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SCHOOL OF ARCHITECTURE, BUILDING AND

DESIGN

BACHELOR OF QUANTITY SURVEYING


(HONOURS)

INDIVIDUAL ASSIGNMENT

Construction Supply Chain Management


(QSB 2433 / MGT 60803)

Name: Yap Yuen Thong


Student ID: 0326557
Lecturer: Ms Tay Shir Men
Table of Content
Tittle Page

1.0 Company Profile


1.1 Company Background 3-6
1.2 Past Projects

2.0 Location Analysis


2.1 Project Location
2.2 Geographic Area
7-8
2.2.1 Background
2.2.2 Transportation
2.2.3 Surrounding Facilities

3.0 Market Segmentation


3.1 Introduction
3.2 Aim and Objectives
3.3 Reason of Developing Affordable Luxury Serviced Apartment
3.4 Segmentation Tabulation
3.5 Introduction of Data Analysis
3.6 Data Analysis
9-17
3.6.1 Age Segmentation
3.6.2 Marital Status Segmentation
3.6.3 Nationality Segmentation
3.6.4 Family Size Segmentation
3.6.5 Income Segmentation
3.7 Assessment of Market Opportunities
3.8 Current Trends

4.0 Proposed Project Details


4.1 General Detail
4.2 Project Description
4.3 Proposed Project Drawing 18-27
4.4 Unique Facilities
4.5 Types of Units
4.6 Main Competitors

5.0 Competitive Advantages 28

6.0 Procurement Method


6.1 Advantages of Procurement Method 29-31
6.2 Disadvantages of Procurement Method

7.0 Constraints and Future Development 31

8.0 Conclusion 32
9.0 Appendices 33

10.0 References 34
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1.0 Company Profile
1.1 Company Background

TU Properties
Development

Figure: TU Properties Development logo

TU Properties Development was incorporated in 1995 and after which developed into a
pioneer developer in developing serviced apartments in Malaysia. It is one of the leading and
largest serviced apartment developer in Malaysia and has other significant developments in
other prime areas such as Selangor, Kuala Lumpur, Johor and Putrajaya. The first and
prominent project is developing studio service apartments which is Mayfair and Dorchester in
Plaza Damas and the same concept is being adapted for most of its key projects such as
Damas Suites Residences and the upcoming Dorsett Residences Bukit Bintang.

Throughout the years, the company have established as property investment division that
holds a truly diversified portfolio of quality properties which include residences or serviced
apartments, condominiums, shop lots or office buildings, hotels, shopping malls and car park.
With the brand name and reputation has enabled the group to command a premium for the
product and achieved sales of close to 100% for all properties, other than units which are
intended to be sold at later stage or for investment. The track record and brand loyalty has
contributed to the appreciation value of the properties. The TU Property Development’s
portfolio includes hospitality brands, shopping malls and has a considerable land bank of more
than 500 acres and it is expected to launch flagship projects in several prestigious addresses in
Kuala Lumpur. With over 3,000 affordable luxury and high-end residences in the pipeline, the
group is expecting a total gross development value (GDV) exceeding RM3billion.

As a property development organization, the group has vast experience in developing


innovative and quality residential and commercial properties. In this quest, to create a “better
life” for communities in Malaysia, the company constantly take steps to develop and deliver
products and services of unrivalled quality and value for its customers.

Vision
• To be a progressive property developer that prides itself on its proven track records, passion
and commitment to deliver superior value in design, quality and service in our
developments to our customers.

Mission
• Maximise stakeholders’ value
• Innovate solutions of the highest quality
• Build a lasting brand
• Live a culture of excellence
• Bring out the best in our people

3
Core Values
• Passion
• Integrity
• Professionalism
• Innovation
• Teamwork

1.2 Past Projects


Parc Regency, Johor Bahru

Figure: Parc Regency, Johor Bahru

Palazio, Johor Bahru

Figure: Palazio, Johor Bahru

Royal Regent (Sri Putramas III), Jalan Kuching

Figure: Royal Regent (Sri Putramas III), Jalan Kuching

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Dorsett Residences, Sri Hartamas

Figure: Dorsett Residences, Sri Hartamas

Regalia Suites, Jalan Sultan Ismail

Figure: Regalia Suites, Jalan Sultan Ismail

Dorsett Residences, Bukit Bintang

Figure: Dorsett Residences, Bukit Bintang

Suria Mall, Putrajaya

Figure: Suria Mall, Putrajaya 5


Cheras Sentral Mall, Cheras

Figure: Cheras Sentral Mall, Cheras

Hartamas Shopping Centre, Kuala Lumpur

Figure: Hartamas Shopping Centre, Kuala Lumpur

Damas Suites & Residences, Kuala Lumpur

Figure: Damas Suites & Residences, Kuala Lumpur

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2.0 Location Analysis
2.1 Project Location
Location: 2, Lebuh Bandar Utama, Bandar Utama City Centre, Bandar Utama, 47800
Petaling Jaya, Selangor, Malaysia.

