Downloaded 12 times
CSCM individual assignment
- 1. SCHOOL OF ARCHITECTURE, BUILDINGAND DESIGN BACHELOR OF QUANTITY SURVEYING (HONOURS) Construction Supply Chain Management (QSB 2433 / MGT 60803) Name: Esther Chuah Ning Sie Student ID: 0321422
- 2. Table of Content 1.0Company Profile 1.1 Company Background 1.2 Major Past Projects 3 2.0 Proposed Project Detail 2.1 General Detail 2.2 Project Location 2.3 Geographical Area 2.3.1 Background 2.3.2 Transportation 2.3.3 Surrounding Facilities 2.3.4 Overview 4 3.0 Market Segmentation 3.1 Introduction 3.2 Aim and Objective 3.3 Reason of Market Segmentation based on Household Size, Marital Status and Income to Unit Type Preference 3.4 Segmentation Tabulation 3.5 Analysis Chart 3.6 Data Analysis 3.7 Development of Project Idea 8 4.0 Return on Investment 15 5.0 Marketing Strategies 17 6.0 Constraint and Future Development 18 7.0 Reference List 19
- 3. 1.0 Company Profile 1.1Company Background TU Property Development Group Berhad is a public listed Malaysian company involved mainly in property development.The brand is spread across three key economic regions in Malaysia with over 40 development projects that include new townships, integrated commercial developments, luxury high-rise apartments and green business parks. TU Property Development Group Berhad presently has approximately 9,050 acres of landbank with a total gross development value (GDV) of RM 123.5 billion. Through TU Property Development Group International, the brand has also extended its reach to London, United Kingdom, Wellington, New Zealand and Sydney, Australia.The Group is helmed by some of the most well-known and respected industry players in the Malaysian property sector. Driven by its vision of Creating Tomorrow & Beyond and powered by an experienced and dynamic team, the TU Property Development Group is set to soar even higher in the years to come. Vision: To be an internationally admired property developer Mission: Delight our customers by delivering superior, innovative and lifestyles products and services. Strive for win-win partnership with our partners, suppliers and contractors. Provide an inspiring, rewarding and growth opportunities for our employees. Drive sustainable financial returns on our investment. Be a proactive and responsible member of our community. 1.2 Major Past Projects Established in 1982, TU Property Development Group Berhad has won numerous awards, making it a household name among residents in Malaysia. With a strong foundation of past and present successes in property and resort development. TU Property Development Group Berhad is committed to building luxurious, resort-themed lifestyle developments and commercial properties for discerning customers.Some of the major past projects are TU HighPark Suites, TU Hills, Bukit TU Residences, The apex Putra TU Hill Residency, TU Tropicana, TU Heights, TU Mont Residences, and etc.
- 4. 2.0 Proposed ProjectDetail 2.1 General Detail TU Property Development Group Berhad presently has approximately 10 acres of landbank beside One Utama Shopping Mall. Currently is actively developing the land bank into a mixed development building named as TU Centrum which consists of double storey shop offices and 25-storey serviced apartments. This development will benefit greatly from the large population catchment area as it sits in the midst of lively and well established areas, such as: Bandar Utama, Damansara Utama, Taman Tun Dr. Ismail, Mutiara Damansara and Mont Kiara. 2.2 Project Location 2, Lebuh Bandar Utama, Bandar Utama City Centre, Bandar Utama, 47800 Petaling Jaya, Selangor, Malaysia. Coordinates 3°09'00.0"N 101°36'50.6"E 2.3 Geographical Area A bridge over the Sprint Expressway joins the two parts of Bandar Utama, sections BU1 until BU10 and BU11 with BU12, which are separated by the expressway. To go to TU Centrum, via the northbound route of New Klang Valley Expressway (NKVE), you should see the 1 Tech Park (formerly the Sony building) on your left, right after the toll plaza.
