School of Architecture, Building and Design

Bachelor of Quantity Surveying (Hons)

(QSB 2433 / MGT 60803)

Construction Supply Chain Management

Assignment (Individual Assignment)

Name : NG WEI LIN

ID : 0316302

Submission Date : 18TH MAY 2016

Content

1.0 Company Background

2.0 Introduction of Land

3.0 High Rise Residential Condominium

3.1 Types of Units Offered

3.1.1 Studio Unit

3.1.2 Loft Unit

3.1.3 Multi Level Penthouse with 3 Bedroom

4.0 Value Advantage

4.1 Security Feature

4.2 Maintenance Service

4.3 Parcel Collection Point

4.4 Recreational Facilities

4.5 Seamless and Recreational Path

4.6 Design Concept – Scandinavian Modern Style

5.0 Triple Bottom Line: planet, people, and profit

5.1 Education - Pavilion Library

5.2 Education - Kindergarten

5.3 Eco friendly feature - Green Feature

5.4 Eco friendly feature - Hi-tech Mobile Lifestyle

6.0 Price

Content

7.0 Market Segmentation

7.1 Geographical

7.1.1 Location Analysis

7.2 Demographic

7.2.1 Age

7.2.2 Household Income

7.2.3 Marital Status

7.3 Summary of Market Segmentation

8.0 Conclusion

9.0 Bibliography

1.0 Company Background

TU Property is a public listing company since 1997. We major focus in property development. Company’s core value is to provide quality experiences to meet the expectation of the society. Our vision is to build the nation and leading in construction industry in the next 5 years. With the strong continuity passion, we have been awarded a ‘Best Developer’ by the Ministry of Housing and Development in year 2004.

We hire more than 500 people working across South East Asia in Singapore, Philippines, Thailand and Indonesia. These professional workers include quantity surveyors, engineers, project managers, architects and etc. Slogan of TU Property is to think globally and innovatively. We encourage the European, Japanese and Chinese to join our company to import new as well as creative innovations and ideas to our company in long term. We believe that these people will help in upgrading the local skills technically and practically.

TU Property has a total of 3000 acres of underdeveloped land bank with the Gross Development Value of RM20 billion. The vast development of lands are spreads throughout the states of west Malaysia and overseas. Our global footprint is across China, Singapore, and Taiwan, Philippines, Thailand, Indonesia and some of the Europe country.

Pioneering in Malaysia’s construction industry, we involved in major development housing project since 1988 such as new township, integrated commercial developments, luxury high rise apartments, and green business park. Our project includes Buttermear Residences, Northbrook Residence, The Priory,Cumberland Square and etc.

Picture 1.1 Northbrook Residence (2012)Picture 1.2 Cumberland Square (2003)

2.0 Introduction of Land

Due to the development purpose, TU Property bought a land with the price of RM 9.9 million in year 2011. Size of the land is about 10 acres. Located next to 1 Utama Shoping Mall, Bandar Utama Damansara has made the land has more competitive advantages in gathering investment and business activities.

Bandar Utama Damansara is a township since 2004. The area previously is an oil palm estates and being developed in 2001. Hence, the characteristic of the soil is fertile fine sandy to clay loams soil. Bandar Utama Damansara is central of daily activities which consist of schools, community centre and commercial complexes (Wikipedia, 2016).

State government of Selangor has the full control over this piece of land. The land ownership is leasehold agreement tenures about 99 years. Part of the land which is 5 acres will be used to building 17th storey condominium. The other part of the development will be used as future development.

3.0 High rise residential condominium

TU Property Co planned to build a blocks of 17th storey condominium, “WARREN CONDO” consists of studio unit, loft unit, and multi level penthouse. The area of the high rise condominium will take about 5 acres (20,234 m2) of the total piece of the land. Structure of the building consists of 2 levels of basement carparks, 2 levels of podium carparks, 1 level for the recreational and facilities floors, 6 levels for constructing studio units, 4 floors for loft units and 2 floors for building multi level penthouse types of units.

