Strong interest in The Grand Subang

IN recent years, there has been a flurry of small office/home office developments in Subang Jaya — Empire SoHo, One SoHo, Nadayu28, You One Subang, Sunway Geo and da:mén, to name a few. Recognising the needs of small businesses, many developers seem to be looking to reconfigure their project layouts to offer products that suit this segment.

Boutique developer Mediaraya Sdn Bhd has been quick to spot this trend and is planning to launch The Grand Subang @ SS13, a small office/flexible office (SoFo) development in Subang Jaya, by early next month.

“We strongly believe that there is a burgeoning market for SoFos in Subang Jaya. The design and affordability will be the key drivers for such developments,” Mark Choo, general manager of property development of Mediaraya Sdn Bhd, tells City & Country. The company also owns the Asia Café land in SS15 in Subang Jaya.

The Grand Subang, with a gross development value (GDV) of RM286 million, is expected to be completed in the fourth quarter of 2019. Covering 2.46 acres, the freehold SoFo development will comprise two 22-storey towers with 578 units and 995 parking bays. With built-ups of 520 to 883 sq ft, the prices of the units start at RM380,000.

“We are targeting first-time investors and young entrepreneurs and families living in Subang and Sunway. Due to the large population in these areas, we expect the project to sell well,” says Choo. The Grand Subang has received a lot of interest from investors, with over 4,000 registrations so far.

“Initially, we wanted to launch the first phase in the middle of this month. However, many parties wanted to book their units immediately. Hence, the management decided to allow some bookings in the first week of September. So far, 245 of the 289 units in the first tower have been booked,” he says.

Mediaraya is the property division of food and beverage operator Cinta Subang Development Sdn Bhd, which is best known for operating the Asia Café chain in Subang Jaya and Kota Damansara.

In June 2013, Mediaraya launched The Grand SOFO at Kelana Damansara Suite. With a GDV of RM190 million, the two-tower development comprises 430 SoFos with built-ups of 370 to 1,100 sq ft and launch price starting at RM680 psf. The project, which is fully sold, was completed last June.

Desirable features, good connectivity

According to Choo, the facilities and other features at The Grand Subang will set the development apart from the other projects in the vicinity. “The Grand Subang will have the right components to make it a prime SoFo project. Among the facilities are discussion rooms on the podium level, a shuttle bus service, centralised laundry service, swimming pool and gymnasium. There will also be a four-tier security service, CCTVs in the common areas and maintenance and cleaning services.

“We also plan to have shops on the mezzanine floor for the convenience of the residents.”

The Grand Subang will have a modern design and most of the units will come with two rooms, a balcony, a yard and storage space, says Choo. “We chose to keep the layouts small and efficient. We believe that the facilities and the layout of the units will attract those looking to operate businesses in the area.”

He describes the location of the development exceptional. “When we first acquired the land, we knew that it was one of the last remaining commercial parcels in SS13. We strongly believe that one of the selling points of The Grand Subang is its location. To the north, east and west of The Grand Subang are light industries and to the south is UCSI University.”

The development will have easy access to highways such as the Federal Highway, Damansara-Puchong Expressway, New Pantai Expressway and Shah Alam Expressway.

It is also located near educational institutions, such as Monash University, Sunway University, SEGi College, Metropolitan College, INTI International University and Taylor’s University, and shopping malls, such as Sunway Pyramid, Subang Parade, AEON Big Hypermarket, Empire Shopping Gallery and Summit Shopping Centre.

Lydia Mun, principal of One Sunterra Properties Sdn Bhd, acknowledges that The Grand Subang’s location is a plus. “Its location is strategic ... within walking distance or a short drive away from small and medium entreprises, business premises, schools and colleges. The relatively affordable pricing and freehold land tenure are also its strong points.”

According to Mun, the bestselling properties in Subang Jaya are still 2-storey terraced houses. “The demand for SoFos has yet to be seen because this concept is still new.

“Most of those developments have yet to be completed, hence, there is no data available. However, we estimate that the average rent of SoFos will be RM2.50 psf, with a gross yield of 4% to 5%. For The Grand Subang, the launch price of RM650 to RM700 psf is reasonable,” she says.

Among the catalysts for SoFo developments in Subang Jaya are new infrastructure facilities, such as the Kelana Jaya LRT Line extension and Sunway bus rapid transit, and the young working population in the vicinity and nearby areas, such as Shah Alam and Petaling Jaya. “Other key drivers are the commercial activities in neighbourhood hubs like the Taipan Business Centre, SS15 commercial centre and SS13 industrial hub,” Mun says.

She adds that The Grand Subang will most likely appeal to small families and young professionals who are staying or working in Subang Jaya, as well as investors.

The overall outlook for SoFo developments in Subang Jaya is favourable. “Prices are expected to remain flat in the short term. However, they may rise steadily in the long term when the broader market begins to accept the SoFo concept,” Mun says.

“With the scarcity of sizeable land in well-developed areas such as Subang Jaya, it is anticipated that SoFo developments in good locations will appeal to young people seeking to buy affordable properties that offer conveniences and facilities and are near LRT stations.”

Future plans

Apart from the land parcels in Subang Jaya, Mediaraya owns 14 acres in Kuala Selangor. “We intend to build 250 terraced houses and low-cost units on the Kuala Selangor parcel,” says Choo.

Moving forward, the developer plans to demolish Asia Café in SS15 and develop a SoHo project on the two-acre site.

“Asia Café in SS15 was set up in 2003 and the building is a bit weathered. Initially, we planned to retrofit it, but after considering the changing trend and the warm weather, we felt that it is best to redevelop and fit the market segment ... plus air conditioning,” Choo says.

The yet-to-be-named SoHo development, which will comprise two blocks with a total of 483 units, is scheduled to be launched by the end of next year.However, according to Choo, it will depend on market conditions.

“For this project, we are targeting investors looking to provide accommodation for students of nearby universities like INTI International University and Colleges and Taylor’s University.

“We plan to have 600 parking bays and build an overhead bridge to cater for students attending the universities.”

Choo says other details concerning the project have yet to be confirmed.

This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on Nov 14, 2016. Subscribe here for your personal copy.