MARCH 28, 2014
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L
ast
week’s article highlighted the
overall property scene in Kedah. We
nowdrawyour attention to the wide
range of residential estate offerings.
Also known by its honorific Darul Aman
whichmeans “abode of peace”, Kedah stays
true to its name. Ask any Kedahan and they
will relate the temperament and character
of this rather enchanting state where life is
unhurried and all elsemoves at just about a
snail’s pace. There is a less hectic feel
throughout Kedah, reflective of its quaint
towns, complete with interesting nooks and
crannies that intrigue those with a sense of
adventure andmystery.
With the state government’s “Kedah
Transformation Lab” programme nicely
coming along, efforts to boost tourismand
economic growth are positively impacting
the real estate industry.
Three property developers, renowned
for their projects in Kedah, share details
about some of their real estate ventures.
Paramount Property
Paramount Corporation Berhad (PCB) was
originally involved in the ricemilling
business. Opportunity knockedwhen a
member of the Teo familywas offered a
substantial part of an oil palmestate in
Sungai Petani whichwas too good to refuse.
Realising the need for good quality housing
tomeet the needs of Malaysia’s growing
population, PCB restructured its company
business model and ventured into property
development in 1978. Soon, it moved into
developing townships andmade a name for
itself in the region. Its first residential-
commercial development was Taman
CUT AND KEEP
>Expanding inmarket size, range and taste
Lure
of
Kedah
Patani Jaya, whichwas popular because of
its township design and planning. This
paved the way for PCB tomove
aggressively in Sungai Petani. Not long
after, the developer launched its first
guarded and gated development, Bandar
LagunaMerbok, whichwent on towin a
prestigious FIABCI award.
Bukit Banyan is its latest development.
It is a residential township established on a
hilltop enclave. The prestigious location
offers a guarded and gated housing estate
on the foothills of a lushmountain that is
built around a forest park that houses eight
thematic landscaped zones. It is the first
and only hilltop development in Kedah and
spreads across 520 acres of undulating hills.
Themixed development project is known
for bringing nature to the doorstepwhile
keepingmodern conveniences within
reach. Designs are practical and flexible,
more spacious and offer the best, indoors
and outdoors, at any time of day. There is
also a 13-acre commercial centre located
just nine kilometres away fromSungai
Petani town centre, offering daily
conveniences and creature comforts.
On developing land in Kedah, PCB’s
Group CEODatuk Teo Chiang Quan
replied: “
Malaysia’s population is
growing steadily,
primarily in the
middle-income segment
, leading to
high demand for good-quality,
affordable housing that can
accommodate the needs of growing
families.
This is most apparent in
northern PeninsularMalaysia, which is
experiencing sound economic growth,
increased FDI and population influx
due to expanding opportunities
. I am
confident that the northern regionwill
continue to see strong growth, and the
opening of the Second Bridge will also
open up new areas of growth on the
mainland, especially in Kedah.”
Paramount Property is known for
its many valued development projects
that include townships, high-rise and
luxury residences, as well as industrial
and integrated developments
. After 30
years in the industry, it has grown to
become one of the largest developers of
land in Kedah. “Property buyers in Kedah
aremostly owner-occupiers but we are
starting to see a growing secondary
market, especially fromup-graders.
With the ‘Kedah AmanMakmur’ initiative
launched last year to transformKedah into
a fully developed state, we expect the
propertymarket to pick upwithmore
buyers and better purchasing power.
We could evenwitness an up-trend
with foreign buyers as the state starts
to attract more foreign and domestic
investments especially in the
automotive and industrial sectors
,”
shared Teo, who is bullish about
Paramount’s prospects in Kedah.
Epic Valley Group
At the helmof
Epic ValleyHoldings
Group, a property development firm
with a
turnover of RM350million and
450 employees
,
is Tan Sri Datuk
Paduka Dr Fng Ah Seng
. Born and
raised in Bukit Mertajam, Penang,
Fng spent 14 years studying abroad. On
returning toMalaysia, he foundwork at a
development and construction company.
During the global economy crisis in 1998,
Fng established a property development
firm. The company’s first project was a 49
unit low-cost terrace home development in
Selama, Perak. Soon after, Fng took on
projects in Kedah, eventually in states
like Perlis, Penang, Terengganu, Pahang
and Selangor.
“We have been operating in Kedah for
the past 15 years. We choose to develop land
here because of themixed population and
the state government’s pro-business policy,”
Fng said.
Today, Epic Valley has built more than
2,000 units of houses throughout Kedah.
