PUTRAJAYA Holdings: setting its sights for a greener 2017
The stage is set for an evolving 2017, with the past remnants of 2016 still fresh within the minds of all parties in the property industry. The shrinking Ringgit, economic turmoil and international trade affairs have inherently shaped the way that 2016 has panned out, and inexorably paved the way for a sharper and better prepared 2017. Property developers are aiming to up their game, and the same goes to local developer Putrajaya Holdings Sdn Bhd that has a keen understanding on the effects of 2016’s market on the mass population, and are ready to put in its two cents in remedying it.
A city in the making
Incorporated and established on October 19, 1995, Putrajaya Holdings Sdn Bhd (PJH) was created in mind with the responsibility of designing and developing the Putrajaya Masterplan – a highly strategic 20-year plan to build up Putrajaya into the federal administrative centre of Malaysia that it is today. Putrajaya Holdings’ shareholders include Petroliam Nasional Berhad (Petronas), the national petroleum company through it’s wholly owned subsidiary, KLCC Holdings Sdn Bhd, Khazanah Nasional Berhad (Khazanah), the investment arm of the Government of Malaysia; and Kumpulan Wang Amanah Negara (KWAN). Currently with over 20 signature developments in Putrajaya comprising of office buildings, commercial hubs and residential projects, Putrajaya Holdings are pushing the envelope with their 2017 plans, in helping to create a more affordable and sustainable property market within Malaysia.
Located within the heart of the nation, the federal territory of Putrajaya is strategically placed amidst the hustle and bustle of the Klang Valley. Situated 5km East of Malaysia’s IT hub Cyberjaya, 20km North of Kuala Lumpur International Airport (KLIA) and 25km South of Kuala Lumpur, Putrajaya is poised for further development in 2017, carrying its name further into the stratosphere. As the federal administrative core of Malaysia, the territory comprises government offices, commercial, mixed, sports & recreational and civic & cultural development, covering 503.05 hectares of prime land. Its population count is roughly estimated to be 80,000 within residential areas, and 120,000 within the core government quarters and buildings.
Delivering a quality lifestyle
Putrajaya Holdings holds strongly to many ideals that keep the company on its current journey, inherently paving the way for its progress within the industry. With a professional take on all projects, the company is success-driven and profit-orientated, with a highly knowledgeable and skilful workforce. Its goal to lead as a green city developer, along with its impressive 20-year track record of building Putrajaya to the status it is today, proudly affirm its motivations. With a brand that focuses on its commitment to deliver the projects as planned and to provide excellent customer service, Putrajaya Holdings is a premier developer that takes pride in its achievement and strong desire to deliver a quality lifestyle within a unique green city environment.
In asserting the location for its developments, the needs of its prospective buyers in terms of location and accessibility play a major role. Situated between Kuala Lumpur and Kuala Lumpur International Airport (KLIA), the developer aims to broaden its horizons with land banks in strategic areas within Klang Valley and Sepang where development is still in the planning stages.
Making its mark
As the master developer for Putrajaya, this specific role has set it apart from other developers. The company has contributed greatly to realise the plans of developing Putrajaya into a green, intelligent city. CEO and director of Putrajaya Holdings Sdn Bhd, Datuk Azlan Bin Abdul Karim affirmed that beyond the role as a special vehicle to develop the city, it is also focussing on meeting the following objectives: –
To create the hype and speed up the development of the commercial parcels
To immediately increase the value of certain plots of land
To bring in selective investors into Putrajaya
To inject variety and vibrancy into Putrajaya
“The demand for our properties are still moving at a moderate level despite the economic slowdown,” he states with confidence. In league with the spectacular success of its portfolio, major components were completed as appended here.
Challenges and strides
As with many current and active developers, the challenges faced by Putrajaya Holdings stem primordially from the current economic slowdown, with many talents working at its helm to counter the impacts of the slowdown. To appeal to a wider demographic of purchasers within the area, the need to transform people’s perception that Putrajaya is only available to the government servants is crucial. Efforts to pull in residents are evident in the advent of the company’s current portfolio of more than 20 residential projects within surrounding precincts, such as Pine Valley, Precinct 12, Duta Villa, Precinct 14, Putrajaya.
Another challenge faced by the prime developer is the perception that with a Malay majority population, the spending power is less than satisfactory, hence making its market less attractive. This despite the fact that a recent study by the Department of Statistics, Malaysia found that one of the highest household income groups come from Putrajaya, second only to Kuala Lumpur. Breaking this mindset and creating a more multicultural market would be one of the many endeavours the company has to work on in 2017.
