The Rise Of ‘Penang Condo King’

Dato’ Alex Ooi, from developing projects for other people to being a developer himself.      

Penang Island has been receiving a lot of interest when it comes to property market. As the saying goes, nothing can go wrong if you invest in a property on an island. But how is it really doing in this current market? Property Insight talks to the Executive Chairman of Ideal Property Group, Dato’ Alex Ooi, to find out.

Ooi started the group on his own in 2002 from scratch and managed to steer the company into developing more than 10,000 units of residential and commercial units locally as well as abroad. In the early years, he even managed to successfully develop several residential and commercial developments in Cambodia.

Ooi now focuses on developing projects locally, which comprises more than 50% of the housing supply on Penang Island. His developments, which concentrates mainly within the vicinity of Bayan Lepas, have made a positive change in the skyline of Penang South West District. With his vast experience, he managed to turn the group into a major market player in Penang with a successful track record that earned him the nickname the ‘Penang Condo King’.

STARTING POINT

The group started as a property consultancy, offering ideas that proved to be the building blocks for many agencies, land owners and developers, to produce the right product, for the right market and profit.

“I didn’t want to be a contractor and I could not be a developer then because I have no land and no developments, but I have the experience. So I tried to establish myself as a property servicing officer. Back then, it was a good time to do BPO (business process outsourcing). That means you can outsource parts of your businesses to other parties,” says Ooi.

His first project was in Bukit Mertajam, where a developer had completed a project but had leftovers of around 100 unsold bungalow-lots. The developer wanted to sell it at about RM30 per square feet (psf). Ooi had convinced the developer to outsource the business to his company and he managed to sell the leftover bungalows at the determined price.

Ooi’s company has been providing real estate solutions to government agencies, private developers and land owners. Ideal Property Group has a track record of increasing property sales value by  400%, one of its biggest achievements, to date.

The company started its own property development ventures in 2008 through a new division known as Ideal Property Development Sdn Bhd.

“My turning point came in 2008. I was doing BPO for one of my clients, Koperasi Tunas Muda. It had 100 units of shop-lots built within the premise, in Bayan Baru. I revamped the project and gained the commercial strata title for the development as well as 148 units of apartment which increased the sales value from RM50 million to RM90 million. I shared the profit with them and gained their trust,” he says.

Ideal Property Group adopted the motto ‘Creating Legacy’, which has become the guiding principle for each and every development project led by the company.

The developer aims to uplift Penang’s property market by promoting a quality lifestyle and better living environment.

I-Condo development

Ideal Property Group is well-known for building sustainable community-oriented development such as I-Condo – condominiums with an affordable housing price tag. All developments under I-Condo are located in prime locations and deliver quality and value at an affordable price.

The affordable condominium, built by the group, uses high quality construction materials to provide value to homeowners. The surroundings have been carefully planned to include schools, markets and other facilities for homeowners to live, work and play.

Infrastructures are well-planned and are improved from time to time for the benefit of residents. This includes the widening of major roads and the addition of access points to ease traffic congestion.

The developer is currently launching two projects under I-Condo: One Foresta in Bayan Lepas and I-Santorini at Tanjong Pinang.

THE LEADER

Ideal Property Group is also a market leader when it comes to conceptual developments. Some of their projects that reflect this include:

One Residence: a garden living concept in a low density and tranquil environment

One Imperial: theme park resort concept that fosters good family ties, a healthier living environment with multi-faceted recreation facilities.

Ideal Vision Park: a development embracing a buon vivire way of life, which encourages a low carbon and environment-friendly lifestyle

Project I-Santorini: Greek inspired development indulging in the romance of Santorini Island

QUEENS WATERFRONT

While most developers are holding back launches due to high cost and a slow market, Ideal Property Group sees a chance in building a niche market.

Knowing that owning a home is an essential component in one’s life time, the group strives to deliver more quality homes at an affordable price.

Within this year, Ideal Property Group targets to launch a total of five new projects comprising a total of 3,600 residential units, namely, Forest Ville, Bukit Ayun Development and Amarene. The first out of the five projects – Summerskye Residences was launched in January this year.

The major highlight this year for Ideal Property Group would be its masterpiece development – Queens Waterfront. It will be one of Penang’s iconic development, covering an area of 36.53 acres.

The development component comprises of seafront condominium units, a waterfront promenade, a marina bay, waterfront alfresco, an international sports centre and an international school.

