Latest offering: Potential buyers visiting IJM Land booth at a property fair in Penang. IJM plans to launch residential component The Mezzo at The Light City in the second quarter of 2018.
PETALING JAYA: IJM Land Bhd will be launching seven projects with a total gross development value (GDV) of RM1.2bil over the next few months.
The property developer launched seven projects close to RM1bil in the first half of its financial year ending March 31, 2018 (FY18).
The seven included The Mezzo at Penang’s Light City, 3 Residence in Penang, Riana Dutamas at Segambut, Riana South at Cheras, Rimbun Ara and Safira at Seremban 2 and Austin Duta in Johor.
“The buying interest is selective now, but we are confident our products will receive good response,” said IJM Land managing director Edward Chong in an interview.
The Mezzo is the first residential component in the 32.76-acre Light City, a joint venture with Singapore’s Perennial Real Estate Holdings Ltd. Light City comprises retail component, hotels, office tower, premium high-rise residential and a convention centre.
“The Mezzo comprises 456 condominium units with built-up areas ranging from 1,033 to 1,367 sq ft. The ground works of the convention centre and shopping mall will start simultaneously with The Mezzo.
“Upon completion, The Mezzo offers a prestigious waterfront address with excellent convenience at its doorstep,” said Chong.
Two high-rise projects in the Klang Valley, Riana Dutamas at Segambut and Riana South at Cheras will be officially launched by the end of 2017.
“IJM Land is currently focusing on building units with two to three bedrooms, with built-up areas of between 800 and 1,000 sq ft. This is in line with market demand today. Riana South recorded a 60% booking rate in its August preview,” said Chong.
Located in Cheras next to UCSI, Riana South has 536 condominium units with sizes ranging between 947 and 1,238 sq ft. Prices are from RM560,000.
The developer is expected to unveil Riana Dutamas phase 1, known as Savio, in the fourth quarter of this year. It is sited on 5.3 acres of freehold land, with selling prices starting from RM376,000.
“Recently, many redevelopments are taking off in the Segambut area. Old factories are moving out and an urban regeneration is taking place, making Segambut a location with endless potential.
“Riana Dutamas is located just opposite Mont Kiara. A condo at Mont Kiara usually costs around RM800-RM900 per sq ft. However, Riana Dutamas offer units at an average price of RM550 per sq ft,” added Chong.
Next to the development is the Segambut KTM Station. The developer will be building an overhead covered walkway to provide direct connection to the public transport infrastructure.
He said the mass rapid transit and the completion of Duta-Ulu Klang Expressway 2 will offer convenience and accessibility.
Savio comprises 1,018 units with built-up areas ranging from 653 to 1,177 sq ft.
With 4,000 acres of undeveloped land bank across Malaysia, Vietnam, China and Britain, Chong said the company is not in dire need of accumulating new parcels of land.
“A township typically takes a more extended period to be fully developed. This offers a buffer to the developer who need not replenish its land bank indiscriminately. It helps the company to be selective in its landbanking,” he said.
He said in a market downturn, township development offered stability. The company’s township projects such as Seremban 2 and Bandar Rimbayu deliver steady and consistent performance even during a soft market.
“The pocket land projects with an immediately developable feature, on the other hand, help to turn the capital efficiently and top up the base to achieve a better sales performance.
“Our strategy is to do both, to have townships that require holding power and also develop pocket projects for a quick turnaround,” he said.
IJM Land is continually looking for suitable parcels that have long-term potential while seeking opportunities to venture into new markets.
On the overall market, he said buying sentiment is improving and is moving in the right direction.
Property prices have been adjusted. Together with the increase in wages, the demand and supply in the housing market is expected to match.
“People are starting to revisit show galleries and there is more excitement when there are new launches. We are expecting to at least maintain the same sales performance as the last financial year,” said Chong.
IJM Land achieved sales of RM1.4bil for FY17.
The company went into property development in 1989. Two decades into developing its first township Seremban 2, the developer is still actively engaging in community building, organising various festive and communal activities to bring people together.
“Home is where people live. Rather than selling a physical shell, we place our value in a long-term relationship with our customers.
“The customer-centric approach and the building of liveable homes is the spirit behind every IJM Land product. These are also the keys to help us sail through the challenges in the market,” he said.
