Property developer Radium Development Bhd will focus on developing two housing projects in Kuala Lumpur with a cumulative gross development value (GDV) of RM1.52 billion in 2023.
Chairman Tan Sri Mhd Amin Nordin Abdul Aziz said these projects are the R Suites Chancery Residences (Chancery) in Ampang with a GDV of RM521 million, and an upcoming development in Salak South/Sungai Besi with an estimated GDV of RM1 billion.
Launched early this year, the 51-storey Chancery, which is developed on 0.88 hectare of land, consists of 944 residential suites, commercial spaces, and exclusive amenities as well as a 145-room hotel managed by a well-known private hotel brand.
In an interview with Bernama, he said the project is expected to be completed by the fourth quarter (4Q) of 2025, well ahead of the contractual date of 4Q 2027 approved by the Ministry of Housing and Local Government.
Meanwhile, the development in Salak South/Sungai Besi is targeted to be launched in the second quarter (2Q) of 2023 and consists of two property components, namely urban residences, and affordable homes with 1,218 units for each component.
In line with Radium's motto, Mhd Amin Nordin explained, the developer is focused on "building good".
On group managing director Datuk Gary Gan Kah Siong's successful transformation of Setapak's squatter land, he said that with Setapak, Gary Gan had a goal in 2005 of developing affordable housing for the community to keep up with rapid urbanisation.
"In accordance with the Zero Squatter Policy set out by the government in 2001, Gary Gan took the initiative to identify squatters' land. In his efforts to develop affordable homes, he set a high standard that led to well-planned infrastructure around the area. Currently, there is zero squatter in Setapak," added Mhd Amin Nordin.
Chancery is now set to become a landmark in its own right, and the units come with excellent furnishings, which will make moving in for purchasers much simpler.
"I am confident this Chancery project will be more than 80 per cent sold this year while the Salak South/Sungai Besi project will be over 60 per cent sold.
"This is because housing demand will always increase based on the estimated Kuala Lumpur population that will reach 2 million people in the near future, and with many people coming to work in the city, they would need affordable housing," he said.
Apart from the two housing projects this year, Mhd Amin Nordin said, Radium is also working towards a listing on the Main Market of Bursa Malaysia Securities Bhd in 2Q 2023.
"We hope with this initial public offering, we can continue to concentrate on facilitating home ownership in Kuala Lumpur, particularly in the affordable homes category," he said.
Radium has completed five affordable housing developments thus far, namely Vista OUG Residensi and Vista OUG PPAM in Bukit OUG; Vista Wirajaya 1 & 2 Residensi Wilayah in Taman Melati, and Vista Semarak in Jalan Semarak.
The company has had almost 100 per cent take-up for its units since the launch of its first development in Jalan Semarak in 2017 and achieved total revenue of RM2.1 billion as of October 2022.
Currently, Radium has 9.77 acres (3.95 hectares) of land bank in Salak South/Sungai Besi. It has also entered into a joint-venture agreement for the purpose of developing 5.13 acres (2.08 hectares) in Mukim Batu and shortlisted three parcels of land in Mukim Petaling.
"We are continuously looking for new land banks in Kuala Lumpur, which requires a lot of investment and tenacity," he added.
On the direction of Malaysia's property industry post-pandemic, Mhd Amin Nordin said the industry, especially in Kuala Lumpur, still has demand that needs to be fulfilled.
He said Radium is ramping up its effort to meet the growing demand for property, especially in Kuala Lumpur, and at the same time addressing a shortfall in city dwellings, with more than 300,000 houses being needed in the capital city to keep up with regional cities.
Inflationary pressures and rising interest rates are among the challenges faced by the property industry in 2023, Mhd Amin Nordin said, adding that the market has been impacted by high raw material costs.
"This factor has also resulted in high living expenses, therefore making purchasers careful in the type of property they would purchase.
"However, the location of the property is still the number one factor for a purchaser in deciding to own a property, and this is where Radium has the upper hand as our developments are within the high-demand area where job opportunities are abundant," he added. - Bernama