LAST week’s article highlighted the overall property scene in Kedah. We now draw your attention to the wide range of residential estate offerings.
Also known by its honorific Darul Aman which means “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 else moves 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 and mystery.
With the state government’s “Kedah Transformation Lab” programme nicely coming along, efforts to boost tourism and 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 rice milling business. Opportunity knocked when a member of the Teo family was offered a substantial part of an oil palm estate in Sungai Petani which was too good to refuse. Realising the need for good quality housing to meet 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 and made a name for itself in the region. Its first residential-commercial development was Taman Patani Jaya, which was popular because of its township design and planning. This paved the way for PCB to move aggressively in Sungai Petani. Not long after, the developer launched its first guarded and gated development, Bandar Laguna Merbok, which went on to win 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 lush mountain 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. The mixed development project is known for bringing nature to the doorstep while keeping modern 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 from Sungai Petani town centre, offering daily conveniences and creature comforts.
On developing land in Kedah, PCB’s Group CEO Datuk 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 Peninsular Malaysia, which is experiencing sound economic growth, increased FDI and population influx due to expanding opportunities. I am confident that the northern region will 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 are mostly owner-occupiers but we are starting to see a growing secondary market, especially from up-graders. With the ‘Kedah Aman Makmur’ initiative launched last year to transform Kedah into a fully developed state, we expect the property market to pick up with more buyers and better purchasing power. We could even witness 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 helm of Epic Valley Holdings Group, a property development firm with a turnover of RM350 million 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 to Malaysia, he found work 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 the mixed 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, a mixed 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 to most 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 a mixed 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 from a 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 from his 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. By maintaining 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 new projects 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. “They measure 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 have made 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 Tunku was 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.”
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 and was 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 folk may find it difficult to relocate and adjust to the quiet and simple lifestyle. “There is hardly any entertainment or nightlife in Kedah,” says the REHDA Perlis/Kedah chairman. Still, with all the property development, government plans and expansion programmes, one must recognise Kedah’s growing attraction for real estate investment.
Original article from The Sun Daily, published on March 28, 2014.