SCHOOL OF ARCHITECTURE, BUILDING AND

DESIGN
BACHELOR OF QUANTITY SURVEYING
(HONOURS)

CONSTRUCTION SUPPLY CHAIN MANAGEMENT

(QSB 2433/ MGT 60803)

INDIVIDUAL ASSIGNMENT

NAME: LAU WAN YEE

STUDENT ID: 0328947

LECTURER: MS TAY SHIR MEN

Table of content

No. Content Pages

1.0 Company Profile 1

2.0 Market Segmentation 3

2.1 Data Collection

2.2 Segmentation Tabulation
2.3 Characteristics and segments
2.4 Analysis chart

3.0 Market Opportunities 13

4.0 Data analysis of Malaysia property market 16
5.0 Proposed project detail 21

5.1 General information

5.2 Competitive advantages
5.3 Site plan
5.4 Facilities deck
5.5 Floor plans
5.6 Project location
5.7 Transportation
5.8 Surrounding Facilities

6.0 Marketing strategies 30

7.0 Procurement method 34

7.1 Advantages of traditional procurement method

7.2 Disadvantages of traditional procurement method

8.0 Constraints and future development 38

9.0 Conclusion 39
10.0 References 40
1.0 Company Profile

TU Property Development, a property division of TU Group, is one of the Malaysias

leading public-listed property developer. Founder of this company is Tan Sri Sim Yi Seng. The
company has vast experience in managing and developing innovative and quality residential
and non-residential properties, which include commercial, leisure, healthcare, retail and
hospitality assets. TU Property development has focused on property development,
construction, property investment and property management. Since 1996, the company has
based its headquarters and business operations in Kuala Lumpur, capital state of Malaysia.

TU Property Developments fundamental objective is constantly develop and deliver

products and services of supreme quality and value to our customers. As time goes on, TU
Property Development has built a solid reputation as one of Kuala Lumpurs most respected
property investment and development company, successfully developing many superior
residential and commercial properties in prevailing economic conditions, and with an
outstanding track record of quality properties completed ahead of schedule. On 11 March 2007,
TU Property has successfully listed on the main market of Bursa Malaysia (Malaysian Stock
Exchange) which placed TU Property Development as one of the largest listed property
Development companies by market capitalisation in Malaysia.

In addition, TU Property Development will also cooperate with other developer for
certain projects such as worked with SP Setia, IOI Group, AP Land, UM Land, Malaysian
Resouces Corporation Bhd, Belle View Group, and ECH Development Sdn Bhd for the Lumina
development in Mont Kiara. The others completed projects, The Shore, in Malacca with
estimated Gross Development Value (GDV) of RM650 million, has been awarded the Best
Commercial Landscape Architecture for the Year 2015-2016. Duta Nusantara in Kuala Lumpur
which comprising 178 units of semi-detached homes and bungalows with clubhouse facilities
and Precinct 9 in Putrajaya which is a mixed development comprises 2 storey terraced homes,
apartments and commercial centres. TU Property Development has an enviable portfolio with
successful and internationally acclaimed properties in Malaysia and abroad including
Singapore, China, Thailand, Vietnam, and Cambodia. We believe that strong corporate values,
management excellence, business dynamism, and a focused vision are keys to the future
success. With these strategies, TU Property Development is well placed to take advantage of
business opportunities to reach a greater heights in the challenging new millennium.

1|Page
Vision

Our vision is to be a leading corporation in our core business by providing products and
services of prime values and by sustaining consistent long-term growth in profitability
and volume.

Mission Statements

To provide superior customer service and satisfy customer needs through a culture of
excellence.
To maximize long-term returns to our shareholders while being mindful of our overall
responsibilities.
To achieve award recognition in our concept, design and construction excellence for
our high-end projects.