- 5. Continue straight, allthe way down until you see an intersection on your left leading to Damansara Jaya. Make a U-turn here and continue. Just before you see the toll booth again, go up the ramp on your left. At the traffic light you can opt to turn left to go to BU11/BU12 or to turn right to head to the BU1 until BU10. If coming from the Damansara-Puchong Expressway (LDP), look out for Taman Tun Dr Ismail on your left. When you see the intersection leading to it on your left, turn left to Jalan Surian after passing the 1 Utama shopping centre, then you will see TU Centrum on your left. 2.3.1 Background Bandar Utama Damansara where TU Centrum is located is an affluent residential township located within the Damansara subdivision of the Petaling District, Selangor, Malaysia. It is a residential suburb and home to the popular 1 Utama Shopping Centre. Bandar Utama, together with neighbouring Kampung Sungai Kayu Ara, are within the section PJU6 of Petaling Jaya. As of 2004 it is estimated that there are 59,040 people residing in Bandar Utama Damansara. The primary residents appear to be Chinese followed by Indian and Malay. However, there were nearby squatter settlements of illegal immigrants in the neighbouring Kayu Ara village which is enclosed by Bandar Utama Damansara and Damansara Utama. They have now mostly been relocated to nearby low-cost flats and their squatter houses demolished to make way for legal developments. Until 1991, the Bandar Utama Damansara area was originally consisted of palm oil estates with a population fewer than 100 people. Development of Bandar Utama Damansara began in the early 1990s under the company named See Hoy Chan Holdings Sdn. Bhd., and an attempt to modernise the area was made, with the opening of Sri Pentas, TV3's broadcast centre which was opened in 1995 and officially opened in October 1996, as well as the 1 Utama Shopping Centre, which became increasingly well known after the Jaya Jusco chain of department stores, presently known as AEON, its Taman Tun Dr. Ismail, Kuala Lumpur outlet to Bandar Utama in 1995. With the opening of several new schools in 1997 and 1998, as well as the establishment of Kolej Bandar Utama, a tertiary institution, Bandar Utama Damansara continued to grow. In 2004, additional residential precincts of BU7, BU10 and BU6 (comprising 2½-storey houses)
- 6. were completed. Theseare newer sections of Bandar Utama compared to the older sections, BU1 until BU4, which were completed in phases beginning from 1991 until 1996. 2.3.2 Transportation TU Centrum sits in the midst of lively and well established neighborhoods, which are Bandar Utama, Taman Tun Dr. Ismail, Damansara Utama and Mutiara Damansara with superb accessibility to major highways such as SPRINT, NKVE and LDP. There are three alternatives in order to access to TU Centrum, if you are from KL Sentral, take the Rapid KL Bus No. U82 which required travel time about 40 minutes to reach TU Centrum, or you can take LRT to Kelana Jaya station and take a taxi from there which is about 10 minutes drive during normal period. Beside taking the public transportation, TU Centrum is easy accessible through 5 minutes driving away from SPRINT, 10 minutes driving away from NKVE, 15 minutes driving away from Penchala Link and 20 minutes driving away from Federal Highway and Kerinchi Link. 2.3.3 Surrounding Facilities TU Centrum is surrounded by excellent amenities and public facilities with short drive away are higher education such as KDU, KBU and Segi College and numerous schools in the surrounding area. International school such as Garden International School and British International School. Primary and Secondary School such as SMK DU, SMK TTDI, SRK TTDI, SRK BU Damansara 2, SRK BU Damansara 3 and SMK BU. Shopping malls One Utama, IKANO, The Curve, IKEA, e@Curve and recreational parks in Taman Tun Dr. Ismail, Central Park Bandar Utama and Mutiara Damansara. Golf Course in KLGCC, Tropicana Golf and Country Resort, the Club@Bandar Utama. Private hospitals such as Damansara Specialist Centre and Tropicana Medical Centre and hotels such Royale Bintang Hotel and One World Hotel. The future MRT location will be only 10 minutes away from the One Utama MRT Station.
