Lagenda Properties Bhd is developing the country's first large-scale sustainable township in Perak comprising solar-ready homes that will be selling below RM200,000 each.
The project, called Lagenda Tapah will have around 10,000 homes, and the gross development value is estimated at RM2 billion, said the company's managing director Datuk Jimmy Doh Jee Ming.
"Although the homes are solar-powered, we are still selling below RM200,000 each. We have been selling houses below RM200,000 all along. I am trying to make houses more affordable to people and this time I am installing solar photovoltaic (PV) systems for every home to enhance the value of the property.
"In Lagenda's point of view, as we move forward we are trying to make sure not only are the houses more affordable but we are adding value to the homes. We are improving our product from time to time to improve people's livelihood," Doh told NST Property.
Doh said Lagenda Tapah is designed for the B40 (lower-income) and M40 (middle-income) groups.
B40 is those with monthly household income below RM4,850, while M40 is those with a household income of between RM4,851 and RM10,970 a month.
Doh said the idea to have homes installed with PV systems came about after witnessing numerous households facing the challenge of increased electricity bills during the Movement Control Order (MCO) implemented in March last year.
He said this prompted the company to find an alternative solution to ease the burden of thousands of households in the country, starting off with Perak.
"Solar panels can reduce house temperature and generate electricity all year round. We believe this will reduce their monthly energy bill substantially. With savings from utility bills over the long term, our home buyers will ultimately enjoy a lower cost of living, adding to the attractiveness and affordability of our projects," said Doh.
Lagenda has appointed Solarvest Holdings Bhd as its solar PV systems partner for the township.
Solarvest will install solar PV systems for the first batch of 1,000 houses in Lagenda Tapah under Phase 1 of the township development.
The PV system can generate energy up to 98 per cent of the monthly electricity usage.
Doh said Phase 1 of Lagenda Tapah is targeted to launch in the fourth quarter of this year.
The township will be developed in seven to eight phases, over five to seven years, he said.
"Lagenda Tapah is our first sustainable township but it doesn't stop us from having solar solutions in other townships that we plan to develop in the future," he said.
Doh said the company has about 1420 hectares (ha) of development land in Perak, Kedah, Pahang (Kuantan), and Johor (Mersing) which will keep it busy for the next five to seven years.
The combined GDV for these large tracts of land is RM9 billion.
"We reverse engineer our house price according to affordability. When I launch in either Perak, Kedah, Kuantan, or Mersing, I will price my products according to the affordable needs of the respective areas," he said.
On the outlook, Doh said that he is confident on the country's affordable housing development prospects.
He said during the Full Movement Control Order, the company raked in close to RM700 million or 70 per cent of its RM1 billion sales target, despite the ongoing pandemic.
"Despite the lockdown and weak sentiments, we recorded RM700 million in property sales in just over six months. We are very optimistic moving forward and may likely exceed our RM1 billion sales target," he added.
The company's current two major affordable housing township projects are Bandar Baru Setia Awan Perdana in Sitiawan, and Lagenda Teluk Intan in Teluk Intan, which has a combined development area of 810ha and 20,000 affordable homes.