Core Values

Integrity
Transparency
Teamwork
Respect
Customer Satisfaction

2|Page
2.0 Market Segmentation

2.1 Data Collection

Assumed that we have carried out a survey about the preference of residential building at One
Utama Shopping Mall, Bandar Utama for two days to uncover information about consumer
attributes, needs, desired benefits, and overarching values that govern their decision making in
that area. The characteristics that we used to target market segment in this survey are age,
marital status, family size, occupation and income level. We have conducted the survey through
questionnaire, in-depth interviews with consumers, and direct observation of consumers as we
explained to them about the products. A total number of 250 set of questionnaires were to be
prepared and distributed and 220 questionnaires were collected from respondents in the area of
Bandar Utama. From 250 questionnaires, however, only 200 questionnaires were returned and
valid to be used for data analysis. Hence, the outcome of the survey are as following:

3|Page
2.2 Segmentation Tabulation

Assessment Worksheet TU Development

Target Market Segment Unit Type Preference

Condominium
Terrace Semi
Characteristics Segments with serviced Bungalow
House Detached
apartment
18 24
Age
25 44
45 - 64
Over 65
Single
Married
Marital Status
Divorce
Widow/
widower
1 2 people
2 4 people
Family size
4 5 people
5 people and
above
University
student
Occupation Employee
Employer
RM 2,500 -
RM 5,000
RM 5,001 -
RM 7,500
Income
RM 7,501 -
RM10,000
Above
RM 10,000
Total 9 15 10 6

4|Page
2.3 Characteristics and Segments

2.3.1 Age

Age of a person is one of the most important, simple and quantifiable parameter for
segmentation. This is because a typical consumers needs and desires change as they age.
Hence even though the basic functionality of the product is same, the wants are different. This
is the primary reason for using age as a variable in demographic segmentation. We generally
divide the consumer market into 4 groups. These groups are young adults, the younger middle-
aged, the older middle-aged and seniors. Hence, our recommended targeted customers are
young adults and the younger middle-aged. The young adults market is made up of ages 18 to
24, this group are normally considered as students that are studying in universities or fresh
graduate who get their first major career positions at basic salary who required only the basic
requirement of housing such as facilities, security, privacy, and have short distance away from
public transport, working place or university. On the other hand, the young middle aged market
consisting of ages 25-44. This markets generally will get married, establish homes and start
families. Besides that, this group of people would probably have the most purchasing power
and will take consideration on the quality and the environment of the product or services.

2.3.2 Marital Status

Another obvious division or segment would be separating consumers in marital status. This
segment mostly is divided for individuals who are single, married, divorced, and widower or
widow. As for our recommendation, the targeted consumers for marital status is single and
married. From the research, we have discover that married individuals are more willing to pay
higher prices than single individuals in purchasing the housing. However, we will target both
single and married as target market. As single who have worked in Bandar Utama and live
separately from their parents would absolutely focused on their work and friends in their life.
Thus, they dont have much time to stay in and take care of their house, so convenience, safety,
proximity to their workplace, shopping malls and community amenities such as pubs and
restaurants will become their concern when buying a house. Whereas for the people who are
married will tend to select their residences which is more convenient and based on the criteria
that related their family such as near the husband or wifes workplace or some will select their
residence near their parents.

5|Page
2.3.3 Family Size

Household size or the number of family members is also another important point of
differentiation when segmenting our markets. This is mainly due to the fact that the usage rate
of consumer goods are vary depending on the size of the family. The size of family will affects
the residences selection as well. Benefits and features that satisfy consumers need will also
need to be adapted based on family size. In this survey, we categorized the family size into 1
to 2 people, 2 to 4 people, 4 to 5 people, and 5 people and above. Our targeted market segment
for family size is from 1 to 4 people as they mostly demand for sufficient space or living area
in house and must convenient that close to their childrens schools if people are married and
have children.

2.3.4 Occupation

Individuals occupation is another demographic segment in classifying markets. The

occupation of the consumers can substantially influence their buying decisions. This mean that
we must keenly identify professionals that would be interested in our product. In fact, an office
worker would have different needs compared to that of students. For instance, students might
prefer rent in serviced apartment as their accommodation. Similarly, an office worker would
prefer or more interested in buying a unit of condominium. We generally categorized the
occupation of consumer into university students, employee, and employer. Therefore, the
targeted customer that we will focus will be university students and employee as employee
may able to afford a purchase of a unit of residence while people who are studying will tend to
select residences that are convenient to public transport and close to their university depending
on their needs.

