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New-Age Portfolio Sdn Bhd, a new boutique developer headed by its CEO Lai Yeng Fock, recently sold every unit of its first project — Kinrara Hills in Bandar Kinrara. And that was without even having an official launch.
“I didn’t want to have an ‘open’ launch because I felt there would be demand for this development based on the positive response to other projects launched in the area,” says Lai, a former executive director of WCT Land Bhd.
Kinrara Hills features only semi-detached houses — a planning decision that has paid off handsomely. “Most houses in Bandar Kinrara are terraced houses and we saw the potential of owners upgrading to semidees,” Lai explains.
Through associates and friends, he was able to sell all the 50 units that were offered. There are four types to choose from, with built-ups ranging from 3,486 sq ft to 4,123 sq ft, and land sizes of 35ft by 80ft and 40ft by 80ft. The selling price starts from RM1.33 million and goes up to RM1.95 million. The developer is offering a defect liability period of 36 months after vacant possession.
The semidees, all of which are three storeys, are fitted with CCTV and alarm systems, while a guardhouse will be constructed at the sole entrace to the development.
Kinrara Hills borders a forest reserve and is a short distance away from Kinrara Golf Club. Sitting on 5.7 acres of freehold land purchased from Perumahan Kinrara Bhd for RM11 million in 2008, the development has a gross development value of RM77.57 million.
Kinrara Hills is 35% ready, with completion targeted for June 2011. The first sale was made in May 2010 and the tight completion timeframe, says Lai, is “to give confidence to the customer that we will complete what we have started”.
Since construction began, property values have appreciated about 15% to 20%, and Lai anticipates that it will rise 30% or more when the project is ready.
Considering the popularity of Bandar Kinrara, that isn’t surprising. In fact, property prices for most phases within the township, with I&P Group Sdn Bhd as the master developer, have been on the rise.
Previndran Singhe, CEO of Zerin Properties, says houses launched in Bandar Kinrara since 1991 have appreciated between 130% and 325%. His research shows that 2-storey terraced Harmony houses, with a built-up of between 2,123 sq ft and 2,338 sq ft and completed in October 2007, were sold for between RM338,000 and RM542,000. These houses can now fetch between RM650,000 and RM760,000. The 2-storey Cahaya homes that were completed in August 2009 were sold at RM345,000 to RM656,000 when they were launched. Asking prices for these houses — with built-ups of between 1,751 sq ft and 2,258 sq ft — are now between RM420,000 and RM700,000.
“We do see Bandar Kinrara becoming a more preferred neighborhood due to its maturity, amenities and accessibility to the rest of the Klang Valley,” says Previndran. “It is becoming more popular as time goes by as it is a preferred neighbourhood in the Puchong area.”
Amy Wong, head of research for PA International Property Consultants (KL) Sdn Bhd, concurs with Previndran.
“There is demand for residential offerings in Bandar Kinrara because it is a well-planned township that comprises mainly residential clusters, with schools, community shopoffices, petrol stations and even a Giant hypermarket in the neighbourhood,” Wong says.
She reveals that the 2-storey Sinar terraced houses launched this year, with built-up of 1,757 sq ft, were sold at launch for RM398,000. The current asking price is RM650,000. The 2½-storey variant, with a built-up of 2,746 sq ft, was sold for RM566,888 and the asking price has now risen to RM750,000.
Another phase of terraced homes called Senja was launched this year. The 2-storey variant, with a built-up of 1,741 sq ft, was sold for RM368,888 and is now going for RM600,000. The 2½-storey versions, with a built-up of 2,339 sq ft, was sold for RM482,888, compared to the current asking price of RM700,000, says Wong.
Accessibility is a plus point for the area, which is well served by highways such as Lebuhraya Bukit Jalil, which connects Puchong to Bukit Jalil, Serdang and Sungai Besi, Lebuhraya Damansara-Puchong (LDP) and Kesas.
A proposed LRT line running through Puchong looks set to boost values in the area.
With the strong demand for residential properties in the area, it is no surprise that Kinrara Hills — Lai’s first foray into property development on his own — is fully taken up.
He left WCT Land Bhd in 2008, the same year the company was voluntarily delisted from Bursa Malaysia. His career in property development and construction started in 1982 with Perbadanan Kemajuan Negeri Selangor. He then joined Kumpulan Europlus Bhd and continued honing his expertise at Brisdale Holdings Bhd as general manager.
When he was executive director of WCT Land, Lai led the Bandar Bukit Tinggi (BBT) project — a 1,346 acre township in Klang, and oversaw the d’Banyan Residency @ Sutera Harbour in Kota Kinabalu.
Lai was also involved in The Platinum Plaza in Ho Chi Minh City — a mixed commercial development of office towers, SOHO, business class hotel and shopping mall.
When Lai left WCT Land in 2008, many thought his timing could not have been worse as the global financial crisis was starting to make its impact felt, sending bourses on a downward spiral as governments churned out stimulus packages.
While Malaysia wasn’t spared the onslaught, Lai was able to weather the troubling times. On why he opted to switch jobs at such a time, he explains that “the possibility of riding an uptrend is higher”.
A key factor behind his success at his previous company was providing customer service training to all the staff — a practice he is continuing in his new company. Treating customers well, he believes, will help turn them into promoters of the company’s products and brand name.
“If I treat you well, chances are you will share something good about me,” he explains.
In line with this approach, he recently established a customer call centre called Kinrara Hills Helpline. Offered free to purchasers for three years after the handing over of keys, the dedicated hotline will deal with general home maintenance issues. This could mean help to change a light bulb or to hang a large painting. For larger jobs such as electrical wiring and plumbing, a team of qualified tradesmen will be available.
Moving forward, Lai is in the process of planning a luxury condominium project in Kota Kinabalu. Comprising three 18-storey blocks on a 6.25 acre leasehould tract, the project will offer 324 units. Targeted for launch at end-2010, the indicative selling price starts from RM600,000.
This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 827, Oct 11-17, 2010
