Putra Nilai to launch Jati Heights

PUTRA Nilai Development Sdn Bhd, the property arm of Nilai Resources Group Sdn Bhd, has been one of the key players in the property market in Nilai, Negeri Sembilan.

It started its 6,233-acre township development, Putra Nilai, more than 20  years ago. Putra Nilai has an estimated gross development value (GDV) of RM7.7 billion. “We have developed 55% of it, leaving us with 45% with an estimated GDV of RM4.2 billion,” says Nilai Resources group managing director Datuk Gan Eng Hong.

Apart from property development, Nilai Resources’ core businesses include hospitality, education, landscaping and quarrying. “Property development comprises about 60% of the group’s business, so we are very focused on it,” says Gan.

The group’s new addition to the township will be the 24-acre Jati Heights. The residential component, which will occupy 17 acres, will consist of 82 units of 2-storey terraced houses (Thalia), 80 units of townhouses (Adina) and an 8-storey apartment block. The developer is still looking at plans for the remaining seven acres.

The terraced houses will have built-ups of 2,490 sq ft and the 3-storey townhouses will have units of 1½ storeys each — the lower floor units with built-ups of 1,677 sq ft and the upper floor units with built-ups of 1,864 sq ft. The 120 apartments will have built-ups of 1,100 sq ft.

“We will be launching the landed component first on Feb 20. The estimated price of the terraced houses is below RM650,000,” Gan says, adding that the townhouses will be priced at RM400,000 and below. “We are still working on the prices for the apartments.”

The terraced houses will come with four bedrooms and three bathrooms while the townhouses will have four bedrooms and two bathrooms. The estimated GDV of Jati Heights is RM200 million.

So far, the development has received about 850 expressions of interests from the public for the landed component.

Putra Nilai is close to amenities such as hypermarkets (Giant and Tesco) and education hubs (Nilai University, Universiti Sains Islam Malaysia, Manipal International University and INTI International University). Also in the vicinity are the Nilai Springs Golf & Country Club, Nilai Springs Resort Hotel and Nilai Landscape, which are under the management of Nilai Resources.

Nilai residents can also look forward to the opening of one of the biggest AEON malls in 2018.

“We are targeting buyers from Nilai, Putrajaya, Cyberjaya, Kajang and Bangi. Putra Nilai is accessible via highways such as the North South Expressway Central Link, North-South Expressway, Nilai-KLIA Expressway and Lebuhraya Kajang-Seremban. Jati Heights will be an ideal option for first-time homebuyers and families who are looking to upgrade to landed properties,” says Gan. “The prices are still affordable; they are not over RM1 million like our semidees and bungalows.

“As a township developer, we need to cater for every segment in the market. That is what makes a township thrive.”

He says Jati Heights will be located in the middle of the golf course and near commercial hubs. “The residents will get to enjoy the greenery and the convenience of getting their daily essentials nearby without having to pay a hefty price.”

According to Roja Dani Applanaidu, the head of research and consultancy of Zerin Properties, landed properties in Nilai enjoy high demand from those working in Putrajaya, Cyberjaya and the Klang Valley due to its affordable pricing of RM200 to RM400 psf and average gross yield of 4% to 4.4%.

She says the proposed high-speed rail (HSR) linking Malaysia and Singapore is anticipated to boost property prices in Nilai due to its close proximity to Seremban, where one of the stations will be located.

“Another catalyst would be the 108,000ha Malaysia Vision Valley, which will be developed under the 11th Malaysia Plan, covering Nilai, Seremban and Port Dickson,” she says. “The integrated development will encompass several strategic clusters, complementing the developments in the Klang Valley, particularly Putrajaya and Kuala Lumpur.”

However, Roja notes that there will be key challenges in the area, which will limit price growth in Nilai, such as Negeri Sembilan’s new housing policy that took effect on June 5 last year. She says under the policy, affordable homes will make up at least half of the new houses to be built in the state.

“Of the affordable housing, 15% of the units must be priced below RM80,000 and another 15%, below RM250,000. The remaining 20% must be priced below RM400,000. For the rest of the development, the developer is free to set the prices,” she adds.

“The new policy also states that the bumiputera quota is 50% (previously 30%), which may limit property price growth in Nilai.”

However, Roja notes that Nilai still has a promising outlook due to the growing population, the implementation of the HSR and the planned Malaysia Vision Valley.

Apart from Jati Heights, Gan says the group is also working on other projects in the township. “We launched phase two of Bellina Villas last November, which comprises 14 units of 2-storey semidees with
prices starting at RM1.3 million. Phase one is fully sold. Other projects include 74 units of 2½-storey semidees and cluster homes (Damai Floresta), which is 30% sold, 18 units of 2-storey bungalows (The 18th Bungalow) in Nilai Spring Heights (70% is sold) and our student residence (Lodge Residence), which is 90% sold.”

He says the values of properties in the township have appreciated over the past 20 years. “For example, residential lots that were previously sold at RM20 psf are now transacted at over RM40 psf. The current price of commercial lots is more than RM100 psf.”

On the outlook for the property market this year, Gan says the group is cautious but optimistic. “We just have to be selective with our projects when the market is slow. We still need to build houses for people because the demand is always there. Jati Heights is an example where we build homes that people can afford without compromising too much on the space. They will still be comfortable homes.”

The group is also looking at Seremban Utara for its next project. It currently owns 2,000 acres there. “For the land in Seremban Utara, we are focusing on affordable housing for the young people and first-time homebuyers.”

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This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on Feb 1, 2016. Subscribe here for your personal copy.