Project Location

Figure: Location of Proposed Project

2.2 Geographic Area


2.2.1 Background
Bandar Utama is an affluent residential township located in the Damansara subdivision
which in turn is a part of Petaling District, Selangor, Malaysia. Bandar Utama Damansara,
together with neighboured by other equally sought-after locations such as Kota Damansara
and Taman Tun Dr Ismail. Bandar Utama Damansara is roughly 1000 acres (4 km²) in size,
and is divided into 12 sections ranging from BU1 to BU12. As of 2004 it is estimated that
there are 59,040 people residing in Bandar Utama Damansara. Moreover, Bandar Utama is
an upmarket development. It is popular among younger, urban generation and occupied by
the Chinese ethic group followed by Malays and Indians.

Residents of Bandar Utama never despair of boredom, as this township is home to some of
the country’s best shopping malls such as 1 Utama Shopping Centre, IKEA, The Curve,
Centrepoint Bandar Utama, IPC Shopping Centre and so forth.

1%
8%
4%

13%

Chinese-72.68%
Malay-13.5%
73% Indian-4.30%
Other-0.45%
Bumiputera-0.78%
Non-Malaysian-8.30%

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2.2.2 Transportation
Bandar Utama has a strategic geographical area where infrastructure is well developed which
allows people with easy access to the surrounding areas where there are two main highway,
Damansara-Puchong Expressway (LDP) and New Klang Valley Epressway (NKVE). With the
government collaboration, they develop a smoother public transportation system, it consists of
major bus and coach terminals, making it easy for the community to travel to their work and
leisure destinations by connecting Bandar Utama with other areas such as Kelana Jaya, Kuala
Lumpur, Mont Kiara, Cyberjaya. As such, the destination is reachable by taking Rapid KL Bus
No. U82 form KL Sentral or LRT to Kelana Jaya and taxi into the area. Furthermore, there is a
transportation hub located at One Utama Shopping Mall which is adjacent to the proposed
project location. The buses cater people from long distance such as Singapore and Penang into
the area. (Utama, 2010) In addition, the Phase One of MRT Sungai Buloh-Kajang Line is
estimated to operate by the end of 2016. The route starts at Sungai Buloh to Semantan where
there will be a station at Bandar Utama. Whereas, the MRT Phase Two will be operational by
July 2017 from Semantan Station to Kajang Station. Through the MRT line, it provides
transportation convenience for people staying in Klang Valley region to enter into Bandar
Utama.

2.2.3 Surrounding Facilities


Education
SJK (C) Puay Chai
SJK (C) Damansara
SK Bandar Utama
SK Bandar Utama Damansara
SMK Bandar Utama Damansara 2
SMK Bandar Utama Damansara 3
SMK Bandar Utama Damansara 4
SMK Damansara Utama 1
First City University College
KDU University College
Segi College
The British International School K.L.
Garden International School

Health Care
KPJ Damansara Specialist
MJ AMTHS Kuala Lumpur Preventive Medical Center
Tropicana Medical Centre M Sdn Bhd

Recreation
The Club @ Bukit Utama

Shopping
The Curve
IKEA
IPC Shopping Centre
Ikano Power Centre
1Utama Shopping Centre
Centrepoint 8
3.0 Market Segmentation
3.1 Introduction
In sequence to achieve a high success rate of the project, our marketing team suggests to focus
and investigate on a niche market by using market segmentation. As such, a market research is
carried out through the potential customers of the project. The research involves collection,
organization and analysis of opinions from potential customers about their unit type
preferences. Thus, we will have better understanding of target audience so our targeted
audience are categorized based on the people that form up the population in Bandar Utama.
With this survey, TU Properties Sdn Bhd will get more satisfaction from buyers and know the
demand of customers about the unit type preferences that they desired. Basically there are four
types of segmentation namely demographic, behavior, psychographic and geographic
segmentation.

