Beruflich Dokumente
Kultur Dokumente
BORNEO RIVERFRONT
MARKET ANALYSIS
samarahan, SARAWAK
Lavender Planning Consult Sdn. Bhd.
I. INTRODUCTION The purpose of this report is to provide an informed recommendation to State Planning Unit regarding plans to develop all or a portion of an estimated 552.94 acres of property in Borneos Riverfront Opportunity Area. This land includes property between state land, Hock Seng Lee Bhd and Tiya Vista Properties Sdn Bhd.
To evaluate the development potential of the Riverfront Plan Area, a preliminary development program that focuses on a 552.94 acre site. The Phase 1 program conforms to the vision laid out in the Samarahan Area Plan and identifies proposed land uses and cost estimates associated with acquiring property and converting raw land into finished pads that will be sold to private developers. Lavender Planning Consult Sdn Bhd financial analysis uses a residual land value model to identify the maximum price per square foot that a private investor could afford to pay for raw land while ensuring the project is financially viable.
BORNEO RIVERFRONT
MARKETING ANALYSIS
A. Objective of the Market Study There are several key considerations that must be met for a real estate development project to be successful. In general, a successful project is the product of a clear vision with a well-defined set of goals and objectives. With a clearly defined vision, it is possible to conduct effective market research to determine if there is identifiable market demand for the project at a supportable price point. For example, as described in the introduction, a residual land price model may be used to determine how much a developer can afford to pay for land and how much finished pads must sell for to make a project pencil. Alternately, for projects such as housing and speculative office development, market research can help determine appropriate rents/sales prices for finished products. The second required component for development is a capable team with the financial capacity to see it through. Finally, successful development balances expectations with market reality.
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
C. Certification Letter
BORNEO RIVERFRONT
MARKETING ANALYSIS
Whether there is market demand for the uses the site; and
envisioned
on
BORNEO RIVERFRONT
MARKETING ANALYSIS
Thus, the development feasibility analysis must take into account existing economic factors, development costs, site conditions, competitive projects, and Samarahans relative position to other opportunity sites. In order for the project to be realized, the State Planning Unit or a developer must assemble parcels large enough to initiate a phased development. Thus, the first and most important step to understanding the feasibility of the project is to know at what net effective price land can be purchased while not negatively impacting the feasibility of subsequent steps of development such as site preparation, lot sales, and building construction. The following are the conclusions of the analysis: With positive market demand, the Phase 1, 4-year development program can be supported at land prices ranging from RM2.70 per square foot of raw land. Land prices were estimated using a residual land value model. A modest first phase of development should focus on office uses with supporting retail on a site of between 10 and 12 acres. BORNEO RIVERFRONT
MARKETING ANALYSIS
There is no precedent in the Kuching-Samarahan Metro area for waterfront development of the scale and density envisioned by the Borneo Riverfront Plan. Therefore, it is not possible to accurately predict the likely demand for or absorption of the planned land uses as there is too little historical data to draw any conclusions. This is particularly true for riverfront housing at urban densities. Generally, the Samarahan area is significantly blighted and properties in the surrounding area should be upgraded in order to create a positive environment for new development at the riverfront. In such environments, office uses typically fare better than housing as a pioneering use because there are generally fewer conflicts between industrial and office users. Offices conduct most of their business between the standard 9 to 5 business day and do not require as many amenities and services as residential communities. Further, prospective homebuyers are likely to view an area such as Samarahan, which has a high concentration of industrial and commercial users and a limited supply of residential uses, most of which are older, low value residences and mobile homes, as a less desirable place to purchase a home in the short term.
BORNEO RIVERFRONT
MARKETING ANALYSIS
Given that the supportable land prices are lower than recent asking prices, the City has a number of choices for moving forward. These include:
Wait until the market strengthens for urban housing. The Samarahan division is a relatively immature market for these product types when compared to Kuching. Further, urban housing almost always begins in downtowns and expands to other regional locations over time. Given that downtown Kuching has seen only a tiny amount of new urban housing, Samarahan should consider waiting to move forward until a few housing projects have been completed and the urban housing market has been better established. There is no specific indicator of when the market is mature, but if at least 5 to 10 new urban housing projects had been built over a 2 to 5 year period in downtown Kuching, it would be safer to move forward on Samarahan.