- 7. 2.3.4 Overview TU Centrumis a mixed development consists of a six building block with 2 storey shop offices and 25-storey serviced apartments each, located in superb and established location beside One Utama Shopping Mall. The 2 storey with total of 96 units of shop offices feature the corporate modern office concept with full glass windows and wide frontage of 25 feet. The built-up sizes for the shop offices will be around 1010 sq ft. Meanwhile, the 1164 units of serviced apartments comes in 2 different types ranging built up area from 1008 sq ft till 2000 sq ft to suit everyone’s needs. With a wide lobby entrance that creates a luxurious 5-star living environment and double volume ceiling, it will be a hit with the buyers. This modern tropical concept serviced apartment will provide facilities such as swimming pool for adult and children, changing room, sky light, children’s mini playground, clubhouse and multipurpose hall, prayer rooms for both male and female, tennis court and others. This development will also surrounded by a 3-tier security with a high maintenance of 24 hours security system, CCTV surveillance and access card for every owners and visitors. Security guards are also appointed to patrol the area with existing perimeter fencing at the height of 7 feet. Purchasers of TU Centrum will enjoy SPA Legal Fees borne by TU Property Development Group Berhad and two carparks to be allocated for each unit. TU Centrum serviced apartments implement the concept of chic contemporary design that creates an ambience of spaciousness with open- plan layout together with functional spaces and glass windows. There are air-conditioners to all bedrooms and living room with exception for maid's room and utility room. TU Centrum serviced apartments also equip with kitchen cabinets with hood & hob in the dry area. The facilities of TU Centrum includes an outdoor adult swimming pool, jacuzzi and children's pool, changing room, gym, playground, male and female surau, multipurpose hall, tennis court and bbq pit. Moreover, there is a landscaped courtyard with tranquil water features at the drop off area all fully natural ventilated corridor and lush greenery at facilities level. Basement carpark are for both the visitors and the owners, the carpark area has separate entrance and exit lane for visitors. Purchasers of TU Centrum will enjoy a low maintenance fees of RM0.20 per square feet (inclusive of sinking fund) for 1st year only, while the interest rate of loaning is as low as BLR - 2.4% with high loan margin – up to 90%. The car park allocation are: Type A (1008sf) – 1 car park and Type B (2000sf) –2 car park. The
- 8. construction project ofTU Centrum will be starting from January 2017 and is estimated to be completed in October 2019. 3.0 Market Segmentation 3.1 Introduction The need of housing in Klang Valley is very huge, but the price is high for almost people here especially for landed residential type. The Klang Valley market for landed residential is expected to experience a slowdown in 2015.1Apart from that, the trend of high- rise residential property is moving from condominiums to serviced residences, which made up 54% of high-rise residential property in 2014. Hence, TU Centrum Project in Bandar Utama have greater opportunities to cater market segment, since it is mixed development with serviced residence, SoHo and retail space. With affordable price for middle income level, the desire to have a dream home is almost possible. The Bandar Utama Township is known as one of the greatest commercial area in Klang Valley, the land is also located in one of the fastest emerging area in the northern part of the Greater Kuala Lumpur / Klang Valley region (GKL/KV) a great connectivity to major highways and is located near the development belt of Damansara and Selangor Vision Valley. 3.1.1 Supply and Demand trend 1 Tor Kar Inn. Slowdown in Klang Valley landed residential market expected.Last modified on Friday, 6 March 2015. http://www.thestar.com.my/Business/Business-News/2015/03/06/Slowdown-in-landed-residential-market- expected/?style=biz. accessed on 10 April 2016.
- 9. The shortage ofsupply of residential properties to meet the demand of the household in Klang Valley. The population of Klang Valley will continue to grow to 1,000,000 by 2020 based on various government initiatives. 3.2 Aim and Objective Recently we continue to see new residential projects launched by property developers as we are lacking of supply to meet the demand. Hence, in line with the increasing demand, trend and preference towards high rise residences within well planned integrated projects, the TU Centrum Project is being introduced. Marketing Objectives: Building brand awareness of TU Property Development Group Berhad , a projects of well established developers as a top of mind and preference as as a value for money property product. Launching successful Phase 1 to create lever for the next phase development
- 10. Financial Objectives: Achieving salestarget RM 20 million for serviced residents launching within 1 year time. Make sure that budget is spending effectively and efficiently. Social Objectives: Create new housing products and transforming communities. To contribute and create new face for developments of Damansara Area. Provides alternatives to target market to own their home with easy accessibility. After 20 years Klang Valley will evolve to
- 11. 3.3 Reason ofMarket Segmentation based on Household Size, Marital Status and Income to Unit Type Preference As for the TU Centrum Project market segmentation, it is based on household size, marital status and income to see what are the majority unit accommodation type preference of the citizen in Bandar Utama. The segment data of household size and marital status allow us to quantify the current market size and extrapolate future growth in a particular area geographic area, in this case would be Bandar Utama. Household is defined as one or more persons who live together in the same housing unit—regardless of their relationship to each other (this includes all occupied housing units). Households can be categorized by size, composition, marital status or their stage in the family life cycle. Typically, demand is generated by the individual or the household as a group. So, the entire family influences a household purchase, such as the accommodation and, household application. Hence, the analysis of household size and marital status will provides the “big picture” of potential retail demand in a community. However, further analysis is necessary to identify retail preferences within a community. On the other hand, household income data is a good indicator of residents’ spending power. Household income positively correlates with retail expenditures in many product categories. When evaluating a market, we will look at the median or average household income in Bandar Utama area and will seek a minimum number of households within a certain income range before determine the type of residences unit and setting prices.