Geographic segmentation
It targets consumers based on their size, location or climate. This type of segmentation is useful
for businesses to react more quickly to competition as well as learn which brands sell best
depending on specific regions.

Demographic segmentation
Demographic segmentation are consumers based on demographic information such as age,
gender, income, ethnicity and family life cycle. Appealing to demographic information allows
companies to customize their marketing efforts to that specific target group which
can increase brand loyalty and lead to future purchases.

Psychographic segmentation
This type of segmentation divides consumers into target groups according to personality,
motives or lifestyles. This form of segmentation can be utilized individually or combined with
other segmentation variables. Advertisements that appeal to psychographic factors found
within target consumers tend to be more successful in generating sales.

Behavioral segmentation
It focuses on types of shopping and buying behaviors. Companies that appeal to behavioral
segmentation must consider whether their target consumers shop online or at the stores, and
whether they are impulsive or cautious shoppers.

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3.2 Aim and Objective
TU Property Development The aim of survey is to identify the potential customers needs.
Based on the survey of potential customers needs, develop the high demand needs and
provide superior customer service in order to satisfy customers needs through a culture of
excellence and value of money projects. Through the survey, TU Properties Development
have to create premium lifestyle housings and improve the quality of life for the residents in
Damansara.

3.3 Reason of Developing Affordable Luxury Serviced Apartment


TU Properties Development proposed to develop a affordable luxury serviced apartment
beside One Utama Shopping Malls. This idea is inspired by Residensi Kerinchi. While
affordable housing is an important mission, the crisis in this segment of the property market
is a problem for major cities in the country. The common struggle facing builders is largely
related to the supply-demand mismatch and slower income growth. Thus, TU Properties
Development are planning a new project, they are required to devote some space to
affordable units.

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3.4 Segmentation Tabulation
Assessment of Unit Type Preferences
Target Market Segmentation Unit Type Preference

Characteristics Segment Terrace House Bungalow Serviced Apartment

Age 21-30

31-40

41-50

51 and above

Marital Status Single

Married

Divorced

Family Size Less than 2 people

2-4 people

4-6 people

6 and above

Income (RM) 3000-5000

5000-8000

8000-10000

10000-15000

Above RM 15000

Nationlity Malaysian

Non-Malaysian

Total 10 10 14

Table 1: Assessment of Unit Type Preferences

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3.5 Introduction of Data Analysis
The targeted customers are based on the residents that stay in Bandar Utama, Petaling Jaya,
Kuala Lumpur, local and non-local tourists. Due to Bandar Utama is an urban city, there is
surrounded with commercial buildings, education buildings, leisure buildings and residential
areas. TU Properties Development proposed to develop a affordable luxury serviced
apartments, our company decided to analysis the demand of buyer by using demographic
segmentation, such as nationality, marital status, age, income and family size. From the
market segmentation tabulation above, our company can understand what target buyer are
willing have, tendency to develop the buildings to fulfill the demand. The segmentation
tabulation is made to tabulate all the data through surveys.

3.6 Data Analysis

Terrace House
Bungalow
Serviced Apartment

Assessment of Unit Type Preferences besides One Utama Shopping Mall

According to the research of TU Property Development market segmentation, which is based


on the nationality, age, family size, marital status and income to determine the majority unit
accommodation type preference of the target audience. The segmentation tabulation is to collect
all the data through survey. Furthermore, Based on this, we can clearly identify the unit type
preferences of target population. The pie chart above shows that a total of 38% of customers
prefer to stay at a serviced apartment and both terrace house and bungalow have 31%. As
serviced apartment have the highest unit type preferences, so TU Property Development
decides to build a serviced apartment which provides amenities, housekeeping and a range of
services for target audience.