BORNEO RIVERFRONT
MARKETING ANALYSIS
In the meantime, State Planning Unit could selectively assemble land in Samarahan at higher than market prices to land bank until the time when the opportunity is ripe. Alternately, State Planning Unit could write down the cost of land and sell it to private developers at below market prices to encourage investment in Samarahan. Likewise, targeted blight removal and beautification efforts in Samarahan should be pursued so as to create a more receptive context for new investment. Office development should precede housing development in Samarahan and set the stage for revitalization.
BORNEO RIVERFRONT
MARKETING ANALYSIS
As an alternative to the riverfront development concept, State Planning Unit could reevaluate the development strategy and focus on more targeted revitalization efforts, including projects and programs that target specific properties in the riverfront area as well as other parts of Samarahan. While the market is not ripe today, there are many actions that State Planning Unit could take to prepare themselves for either the time when the market matures or when an unexpected opportunity presents itself, such as a large anchor user or institution. Examples of targeted investments that State Planning Unit could undertake include: i. Building reuse. ii. Business development (small business loans, marketing programs, training). iii.Storefront improvements (loans or grants).
BORNEO RIVERFRONT
MARKETING ANALYSIS
iv. Utility investments (sewer, water, telecommunications). v. Transportation investments (street paving, sidewalks, etc.). vi. Development and implementation of a streamlined permitting process. If the City wants Samarahan to attract the highest quality development, it should be the easiest part of the City in which to do business. Removing regulatory hurdles for compatible projects is a big incentive for developers. In the development industry, time is often more valuable than money.
BORNEO RIVERFRONT
MARKETING ANALYSIS
vii.
Completion of transportation, infrastructure and planning studies, including an update to Samarahans Transportation System Plan. To the extent that the City can create planning certainty in zoning, transportation, and annexation, the easier it will be to attract investment. Completing these efforts ahead of development is important.
viii.
Actively pursuing a large employer. An anchoruser such as a hospital, educational institution, large manufacturer, or corporate headquarters will place Samarahan on the map and send a positive signal to the community. Anchor users provide confidence in the market that attracts additional investors.
Indeed, the recent expansion of the Sarawak Black Paper is an example of revitalization that creates jobs, improves property, and creates tax increment to support additional projects (once the tax abatement incentive expires). Additional industrial employment projects should be considered.
BORNEO RIVERFRONT
MARKETING ANALYSIS
III. Proposed Project Summary A.Project Description This development is named Borneo Riverfront and located at the Borneo Island. Which it is a huge island that located on the East of Peninsular Malaysia. Because of that, in this development we try to implement the Borneo culture in the view of urban design. This development site is surrounded by the river. These make it a strategic place for the Riverfront Development concept in the area of Samarahan. The main reason why the concept of Riverfront has been chosen is because, this site area has a potential for Riverfront Development and also for tourism centre. Besides that, there is no existing riverfront development in the district of Samarahan and also at the surrounded area. It shows another potential of this development is a feasible development to be develop.
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
Re g i o n a l c o n t a c t
kuching
BORNEO RIVERFRONT
MARKETING ANALYSIS
Located at the centre of south east asia Gateway to the Borneo Island
Sarawak is located on the island of Borneo. Sarawak is the largest of Malaysia's 13 States. The State of Sarawak covers an area of 124,449.51 sq. km or about 37% of the Malaysia total land area. Sarawak also known as the Land of Hornbills. The rainforest is home to an incredible variety of more than 8,000 species of flora and over 20,000 fauna, Sarawak also rich in culture, history and heritage. The administrative of Sarawak is currently divided into eleven divisions namely Kuching Division, Samarahan Division, Sri Aman Division, Betong Division, Sarikei Division, Sibu Division, Mukah Division, Kapit Division, Bintulu Division, Miri Division and Limbang Division. Kuching is the capital of Sarawak.
BORNEO RIVERFRONT
MARKETING ANALYSIS
BANDAR KUCHING
7km from Kuching City close to airport accessible via expressway between Sg. Kuap and Sg. Bayor
PROPOSED SITE
BORNEO RIVERFRONT
MARKETING ANALYSIS
KAMPUNG BINYU
PROPOSED SITE
UiTM SARAWAK
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
H y d r o l o g y sy st e m a n d w a t er r u n - o f f
p a Ku
g.
