The Henge set to change Kepong skyline

We used to hear regularly of people lining up a day or two before the launch of a new property development project, just to make sure they can grab one unit or two. When demand was huge while properties offered for sale were limited, some developers would ballot their properties to be fair to the prospective buyers.

Today, we see big crowds at the launch of new gadgets, but not so much for property. It is not a case of the public losing interest, but of average property prices rising out of reach of, especially, the younger generation.

“We have to understand that land doesn’t give birth to more land. Most of the new developments in prime locations cannot go wide or flat, but must go up. And the same goes for the price,” says Michael Chai, the project director of Aset Kayamas Sdn Bhd.

The second generation of a developer focused on affordable housing, Michael agrees with his father’s vision, which is to offer affordable, good quality housing to the community.

His father is the founder and managing director of Aset Kayamas, Tan Sri Chai Kin Kong. “I wish to do something for the community. I think, as a developer, I can provide real affordable housing to the community,” Kin Kong says. Most of the company’s projects are priced below the market.

Aset Kayamas was established in 2013. Its maiden project was a high-rise, high-density project named Parkhill Residence in Bukit Jalil, launched in the second half of 2014.

Kin Kong, who is the director of a few property development companies in a variety of property segments, decided to set up Aset Kayamas to focus on affordable housing projects. To date, the company has ongoing projects worth more than RM1 billion, all of which are high-density affordable housing. 



“We will never compromise on quality and lifestyle over affordability. The selling prices of our projects are generally 20% to 30% lower than the market price. Selling at a lower price does not mean you have to sacrifice lifestyle and quality. For The Henge at Kepong, our latest project, we provide a good concept and quality condominiums at affordable prices,” Michael says.

Drawing inspiration from the ancient monument Stonehenge in Wiltshire, England, Michael and his team sketched out the façade of The Henge, consisting of four tall buildings surrounding 29 condominium facilities.

The leasehold development comprises four 45-storey blocks with a total of 1,472 units, located on a six-acre tract next to Taman Metropolitan Lake Kepong.

It has two acres of open space at the podium level featuring a full range of condominium facilities, such as a wading pool, lap pool, jacuzzi, floating sundeck, aquatic pond with stream room, wellness deck and lakeview deck, where residents can look out on the Metropolitan Lake.

Michael says The Henge has a dual concept — tropical by day and dream-like  by night. The units facing Metropolitan Lake will enjoy a tropical view during the daytime and LED lights around the facilities podium will give the residents a totally different view at night, he says. The concept, quality and pricing are equally important in planning and marketing a new development, he adds.

“The younger generation, one of our target markets, look for more facilities and stylish projects when making property purchase decisions. But most of them have to make compromises on (quality, price or concept) simply because there is a lack of products that emphasise all these three elements,” Michael says.



At prices starting from RM404 per sq ft or RM445,000 onwards, a total of 736 units (built-ups between 1,100 sq ft and 1,300 sq ft) in the first two blocks were fully taken up within two days of the official launch on the first weekend of August.

“We saw buyers queueing up the night before the launch ... All units were sold within two days. This indicates that the market is not really slowing down, but that there are too few affordable projects that the masses are looking for,” says Kin Kong, adding that only 5% to 7% of the buyers are still in the process of obtaining loans now.

In the mature Kepong area, The Henge is a high-density development, believed to be the highest in the vicinity.

“However, we are not compromising comfort. We offer close to two acres of open space, facilities and two parking bays for every unit. There are five lifts in each block to ensure the residents are well-served,” Kin Kong says. Each floor has an average of 10 units.

The facilities floor in the 9-storey podium building has eight car park levels below and 35 shoplots on the ground and first floor. The developer is still in the process of finalising the sizes. There are no plans to sell the limited shoplots, which will be rented out for recurring income.

“The take-up rate was never a concern for us in launching The Henge, despite its high density. Our strength is the location and unbeatable price. I believe there are no similar lakeside projects offering something like this at such a price,” Kin Kong says.

Besides a four-tier security system, there is an access door to the Metropolitan Park.