Queens Waterfront is strategically located near Queensbay Mall Bayan Lepas, which is currently one of the most preferred shopping destination in Penang. Residents of Queens Waterfront development will enjoy a spectacular view of the Penang Bridge and the Penang second link which offer a stunning sea view.

The project is a nautical-inspired waterfront development. Therefore, nautical elements such as water and wave forms, seahorse sculptures, seaweed inspired floor patterns, stingray roof forms, seahorse inspired fins and support, coral patterns and sea habitat will be highlighted throughout its architecture and landscape.

It uses the regal seahorse as its symbolic icon, symbolising hope of the future and the promise of today. It is a culmination of everything that will be prosperous and rewarding at Queens Waterfront.

Ideal Property Group is having its soft launch for Phase 1 this month. Phase 1 comprises 500 units of residential units ranging from 950 sqft to 1,650 sqft in size. There are commercial units on the ground floor and first floor. There will be separate entrances for the commercial and residential components, as well as a 3-tier security system to maintain a peace of mind.

DEVELOPING PENANG ISLAND

Ooi states that his company is still concentrating on island development because the limited land banks on the island help maintain a good selling price. He explains that island developments are also of high-density type due to land scarcity.

“When we are looking for locations, we will look at the type of land first. Hill lands are a big no for us. We would rather reclaim a land instead of getting land on a hill. Firstly, this is because it destroys the environment, and secondly, we do not know what is inside it. There will also complaints if we harm the land on hills since there are many non-governmental organisations (NGOs) fighting to preserve it,” he says.

“We prefer to concentrate in the south west district of Penang, mainly because there are many people working in this area compared to the UNESCO heritage site, which has its limitations,” he adds.

CORPORATE SOCIAL RESPONSIBILITY

According to Ooi, the Ideal Property Group believes it is important to practice the spirit of giving back to society. Therefore, it has been consistent in carrying out various CSR programmes throughout the years.

The company took the initiative of constructing a link bridge crossing Sungai Tiram in Bayan Lepas, which incurred a cost of RM650,000. The bridge connects Jalan Tun Dr. Awang and Persiaran Rajawali to Jalan Dato Ismail Hashim and is of convenience to the Bayan Lepas community.

Besides that, the major link road to the Penang International Airport – Jalan Tun Dr. Awang – has been widened from single carriage to double carriage. The upgraded infrastructure has effectively alleviated traffic congestion near the Bayan Lepas old town.

The company has also adopted the project of upgrading the landscape at Bayan Lepas’ biggest roundabout. In addition, Ideal Property Group will construct a flyer over bridge along Jalan Tanjong Tokong to ease traffic congestion in the area.

The company is even keen on contributing to the academic aspect. Their ‘I Love Edu’ programme was established for this purpose. Under the programme, an annual budget is allocated to help out needy schools.

In 2013, Ideal Property Group had contributed a piece of land measuring 3.24 ha for the construction of a new secondary school, i.e. Heng Ee Bayan Baru Branch, in Penang South West District. The company also constructed the administrative building of the school.

INVESTMENT TRICKS

Ooi advises property investors who are considering to invest in Penang to look at the following ‘5Ps’:

Product – What type of products are you looking for? Is it high-rise or landed? Commercial or residential?

Pricing – What is your budget? If you have limited budget, then go for a smaller unit that costs less.

Package – Go for new launches with great packages will benefit you.

Place – New property investors should focus on the town area because the property will be more valuable in the future.

Producer – Look out for established developers and contractors.

Ideal Property Group has won various awards for its developments. This year, One Imperial has won the ‘Highly Recommended Residential Renovation/Redevelopment in Malaysia’ at the Asia Pacific Property Awards 2016. In addition to that, its I-Santorini was also awarded the ‘5-Star Best Residential High Rise Architecture in Malaysia’ at the same awards ceremony.

The Asia Pacific Property Awards is part of the International Property Awards – the world’s largest, most prestigious and widely recognised event.

Ideal Property Group hopes to continue delivering quality products to its purchasers, safeguard the interest of its shareholders and contribute positively to the welfare of the society and its employees. The group currently has approximately 10,000 units from its existing and upcoming projects.

With the continuous support from purchasers, shareholders, team of talents and business associates, the ‘Penang Condo King’ is certain that it will scale greater heights within the next five years.

Ooi also believes that his company will be able to maintain their market leader position for niche market developments.