Sg
Ba y
or
Sg. Jerenang
200 0 200400
1000
BORNEO RIVERFRONT
0
MARKETING ANALYSIS
Sl o pe & h i g h a n a l y si s
U
200 0 200400
1000
BORNEO RIVERFRONT
MARKETING ANALYSIS
So i l & g e o l o g y
Swamp river area U
200 0 200400
1000
BORNEO RIVERFRONT
MARKETING ANALYSIS
west
east
200 0 200400
1000
BORNEO RIVERFRONT
0
MARKETING ANALYSIS
Ac c e ssi b i l i t y
Project Site
BORNEO RIVERFRONT
MARKETING ANALYSIS
BANDAR KUCHING
7km from Kuching City close to airport accessible via expressway between Sg. Kuap and Sg. Bayor
PROPOSED SITE
BORNEO RIVERFRONT
MARKETING ANALYSIS
Go v e r n m e n t po l i c i e s
BORNEO RIVERFRONT
MARKETING ANALYSIS
Kuching Bau Lundu KUCHING DIVISION Samarahan Serian Simunjan Asajaya SAMARAHAN DIVISION
Source: Population and Housing Census of Malaysia, 1991 & 2000, Department of Statistics Malaysia Note: Population figures shown have not been adjusted for under-enumeration.
BORNEO RIVERFRONT
MARKETING ANALYSIS
Source: Population and Housing Census of Malaysia 2000 Monthly Statistical Bulletin Sarawak, January 2007 Note: Figures presented in this table have not been adjusted for under-enumeration. (e) Estimate
BORNEO RIVERFRONT
MARKETING ANALYSIS
Source: Yearbook of Statistics Sarawak 2006 Note: Figures in this table have been adjusted based on the estimates of under-enumeration derived from the Census Coverage Evaluation Survey.
BORNEO RIVERFRONT
MARKETING ANALYSIS
Source: Yearbook of Statistics Sarawak 2006 Monthly Statistical Bulletin Sarawak, January 2007 Note: (e) Mid-year estimate.
BORNEO RIVERFRONT
MARKETING ANALYSIS
B. Household Income
GDP and Per Capita Income, Sarawak & Malaysia at Current Prices:
ADMINISTRATI VE DISTRICT Year 1987 1988 1989 1990 1991 1992 Sarawak Annual Growth % -1.1 8.1 7.1 8.8 -2.2 Per Capita GDP (RM) 6,516 6,447 6,970 7,465 8,119 7,938 Malaysia Annual Growth % 10.0 10.2 10.3 9.3 11.4 Per Capita GDP (RM) 4,877 5,363 5,911 6,520 7,126 7,939
1993
1994 1995 1996 1997 1998 1999 2000 2001 2002e 2003e 2004f
4.4
10.8 14.2 -4.0 12.3 0.1 11.0 22.9 -4.8 0.8 2.3 5.8
8,291
9,185 10,486 10,071 11,307 11,317 12,567 15,451 14,703 14,819 15,163 16,047
6.4
12.0 11.7 13.4 8.5 -1.8 3.6 10.7 -4.9 -1.7 4.8 4.3
8,444
9,461 10,567 11,986 13,006 12,770 13,225 14,641 13,924 13,690 14,343 14,954
BORNEO RIVERFRONT
Source: Basic Data on Sarawak MARKETING ANALYSIS
C. Employment
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
D. Housing
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
Kuching
263 (650) 234 (1210) 50 (207) 54 (384) 0 (504) 601 (2955) 0 (995) 83 (396) 0 (124) 32 (82) 115 (1597) 237 (279) 348 (833) 2 (22) 96 (339) 683 (1473) 15 (44) 12 (221) 0 (0) 41 (76) 68 (341) 718 (387) 95 (407) 55 (166) dee 136 (274) 1004 (1234) 2471 (7600)
789 (993) 1384 (1410) 289 (196) 510 (526) 0 (0) 2972 (3125) 1535 (1535) 289 (372) 142 (142) 74 (106) 2040 (2155) 1100 (694) 1693(1479) 74 (50) 484 (460) 3351 (2683) 243 (148) 195 (114) 8 (0) 42 (55) 488 (317) 390 (985) 286 (268) 197 (199) 315 (212) 1188 (1664) 10039 (9944)
80 (261) 348 (913) 143 (142) 58 (418) 0 (0) 629 (1734) 56 (1353) 0 (133) 14 (70) 0 (4) 70 (1560) 168 (188) 691 (487) 22 (14) 168 (190) 1049 (879) 62 (160) 93 (24) 12 (8) 28 (28) 195 (220) 28 (229) 93 (121) 21 (199) 152 (100) 294 (649) 2237 (5042)
59 (752) 208 (973) 143 (142) 38 (376) 0 (0) 448 (2243) 0 (713) 0 (117) 0 (46) 0 (4) 0 (880) 633 (531) 493 (572) 28 (42) 110 (230) 1264 (1375) 110 (160) 93 (24) 8 (0 ) 28 (0 ) 239 (184) 123 (736) 113 (222) 53 (208) 239 (123) 528 (1289) 2479 (5971)
Samarahan
Sibu
Bintulu
Miri
BORNEO RIVERFRONT
MARKETING ANALYSIS
209,000 - 229,000
145,000 - 224,000
185,000 - 220,000
120,000 - 130,000
232,000 - 338,000
230,000 - 310,000
240,000
From 198,800
286,000 - 458,000
285,000 - 390,000
275,000 - 336,000
From 210,000
165,000 - 359,000
226,000 - 338,000