“With the resident touch card, our residents can access the park anytime they want. We did not disturb the park but we are complementing it with our project,” says Aset Kayamas general manager Lee Chan Kuen.

The Henge is 2.8km away from the Kepong KTM station and a stone’s throw away from the proposed MRT2 station — Metro Prima Station (850m away).

It is also well connected via the Middle Ring Road 2 (MRR2), Jalan Kuching, Jalan Ipoh and Lebuhraya Damansara-Puchong Expressway (LDP).
Nearby amenities  include schools, shopping malls, shops, banks, a hospital and the Forest Research Institute Malaysia.

“Upon completion in 2019, The Henge will be the tallest lakeside residential development in Kepong. No one will miss the building once they are in the vicinity.  It will change the skyline of Kepong and is set to be a landmark,” says Lee.

Volume is key

Kin Kong has no immediate plans to launch the remaining two blocks of The Henge. “We are looking for the right timing. Moreover, we have to focus on our ongoing projects, such as our latest Rumah Mampu Milik Wilayah Persekutuan (RUMAWIP) project, Residensi KepongMas.” 

Located right beside The Henge, Residensi KepongMas is an affordable housing project by Sinerjuta under the RUMAWIP scheme, which will be developed together with The Henge.

Residensi KepongMas is a two-block, 41-storey condominium with a total of 1,514 units. Each has a built-up of 800 sq ft comprising three bedrooms and two bathrooms, with units price from RM188,000 to RM198,000.

It is open to Malaysians aged 21 years old and above, living or working in Kuala Lumpur for at least three years, with a total household income not exceeding RM8,000, who do not own a property in Kuala Lumpur.

Under the scheme, registrants cannot choose a unit, which will be assigned via balloting. The successful buyer is also not allowed to sell or rent out the unit within 10 years of the signing of the sale and purchase agreement.

“We bought 10 acres of land in Kepong and decided to allocate four acres for Residensi KepongMas, and the remaining for The Henge,” says Kin Kong.

Without any incentive, allowance or subsidy from the government, Kin Kong says Residensi KepongMas is being built at a loss. The developer will decide who is eligible and do the balloting, but it will follow the criteria of the government affordable housing scheme.

“The project cost is covered by The Henge and the sales volume,” Kin Kong says. This is why The Henge is designed as a high-density development, he explains.



Michael concurs that volume is the company’s core marketing strategy. The two high-density developments, with a combined gross development value of RM1 billion (The Henge RM700 million; Residensi KepongMas RM300 million) offering a total of 2,986 units, have created a buzz in the area, especially since Kepong is already a high-traffic township.

“The total number units of The Henge and Residensi KepongMas is a bit higher than others but it is at the optimum level. We are not sacrificing the comfort of living. High-density, super high floor residential is a concept relatively new to the Malaysian market, but this is the trend going forward,” says Lee.

According to a traffic study sponsored by the company, Kepong will be able to afford the additional traffic once both developments are completed in 2019.

“There are proposed roads to connect the sites to MRR2, apart from three new MRT stations that will be built and operating soon. We don’t see traffic as an issue,” Lee says.

No bad times for the property market

Michael believes there are no bad times for the property market. “The only reason people stop buying houses is the pricing. I would say the market is going through some price adjustment now. For our projects, we had already adjusted the price before launch.

“As long as we have the right location, right target market and right pricing, you will still see crowds lining up outside the sales gallery like the launches for The Henge and Residensi KepongMas,” Michael says.

Although affordable housing is the focus of the company now, Michael does not rule out that it will change its strategy when the market situation changes in the future.

“We have been adjusting our strategy from time to time to survive in a competitive industry. Nevertheless, we never have and never will sacrifice our company vision for profit,” Michael says.

Moving forward, Aset Kayamas plans to launch two more RUMAWIP projects in Puchong and Jalan Gurney.

“We are not slowing down or holding back any launches, our products are  based on market demand.”
 

Read an analysis of the Kepong property market by Tang Chee Meng of Henry Butcher Malaysia here.

This story first in appeared in City & Country, the property pullout of The Edge Malaysia weekly, on Nov 2, 2015. Subscribe to The Edge Malaysia here.