The developer has projects in almost all
parts of Kedah, including Changlun, Jitra,
Kuala Nerang, Bukit Tinggi, Alor Star, Kuala
Kedah, Sik, Relau, Sungai Petani, Kulim,
Bagan Samak and Langgar. Epic Valley is
known for the construction of one and two-
storey shophouses, one and two-storey
semi-detached houses, one and two-storey
terrace houses, and one/two and two-and-a-
half-storey bungalows. The group’s most
recent project is in Langgar, amixed
development project.
While the state government works to
improve its economic planning and
development, living standards have
risen, giving Kedahans better earning power
and better lifestyles. “Hence, property prices
have escalated, almost doubled in
some areas; all within a span of five
years. The current optimum
selling price for residential
properties in Kedah lies between
RM200,000 and RM500,000.
These are affordable tomost
Kedahans today,” Fng reveals.
The civil engineer with two
MBAs and a doctorate doesn’t
deny that there are certain state
government housing policies and
regulations which hinder and
restrict, causing limitations to the housing
development industry in Kedah.
“Developers are strongly encouraged to
implement their projects in amixed
population area to facilitate the wants and
needs of both the bumiputra and non-
bumiputra populace. This is to ensure the
bumiputra quota for the entire project can
be easily fulfilled. It will also help facilitate
the cash flow situation and avoid stagnant
sales which can jeopardise the financial
situation of the housing developer.”
Encomas Sdn Bhd
Datuk Rick Cheng comes froma family of
builders. A registered civil engineer, born in
Penang and raised in Kedah; both his father
and grandfather were contractors. When
Cheng took over the reins fromhis father, he
decided to steer the company into property
development after the global economy
crisis. Proudly, he shares that Encomas Sdn
Bhd does not sub-contract any jobs out. “We
have been in this line for three generations.
All our people are trained and
experienced. Bymaintaining and
performing all the jobs across the board,
we can control the quality and speed of all
our projects.”
Encomas has residential and
commercial projects throughout Kedah,
right up to the northern districts in
Perak and some parts of Perlis. On the
drawing board is a luxury serviced high-
rise project on the island of Langkawi.
“It will be launched in a year, max two.
About 40%of our newprojects are in
Perlis, in the Arau and Jejari districts.
Not many developers know about the
potential in Perlis,” Cheng shares.
While the company’s bread and
butter lies in the construction of
affordable homes - terrace houses
and semi-d’s, Cheng says the super-links
are popular. “Theymeasure between
900 and 1,000 sq ft and cost about
RM180,000 to RM190,000, which is very
affordable.” Cheng figures Kedahans
prefer single-storey terraces and semi-d’s.
“Landed property is still preferred
although highrises havemade inroads
into the residential property scene and
are gaining favour.”
Encomas was the first property
development company to introduce
guarded and gated residential estates in
Kedah. Villa Seri Tunkuwas first to carry
this concept. It was a joint-venture
between the Kedah royal family and
Encomas. The pioneer project was also the
first to put up a house with a RM1 million
tag. “I still remember the bank officer
calling our company to re-confirm if the
price was right.” In progress is a
commercial project in Jitra, Kedah.
“The Plaza Seri Tunku project design is
impressive. It offers Kedahans the first
F&B-themed lifestyle business park.”
Kedah’s first guarded and gated development:
Villa Seri Tunku by Encomas.
PCB’s latest luxury residential project: Bukit Banyan.
Epic Valley’s Taman Kelana Jaya housing
project in Langgar.
Part 2
Residential property transaction
statistics by ‘house-type’
Type
Total
1 - 1½ Storey Terrace
Q3 2012
Q2 2013
Q3 2013
838
1182
751
2 - 2½ Storey Terrace
325
558
409
1 - 1½ Storey Semi-Detach
690
854
490
2 - 2½ Storey Semi-Detach
218
289
148
Detach
149
150
100
Condominium/Apartment
77
13
19
Cluster House
8
11
10
Town House
7
1
1
Flat
0
1
0
Low-Cost House
574
655
599
Low-Cost Flat
20
6
7
Statistics taken fromNAPIC (National Property
Information Centre).
property
The company recently launched
Taman Kancil 7, its first environmental
friendly semi-d residential project. It is
located in the royal town of Anak Bukit
andwas created in-line with the design
concept: Simple Life, Simple Design. The
plus-point about this project is that home
owners have the flexibility of customising
their own space.
Although property in Kedah is
affordable, Cheng says that city folkmay
find it difficult to relocate and adjust to the
quiet and simple lifestyle. “There is hardly
any entertainment or nightlife in Kedah,”
says the REHDAPerlis/Kedah chairman.
Still, with all the property development,
government plans and expansion
programmes,
onemust recognise
Kedah’s growing attraction for real
estate investment
.