238,000 - 310,000
NA
240,000 - 350,000
DS semi-dee
359,000 - 738,000
355,000 - 550,000
388,000 - 450,000
370,000
Detached plot
200 psm
N/A
NA
NA
BORNEO RIVERFRONT
MARKETING ANALYSIS
Shop-offices/Shop-houses 2008
Region Type Units completed Units Under construction 0 (0) 0 (0) 437 (406) 126 (89) 563 (495) 43 (16) 20 (0) 63 (16) 53 (43) 201 (196) 22 (11) 276 (250) 114 (114) 7 (7) 121 (121) 48 (48) 54 (63) 102 (111) 1125 (993) Units Launched 2007 0 (0) 0 (0) 45 (147) 41 (53) 86 (200) 27 (16) 0 (0) 27 (16) 4 (49) 53 (91) 11 (0) 68 (140) 0 (0) 0 (0)0 (0) 0 (0) 0 (0) 0 (0) 181 (356) Units Construction Started 2008 0 (0) 0 (0) 118 (217) 39 (46) 157 (263) 27 (16) 20 (0) 47 (16) 4 (43) 53 (110) 11 (0) 92 (153) 0 (6) 0 (0) 0 (6 ) 0 (0) 0 (0) 0 (0) 296 (438)
Kuching
0 (0) 0 (10) 87 (175) 2 (66) 89 (251) 0 (31) 0 (10) 0 (41) 0 (87) 66 (0) 0 (47) 66 (134) 0 (30) 0 (7) 0 (37) 0 (32) 9 (18) 9 (50) 164 (513)
Samarahan
Sibu
Bintulu
Miri
BORNEO RIVERFRONT
MARKETING ANALYSIS
3-storey int
3-storey corner
1,100,000
4-storey int
4-storey corner
1,058,000 1,580,000 -
Kuching
900,000
888,000 3,500,000 -
Samarahan
Sibu
295,000+
350,000+
Miri
From 366,000
560,000 680,000
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
Chart Title
1,000,000,000.00 1,000,000,000.00 800,000,000.00 600,000,000.00 cashin flow 400,000,000.00 cashin flow Cash Outflow 200,000,000.00 0.00 -200,000,000.00 Cash Outflow Surplus/deficit
900,000,000.00
800,000,000.00 700,000,000.00 600,000,000.00 500,000,000.00 400,000,000.00 300,000,000.00
200,000,000.00
100,000,000.00 0.00
cashin flow
Cash Outflow Surplus/deficit 122,289,210.01 -122,289,210.01 29,842,520.40 0 29,842,520.40 80,000,000.00 73,316,295.78 6,683,704.22 356,000,000.00 196,200,000.00 159,800,000.00 117,300,000.00 76,304,000.00 40,996,000.00 299,000,000.00 185,184,000.00 113,816,000.00 882,142,520.40 653,293,505.79 228,849,014.61
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
INTRODUCTION Marketing strategy is a vital in the development process. The strategy is to making sure that the development meet customer needs. Use to identified, whether the development is : feasible marketable saleable profitable capable Major element in the development marketing strategies: Product strategies Selling strategies Pricing strategy Promotion strategy BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
PRODUCT STRATEGY An effective product strategy must go beyond efforts to achieve core market growth. A robust strategy must consider all possibilities and generate growth and revenue along several potential avenues of innovation. There are four potential avenues of innovation in the product strategy: Core market growth, which consists of making improvements to products and services that already exist in order to help customers get a job done better. Adjacent or related market growth, which is improving existing products and services to help customers get related or ancillary jobs done New market creation, which involves creating a new product or service for customers who are trying to get a job done but cannot because no solutions or only ad hoc solutions exist. Disruption, which is defined as the creation of a technology that enables a new set of customers to perform a job that only specialists could previously perform. BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
SELLING STRATEGY Understand the market price Understand the dynamics of our development and built a winning strategy based on market insights. Discover what the market will bear for products Learn from other development what are the current pricing Understand why other development properties have a higher price
BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
