klang Valley, Penang, Kuantan, Kedah and Pahang. Last year, the group obtained the approval for a five-acre parcel in Melbourne, Australia. But little do people know that Ong had developed his first project in Seri Manjung, Perak some 40 years ago and it was his perseverance and hard work that is moving OSK Property to the forefront of property development in Malaysia.

TheEdgeProperty.com: Building and selling homes — what was it like then and now?

Tan Sri Ong Leong Huat: About 40 years ago, people just wanted a shelter for their families. Now, times have changed. Homebuyers no longer just want a roof over their heads. They are looking for lifestyle and convenience where their daily needs are easily accessible. They might want a sky deck, gym, swimming pool or shopping facilities nearby. The market has changed. In recent years, my sons have come back home to Malaysia [after pursuing their higher education abroad] and they have definitely given a lot of input and ideas on what the younger market wants today.

As a developer, it is not about what you want. It is about what the buyers want in a home and how you can build homes according to their wants and needs. As the industry evolves, OSK Property has definitely adapted to market needs and changed our product offerings from time to time to stay relevant. If you choose to build what you want to build and not what the market demands, you will not be able to sell your projects. Our projects such as Timurbay Seafront Residences in Kuantan and Windmill Upon Hills in Genting Highlands have shown good take-up rates even in these challenging times because we know what the market wants.

How many homes have you built?

All in all, I have built close to 70,000 homes. That is only the residential component. I have also built commercial buildings such as shopping complexes.

We have won more than 55 local and regional awards over the past six years for our projects such as the Atria Shopping Gallery in Damansara Jaya, Eclipse Residence in Cyberjaya, and others.

What was your most memorable project and why?

A project close to my heart will definitely be the very first project that I embarked on — a 70-acre mixed-use development with over 800 units in Dinding, now known as Seri Manjung, Perak. It was developed together with my family members and friends. I used to stay in an “atap” house some 8km away from the project in a town called Ayer Tawar. The floor of our house was made of mud. At that time, I envied those who had the chance to stay in a concrete house. Of course, a 70-acre mixed-use development now may seem like a small project, but at that time, it was big. Till today, it is still one of the biggest projects in Seri Manjung.

The project gave me absolute satisfaction and is one of the greatest and most exciting memories I have in property development. From staying in an “atap” house and envying those who stayed in concrete houses, today I consider it a miracle that I can build concrete houses and properties that can make an impact and change a person’s life for the better.

Buyers are getting younger. How do you engage them?

For every project we embark on, we allocate some 30% of our advertising and promotions budget to digital marketing. On top of that, we also conduct focus groups in different project locations to gather feedback from the public. We then absorb their input and adjust the design and plans for our projects according to their needs and wants.

What are your investment tips for first-time homebuyers?

I always advise first-time homebuyers to factor in the location of their workplace and their home. If you are working in Petaling Jaya, then stay in Petaling Jaya. If you are working in Rawang, then don’t buy a house in the city centre. People often overlook the small costs such as fuel and toll which they pay while commuting to and from their homes daily. In time, these small costs will amount to large sums that will be taken out of their monthly income.

On top of that, just imagine the time spent on the road. If you are stuck in traffic an hour one way to get to work and another hour to get back home, that makes two hours just wasted on the road. You still need to send your children to school, eat, rest. Don’t buy a house just based on the design but instead, look at all these other costs.

How key is social media to your business — are you on social media?

OSKP has close to 49,000 followers on Facebook and we also have a YouTube channel for viewers to view video clips of our projects.

Your property outlook for 2016/2017?

Housing is always a need regardless of whether it is a good time or a bad time for the economy. The property sector will not collapse. It’s just a matter of where the demand is, and who and where these people who need houses are. More people are coming into the city centre from rural towns, which create a growing need for homes. There are also more young homebuyers now who are moving out to start their own families. We also need shoebox units for small families. Of course, growing families and the older generation are also constantly upgrading their homes to suit their lifestyles and needs.

There is talk that the property sector will pick up towards year end. I, on the other hand, do not think so. Instead, I feel the property sector will move up gradually over a period of time as it makes adjustments. It will not be an overnight or a short period of adjustment. Every cloud has a silver lining. This is the time for aspiring homebuyers to take their time to pick houses that suit their needs and lifestyles without having to rush.

What is your aspiration for the Malaysian property sector?

If you are a responsible property developer, this is actually a very noble business to be in. You are building houses for people and providing a shelter over their heads. On top of that, you are also creating employment and supporting businesses in this industry for engineers, architects, salesmen and others. This is something which we really feel good about.

You can leave a very good legacy behind in all the projects you have built and embarked on and that is definitely what we want to do.

● Tan Sri Tan Seng Leong (BCB Bhd): Look out for signs of recovery

● Tan Sri Lee Kim Yew (Country Heights Holdings Bhd): Land is the key to accumulate wealth

● Tan Sri Liew Kee Sin (EcoWorld): Achieve greater heights by embracing technology

● Tan Sri Lim Kim Hong (I-Bhd): Well-planned projects less affected by negative factors

● Tan Sri Lim Kang Hoo (Iskandar Waterfront Holdings Bhd): Act on opportunities from the HSR link

● Tan Sri Lim Hock San (LBS Bina Group Bhd): The keys to success are product, location and pricing

● Tan Sri Leong Hoy Kum (Mah Sing Group Bhd): The ability to adapt to change is crucial

● Tan Sri Mohamad Salim Fateh Din (MRCB): Malaysia’s property market will continue to be dynamic

● Tan Sri Eddy Chen (MKH Bhd): We need more liveable homes

● Tan Sri Lim Soon Peng (Titijaya Land Bhd): Affordability — key to homebuyers’ needs today

● Tan Sri Danny Tan Chee Sing (Tropicana Corp Bhd): Engage customers through social media wisely

This story first appeared in TheEdgeProperty.com pullout on Aug 26, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.