3.6.1 Age Segmentation

26% 30%

21-30
31-40
41-50
24% 20% 51 and above

12
70

53

Percentages
35

18

0
21-30 31-40 41-50 51 and above
Age

Terrace House Bungalow Serviced Apartment

The needs and wants of customers keep changing with their age. The people from age between
21 to 30 and 51 and above prefer to stay at serviced apartment. The range of age between
21-30 can be translated to be independence from their parents and starting to build individual
household of their own. Young people tend to have below-average levels of financial literacy
and lack ready access to financial services. Issue of high cost of housing had aroused that
young people favour to go for serviced apartment as they have the lowest income among the
customers. Thus, it showed that many young people particularly, are unlikely to own or
purchase a landed properties. In addition, age range from 51 and above are now reaching
retirement age. Some of them sell the home, take the profits from the sale and buy a smaller
home in an all-cash purchase. Apartment living can provide maintenance-free lifestyle thus
serviced apartments are becoming the domain of both young and old. Based on the bar chart above,
age range from 21 to 30, 67% of customers prefer to stay at serviced apartment. A total of 25% of
customers prefer to stay at unit or terrace house and bungalow have the least percentages of unit type
preferences which is only 8%. To conclude, customers from age 21 to 30 are more likely to be our
target customer. As they feel restricted by current housing options as they confront the difficulties to
purchase landed house due to the current much inflated housing prices.

3.6.2 Marital Status Segmentation

35%

45%

Single
Married
Divorced
20%

13
60

Percentages 45

30

15

0
Single Married Divorced
Marital Status

Terrace House Bungalow Serviced Apartment

Marital status matters in home sales. From the bar chart above shows that customers who
are single will be our target audience who want to live in an apartment which is a
convenient choice for people who cannot afford monthly home loan payments. Customers
who are single mostly are looking for space does not have to be large and lavish, it just
needs to feel safe, quaint, and functional with a living room, bedroom, bathroom and
kitchen. Considering the size of serviced apartments, customers are very likely to pay
lower bills for water, gas, or electricity. Serviced apartments sometimes come with small
additional fees, such as the one for hall maintenance or lawn care but the overall amount of
apartment costs is still lower than equipping the house with maintenance tools. Serviced
apartments require less cleaning as the size is relatively smaller than terrace house and
bungalow. Besides, benefit of apartment living is the opportunity for social engagement.

3.6.3 Nationality Segmentation

45%
55%

Malaysian
Non-malaysian

50
Percentages

38

25

13

0
Malaysian Non-malaysian

Family Size
Unit or Terrace House Bungalow Serviced Apartment 14
Ethnic groups of different races and nationalities may respond to different marketing
tactics. Different groups may have different living style and have different attitudes. TU
Property Development not only target malaysian but also foreigners. This will boost the
economy of our country. Based on the analysis, the numbers of malaysian prefer to buy
an apartment is more than terrace house and bungalow. With the crime rates in Malaysia
become extreme especially in the city, a lot of people choose to stay in apartment with
gated and guarded environment. While mo3st of the foreigner desired to stay at terrace
house because it provide small backyard garden is big enough to satisfy any gardening
enthusiast without becoming a chore in the upkeep department. It provides sufficient
place for children to play and do not required any additional maintenance fees for
management team.

3.6.4 Family Size Segmentation


5%

26%
39%

Less than 2 people


2-4 people
4-6 people
6 and above
30%

70

53
Percentages

35

18

0
Less than 2 people 2-4 people 4-6 people 6 and above

Family Size
Terrace House Bungalow Serviced Apartment

Family size becomes one of the fundamental factors affecting consumer behaviour and buying
decisions. Families come in all shapes and sizes. In general, 67% of customers with less than 2
people are more likely to stay in serviced apartment which is our target audience as the
housing size of serviced apartment is smaller than terrace house and bungalow. Furthermore, it
is often more affordable than landed houses as serviced apartment provides amenities on your
doorstep such as swimming pool, gym, playground and so forth and regular maintenance. A
smaller housing size results in more social interaction among the members of the family.

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3.6.5 Income Segmentation

8%
20%
13%

RM 3000-5000
RM 5000-8000
RM 8000-10000
25% RM 10000-15000
34% Above RM 15000

70

53
Percentages

35

18

0
3000-5000 5000-8000 8000-10000 10000-15000 Above 15000
Income
Terrace House Bungalow Serviced Apartment

Income segmentation is when the customers are segmented as per the monthly income they
are earning. There is a risk that people in their lower income have high desires which are
likely to be purchasing serviced apartment. To sum up, people who have income between
RM 5000 to 8000 majority of them (68%) desired to live in serviced apartment and the rest
prefer terrace house and bungalow. Customers who earned in range of RM 5000 to 8000
are mainly our target population as we offering a affordable serviced apartment for lower
income group. An affordable serviced apartment that actually benefits a community. It is
housing that a customer could pay for within their price range.