Picture 3.1 Front elevation

3.1 Types of Units Offered

3.1.1 Studio Units

“The Guardian”, a daily newspaper form British,33.9% of the people is in single status in year 2014 and trend will be increased by 3% in 10 years time according to the statistic done by Office of National Statistic (The Guardian, 2015). People feel that is more comfortable to living alone. Therefore, we plan to build 6 floors of studio type units named “VISUAL SUITE” consists of total 852 units to fulfill the demand of bachelor market in the current trend. The studio build up area is around 75m2 to 100m2 (800-1100 square foot). Studio type of housing unit is usually with open concept of room which linked the kitchen and living room together. Single being person is suitable to stay because is easy to clean and is more economic in term of electrical bill for air conditioning.

Picture 3.1.1 Studio housing structure (A.Fernandez, 2014)

3.1.2 Loft Units

“The Star Online”, a daily English Newspaper in Malaysia stated that there are 25.9 million of aged 25 and above and still being single. The news reported that the population includes person that is unmarried, person that is divorced and widowed (The Star Online, 2012). These result show that high percentage of Malaysian preferred being single which provide more freedom and convenient to them. To maximize the market share in housing, we would like to provide 568 units of alternative design to the single person called “ASCOT-D”. The loft typed unit build up area is up to 80 m2 to 110m2(860-1200 square foot). These kinds of units accommodate with a high ceiling, bedroom design is opened and allows looking over at the main living and kitchen below (A.Fernandez, 2014). The design is suitable for people desired to have more wall space for decorating their home.

Picture 3.1.2 Loft unit housing structure (A.Fernandez, 2014)

3.1.3 Multi level penthouse with 3 bedrooms

According to Numbeo, an inexpensive outside meal costs about RM7.50 to RM11.00 in Selangor area for per person (Numbeo, 2016). Family with 3 family members will need about minimum of RM675.00 monthly in having cheap meal outside every day. It takes up of 20% of the family total income if income of the family is RM5000. Due to the high cost living in Selangor, most of the parents are preferred to construct a small sized family. Hence, we plan to build 80 units of build up area of 335 m2 to 400m2 (3700-4200 square foot) named as “EMERALD SUITE”. The target customer for this kind of unit is small family. The penthouse is in double storey with a master bedroom and 2 medium sized bedrooms along with their own private balcony.

Picture 3.1.3 Housing structure of multi storey penthouse (Marvel Building, n.d.)

4.0 Value Advantages

Competitive advantages classified into cost advantages and value advantages. We focus on value advantages (Christopher, 2011). Value advantage is to maximize users’ experiences and differentiate the market by providing special services such as parcel collection point, in house maintenance services, innovative design and recreational facilities. We concern to construct high standard of living in the building.

4.1 Security Feature

We provide 7 tier security systems which facilitate with motion detectors, alarms, access card system, 24 hours security (Rimbun, 2013). Closed circuit television camera (CCTV) operates 24 hours in every corner and along the corridors. Monitoring job is conducted by the security guard in the control room. Moreover, direct call service is connected to every unit. When visitors reach, the guard will inform the owners of their visiting before allow the man to access.

4.2 Maintenance Service

A professional management team is hires to carry on the maintenance work effectively and efficiently. The management team takes the full responsibility in repairing and replacing the faulty items. Maintenance services include replacement of light bulbs; repairing the leaking plumbing, air conditioning, transporting large sized furniture.

4.3 Parcel Collection Point

Online shopping is trendy in the society. It helps in saving resources such as time, transportation fees and easy transaction. However, the blue collar have problem in collecting the parcel. Hence, we build a parcel collection point for every unit. Extra security is set to protect the parcels of each owner. Residents may have more flexible time in handling other stuffs.

4.4 Recreational Facilities

In order to equilibrium living and working lifestyle, 5th level of the building is set to facilitate the exercise facilities. The types of the facilities consist of sauna pool, swimming pool, gymnasium facilities, playland and parenting corner. Moreover, 4 levels of carpark offers 800 units of parking lots are provided in basement and podium. To connect to I Utama Shopping Mall, a canopy walk is built. The bridge is designed with canopy for the convenient of the pedestrian under the hot sun and rain. Barbeque facilities are constructed in this level. The rental application of the use of these facilities can be easily apply from the management team.