SELLING STRATEGY Measure Success An effective development properties sellers actively measure their businesses with a few metrics measure. By doing this, we are able to track growth over time and gauge the efficiency of marketing efforts. Useful performance metrics : Sales (overall and by category) Cost of development Estimation development profit Cash flow every year
BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
SELLING STRATEGY Experiment , Learn & Improve Experimentation is critical to development success. Market trends change every day and so should the development business. Plan a new types of development Use a variety of development component Implement the latest features and initiatives Develop creative promotion
BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
SELLING STRATEGY Selling by building Base on the proposed area, selling by building strategies are use to sell houses, shop house, shopping complex and office. Selling by building will help most buyers to get full loan to buy the house, thus increase properties sale. Hired A Management Corporation There are a few component that needed to hired a management corporation to manage the component that are not saleable like the club house, peninsular park and jetty.
BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
SELLING STRATEGY Surrender to the government Because one of the client of this development is the government. There are a few component that need to be surrender to the government. Which they will reserve the renting fee and manage the component given. The component is outdoor amphitheatre, kiosk, promenade and street mall. Discount Another selling strategy is to give a discount for the buyer. This strategy is a very popular strategy. Which every development will done this strategy. As an example, 15% discount will be given to the bumiputera buyer.
BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
PRICING STRATEGY Competition-based pricing Setting the price based upon prices of the similar competitor development. Market-oriented pricing Setting a price based upon analysis and research compiled from the targeted market.
Dynamic pricing A flexible pricing mechanism made possible by advances in information technology, and employed mostly by Internet based companies.
Target pricing Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production. BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
PROMOTION STRATEGY Mass Media Advertise the development on the mass media like television, magazine and newspaper. Brochure of layout and house design The brochure will be have a complete information about the development component that for sale. Show house Show house will be built first as part of the promotion strategy. Open day or Development Launch Invite people from the surrounding area for the development launching. Bank Loan Bank will be invited to help in the promotion by giving an explanation to the potential buyer. BORNEO RIVERFRONT
MARKETING ANALYSIS
MARKETING STRATEGY
TARGETED BUYER This development targeted buyer is the people from the surrounding area, especially people from Kuching and Samarahan who working in the government and private sector. Local Buyer This development has a various targeted group, because of various type of housing. Which it is suitable for all group people from the higher group income to the lower group income. The main target people, is the local people who working at the city of Kuching and Samarahan. Foreigners Buyer At Sarawak, they have a My Second Home program. This program give an oppurtunity for the foreigner to buy their second home at this development.
BORNEO RIVERFRONT
MARKETING ANALYSIS
BORNEO RIVERFRONT
MARKETING ANALYSIS
Financial strategy
2 approaches Financial institutions Company capital Share partner - GLC
BORNEO RIVERFRONT
MARKETING ANALYSIS