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

TITIJAYA Land Bhd group managing director Tan Sri Lim Soon Peng has been in the property and construction sector since he was 17 years old.

His very first project was in Fraser’s Hill in the 1980s for a few landowners there. At that time, the construction of the holiday bungalows was a project that others were not keen on due to the challenges the hillside development posed, including factors such as earth stability, location, logistics, and others.

He subsequently developed the Silverpark Apartments in Fraser’s Hill via a joint development with Malaysian General Investment Corp Bhd. Upon completion of a few more projects, Lim decided to acquire his own land to develop small and medium projects mainly in Klang, Selangor. Through Titijaya (M) Sdn Bhd, which is currently inactive, he undertook the development of Taman Bukit Cheras in Kuala Lumpur, comprising double-storey terraced houses and shopoffices in 1996.

In 2004, Titijaya successfully launched its first high-rise residential development called E-Tiara Apartments in Subang Jaya. This then led to a string of developments ranging from residential, commercial to industrial properties.

From a small developer, Lim is very proud to see that Titijaya has now become a reputable brand and a public listed company. Titijaya Land Bhd was successfully listed on the Main Market of Bursa Malaysia in November 2013.

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

Tan Sri Lim Soon Peng: Through the years, the market has evolved and we have seen changes in demand and the demographic landscape in Malaysia. Co-relate that with the rising cost of living and the lifestyle of the new generation (ie Gen Y), as property developers we have to develop our properties to suit the needs and lifestyles of our customers. Developments now come with well-equipped amenities, ease of access to highways and public transport, smaller and affordable units, etc. The industry is facing strong competition due to scarcity of land, appreciation of land prices and the rising number of boutique developers in town.

We have definitely seen a slowdown in the property market in Malaysia that is curbed by the cooling measures that were implemented as an initiative to deter market speculation.

In the past, homebuyers’ requirements were much simpler and less sophisticated. Location was key, obviously, but they were also seeking suitable space, affordable investment, and build quality.

Now, homebuyers not only want a roof over their heads but are looking to accommodate affordability with lifestyle demands. Hence, now developers have to put in more effort in adding sweeteners into our developments such as swimming pools, gardens, fitted interiors and even home appliances.

In terms of selling, the marketing back then was quite simple — for example, through newspapers and estate agents. Today, digital and social media technology has taken over. So property developers will need to ensure that we are well versed with social media and technology, in order to capitalise on these advancements and to improve our competitive edge and market visibility.

What was your most memorable project and why?

My most memorable project was the construction of the individual bungalow villas at Frasers Hill for the respective property owners. I was honoured to have had the opportunity to build for so many renowned property owners and worked with such reputable architects and interior designers at that time. The project was an eye opener for me. It widened my vision with new ideas and drive to expand my company in the construction and property industry. It also built my passion and determination to go beyond building individual houses. For that project, I was only a builder for their holiday homes, but they gave me an opportunity to achieve bigger goals and my own dreams.

Buyers are getting younger. How do you engage them?

We engage them through every medium of communication, rationalising our marketing and advertising across “new” and “old” channels.

The Internet is certainly a powerful tool; we are able to run campaigns on social media, property websites, e-advertising, etc. In addition to that, we provide a personal touch by setting up roadshows, and comprehensive showrooms to engage our customers in person.

We understand the need for the younger generation to have the satisfaction of owning a home that they can afford. Therefore, we are developing and innovating our developments to cater to their demand and needs.

Titijaya is focused on developing pocket lands in strategic locations where amenities are abundant, a must to serve the needs of today’s modern lifestyle. We are also specially driven and focused on the design and concepts of projects that will catch the eye of buyers. In addition, we are designing affordable products that are ultimately the deciding factor for all our customers.

What are your investment tips for first-time homebuyers?

LOCATION, LOCATION, LOCATION.

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

Over the years, social media has played an increasingly important role in our business especially when it comes to marketing and communicating with our clients. Apart from the traditional advertising and local road shows, we allocate about 50% of our marketing and communications budget to digital and social media. These technology platforms reach out to the mass population of the technology savvy Gen Y.

Your property outlook for 2016/2017?

For 1HY2016, developers have been cautious and strategically launching their developments on a smaller scale. So far, there has been a good level of demand and bookings (for such launches); however, the real test will be converting the bookings into actual sales.

I believe the property market has and still is feeling the pinch. The market is still experiencing stringent approvals for property loans. Concurrently, we have seen a cut in the overnight policy rate and reduction in bank lending rates by some of the banks recently to stimulate the economy. Hence, we believe that allocating a portion of our developments towards the “affordable price tag” will help us sustain market interests and adapt to the changing property environment.

We believe that the property market, like any other industry, is susceptible to business and economic cycles, and Titijaya has been through these cycles. We have learnt from past experiences and we are always thinking ahead to ensure that we are well prepared to face downturns, which can also be turned into opportunities for long-term profits.

The factors that determine the success of a property developer are the ability to evolve, strategise and develop innovative products to fit market demands; and to be able to identify emerging developing locations to maximise project sales, values and to capture the interest of the market.

We do see catalysts that could excite the sector such as new public transport infrastructure, satellite towns which will be connected and be highly accessible, and also advancements in construction methodologies, which will result in more efficient construction and better building materials.

What is your aspiration for the Malaysian property sector?

My personal aspiration for the Malaysian property sector is to see an increase in the number of homeowners who are able to purchase a property within their financial comfort. Due to various macroeconomic factors and industry events, the balance between the “seller” and “buyer” market has been swayed. Adding to the challenge of buying their first home is the dynamics
between the homebuyers’ subjective desires and the objective reality. In buying a home, it is vital to consider these two dimensions in tandem (subjective preferences and the reality of economic resources).

For first-time and young homebuyers, there are various financial support made available from government schemes, financial institutions and developers. Property developers today are adopting a more innovative marketing approach to assist first-time buyers in financing their first home.

We also hope to see property prices stabilise so that we can develop the right products for genuine buyers in a sustainable property market. Hence, developers will be able to innovate and roll out projects according to market demands and simultaneously produce products that can meet the financial comfort of various homebuyers.

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

● 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.