- 12. 3.4 Segmentation Tabulation Assessmentof Residential House Market Opportunities Beside One Utama Shopping Mall 3.5 Analysis Chart Unit Type Preference Terrace/Unit House Bungalow Semi Detached Apartment Assessment Worksheet of TU Development Target Market Segment Unit Type Preference Terrace/Unit House Bungalow Semi Detached Apartment Sector Segment Single Storey Double Storey Single Storey Double Storey Single Storey Double Storey Serviced Non-Serviced Household Size Less than 2 people √ √ √ √ 2-4 people √ √ √ √ √ 4-6 people √ √ √ √ 6 and above people √ √ √ √ Marital Status Single √ √ √ Married √ √ √ √ √ √ Divorce √ √ √ √ √ Widow/Widower √ √ √ √ √ Income RM 1,000-RM 5,000 √ √ √ √ RM 5,000-RM 8,000 √ √ √ √ √ √ RM 8,000-RM 10,000 √ √ √ √ RM 10,000-RM 15,000 √ √ √ √ above RM 15,000 √ √ Total 7 7 2 7 7 9 10 7
- 13. 3.6 Data Analysis Accordingto the research of TU Centrum Project market segmentation, which is based on household size, marital status and income to see what are the majority unit accommodation type preference of the citizen in Bandar Utama. Most residents are between the ages of 18 and 34, and live in single-person or shared households, but majority is living in a household of 4-6 people. The racial profile is typically similar to the nation as a whole which consists of three major races Malay, Chinese and Indian. Most of the citizens in Bandar Utama are married and has a stable income of RM 8,000-RM 10,000. The segmentation report generalizes the lifestyle of Bandar Utama citizen, most of them could afford to buy or even invest in an apartment. Furthermore, this group of potential buyer are more concern on security and healthy lifestyle. They will prefer to have a service apartment in which trained security guard are there to maintain safety and security. In the aspect of healthy lifestyle, they are not only enjoy the club house facilities, such as gymanasium, swiming pool, they can even enjoy the beautiful landscape, recreation park , places for them to do daily walks and exercise. 3.7 Development of Project Idea Analysis of current political situation: Government of Malaysia recognizes housing as basic need and part of urban economy. Established housing policy focus involvement in private sector – housing production and delivery- housing scheme development. Methods of policies and programmers aimed at Unit Type Preference Single Storey Terrace/Unit House 7 Double Storey Terrace/Unit House 7 Single Storey Semi Detached 2 Double StoreySemi Detached 7 Single Storey Semi Detached 7 Double Storey Semi Detached 9 Service Apartment 10 Non-Service Apartment 7
- 14. ensuring all Malaysianhave appropriate place to stay and other related activity. Housing developments in Malaysia carried out by both parties. Public and private sector are in high demand of all sorts of houses, whether it is low, medium and high cost houses. Besides, national agenda and Vision 2020 is to become a fully developed country in terms of economical, social, political and spiritual by the year of 2020. Analysis of current economic situation: Malaysia is attempting to achieve a high-income status by 2020, this will cause rapid economic development and thus there will be increasing demand residential in urban area. Besides. EPP(Entry Point Projects) aims to transform Greater Kuala Lumpur (KL)/Klang Valley (KV) into one of the world’s top investment destinations. During year 2000-2010 in accordance with the increasing migration of working class from other cities, there was some high annual increase of housing price of at least 25 %, therefore Malaysia intended to construct 800,000 units of houses, with 73.1 % targeted for the income group of low and medium within the next three years.