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3.7 Assessment of Market Opportunity
Market opportunity is potentially favourable condition in which a business can capitalize on a
changing trend or an increasing demand for a product by a demographic group that has yet to
be recognized by its competitors. For a market opportunity to exist, a company must be able to
identify who its potential customers are, the specific needs that need to be met, the size of the
market, and its capacity to capture market share.
TU Property Development able to identify the type of unit preferences to our potential
customers and who are our target audience based on the segmentation tabulation. Majority of
the customers prefer serviced apartment than terrace house and bungalow. In general, our target
population is aged from 21-30 years old as the serviced apartment is more affordable due to
their salary.
After surveying the current market, TU Property Development have opportunities to build an
affordable luxury apartment as the government has been focusing on providing affordable
housing in the recent years. Reasons that TU Property Development decided to build Hyde
Damansara is the population rise so it could be a great opportunities. Bandar Utama show
distinct growth of population. When the population increases, the demand of housing will also
increases. The strategic location of proposed project is surrounded by university and colleges,
foreigner or students from other states should take into account as they might stay nearby their
university and colleges.
In conclusion, TU Property Development had a opportunity to build Hyde Damansara right
next to One Utama Shopping Mall. Thus, the land will receive market advantages and sustain
its value from the competitors.

3.8 Current Trends


World trends in the serviced apartment industry are showing growth although not everywhere
equally. Other than security reason, the location being a pertinent consideration, high-rise
living has now become the trend in land-precious city domains. There are those who prefer to
live with their extended family and may go for dual key units. And some might shrink down
the house size just because their children has left for studying abroad or even got married. As
we know a bigger house will require lots of hours to clean and maintain the property. However,
serviced apartment is easier to clean up and maintaining it. Newly landed houses can be
extremely expensive compared to serviced apartment. Depending on the size of the unit,
minimal furniture and furnishings is needed. In any case, many new serviced apartments come
with built-ins and even basic kitchen appliances.

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4.0 Proposed Project Details
4.1 General Detail

Development Name Hyde Damansara

Bandar Utama (next to One Utama Shopping


Site Address
Utama)

Developer TU Properties Sdn Bhd

Property Type Serviced Apartment

Land Tenure Freehold

Site Area 10 acres

House Type Residential

No. of Towers 2

No. of Storeys 43

No. of Units 700

No. of Lifts 4 lifts per tower

No. of Rooms 2 to 4+1 rooms

Build Up 915 sq ft – 2,009 sq ft

Car Park Bay 1-2 carpark bay per unit

Security Features 5 tiers security

Target Completion Date 2020

• Fully Air-condition
• Kitchen Cabinet
• Hood and Hob
• Build-in Microwave Oven
Unit Furnishing
• Designer Fridge
• Washer Dryer
• Close Up Wardrobe
• Water Heater to All Bathroom
• Plaster Ceiling to Master Bedroom and
Bathroom

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4.2 Project Description
Dual key living concept is a new housing concept that has been increased popularly in the
Malaysia among developers and house buyers lately. Generally, dual key property is where
there are two homes share a main entrance or hallway and foyer but have separate living,
bedroom and sometimes even kitchen. Most of dual key unit in Malaysia also has separate
main entrance. The main unit usually has bigger built up area whilst the other unit or studio
unit is much smaller in size. The idea was originally brought in to cater for multi-generational
living, meaning that a married couple could have more privacy. TU Property Sdn Bhd decided
to develop a middle range dual-key living concept as it is more affordable.

4.3 Proposed Project Drawing

Figure: Proposed 3D Drawing for Hyde Damansara

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Figure: Proposed Plan for Hyde Damansara

4.4 Unique Facilities


• Indoor Simulation Golf

Figure: Indoor Simulation Golf

• Salt Water Playground

Figure: Salt Water Playground

• Yoga Area

Figure: Yoga Area

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• Salt Water Pool

Figure: Salt Water Pool

• Playground

Figure: Playground

• Crystal Salt Sauna

Figure: Crystal Salt Sauna

• Glass Box Gym

Figure: Glass Box Gym

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• Salt Water Wading Pool

Figure: Salt Water Wading Pool

Other Facilities
• Forest Amphitheatre
• Jungle Gym
• Herb Garden
• Barbecue Deck
• Half Basketball Court
• Function Room
• Café or Garden Café
• Sunken Garden
• Centre Garden
• Jogging Track
• Sun Lounge
• Floating Sun Lounge
• Playground
• Jacuzzi
• Reflexology Path
• Outdoor and Indoor Exercise Area
• Outdoor Shower
• Changing Room
• Party Terrace
• Open Space Sculpture Lobby
• Seating Area
• Mini Mart
• Laundry Room
• Salon
• Retail Shop
• Nursery
• Linear Park
• Hybrid Car Charger
• Management Office
• Surau