4.5 Seamless and Recreational Path

More than 100 types of tree will be planted at the ground floor. Bicycle path and jogging path are built to reduce the carbon footprint to the environment. Accommodate with this facilities, we encourage the residents be part of the “Greening the Earth: One Citizen One Tree” in conserving the planet.

4.6 Design Concept – Scandinavian Modern Style

The condominium will be fully furnishes. Lightning, electricity, furniture are prepare and fixed in accordance for the convenient of the buyers. The condominium will apply Scandinavian modern style interiorly. The Scandinavian design is originated from Nordic country, Finland, Norway, Sweden, Iceland and Denmark (Wikipedia, 2016) Bright colour tone helps in balance the emotion as well as creates the feeling of warmth and minimalist look. Usually, the foundation colours used are likely to be grey and white.

The furniture used is simply contemporary, simply and functional. (Flog Blog, 2016). Wooden furniture is painted in natural colours. Moreover, the timber flooring will be applied in the house (Dwell Candy, 2014). One of the advantages of the design is easy to clean. The furniture can be easily replaced once broken in IKEA store.

Example of Scandinavian Design in high rise condominium

Picture 4.6 Scandinavian Interior Design (Dwell Candy, 2014) (Flog Blog, 2016)

5.0 Triple Bottom Line: planet, people, and profit

In triple bottom line concept, we emphasize the relationship between environment, economy and society. We concerned in sustainable to ensure long term viability and continuing of the business to ensure the society welfare is being protected in the future (Christopher, 2011).

5.1 Education - Pavilion Library

To cultivate the reading trend, a public pavilion library is being set up in the community. The concept of “Take A Book and Leave A Book” is being applied to stimulate the culture of sharing among the community. Connectivity and relationship among neighbours can improve by sharing the same topic. With knowledgeable of people living around in a small community, people are more civilize in handling problems happen. Argument can be reduced effectively.

5.2 Eco friendly function - Green Feature

One of the key attractive in this project is the green feature of the building. Green building helps in protecting the environment, balancing the ecosystems and conserve natural resources. Malaysia government has made best effort in promoting the Green Building Index (GBI) in create awareness and encourage the society to Go Green. In this project, we use the solar Photovoltaic Panels, Sliding sunscreens, aerated concrete blocks, low volatile organic compounds paint, high performance glass, high internal ceilings, energy-efficient lifts, energy-efficient lighting, non chemical swimming pool and fume extract sensor.

5.3 Eco friendly function - Hi-tech Mobile Lifestyle

Nevertheless, one of the functions provided in these units is the smart control panel of the house. The automation function will provide convenience, security and saving benefits to the units in term of saving electricity. The operations include window and drape control, central vacuum system, sensor detect motion, temperature and light (Home Controls, 2016). Underground fiber cable is fixed to fulfill the needs of high speed internet connection.

Summary on facilities Parcel Collection Point Maintenance Team Security Feature Public Pavilion Library Scandinavian Modern Design Style Green Feature Recreational Facilities High Tech Mobile Lifestyle Seamless and Recreational Path

Table 5.3 Summary of value added facilities

6.0 Selling Price

The price range of unit is around RM450 per square foot, ranging from RM360, 000 to RM1, 890,000. The maintenance fee costs about RM0.60 per square feet.

Type of unit NameBuild Up Area (Square foot)

Selling Price (RM)

RM/Square feet

Maintenance fees (RM/Square feet)

Studio type VISUAL SUITE 800-1,100RM360,000 - RM495,000

450.00RM480-RM660

annually

Loft Units ASCOT-D 860-1200RM 404,200 –

RM564,000470.00

RM516-RM720

annuallyMulti level penthouse

with 3 bedrooms

EMERALD SUITE

3700-4200RM1,850,000 – RM2,100,000

500.00RM2,220-RM2,520 annually

Table 6.0 Pricing range for WARREN CONDO

7.0 Market Segmentation

7.1 Geographical

Geographical Target Market is the consumer’s located in the same city and states (Dictionary,2016).

