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This article first appeared in City & Country, The Edge Malaysia Weekly on November 11, 2019 - November 17, 2019

No. 7 | Gamuda Bhd – Property Division
  2019 2018
Overall 7 8
Quantitative 8 9
Qualitative 4 5

The new Gamuda Gardens Experience Gallery, where we met Gamuda Land CEO Ngan Chee Meng for this interview, is an impressive structure covering 18,000 sq ft and fronting a 50-acre central park.

Getting there was also a breeze with the new Kuang Elevated Interchange System, which allows direct access to the township from the North-South Expressway.

“We have changed a lot. The sales galleries here and in Gamuda Cove are for people to experience the placemaking of our townships and to have a feel of what it is like to have a home there with the landscape and biodiversity we have created,” says Ngan.

“Today, you can also see what kinds of homes you are getting. Things have changed as people are more discerning about where they live. This is where we, as a developer, can do something.”

Established in 1995, Gamuda Land has a strong track record of building townships and mixed-use developments, underscored by its thoughtful master planning and innovative placemaking. It is the property development arm of Gamuda Bhd.

Apart from Malaysia, Gamuda Land also has a presence in Vietnam, Singapore and Australia. The company has been a familiar face among the winners of The Edge Malaysia Top Property Developers Awards and its developments have consistently received The Edge Malaysia-PEPS Value Creation Excellence Awards.

Ngan talks to City & Country about the company’s plans and strategies.

 

City & Country: What was Gamuda Land busy with last year?

Ngan Chee Meng: We were busy doing placemaking for our new projects such as Gamuda Gardens, Gamuda Cove and twentyfive.7, in Selangor, and bringing to fruition a lot of the initiatives we have planned, including creating lakes and parks, transplanting trees and improving connectivity.

We created Gamuda Parks, a sustainable landscape initiative, in 2017. To date, we have planted 250,000 trees across our developments, creating 1,600 acres of parks. We also have 350 acres of water bodies. At Gamuda Gardens, you can see mature trees as we started planting them in nurseries six months ago.

In September, we opened the Gamuda Cove interchange, which is an upfront investment of RM150 million. At Gamuda Gardens, we have opened the experience gallery and a 50-acre central park with two waterfalls.

 

How about launches over the last 12 months? Are you satisfied with what you have achieved?

We are very happy with all our launches. As we know, the past year had not been easy for Malaysia’s property industry. Despite that, our performance was steady with total achieved sales of RM3.1 billion for FY2019.

With the new gallery, parks and waterfalls in Gamuda Gardens, we saw improved sales in April at RM51.33 million, compared with RM14.38 million in January, which, to us, is fantastic. It goes to show that seeing is believing — our buyers are starting to see the value now. Since June, our weekly sales have been increasing 100%, from an average of RM5 million to RM10 million.

Phase 1 (Lucent Residence) at twentyfive.7 is already 90% sold, and we brought forward the launch of Phase 2 (Luxura) with the opening of 100 units. And within two months, 80% are sold.

Our sales recorded a compound annual growth rate of 27% from 2015 to 2019 and the developments in Hanoi and Ho Chi Minh City in Vietnam contributed 67% to our sales in the last financial year.

 

What targets is Gamuda Land setting for next year and what are your strategies to meet them?

We have set a RM4.5 billion sales target for our local and overseas projects next year. Our two key strategies are to focus on placemaking and biodiversity.

We want to make our townships more desirable, attractive and sustainable, and to make sure we are creating places and not spaces. Virtual connectivity is also important to us. We have been working with Maxis to make Gamuda Cove the first 5G township in Malaysia.

We want to incorporate more biodiversity aspects in our townships. Climate change has been making the headlines all over the world. The concern is not new to us ... biodiversity has always been in our DNA. Today, it is clear that we are doing the right thing for our townships.

Last year, we got experts to guide us in our efforts and completed the first round of biodiversity audit of Gamuda Cove, Gamuda Gardens and Valencia. The reports are on our website. We will carry out an audit of the flora and fauna every two to three years to ensure that we have a healthy ecosystem that supports the well-being of the residents.

We have also implemented an international standard environmental management system to serve as a benchmark as part of our endeavour to commit to the United Nations Sustainable Development Goals.

 

What are your upcoming launches?

We plan to open the Discovery Park at Gamuda Cove by year end to cater for 25 million visitors coming in via KLIA and klia2, as well as a water theme park by 2021.

We are also lucky to have been given a chance to manage the 7,600-acre Paya Indah Wetlands, which is located next to Gamuda Cove, together with the Ministry of Water, Land and Natural Resources to promote the place as a sanctuary for conservation and an eco-tourism hub.

At Gamuda Cove, we are also looking to launch Maya Bay Residences — the township’s first serviced apartment project — which will comprise 972 units in three towers. We also plan to launch waterfront estates, which are the first of their kind in Malaysia. We are introducing innovative products because people are more discerning these days. The waterfront homes will be at the edge of the water body and are likely to have their own small jetty, so residents can take their boats to go around the town.

We are also planning more innovative cluster homes for Gamuda Gardens.

 

How about your overseas sales, notably those in Vietnam? Do you have plans to expand your international portfolio?

It is part of our five-year business plan to maintain a 50:50 portfolio for the local and overseas markets. Thanks to the US-China trade war, countries like Vietnam have strengthened as a lot of foreign direct investments are flowing in.

Gamuda City in Hanoi and Celadon City in Ho Chi Minh City achieved sales of RM700 million and RM1.2 billion respectively. We are looking for strategic sites to expand our portfolio.

Currently, we are working on the second last phase of Celadon City. We will be developing the final phase in the next financial year. Celadon City will be completed in five to six years’ time.

Meanwhile, we want to strengthen our footing in Australia ... we are forming a stronger team there. Gamuda Bhd recently announced its purchase of a 50% stake in Australia-based Martinus Rail.

We will continue to be in Singapore. Our maiden project — Singapore Gem Residences condominium — in Toa Payoh is fully sold. Anchorvale Crescent, a new condominium on a 1.71ha site in Sengkang, will be launched next year.

We are also looking to expand our business in other countries, which we are still monitoring. Wherever we go, we must be as good as the locals.

 

What is the main issue in the industry that you hope to see addressed?

I think the main issue is the supply and demand of homes. While reducing the threshold for foreign buyers from RM1 million to RM600,000 is one way to help ease the overhang supply situation and encourage foreign direct investment, I find the price restriction on what they can own a bit contradictory as we want to welcome people to work and invest in the country.

If you look at Vietnam, the country has in recent years opened up its market to encourage foreign investment by allowing one-third of any project to be sold to foreigners rather than place a threshold on pricing as they see a need for foreign expertise. Also, this is one of the ways to help the property industry gain strength. I believe this is a good learning experience for Malaysia.

While I think the government is heading in the right direction with the initiatives to help the B40 own a home such as the rent-to-own scheme, I think there is a need to review the bumiputera quota requirement as it limits transferability. I don’t think this helps bumiputera buyers if they don’t want to buy those units. I believe a freer market will help speed up the recovery of the property industry.

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