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4.5 Types of Units
• 915 sq ft – 2 rooms
• 924 sq ft – 2 rooms
• 1426 sq ft – 3 rooms (dual key)
• 1,936 sq ft – 3+1 rooms
• 1982 sqft - 4+1 rooms (dual key)
• 2,009 sq ft – 3+1 rooms
Selling Price per sqft: approximately RM750 psf

Type C/C1

Figure: Proposed plan of 3 Rooms Unit

Type A/A1

Figure: Proposed plan of 3 Rooms Unit

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Type A2/A3

915 sq ft

Figure: Figure: Proposed plan of 2 Rooms Unit

Type D1/1A

Figure: Proposed plan of 4+1 Dual Key Unit

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Type D4/4A

Figure: Proposed plan of 4+1 Dual Key Unit

4.6 Main Competitors


Ativo Suites, Bandar Sri Damansara

Figure: Proposed 3D Drawing for Ativo Suites

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Project Name: Ativo Suites @ Damansara Avenue
Project Type: Serviced Apartment
Location: Bandar Sri Damansara
Expected Year of Completion: 2021
Developer: Indo Aman Bina Sdn Bhd (TA Global Bhd)
Tenure: Freehold
Total Blocks: 2 blocks of 36 and 40 storey high
Total Units: 668 units
Units Per Floor: 12 to 14 units per floor
Build up size: 499sq ft to 1498sq ft
Maintenance Fees: est. RM0.45 per sq ft

One Kiara, Mont Kiara

Figure: Proposed 3D Drawing for One Kiara

Project Name: One Kiara


Property Type : Condominium
Address: Jalan Kiara 5, Mont Kiara, Kuala Lumpur
Developer: Monday-Off Development
Year of Completion : March 2013
Tenure : Freehold
Land Title : Residential
No of Blocks: 2
No of Floors: 39
No of Units : 226 units (Block A-118 units, Block B- 108 units)
Built-up : 2,174 - 21,775 sf
Launch Price: RM1,720,000 - RM9,500,000
Subsale Price: RM 500,000.00 - RM 1,180,000.00

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Damansara Foresta, Bandar Sri Damansara

Figure: Damansara Foresta

Name: Damansara Foresta


Property Type : Condominium
Address: Damansara Foresta Condominium, PJU 9, Persiaran Meranti, Bandar Sri Damansara,
52200 Kuala Lumpur
Developer : Sri Damansara Sdn Bhd
Tenure : Freehold
Land Title : Residential
Land Area: 13.16 acres
No of Blocks: 11
No of Units: 229
Built-up : 1,400 - 1,600 sq ft
Maintenance Fee: RM0.25 psf
Launch Price: From RM400 psf

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5.0 Competitive Advantages
TU Property Development will advertise Hyde Damansara through multiple platforms to
increase the exposure of the condominium to the public. Here are some marketing plans
throughout the period:

1. Advertising
• Official website of Hyde Damansara with own dedicated property-specific web address
• Facebook and Instagram account will be created to introduce the project, share
information and it easy for buyers and agents to locate.
• YouTube channel and phone advertisement application are a great opportunity for
messages to reach millions of people that all have the potential of becoming prospective
customers.

2. Media platform
• Place adverts on the both print in newspaper or property magazines and electronic media
platform via radio and television.

3. Roadshow on shopping malls.


• By having roadshow in shopping malls, more people can approached and thus more
potential customers can be found.

4. Rebate for early bird customers


• Customers who buy during 1st phase selling will be entitled cash rebate during their
purchase.

5. Local or International Property Fairs or Expos


• Set up a booth in property fairs and expos can directly target interested property buyers
by exhibiting the overall design through physical modes, digital 3D visualization design,
display showroom and more.

6. Brochure, flyers
• Send out flyers to residential houses or distribute it at shopping malls to approach more
people.
• Brochure provides information of the project, the facilities provided by the developer
and so forth tend to attract buyers.