7.1.1 Location Analysis

Due the convenience of geographical area and the economical considerations, TU Property decided to use the land for building a mixed development high rise residential condominium. Its geographical area is strategic accommodate with holistic public transportation system. It takes about 15 minutes of drive distance away from the City of Kuala Lumpur. Moreover, it has the competitive advantages in accessing the major highways such as Sprint Highway, LDP Highway and Penchala Links. Mass Rapid Transit will start to operate in

Furthermore, a walking distance of 5 minutes to reach a built up to 5,000,000 square feet of shopping mall, One Utama. This shopping mall is facilitates of various kind of business such as restaurant, convenience shop, cinema, bowling centre and etc. In term of restaurants, the mall provide choices from western restaurants, Chinese restaurant, fast food, Korean restaurants, Lounge and bars, and even to Japanese Restaurant.

Picture 7.1.1 Location map for the proposed high rise residential condominium

7.2 Demographic

A demographic or socioeconomic target market is study of population with a specific gender, age group, income level and education level (Investopedia, 2016).

7.2.1 Age

Our target group of customer is aged more than 25 years old. This group of people is no longer a fresh graduate and has a stable salary every month. Moreover, youngster 25 years old and above have a clearer vision and objective to achieve in their life.

7.2.2 Household Income

Total household income is between RM5, 000-RM30, 000 per month. We target at medium group income consumers to ensure the ability to pay monthly installment.

Given that the mortgage loan down payment is 20%, loan period is 30 years, and the interest rate is 4.25%. Assumed 30 % rule of thumb applied in monthly repayment loan.

Unit Types Housing Price (RM) Monthly Repayment(RM/month)

Total Household income (RM/month)

Studio unit 360k – 495k 1,416 – 1,950 5k – 6.8kLoft unit 404k – 564k 1,591 – 2,220 5.3k – 7kPenthouse with 3 bedrooms

1.85m – 2.1m 7,280 – 8,265 24k – 28k

Table 7.2.2 Correlation between housing price and total household income

7.2.3 Marital Status

The group of the society targeted can be newly married couples, bachelors, and small family structures.

Characteristic Group with needs Studio type Loft UnitsMulti level penthouse

with 3 bedrooms

DemographicAge Child X

Adolescents and teens XTwenties X X XThirties and Forties X X XFifties and Beyond X X X

Household income RM 5,000 – RM 7,000 X XRM 7,000 – RM 24,000 X XRM 24,000 and above X X X

Household structure Bachelor X XNew Married Couples XSmall Structured Family X

7.3 Summary of Market Segmentation

8.0 Conclusion

Our target market is on the “working generation” which aged above 25 years old. We mainly focus on the “bachelor” market. Being bachelors have becoming trendy in this generation due to the values and structural of society changed. We think that bachelors have their rights in enjoying life. We provide the first class facilities and equipment for the bachelor in equilibrium living and working life.

With the hectic lifestyle and heavy living costs in Klang Valley area, the family structure has change obviously. Couples are preferred to form a small family which usually consists of 3 to 4 members. Launching of the penthouse has fulfilled needs of this group of people. People in this group are generally high income and pursuing for a better quality standard of living.

In term of facilities, we would like to build some value added facilities such as parcel collection point, maintenance services and security services. These functions are able to provide convenience to the residents staying in the condominium as well as able to ensure the completeness of the facilities in a well ordered. Moreover, a value advantage of our products creates the feeling of secure when staying in this environment. It has benefits the users’ experiences of the customers and lifelong experiences.

In term of triple bottom line concept, we want to build a positive growth between people, profits and planet. In term of environment, we used sustainable building material to minimize the pollution toward the planet. Moreover, education is the foundation of civilization of the society. By building public pavilion, we are able improve the working and living conditions in order urges a harmonized of social living environment. These can benefit the people living and the environment.

The design of these units is more suit for bachelor and small sized family (most probably consist of 4 family members). The concept of this condominium is about “Futuristic”. Infusion of modern technology and design have presented throughout the whole design of the building. We are leading in transforming the traditional design and trend into advance design in Malaysia. Heading to Vision 2020, we believe in creating innovative and value added characteristic type of building in the city.

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