Developers within the surrounding areas such as IOI Properties Group with their IOI Resort City and the highly-trafficked IOI City Mall, as well as various development projects in neighbouring Cyberjaya have also provided a healthy competition that propels Putrajaya Holdings forward, in the essence of asserting its projects and to keep pushing the envelope when it comes to their projects. While Cyberjaya’s MSC status has successfully attracted many investors, Putrajaya Holdings has to come up with better offers to remain in the radar screen of potential investors.
The goal to become a green city has been shining brightly like a beacon in the development of Putrajaya. The Green Initiative has also defined the roles of the government agencies and the developer in creating a sustainable township, for instance:
EMS – monitoring of lake to ensure quality of water at B2 standard through Putrajaya Holdings’s own Environment Management System
Providing around 15,000 to 33,000 RT (Refrigeration Tonne) of chilled water to the Government and Commercial Offices in Putrajaya through the operation of five Gas District Cooling (GDC) plants by PjH
All houses, apartments, shops, schools and kindergartens within the areas involved are supplied with two bins to allow the residents to separate recyclable items or other waste, with the aim of reducing landfill waste by up to 40%
Water recycling through rock-filled dam, and biomass composting focusing on oil palm wastes aiming to achieve zero burning.
Public buses running on NGV to preserve the clean air environment
Apart from that, Putrajaya Holdings also partners with the public, government agencies, businesses and the local authority on adhering to green city guidelines and regulatory requirements, as well as to participate actively in related programmes and projects, towards achieving the goal of making Putrajaya a sustainable city.
Creating an affordable township
Poor market sentiments in relation to public responses were largely due to the price mismatch between high priced products offered by developers, and the more affordable property prices that is in demand by the market. “The supply and demand mismatch is evident in the poor take up rate of expensive products.” Datuk Azlan Bin Abdul Karim further reiterates.
The 2015 Khazanah Research Institute report stated that Malaysia median household income lies at only RM4,548/month, whereas the median price for all houses is RM242,000 (4.4 times compared to annualized household income). This inherently exceeds the recommended affordability ratio by three times.
Putrajaya Holdings aims to overcome the aforementioned price mismatch by providing affordable products, especially for the M40 Income bracket – for middle class Malaysians that find themselves in a dilemma – above the lower income threshold which qualifies them for government’s affordable home projects, yet below the higher income brackets that allows them to have the financial capabilities to purchase at ease.
Catering to prospective buyers
Putrajaya Holdings strives to strike a balance between the administrative centre’s natural environment, iconic built environment and populous community. A large portion (about 40%) of the city is designated as green open space; a huge water body and wetlands segregates the city into different zones, while its world class infrastructure is aimed to offer quality urban living. With the recent launching of its medium to high-end apartments Flora Rossa, Precinct 11, the company is offering innovative designs and a 10:90 facility to house buyers
In view of the current market sentiments, Putrajaya’s marketing strategy was crafted with the needs of local customers in mind. The residential and commercial properties have always been developed with the following strategies in mind.
Progressive launching and development with focussed target market
Launching various housing products to encourage uptake in soft market condition
Introducing optimum development that is in line with market needs, in terms of demand, concept, scale, mix, composition, timing, target market, phasing as well as indicative value.
With the addition of over 20 schools including a private international school, Nexus International School Putrajaya, as well as institutions of higher learning like Heriot Watt University and University Malaysia of Computer Science and Engineering (UniMy), the city is evolving to cater to the residential take ups as seen in the fully occupied units in Precinct 8 and 9.
Moving forward in 2017
In this brand new year, Putrajaya Holdings is keeping the momentum going passionately by securing itself a strategic positioning within the property landscape. Seeking to enhance businesses with the Government by securing maintenance contracts for existing government buildings in Putrajaya, providing refurbishment and retrofitting services and securing new Built, Lease & Transfer (BLT) and Private Finance Initiatives (PFI) contracts. In line with this, the company will be developing skilled staff for asset management.
Creating a sustainable and complete township in Putrajaya has always been the crux of the company’s mission forward. Through careful planning of residential units launches and sales, boosting occupancy for commercial / office buildings, monetising performing assets and the development of its new waterfront retail component in Precinct 8 are part of the plan for Putrajaya Holdings to place itself forward. An adjacent initiative would be to bring in game-changers and new innovative minds to create vibrancy in Putrajaya. “We still have a lot of land, currently around 300 acres of commercial land which we are willing to open up to other MNC’s to develop, depending on whether the plans add value to the township in the long run,” Datuk Azlan further reiterates. Looking outside of Putrajaya, the company will be on the lookout for strategic partners for its developments, particularly for its new land in Ampang.
2017’s growth and expansion strategy for Putrajaya Holdings also includes growing current land banks, looking out for potential partnerships for Transit-Oriented Developments (TODs) on land surrounding LRT / MRT stations, and further collaborations with educational institutions. With numerous plans in the pipelines, the company is poised for an expansion that will set its course for 2017, full speed ahead.
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