This article first appeared in City & Country, The Edge Malaysia Weekly on December 20, 2021 - December 26, 2021

Parkland Residence @ Sungai Melaka by Parkland Residence Sdn Bhd, a subsidiary of Parkland Group, is the recipient of the merit award in the the non-residential category of The Edge

Malaysia-PEPS Value Creation Excellence Award 2021. Value creation is calculated based on the capital appreciation of properties, from the time they are bought from the developer to when they are resold on the secondary market. There are two categories for the award: residential and non-residential (industrial and commercial). Parkland Residence @ Sungai Melaka falls under the latter as its land usage is commercial.

This three-tower development sits on 4.861 acres of freehold land not far from AEON Mall and is a short distance from Jonker Street.

“This is a serviced apartment development located in Melaka town and facing the Melaka River,” says Jocelyn Wee, Parkland Group’s property sales and marketing general manager. “It is a freehold property and the special thing about this development is that all 809 units are of one size — 3-bedroom units of 1,088 sq ft.”

Parkland Group’s property division deputy CEO Jacky Toh Kie Chieh explains, “After studying the market, we found that the 3-bedroom serviced apartment is the most wanted product in the market. That was why we decided to do just one type and size of serviced apartment. The second reason was that we did not want the customer to think about which type of unit to buy — a 1-, 2- or 3-bedroom apartment. We just wanted them to think, to buy or not to buy.”

Wee adds, “Otherwise, people will say, ‘I will check with my parents, whether they want a bigger or smaller unit, or 1- or 2-bedroom unit’, or they want a better view, all kinds of considerations. So it takes a longer time [to close a sale].”

The launch price started at RM385 psf and each unit was provided with two designated parking bays. The units came bare, allowing owners to design them according to their specifications. Each of the three towers is 23 storeys, with Tower A having 285 units, Tower B, 262 units and Tower C, 262 units.

With a gross development value of RM385 million, the project was launched in 2016 and completed in 2018. According to Toh, the relatively fast completion time was due to the use of the Industrialised Building System.

“We used aluminium formworks, which are lighter and easier to fix,” he says, adding that the developer did not require more workers for the task as it had enough trained workers to utilise the formworks. According to Wee, this method resulted in fewer defects and the faster construction time also saved costs.

Toh says Parkland Group was confident the product would sell well even though serviced apartments were a new product type in the Melaka property market. This was because it had observed sales of its competitors’ serviced apartment projects. The difference, though, is that Parkland Residence @ Sungai Melaka is a freehold property, which helped sales as people in the state liked that, according to Toh and Wee.

In Parkland Group’s submission for the value creation award, it was required to provide details of five units sold at launch and subsequently sold on the secondary market after three years. The units achieved an appreciation rate of between 15% and 26% for an average of 20%.

“All units were sold by the time vacant possession was delivered. I think this is important because it gives buyers a better option for subsales. If the developer has a lot of stock in hand after vacant possession is delivered, it will want to clear stock and give a lower price,” says Wee, adding that this will impact the appreciation rate. However, as there was no more stock, the value creation of the units was fully enjoyed by the original purchasers.

The second factor that impacted value creation was the project’s design and facilities, she says. She highlights that with landed properties, to utilise facilities such as a gym, owners will have to pay an additional fee, whereas at Parkland Residence @ Sungai Melaka, paying the maintenance fee — RM196 per month per unit — allows them to enjoy various facilities and services, including security.

The facilities podium at the development covers 65,000 sq ft and facilities include several swimming pools for families, children and toddlers, water slides, a playground, library, gym, sauna, Jacuzzi, games room, a multipurpose hall, meeting area, basketball court, jogging track and outdoor gym.

In addition to the facilities, Toh highlights that many trees were planted on the podium level. Wee adds that water slides were installed at the swimming pool and they were a pleasant and welcome surprise to the purchasers as the slides were not mentioned during the initial sales.

According to Toh, the design concept for the units is similar to that of a semidee, as on each floor of the tower, there are two units, then an airwell, followed by two more units and another airwell. The design allows natural light in and promotes ventilation. It also provides more privacy. Each floor has a total of 12 to 15 units.

Wee says the designated parking lots are another feature that adds value to the property as not many projects provide designated parking.

She adds that three years after Parkland Residence @ Sungai Melaka was handed over to the owners, fittings such as tables, chairs and sofas in the common areas such as the library, games room and the area around the swimming pool have remained in good condition.

Toh highlights that the project is designed to provide plenty of space for residents. For example, the corridors are wide and the car park driveways are bright and open to facilitate ventilation.

Parkland Group’s experience in designing Parkland Residence @ Sungai Melaka and the value created for residents will stand it in good stead for future projects. Toh says the group will be focusing on projects in Johor in places like Masai, Kluang and Batu Pahat as well as in Melaka, central Kuala Lumpur and Selangor.

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