Eupe redesigns Cheras residential project

KUALA LUMPUR: Kedah-based Eupe Corp Bhd has redesigned and renamed its serviced apartment project in Cheras previously known as “The Weave” to “Parc 3”. The change was made in order to develop a product which fits better with the current market conditions, said group managing director Datuk Beh Huck Lee.

The 2.7-acre leasehold development has an estimated gross development value (GDV) of RM500 million and is located in Taman Pudu Ulu, overseeing the 60-acre Pudu Ulu Recreational Park.

Targeting a wide range of homebuyers, the developer is looking to launch Parc 3 by 4Q2017. According to Beh, Parc 3 will provide those who are looking to dwell in Cheras a different housing option as most homes in Cheras are landed ones, which may not be affordable to young professionals.

“We are not only offering a product based on pricing but also providing more options for homebuyers.

“With the current [market] condition, [Parc 3] gives a good balance between yield and liveability. Previously, we were targeting people who want to live there with their extended families. Now we are targeting smaller families and people who are looking to move to Cheras.

“One of the main aims of the redesign has been to increase the number of smaller size units to cater to a broader segment of the market and also in recognition of changed market conditions which has made buyers more discerning and price-conscious,” he told
TheEdgeproperty.com.

However, the developer declined to disclose the price range for Parc 3, only saying that the pricing “will be very competitive in the Cheras area considering the design and facilities offered”.

“It will be designed around a park concept as there will be three interior parks in the building to [complement] the large Taman Pudu Ulu recreation park that is adjacent to the project. The quality of the architectural design, facilities and unit features will remain high,” said Beh.

The developer will also launch its updated sustainability strategy called Sustainability Plus, during the upcoming launch of Parc 3.

“Sustainability Plus is not a marketing gimmick. We believe in taking a long-term view of the industry, so sustainability has to be taken in a wider context.

“This means going the extra mile to come up with good designs that will enhance liveability. We always talk about green buildings, but have you ever thought about who will change your property’s solar panels after five years?

“Thus, we focus a lot on passive design where not much maintenance is required. Creativity [or innovation] isn’t about how much money you have to spend [in developing a property],” said Beh.

Meanwhile, the Kedah-based developer’s maiden project in KL, Novum in South Bangsar, has seen good take-up rates since it was launched a year ago. The condominium project has achieved about 90% take-up to date.

“I don’t want to be overly optimistic as the market changes every day but the good take-up rate of Novum has certainly boosted our confidence,” said Beh, adding that Novum is slated for completion by May 2019.

The freehold Novum South Bangsar is being jointly developed with Asthetik Property Group. It comprises 729 units across three towers. The three-acre project faces the Federal Highway and is less than 3km away from Mid Valley City.

The project has a GDV of RM555 million. Prices for the units with built-ups from 647 sq ft to 1,441 sq ft range from RM720,000 to RM1.73 million, or RM900 psf.

On Sungai Petani, Kedah

For 2017, Eupe is looking to launch a total of RM600 million worth of projects in both KL and Kedah. It still has a landbank of about 400 acres in Kedah. “Kedah houses are definitely a lot cheaper, easily 20% to 25% cheaper [than houses in major cities]. But you should not generalise housing prices in Kedah because prices are different across towns. For example, houses in Baling are more expensive than the ones in Sungai Petani.

“But during a boom market, Kedah will never have the same kind of upside potential as KL. [Hence] we know that we cannot put all of our eggs in one basket.

“[Having said that] our forte still lies in township developments, where we have the upper-hand of having developed townships in smaller cities in Malaysia. So when the market slows down, we have these areas (such as Kedah) to help us hold the fort. We don’t think we would forgo whatever we have in Kedah,” he said.

Among its ongoing projects in Sungai Petani are The Somerset, Cinta Sayang Resort Villas and Astana Parkhomes with GDVs of RM80 million, RM160 million and RM430 million, respectively. New phases for these projects will be launched in stages this year.

No more China ventures for now

On its earlier plans to expand into China, Beh said those plans are now off due to slow market conditions.

“For now, we want to consolidate and do our jobs here [in Malaysia] over the next few years but should there be any good opportunities overseas, we will definitely look at it,” said Beh.

Eupe’s director for strategic projects Paul Chang said the Chinese market is not as simple as it seems.

“China isn’t a single market. It is made up of multiple markets in different cities. In terms of overhang, there isn’t much in cities like Shanghai and Beijing but it is completely different in third-tier cities. So for us to go into this kind of market, we will have to compete with the big boys and if we cannot get the resources we need, it won’t work [for us],” he noted.

This story first appeared in TheEdgeProperty.com pullout on April 14, 2017. Download TheEdgeProperty.com pullout here for free.