- 15. The reason ofdeveloping the land bank beside One Utama into a double storey shop offices and 25-storey serviced apartments is because according to the market segmentation research, majority of people living in Bandar Utama are working adults and they prefer living in a serviced apartment since it is affordable and convenient to them. People nowadays are very busy especially those who live in modern city like Bandar Utama. Most of them don’t have enough time to maintain their accommodation and take care of their investment. Most likely they will prefer that their property are managed by the serviced company. The serviced apartments combine the flexibility of apartment and the services of hotels. All serviced apartments offer security and housekeeping services. Plus, serviced apartments are generally available for longer stays so that people can enjoy the apartment with the satisfaction of getting value for money. For medium income who are working in area of KL, PJ and Damansara. They need to have a house for living or investment purposes. TU Centrum is a residential complex inspired by a balance environment and far from the busy city to live while still enjoying the advantage of modern lifestyle, because it is developed on master plan that address the element of full residence service. This development project is situated in the prime area of land , due to lack of any further available land for development, the land price is appreciating rapidly each year, therefore, to have ownership in this development, is definitely a very promising, certainly will get a very good return opportunity for this type of investment. The value of this property will appreciate in time to come and this will surely be an advantage to the owner. 4.0 Return on Investment TU Property Development Group Berhad has acquired a piece of land of 10 acre beside One Utama shopping mall since 2012, the purchasing price is RM250 per square foot, therefore the total investment value stand as RM 10.89 million, since then, our company has continue to build our cash reserve, to employ more talented people in our team of management, our project development and sale teams, and more so, we have developed a very good working relationship
- 16. with our Govertment’slocal council to establish good drainage system, infrastructure, accessing of roads and etcs. we felt it is time for us to launch our service apartment with resident house cum two storey shoplots, our planning is to build six block of service apartment, each block consist of 27 storey in which two storey is shoplots, twenty five storey of resident apartment, each storey of apartment consist of 8 resident house. Therefore, our planned devolpment project will consist of total 96 shoplots, 1164 serviced apartments and 12 penthouses. We will use approximately 6 acre to build these service apartments. Approximately 2 acre will be allocated for building all club house facilities, swimming pool and landscape. The remaining of 2 acre will be allocated for future development projects. The build out area for shoplots and resident house is 1008 square foot (28X36) whereas the penthouses will be 2000 square foot (40X50), our resident house consist of rooms. With our research on the surrounding areas, we have establish our selling price for the shoplots as RM 600 per square foot and RM 550 per square foot for resident apartment, thus, the total sales of 96 shoplots will generate revenue of RM 58.06million, 1164 resident house will generate revenue of RM 6.453million, whereas our penthouse’s selling price will be ranging from RM 1.3millin to RM 1.5million, in which will add in approximately 16.8 million ringgit for our company, we are optimise that for this project our company will get the total revenue 81.313 million ringgit. The gross income from our revenue minus cost of land purchase is 70.423 million ringgit (81.313 million - 10.89 million) , as we has projected our cost of materials,building cost of club house facilities, landscape and other miscellanous cost will stand as 50% of our gross income, therefore, we projected our net income of this project will be approximately RM 35.2115 million. Prima Damansara Villamas SierraMas Sinaran TTDI ( Studio) TU Centrum Sqwhere Tropicana Garden RM0.00 RM200,000.00 RM400,000.00 RM600,000.00 RM800,000.00 RM1,000,000.00 RM1,200,000.00 0 50 100 Price Convenience Price VS Convenience
- 17. 5.0 Marketing Strategies 1.OnlineMarketing -Web development: http://www.TUCentrum.com.my/ -Social Media: Facebook, Instagram, WeChat -Mass Media: YouTube Channel, phone Ads application -Marketing Agent 2. Printed Ads and Advetorial 3. Promotion: Rebate 5% for early birds purchasers before February 2018, 4.Roadshow: at TUCentrum sales gallery 5.Direct Marketing: Leaflets and brouchers to be sent to specific groups & residents area and office workers in Bandar Utama, Damansara and Klang Valley area. 6. Billboards: Next to site 7. Radio Campaign 8. Point Purchase Communication: Show house, others (in-stores displays, posters, signs and other materials designed to influence consumer buying decision at the point of purchase
- 18. 6.0 Constraint andFuture Development Our company is going to develop another two acres of land in another two years. The project will consist of 490 units of home office. Our target are the young working adults. The build up area of this type of home office is approximately 800 sqf-1200 sqf. The price is $550 per square feet. The selling price is between $440,000 to $660,000. There are some constraints that we developer have to face. We have to tackle the drainage and sewerage system that caused the flash flood at the nearby existing housing area. Since this problem is connected with the existing residential area, we are required by the government to repair and upgrade the system. Therefore budget has to be allocated for the repair and the there will be an increase in the building cost. Furthermore, there will be a lot of procedures involved with the various government departments and other enforcement departments. In order to have future development, we will face some constraints such as environment issues. As we already have environment friendly system at the moment, the future development will harm and destroy our current ecosystem. Therefore to upgrade and maintain our ecosystem, we need to use more advanced technology and it will be costly to our company. The future development will surely cost higher. Thus it will affect the cash flow of the company.
- 19.