Colin Tan. Blood, Sweat, Tears AND Succcess

Dato’ Colin Tan’s story is not a ‘rags to riches’ story, this much is true. People have always had the opinion that he was born to inherit his fortune from his father. Truth be known however, Colin’s success was not due to luck at all; it has been blood, sweat and tears for Colin all the way.

His hard work in managing the Hatten Group paid off when he was recognized for his efforts and recently won ‘Real Estate Personality of The Year’. Apart from feeling honoured, he feels a sense of responsibility to live up to expectations from others. “Winning this award means that I have to work harder in my career, managing my company, and contributing more to society. During the early days when we started this company, we invested a lot of time in building our brand, to be acknowledged by the industry, to prove that we are able to deliver what we promised.  I feel honoured to receive the award and I am committed to working harder in the future to prove that I deserve it.” said Colin.

HATTEN GROUP

“My father, Datuk Wira Eric Tan is more into construction and finds satisfaction in the physical aspect of things. He feels happy when he sees one of his buildings completed. While I am more of a people person and I focus more on customer satisfaction especially, when we deliver the end product. And that is why we decided to become developers.” Colin explained.

Hatten Group was established 10 years ago, and during that time, property prices in Singapore were very high. “Back then, when we were about to establish the company, the property price in Singapore was about RM1,000 per sq. ft. and we did not have much capital. Then it struck us that maybe our neighbour, Malaysia, would be an ideal place to invest in.”

“We came to Malaysia, did the research on locations within each state, went to places like Kuala Lumpur, Selangor, Penang, Pahang, Ipoh and Johor Bahru. After much deliberation and research, we decided that Melaka would be the best place to develop Hatten Group. It was a big gamble for us as we were not sure if it was going to be successful or not, but we saw the potential in the area .”

“Time plays a crucial part here. We entered the industry when the timing was right. The economic conditions during that time were stable and property prices started going up. Of course, there was a minor financial crisis in 2007 but we managed to overcome it because our investments were sustainable. Even now, the cost of buying land in Melaka is still cheaper compared to Klang Valley, therefore, property prices in Melaka are more affordable than properties in the Klang Valley area.”

According to Colin, Hatten Group’s current key project is Harbour City. Harbour City brings together a Theme Park, a Shopping Mall and three Hotels in one exciting location amidst a tropical island setting. “This project is our baby. We want to develop it so that it gives something back to society, something that the Malaccans can be proud of. Harbour City is located in Pulau Melaka, a place that Malaccans considered a ‘taboo area’ not so long ago. In previous years, a lot of shop-lots were sold there but somehow they were abandoned for a few years. Only until recently were they revived.”

“This project has also been adopted by the government as an initiative to boost Pulau Melaka. If you look at the area now – a lot of developments are coming up, everyone is trying to occupy land space in Pulau Melaka. This will increase property prices in the area.”

Harbour City’s 500,000 sq. ft. theme park situated in the middle of the building consists of an outdoor and indoor theme park which provides an exciting variety of water rides and slides as well as child-safe splash pools. The water theme park promises a unique and unforgettable experience for endless fun and enjoyment. On the other hand, the shopping mall is an oceanic-themed mall with six levels of “thematic shopping experience” and over 800 retail stores. There are also three hotel towers in Harbour City namely, the Cruise-themed Hotel, Hatten Resort Hotel and International Chain Hotel.

“This whole development has taken Melaka to another level altogether as it has now become ‘the’ landmark of Pulau Melaka,” claimed Colin.

Commercial property investing is like residential property investing’s big brother. Many investors start out in residential property because it is safe and familiar while a smaller percentage of investors focus solely on commercial real estate.

 

PROPERTY MARKET

“If I was a Singaporean investor, I would not hesitate to enter the current Malaysian market and invest. Why? Because the currency is low now and whatever you buy at this time, will increase in value. For example, while you are waiting for the project to be fully developed, the value of your property is already appreciating. What happens if the currency appreciates again? Well, then your property value will be worth so much more!”

“An ideal property is when the developer makes money when selling, and the buyer makes money when buying. It’s a win-win situation. I think for now, tourism projects are the preferred investments.  Of course, there is a lot of speculation – they say that if it’s a commercial project and you sell it as a strata title, it will not be a worthwhile investment. But it depends on the location and how it is being managed. If the property is managed efficiently, then it is a valuable asset because whatever happens the purchaser will reap returns from the property.”

“I always emphasize this to purchasers – when you buy a property, you have to be clear of what you want from it. If you’re buying property for your family, then I’d suggest a residential property. However, if you decide to buy property for investment for the long term, I’d suggest buying commercial property, for example, a strata titled asset. You reap the returns over a period of time, and then when the time is right, you sell.”

One of the first things investors do when assessing whether or not a person’s investment is making them money or losing them money is to look into the amount they are spending on the property.

“When you flip it, you use the capital to invest in something else. There is no point holding it for a long period of time because if you do that then you are not doing justice to your investment. I am however not a big fan of flipping properties. I always tell people that if you want to hold a piece of property, hold it for at least six years to give it a chance to appreciate in value. Exit only after this has occurred.”

DOING GOOD SHOULD BE APART OF US ALL

“The core value in life which my father continues to teach us time and time again, is ‘gratitude’. He keeps telling us “when you strike gold, you must look back and think of the people that have helped you. Whatever you do, you must think about giving back to society.” Colin expressed.

“But how do we give back to society while we profit from our businesses? For Harbour City, I ask myself, what am I contributing to Malaccans? I’m developing a landmark for the people, something that they can be proud of. Now that we are developing Harbour City, Melaka has started to garner widespread interest. People are starting to look at Melaka more seriously in terms of property investment and the surrounding area is developing significantly. Everyone wants to be a developer in Melaka these days.” Colin smiles and says.

“We are also assisting in monetary terms and providing funds for community buildings, namely old folks homes, orphanages and other community programmes for the underprivileged. We are committed to giving a helping hand to our fellow Malaccans.” Said Colin.

 

COLIN’S PERSONALITY

“In this line of work, the number one principle to hold on to is, integrity. You have to have integrity because it builds your credibility, not only in your career but your life as well. As developers, we  must use proper materials during construction then, inspect and ensure that everything we have promised our clients was what was promised upon delivery.

If I may give a little advice. Do not lie to buyers and investors. They are the people who keep our businesses going. We strive to build a trusted reputation and we take pride in our work to continue on as a sustainable business.

As a developer, I believe in branding combined with values that are proven through our actions. Take Hatten for example, our price might be considered a little expensive but I promise you that the property will appreciate over time.”

“We also assist our home buyers in terms of management. We are there for our clients in every circumstance and through any situation.”

Colin’s motto is ‘never say never’ and the secret to his success is staying positive. “I am always positive and I believe that there is always a way. Opportunity is always there no matter what obstacles you encounter. It’s your mindset that defines everything. In the property industry, for example, there is a lot of hearsay that the market is slowing down and it’s not the best time to buy. But some people find this the best time to buy. The only difference is what you believe in, and that is your perception and that is the deciding factor.”

“It is up to you and your mindset. See things positively. Don’t follow others
blindly, it’s about you and what you
choose to do about it. Your success is in your hands. Whatever path you choose, as long as you stay focused, you will find your way.”