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Builders with Creativity, Quality and Good Record will Win

THE roundtable discussion panel comprised S.P. Setia Bhd general manager (property division) S. Sundarajoo, HSBC area manager Rosli Rahmat, state Rehda chairman Datuk Jerry Chan, Star Lights Access Sdn Bhd brand co-ordinator Imeda Ng, Sunway City (Penang) Sdn Bhd general manager Yong Leng Kee and Arkitek Permata principal Datin Teng Chiu Chew Ying. 

The discussions were moderated by Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat and Star Publications (M) Bhd regional associate editor K.Y. Pung.

Q: What is your perception of the past year’s property market performance in terms of the challenges faced and the accomplishments?
S. Rajoo: The residential market is getting very competitive, with developers starting to sell homes as “lifestyle” products, not just as homes. SP Setia did not do very badly last year but as developers, we have to do extra things and come up with innovative ways to offer value-added products to customers.

Teng: The market is very competitive, with people looking for value-added products for their money. Buyers are also asking what is so special about some of the designs in the market. It is clear that conventional designs will not sell well because consumers are becoming more knowledgeable. Developers now have to be innovative.

^{From left: Star Lights Access Sdn Bhd's Imelda Ng, HSBC's Rosli Rahmat, Sunway City's Yong Leng Kee, Henry Butcher's Dr Teoh Poh Huat, The Star's K.Y.Pung, Rehda chairman Datuk Jerry Chan Fook Sing, Arkitek Permata's Datin Teng Chiu Chew Ying and SP Setia Bhd's S. Rajoo at the roundtable discussion}

Yong: As developers, we have to strive to meet market expectation because the public has higher expectations and want better lifestyle. Our company emphasises on customer service besides offering good quality products. Our projects are doing very well, with most of them sold out. I feel the landed market is still very much the “in” thing as far as Penangites are concerned.

Rosli: From the banking point of view, the financing rates are very competitive. Basically, it’s a buyers’ market and the buyers are having a good choice because there is a lot of development. I think developers are very positive with the market trends.

Chan: As far as challenges are concerned, it’s clear that it’s a buyers’ market, with buyers having plenty of choices when it comes to location, quality and which developer they want to pick.
Gone are the days when flashy advertisements sell. Developers have to think of the long term because what they do now could impact on the lives of people in the years to come. 
There is no quick turn around situation. Competition has caused developers to strive towards improving their products. They can no longer take the market for granted and assume that the sales will be there.

Q: What is your opinion on the prospects of the property market for the rest of the year and 2007?

S. Rajoo: Established developers with a record of creative concepts, excellent quality and delivery can continue to thrive. 
As for the market next year, it is every Penangite's dream to own a landed property. Although land here is not cheap and scarce, resulting in the high price of landed property, consumers still end up buying. I am optimistic of the market next year, especially for landed property. 

^{REHDA Penang chairman Datuk Jerry Chan (right) and Henry Butcher Malaysia director Dr Teoh Poh Huat at a roundtable discussion.}

Teng: I personally think the market next year will be tougher as the trend in the past one to two months has shown declining interest among buyers. People are more cautious, especially with the petrol price hike and other increases.  The availability of choices is also making buyers want to shop around first. I think landed property will fare better but high-rise projects may see some problems.

Yong: The market has softened. With high land costs and land being scarce, developers may face a challenge whether they still want to continue building landed properties here.

Rosli: The second link announced for Penang may be an added incentive for people to come over to the island to invest in properties here. We may even see people on the mainland wanting to move over to the island.

Chan: The market is now steady but resilient. As people become sophisticated with their finances, in time to come the whole investment mentality will change. I see the landed property doing well, while strata buildings will be okay. The higher cost of living will also push the market up.

Ng: I’m optimistic that the market for high-rise properties would do well as these projects come with a lot of facilities and supplementary services, which increases customers’ expectations.

Q: What do you see as the market’s opportunities?

Teng: The market may be restricted to residential. The younger generation, especially young married people, will be looking for properties to start their families. With projects like the second link and monorail for Penang in the pipeline, we can expect expatriates to come in under the MM2H programme.

Chan: Penang is a good place to retire and there are still good opportunities for buyers to buy now before prices go up. More than half our population are still below 25 years old and people will eventually fall in love, get married and buy homes. The demographics are there. 
The second bridge will benefit the mainland more than the island and we will be seeing more areas previously deemed ulu (remote) made more accessible. We will be seeing more land opening up for industries and agriculture. Places like the southern part of Batu Kawan could see more interchanges being added.

Rosli: I think the Government can work with tour companies to bring in the silver-haired group from abroad. They can be brought in for free and if they are interested in buying properties here, international banks here can arrange the financing.

Yong: The State Government should actively promote the MM2H programme, as there is ample opportunity in that area. Under the Ninth Malaysia Plan, the southern part of the island such as Batu Maung, Bayan Lepas and Teluk Kumbar will see more development.

Ng: With knowledgeable buyers and the Government promoting build-and-sell properties, the market is looking positive.

Rajoo: The property industry will continue to grow by virtue of our young population. Over the long term, this will be good not just for house buyers but also the industry as a whole as higher standards would be attained.

Q: How will the 9MP create the momentum for the growth in Penang? What are the new business opportunities?

Yong: With the second link approved under the 9MP, we can expect more development on the mainland, resulting in land prices going up, as there will be demand. 
Projects like the monorail and Penang Outer Ring Road will generate economic activities here and there is definitely good time for Penang.
Rosli: Economic development in the country has to be properly co-ordinated, if not it could result in development only in specific areas. Industry players have to make it happen.

Chan: For 20 years, Penang had been starved of major infrastructure projects and now we’ve got three on our plate. My question is what will the Government do next once all these are up and going? We have to address issues like what would happen to towns that would fade away. We also need to focus on creating employment, which will see people upgrading their lifestyles, and this would result in housing becoming more affordable.

Teng: The second bridge, the monorail, job opportunities and better income will see people having a secure future and they would also be investing in homes. 

(Source: 14 Sept 2006, The Online Star)