7. Bill Boards
• Have bill boards with attractive photos and information in strategic location and high
traffic roads.

8. YouTube channel and phone advertisement application


• YouTube provides a great opportunity for your message to reach millions of people that
all have the potential of becoming prospective customers.

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6.0 Procurement Method
In the traditional approach, the client must engage consultants such as Architect, Engineers
and Quantity Surveyor to design the project. Those consultants design must meet the client's
budget and satisfied by client. Once it is not meet client's budget the Architect and Engineers
need to redesign the project and the Quantity Surveyor must recalculate the cost of the
project.

After the designed was satisfied by client and met client's budget, client, Architect or
Quantity Surveyor will call tender to give contractors to price and bid for the tender. Client
will base on the most suitable price that priced by contractors to make decision, which
contractor will be the successful tenderer for the project. The price is not always the lowest
but is the most suitable price for the project. Factors to choose a successful tenderer other
than price, the contractor must have reputation, pass projects, good financial strength, skills
and the contractor cannot have too many projects in hand.

The successful contractor must follow the contract drawings and specifications to start the
construction work. Contractor also must responsible for his workmanship and material,
including work by sub-contractors and suppliers. Any defects, design errors or generated
misuse, the contractor has to use his own money to repair or settle the problems.

Client (Employer)

Consultant Team Contractor Team

Consultant Consultant Consultant Domestic Domestic


Architect QS Engineers Subcontractor Subcontractor

6.1 Advantages of Procurement Method


Design-led and the client can change the design ability
• Thus the level of functionality and quality will be increased in the overall design and it is
relatively easy of variations to arrange and manage if the design will be changed because
client’s needs and technology.

High quality works


• As the clients has the closer control to the works by which the consultant team provides
design which meet the client’s requirement. Construction expertise consultant and
contractor provides advices so client can compare and decide a more suitable design and
budget for their project.

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Client may obtain the best or lowest price through competitive tendering
• as all tenderers produce a tender base on the same information. Construction cost will be
more accurate since the tender is bases on the complete design and specifications.

Easier to be adopted
• The market commonly used this method for a long period in Malaysia thus they are familiar
with it in order to solve or face some risk during the procurement state of construction
progress.

Changes reasonably easily arranged and valued


• There are direct coordination between design team and employer so the project is flexible to
change.

Generally cheaper as the risk is balancing


• Employer responsible for the performance of design team and decision on design, drawings
and specifications while the workmanship and materials are under the contractor in this
procurement method. It eventually will be cheaper as there are balancing between contractor
and employer to take the risk of the project.

6. 2 Disadvantages of Procurement Method


Client may hard to manage the project
• As they need to communicate with few parties at the same time. For instance, as we know
contractor and consultant have no mutual contractual relationship. It is very inconvenient
when they want to communicate with each other, they must communicate with the client
first. Miscommunication may occurs because client have to communicate with other
organization.

Longer time to complete the project


• It is because the tender will be provided after the design is fully completed. Consultant and
contractor may shirk the responsibility to each other when problems arise. The argument and
problems may need a long time to be settled.

Split between design and construction


• Traditional procurement has often been criticized for its inability to integrate the separate
design and construction functions and impossibility of the contractor becoming involved
sufficiently early in the procurement process to make any significant contribution. There is
no input into the design or planning of the project by the contractor, as they are not
appointed during the design stage. This can, and unfortunately often does, lead to disputes
about whether defects are really design defects for which the employer is responsible or
defects in materials and workmanship for which the contractor is responsible.

High risk rest with employer


• The contractor are not able to improve the buildability and packaging of proposals when
there are errors in the design of the project as they construct and do not take part in design
stage.

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7.0 Constraints and Future Development

Figure: One Stonor, Persiaran Stonor KLCC

TU Property Development is planning to build a incomparable luxury living of the best


