Ecofirst upbeat about Sungai Buloh TOD project

KUALA LUMPUR: Property developer Ecofirst Consolidated Bhd is anticipating a quick take-up of its transit-oriented development (TOD) project in Sungai Buloh, Selangor.

This is based on the pricing that is considered affordable for the average working class, and is also in line with Bank Negara Malaysia’s estimate of the RM282,000 maximum price achievable for the median household.

At RM269,100, a buyer can own a 450 sq ft home with premium designs.

Two other types are RM370,760 for a 650 sq ft unit and RM445,740 for a 850 sq ft unit.

“We are confident that the concept of affordable residential units under a TOD project would be a huge success as prospective buyers are more interested in property developments that offer good connectivity.

“We have seen a surge in interest in properties that are near to public transport such as the Mass Rapid Transit and Light Rail Transit. We also notice that TODs offer a higher return value for property investors,” group chief executive officer and executive director Datuk Tiong Kwing Hee told the New Straits Times.

To recap, Ecofirst in January purchased seven parcels of land in Sungai Buloh through whollyowned subsidiary Opal Horizon Sdn Bhd (OHSB) for RM70 million.

OHSB inked a conditional sale and purchase agreement with Radiant Nature Sdn Bhd to develop a mixed development with a gross development value (GDV) of more than RM550 million. It is slated to commence by the end of this year.

Tiong said the purchase of the land would be settled partly by RM49 million in cash and an issuance of 60 million new shares worth RM21 million.

“Given the current low interest rate environment as well as the competitive land price, we think that it offers a good opportunity for the group to invest for longterm growth prospects,” he said.

The development comprises two blocks of 1,340 residential units and another block of 252 units under the National Affordable Housing Policy.

Tiong said due to the Covid-19 pandemic, the industry was grappling with an economic slowdown as well as property overhang.

The overhang for residential, serviced apartments and small office/home office units worth in excess of RM50 billion has already existed prior to the start of the pandemic.

Despite that, the national housing statistics showed “there is a shortage of one million houses in Malaysia”, he said.

“Based on Ecofirst’s project and marketing teams’ research and feasibility studies, we found that the shortage of one million houses in the country is true and that there exists a serious mismatch in terms of what is offered by property developers and what prospective buyers are looking for.

“Our studies show there is a mismatch in terms of product offerings, location and affordability. Hence, we have earmarked the Sungai Buloh TOD for affordable residential units.

“Aside from that, we believe the Sungai Buloh TOD will provide an opportunity for prospective buyers to pick up quality assets in prime locations with reliable income-generation capacity,” he said.