By Julie Chong
Unfazed by the competition posed by existing high-end developments, such as Sierramas and Valencia, OSK Property Holdings Bhd is poised to become a major player in the continuing transformation of Sungai Buloh from a lower-middle class area into a thriving modern township.
This is evident in its move to develop a 100-acre site in the vicinity of the Sungai Buloh New Village into a mixed-township development called Sutera Damansara, OSK Property's second project in the Klang Valley.
OSK Property's quest began in August 2007 when it acquired a 51% equity interest each in Semponia Sdn Bhd and Country Wheels Sdn Bhd. These two subsidiaries then entered into a joint-venture agreement with landowner Permodalan Negeri Selangor Bhd to develop the land in Pekan Baru Sungai Buloh.
The guarded development comprises 2 and 3-storey terraced houses, 2-storey superlink houses, 2 and 3-storey semi-detached homes, low-cost flats, low-medium-cost apartments and medium-cost apartments. There will also be 24 units of 2-storey shopoffices, with built-ups of 3,200 sq ft. These will be developed over five phases, with a gross development value (GDV) of about RM600 million.
The first offering within Sutera Damansara is Sutera Ria, comprising 431 units of 2 and 3-storey terraced homes, with built-up areas ranging from 2,305 to 3,063 sq ft. Targeted for launch this month, Phase 1A is slated for completion by 2010. Prices start from RM463,000 to RM1 million. This township also comes with restricted access to ensure security. The monthly maintenance fee is RM60 per month.
About 11.79 acres will be developed into a recreational park consisting of a lake, gazebos, children's playground and jogging trails. Sitting on leasehold land, Sutera Damansara is accessible via the MRR2, NKVE, Penchala Link and Lebuhraya Damansara-Puchong, which are all 15 minutes away.
OSK Property executive director and COO Gerard Tan Boon Chuan is not deterred by competition in the Sungai Buloh area by more established master-planned communities like Sierramas (developed by Kumpulan Sierramas) and Valencia (Gamuda Bhd).
Luxury and quality
Tan is not perturbed that Sutera Damansara will be close to Sungai Buloh New Village, which may not be appealing to some buyers. He believes that the project will attract interest because it denotes luxury and quality.
He says given the scarcity of land in the nearby Petaling Jaya area, Sutera Damansara's value-for-money and quality homes, with modern and trendy concepts, will be the key to its success.
Tan says OSK's target market for Sutera Damansara will comprise those in their 30s and 40s, with a household income of RM8,000 and above. He is also targeting buyers in the older developments around the Sungai Buloh, Sri Damansara and Kepong areas. He tells City & Country that many enquiries have come from Kepong and Kota Damansara.
Tan believes that Sutera Damansara will yield high returns on investment and expects a capital appreciation of 6% upon its completion, based on the current selling prices of the houses.
Stanley S S Wong, senior manager (sales and marketing), says response to the township's soft launch has been good since the project was advertised in the newspapers three weeks ago. It has also helped that news of its development has spread by word of mouth, he adds. To date, 40% of the 149 units open for sale under phase one has been snapped up, mostly by upgraders from the Kepong and Petaling Jaya areas, says Wong.
The new township is surrounded by many amenities, including hospitals, eateries, golf clubs, department stores and hypermarkets, putting the conveniences of urban living within easy reach. Also situated 5km from the township are ELC International School at SierraMas West, Chinese Primary School (SRJ (C) Desa Jaya in Bandar Sri Damansara and a few other local schools.
What's next?
With an undeveloped landbank of about 1,200 to 1,400 acres, with GDV of some RM3 billion, OSK Property is well positioned to take advantage of development opportunities despite the increasingly poor economic climate, says Tan.
Taman Sri Banyan in Country Heights, Kajang — the group's maiden project in the Klang Valley — was completed this year, with 85% of the units sold. The low-density, high-end gated and guarded development comprises 26 units of 2-storey semidees, and 2 and 3-storey bungalows.
"We are on the lookout for more niche pockets around the Klang Valley," says Tan, adding that in property development, one has to be proactive and aggressive.
To date, the group's flagship project Bandar Puteri Jaya, a 2,580-acre integrated township development launched in Sungai Petani, Kedah, in 1997, has delivered more than 6,500 residential and commercial units. "We are building affordable homes in the northern region," says Tan.
In the pipeline for the group is a 30-storey condominium tower with 108 units on Jalan Yap Kwan Seng — targeted for launch in 2010 and completion in 2012. The project will feature up to eight types of units of 1,100 to 3,600 sq ft, with prices starting from RM900 psf. The estimated GDV is RM130 million. The land was purchased in December 2007 when the company bought two plots totalling 26,000 sq ft, together with a 2-storey bungalow in Kampung Baru and a 1-storey office on Jalan Yap Kwan Seng, for RM11.5 million. The 2-storey bungalow, says Wong, will be rented out soon, while the 1-storey office will be let out as a car showroom. The company is still in talks with potential tenants.
The group also intends to develop 74 units of 2 and 2½-storey semidees in Bandar Baru Bangi, with a GDV of RM63 million. Tan says the redevelopment of Atria Damansara Shopping Centre in Petaling Jaya into a shopping mall with shopoffices is still in the planning stages.
In Seremban, Negri Sembilan, the group is developing phase one of Mon't Jade (a low-density development of bungalows and semidees) comprising 66 bungalows and the tail end of Seremban 3 (S3), a mixed development in Rasah.
Asked about the outlook for the property industry for 2009, Tan says, "Tread cautiously." He believes that with the right location, and with Malaysia among the cheapest in the region, there will still be buyers. "The only thing to do now is not to over-build," he says.
As of last year, OSK Property had embarked on projects, both new and ongoing, with a combined GDV of about RM4 billion.
- Published in The Edge Daily (8 December 2008)
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