JOHOR BARU: Kuala Lumpur-based property developer Bangsar Heights Pavilion (BHP) Sdn Bhd is banking on the strategic location of its high-end condominium project to attract buyers.
Director Tonny Gan You Lam said Causeway Regency @ JB City Centre location in downtown Johor Baru would be the project’s strongest selling point.
“When it comes to properties, potential buyers will still look at location, location and location,” he said in an interview with StarMetro recently.
Gan said this at the launch of the project located along Jalan Wong Ah Fook by Johor Baru Mayor Datuk Abdul Rahman Mohamed Dewam.
The 30-storey block comprise of 228 units of two-bedroom and three-bedroom condominium units with a floor area of 776 sqft and 1,408 sq ft respectively.
Each unit is priced from RM799 per sq ft and the project with a gross development value of RM235mil is expected to be completed in the first-quarter of 2018.
“We are fortunate to be able to get the site for the project as we have to compete with other bidders and waited for more than two years before we succeed,” said Gan.
He said the on-going multi-billion ringgit of the Johor Baru city centre transformation project would further add value to the company’s project in the Johor Baru CBD.
Gan said the beautification and rehabilitation of Sungai Segget which is located just a stone’s throw away from the project would make the property attractive to buyers.
The Federal Government had allocated about RM260mil to rehabilitate, rejuvenate and beautify the 1.2km river which flows along Jalan Wong Ah Fook.
One of the dirtiest rivers in the country, Sungai Segget would be turned into the “gem of the city” within the next two years and a new tourist attraction in the city centre.
He said the Johor Baru city centre transformation project would turn the city centre into a vibrant place and attract crowds to the city centre to shop, dine, wine and relax.
Asked why the pricing of the condominium units per sq foot was much lower compared with the other on-going similar projects along Danga Bay Waterfront Development and Tanjung Puteri, he said “it is the company’s strategy”.
“We are a small player compared with Chinese developers in Iskandar Malaysia and we believe the strategy will make our project attractive to buyers,” said Gan.
He said the company was looking at Malaysian and Singaporean buyers for the project adding 60% of them would be owners-occupiers while 40% would rent their units.
Gan said that a condominium unit could fetch between 4% and 5% rental returns, and a unit located in the city centre could command between 7% and 8% rental returns.
“The project is located just about 400 metres away from the Causeway; hence attractive for Malaysian professionals working in Singapore and living in Johor Baru,” he said.
Gan said the proposed Rapid Transit System linking Johor Baru city centre and Singapore would further improve connectivity and accessibility between Johor and Singapore.
He said the company was already looking for another site within the Johor Baru city centre for its second high-end development project after Causeway Regency @ JB City Centre.
Gan said BHP’s foray into Johor started 15 years ago in Batu Pahat building factory buildings and residential properties in the district.
Among the company’s other projects are an apartment block of 200 units in Serdang and a mixed development project in Malacca completed 10 years ago, 24 units and 124 units of double-storey link houses in Selangor to completed this year.
“We see Iskandar Malaysia offers great growth prospects and opportunities for us and the pie is big enough for all property developers regardless of their sizes,” he said.