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News Room

19 Dec 2011

Tambun Indah lines up RM600m properties

The Sun Daily


KUALA LUMPUR (Dec 19, 2011): Butterworth-based property developer Tambun Indah Land Bhd expects to launch RM600 million worth of properties next year including its first project on the island in mid-2012, and maintain new property sales of over RM300 million for the next few years, its managing director Teh Kiak Seng said.

He told SunBiz in an interview that the company expects good sales and a stable outlook on the property sector in Penang next year as construction material prices have stabilised while land prices, although high, are also stabilising.

Tambun Indah currently has a landbank of 388ha out of which 96ha have been developed.

The remaining landbank comprises ongoing, planned and future projects with a total gross development value (GDV) of RM3.46 billion, which will keep the company busy till 2020.

He said the company is looking to acquire more land in Penang both on the mainland and island, and is open to joint ventures with land owners and other developers especially on the island where land is expensive and scarce.

Teh said it is confident of selling a total of 900 units with total new sales of RM340 million, and growing its market share to 15% this year from 10% in 2009 as more buyers move from the island to mainland due to high property prices, especially in the high-end segment.

The developer, which focuses on projects in Butterworth, has already sold 770 units as of third quarter this year, recording new property sales of RM294 million for the first nine months.

Teh said: "It is getting too expensive for local people to buy. On the mainland, a two-storey terraced house in a gated and guarded development complete with facilities would cost RM320,000 but a similar property on the island could easily cost RM900,000," he said.

"That's why more purchasers are coming to the mainland. Foreign direct investments that are coming mostly to the main-land would also create employment opportunities," he said, adding that prices on the island have peaked while mainland property prices are catching up.

Teh said in Pearl Garden, a gated and guarded development in Simpang Ampat, Seberang Perai Selatan, has seen an increase in Penang island buyers from 28% in 2009 to 41% this year.

These trends augur well for the developer's biggest project to date, namely Pearl City, an integrated mixed project in Simpang Ampat.

According to Teh, the 280ha project, which began in 2009, has a GDV of RM2.8 billion and is slated for completion in 2020.

He said the project, which will house over 11,000 residential units upon completion, includes a 40ha business park comprising a hospital, hypermarket, colleges and plans for a retirement component.

He said that once these components are completed, the working population in the business park is expected to purchase or rent homes within Pearl City, which is located 15 minutes from the second Penang bridge and near the proposed electrified double-track commuter train station.

On expanding beyond Penang, he said the company is keen on Kuala Lumpur but is looking at joint ventures at a later stage due to the high prices of land.