Oversupply in higher end strata home property?
Published on: Monday, March 30, 2015
Kota Kinabalu: Asian Pac Holdings Berhad Group Managing Director Dato' Mustapha Bin Buang opines that there might be an issue of oversupply in higher end strata property here in the state capital with so many condominium projects currently being launched with an average price of RM600 per square foot."There is a strong possibility of an overbuild position," he said, adding his view is based on the number of higher end units coming up."Yes, certainly, because when you look at the number of projects coming up."
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"Yes, even at RM600 per square foot, there are many projects being launched. So we must understand, we must check then what's the take-up rate, how fast is the take-up rate. "If the take-up rate is very slow, then it is going to be very costly for the developer, because they are going to carry on stocks and this would be additional cost for them," he said.Mustapha attributed the acquisition of the good location KK Times Square land site to luck."We were also lucky when we launched KK Times Square the commodity prices were high."
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As for the project, he said: "We have done very well. When we launched, we have got about 631 units. Today there is less than 32 units left. So we are very, very happy. Our thinking is that because of our good location and we have got very strong good record here. "All our previous projects have been very well received. Those people who bought also made good money. That gives confidence to buyers."
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Asked how many of the buyers are foreigners, Asian Pac Holdings Berhad Group CEO Raymond Yu said it was less than five per cent."According to Yu in an interview three years ago, Imago Mall is testament to the fact that the company ties and commitment to the Sabah market is a long-termed relationship with a presence although the group has no immediate project in hand. He said the mall will be managed properly and is a symbol of the group's prestige and branding."The other buyers are locals. We are also lucky when we launched, the commodity pricing was very good so many people have got money. Now those with money have more choices," said Mustapha.On what project the firm would undertake next, he said: "We are keen to look at the guarded and gated kind of project, landed property. We would be happy if we can get about 50 acres to launch such project in KK. Our project experience in KL on such guarded and gated projects were well received. Those who bought have got good value and very high rental returns. Similar experience can happen here in KK."The KK Times Square Bridge is a component of the larger KK Times Square master plan, which is being developed by Syarikat Kapasi Sdn Bhd, a wholly owned subsidiary of Asian Pac Holdings Berhad.This integrated mixed development encapsulates the company's philosophy of delivering world-class holistic spaces for people to live, work, play and shop, a city space that functions as a city within a city.Phase 1 of KK Times Square, consisting of 12 blocks of five to eight-storey shop-offices, known as Signature Office, was completed in 2007.Phase 2 is made up of The Loft Residences serviced apartments, and the Imago Mall, Kota Kinabalu's newest and most exciting retail force that will soon open its doors on March 28.Asian Pac Holdings Berhad, listed on the Main Market of Bursa Malaysia, is an investment holding company with operations in property investment and property development.It has developed various projects in the Klang Valley including the Kepong Industrial Parks I and II, Fortune Squares I and II, Fortune Park, Fortune Court, Fortune Central and Fortune Avenue, all in Kepong.Other projects include Le Venue I and II in Desa Parkcity, Prima Sri Gombak, Sutera Bukit Tunku.Through its wholly-owned subsidiary Syarikat Kapasi Sdn Bhd, it has developed Karamunsing Capital and KK Times Square Phase I, here.This year is an exciting year for the city as never before has the state capital witnessed the completion of a cluster of mixed development stretching along the waterfront termed as Kota Kinabalu South CBD by some that have transformed the image of the city as a modern urban world-class centre as positioned by Imago Mall, The Loft Residences and other shops and offices of KK Times Square.The Imago Mall which will herald a new chapter in the shopping attraction to Kota Kinabalu South CBD with ample parking and benefiting hundreds of thousands of city dwellers who will enjoy better accessibility."Asian Pac is committed to enhance the lives of the citizens of Kota Kinabalu as a city of the future; yet we also know that for a city to be liveable, it begins with the connectivity and accessibility between people and places."The KK Times Square Bridge was always an integral part of our master plan, not only to provide connectivity and accessibility to the people who live, work, play and will soon shop here at Imago Mall, but as a part of our deep commitment towards our role in elevating the development of Greater Kota Kinabalu, and connecting people and places in a city of the future.Stay up-to-date by following Daily Express’s Telegram channel.
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