services are defined with a new region of modern technologies including an automated car
park system in the future. Company is planning to build it at prestige abode of Persiaran
Stonor, KLCC of Kuala Lumpur golden triangle. In addition, One Stonor as a green building
which provide sustainable and energy saving for its development. Nevertheless, we also faced
some constraints. Bandar Utama has been a busy town so we must have detailed and well-
planned consideration before the construction starts. For the transportation of the materials to
site, materials have to transport carefully with care to prevent the risk of damages. This might
cause the road to be jam as the transporter drive with slow speed. Therefore, the transporter
permitted to access the work site at the non-peak hours or at night as there are lesser drivers.
Another issues that we usually faced is the suppliers do not deliver materials on time. We are
planning to have a future development, environment issues is one of the constraints we faced.
Our development have implement the environmentally friendly system but the future
development will harm the ecosystem so we have to use more advanced technology which is
costly and affect the cash flow of the company. Economic condition will also be our
constraints in many ways. For example, rise of cost of building material, currency fluctuations,
interest rate fluctuations and more. Developers might experienced unbearable financial
sufferings and project will left incomplete if the situation become worse. Additionally,
competitors are strong between developers in the area of Bandar Utama in order to attract
customers, competitors cut down cost and give rebates to the customers. But TU Property
Development will provides free legal sales, purchase fees and lower the down payment
requirement.

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8.0 Conclusion
Throughout this assignment, I learnt how to make a market segmentation in order to target our
specific customers' needs and desires, the purpose and role of procurement methods used by
the procurement team in a company, seize market opportunities and market trends, market
strategics that used to increase the profit of the company, considerations during construction
and make less constraints to be happen and so on. Segmentation tabulation and analysis are
important. Companies will not survive if the marketing strategy is dependent upon targeting an
entire mass market. Moreover, we must identify the market opportunities and current trends
that inherent in the market. Developing a marketing strategy is vital for any business. Without
one, efforts to attract customers are likely to be haphazard and inefficient. To achieve it, we
will need to create a flexible strategy that can respond to changes in customer perceptions and
demand. It may also help us to identify whole new markets that we can successfully target. At
last, I get to know how to choose the products best fit to the land throughout this assignment.

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9.0 Appendices
R.Aswin Rahadi,Sudarso Kaderi Wiryono,Deddy P. Koesrindartoto,Indra Budiman Syamwil.
(2012). An Introduction to Building Procurement Systems. Retrieved from https://
www.sciencedirect.com/science/article/pii/S1877042812032260

R.Aswin Rahadi, Sudarso Kaderi Wiryono, Deddy P. Koesrindartoto & Indra Budiman
Syamwil (2012) Relationship between Consumer Preferences and Value Propositions: A Study
of Residential Product Retrieved from https://ac.els-cdn.com/S1877042812032260/1-s2.0-
S1877042812032260-main.pdf?_tid=23231476-836c-4a70-
b71c-9a0c29ecc738&acdnat=1527935382_b8b559dd9adaac8f964ff7e518d88af2

J.W.E. Masterman, Dr Jack Masterman, Jack Masterman (2003) An Introduction to Building


Procurement Systems Retrieved from https://books.google.com.my/books?id=Pi-
CAgAAQBAJ&pg=PA37&dq=traditional+procurement+methods+in+construction&hl=en&sa
=X&ved=0ahUKEwiJxKHk1bTbAhVDfisKHTEPD2UQ6AEIKDAA#v=onepage&q=traditio
nal%20procurement%20methods%20in%20construction&f=false

Choon Hua Yaw (2005) The attractiveness of the development of serviced apartment to
purchasers: a focus at the heritage serviced residence, Sungai Besi, Selangor Retrieve from

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10.0 References
• http://www.ukm.my/geografia/images/upload/6x.full-geo-mei16-oliver-edam.pdf
• https://www.propsocial.my/location/206/bandar-utama
• http://www.mayland.com.my
• https://csiprop.com/malaysian-property-market-decline-2018/
• https://www.thestar.com.my/business/business-news/2017/11/18/property-imbalance-growing-
wider/
• https://www.feedough.com/market-segmentation-definition-basis-types-examples/
• https://buildfire.com/real-estate-marketing-strategies/
• https://malaysiahousingloan.net/5-reasons-people-choose-stay-condominium-apartment/
• http://www.jurunilai.com/single-post/2018/02/26/THE-DUAL-KEY-CONCEPT-OF-
DEVELOPMENT
• https://www.tutor2u.net/business/reference/competitive-advantage
• http://lifeedited.com/seniors-and-micro-apartments/
• https://economictimes.indiatimes.com/realty-trends/young-buyers-in-cities-preferring-studio-
apartments/articleshow/39707046.cms
• http://hampton.com.my
• http://www.ukm.my/geografia/images/upload/6x.full-geo-mei16-oliver-edam.pdf
• http://www.onestonor.com
• http://www.bnm.gov.my/files/publication/qb/2017/Q3/p3_ba2.pdf

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