Understanding people to predict trends

TA Global Bhd, as its name suggests, has a global presence as a property developer with projects in various countries including Malaysia, Australia and Canada. In Australia, it recently completed and handed over Solis, the first building at its Little Bay Cove Master Plan Development in Sydney. It will soon begin construction on Illume which is about 80% sold. In Canada, it is in the process of completing Trump International Hotel and Tower Vancouver, a mixed-use project with 217 condominium units and a 147-key hotel.

“We believe that we have created an iconic building that will be benchmarked in the city of Vancouver for many years to come. We have sold out the building and have achieved the highest average price psf for a residential mixed-use building in Canada,” says TA Global CEO Tiah Joo Kim.

In Malaysia, TA Global has several ongoing and upcoming developments, including the 48-acre Damansara Avenue in Bandar Sri Damansara and a mixed development in Kuala Lumpur City Centre which it hopes to unveil next year.

While busy developing projects now, Tiah believes a property developer needs to evolve and embrace change if it wants to remain constantly relevant now and in the future. He says technology’s role and influence will be even stronger in the future.

“The Internet and the smartphone, for instance, have changed how we live. They have and will continue to change the way we market, sell, communicate and buy real estate. It is the future as people are spending more and more of their time online and on social media. Social media and digital marketing will continue to grow. And as the younger generation who are more tech and Internet savvy grow to become property buyers, they are more open to new methods that involve the Internet,” he offers.

More disruptive businesses and trends can be expected in the future. For instance, the Internet has opened up the hotel market with the emergence of home-sharing businesses such as Airbnb.

“Hotels have to learn and understand why some end users are choosing Airbnb. The traditional hotel will have to adapt and learn how to compete against what Airbnb gives,” he adds.

The first step in predicting future trends, he believes, is to understand the behaviour, tendencies, patterns as well as culture of a target market.

“When you understand the psychology of your target market, it will be easier to figure out their actions in the future, and when you do, hopefully you can capitalise on it sooner than anyone else.

“Trends do not become trends overnight; trends become trends when they are popularised or embraced by key influencers, true followers and experts of a field,” he says.

The political and economic situation of countries also influence and dictate trends, for example, the flow of money and immigration, which will dictate sales.

One country to watch now and in the future is China, he says. “The Chinese have been busy expanding and buying assets and businesses all over the world, especially in gateway cities like Vancouver, San Francisco, London, New York, Melbourne, Sydney, Los Angeles and so forth. They are buying up everything, and will continue to do so and increase their sphere of influence.

“Besides the Internet, I would say the Chinese are the ones to watch, not so much because they create trends but because they are so big that they make something a trend when they latch on to it. When China is able to successfully create an original product/idea, versus copying/perfecting an idea, that’s when they will be scary.”

What does he hope for in Malaysia’s development scene in the future? Looking at Kuala Lumpur city, Tiah says public parks and amenities are lacking while traffic congestion continues to plague the city.

“If we can create an environment where the end user can have a more liveable life where they can live, work and play in the same area, this would translate to more personal time for themselves and their families. There are developers that recognise this. However, I think a more concerted overview of how we plan future areas is warranted. As a city grows, the development community has to start looking at the growth and development of the city as a whole and not solely by single pieces of land that they own.”

This story first appeared in TheEdgeProperty.com pullout on Oct 7, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.