2.3.5 Income

Income level is the most significant and commonly used base for segmenting the consumer
markets. The purchasing power of a consumer are different based on the level of income earned.
Generally, consumers would be segregated into groups based on their salary. In this case, we
categorized the individuals income per month into 4 groups, which is low income (RM 2,500
RM 5,000), middle income (RM5,001 RM 7,500), upper middle income (RM 7,501 -
RM.10,000), and high income (above RM 10,000) Each group have a different range of

6|Page
products that can be offered and present different strategies in term of convincing consumers
to buy. Thus, we would target on the customers with low and middle level of income such as
students and city workers which have the ability to rent or buy a unit of residence. People who
have moderate income able to select their living based on their needs such as good environment,
ready public utilities. Whereas, for the people who have low income will have more limitation
to select their residence. So, they may also select a residence which is near to their workplace
or study place to reduce the transportation costs.

7|Page
2.4 Market Segmentation Analysis Chart

Type of Residential Building

16

14

12

10
Frequency

0
Terrace House Condominium attached Semi - Detached Bungalow
with serviced
apartment

Figure 1: Number of respondents to different type of residential building

Unit Type Preference

15% 23%

25%

38%

Terrace House Condominium with serviced apartment Semi-detached Bungalow

Figure 2: Preference of citizens in Bandar Utama on type of residential building

8|Page
Market Segmentation Analysis Chart

Age group that prefer Condominium with Serviced

Apartment

8%

19% 33%

40%

20 - 24 25 - 44 45 - 64 65 and above

Marital Status that prefer Condominium with Serviced

Apartment

11%
32%
19%

38%

Single Married Divorce Widow/ Widower

9|Page
 Family Size that prefer Condominium with Serviced
Apartment

9%
30%
26%

35%

1 - 2 people 2 - 4 people 4 - 5 people above 5 people

Occupation group that prefer Condominium with Serviced

Apartment

12%

37%

51%

Student Employee Employer

10 | P a g e
 Income group that prefer Condominium with Serviced
Apartment

5%
9%

37%

49%

RM2,500 - RM5,000 RM5,001 - RM7,500

RM7,501 - RM10,000 above RM10,000

The graphs show the results of a survey which people were asked about their preferred
unit type near One Utama Shopping Mall. In this questionnaire, our company is intended to
find out which type of residential unit are preferred by citizen in Bandar Utama or nearby One
Utama Shopping Mall. According to the analysis of TU Property Development market
segmentation, our questionnaire is classified into five main characteristics which are age,
marital status, family size, occupation and income. There are four unit type to choose by
respondents such as terrace house, condominium with serviced apartment, semi-detached, and
bungalow. The questionnaire was completed by 200 respondents. From the pie chart it is clear
that the most popular unit type to stay in Bandar Utama is the condominium with serviced
apartment which constitute 38% of total respondents. Majority of respondents which our target
age between 18 to 44 are prefer to live in the condominium with serviced apartment compared
to other types (73%). They would opt to live in condos mainly for the convenience and lifestyle
that condos or serviced apartment offer.

Furthermore, as stated in the market segmentation table, most respondents of about 1

to 4 people of family size which constitute 65% of 200 respondents and generally every stage

11 | P a g e
of marital status especially for single (32%) and married (38%) are preferred to stay in the
condominium also. Besides that, based on the pie chart, our target markets who are university
students (37%) and employee (51%) or city workers are prefer to live in condominium and
serviced apartment and they are normally had a moderate income from RM2,500 to RM 7,500.
The reasons they prefer this type of residential building are because of the location, low
maintenance, more affordable compared to landed property, good environment such as secure
from the facilities provided and convenience of the condominium or serviced apartment. For
instance, condominiums are famous for their worry-free living, meaning it requires less
maintenance than other types of house and are much easier to leave vacant while travelling.
For location and accessibility, our condominium or serviced apartment are normally located
within prime key districts. They are minutes away from schools, universities, shopping malls,
offices, restaurants, bars, financial centers, public transports and so on.

Whereas, for bungalow, there are only a small minority which is 15% of respondents,
a least popular type of property compared to others. The participants that vote for bungalow
are mostly an employer with a high income from RM 10,000 onwards and they mostly have
the family size of about 5 people and above. In conclusion, since condominium with serviced
apartment are the most popular choices, it is clear that many people in Bandar Utama including
our target market will prefer purchase and live in this type of unit rather than other type of
residential property such as terrace house, semi-detached and the least popular from the four
main unit types, bungalow. Therefore, the best product of TU Property Development that can
best fit to the piece of land at 10 acre beside One Utama Shopping Mall is condominium with
a block of serviced apartment where it will bring many profits to company in future as majority
of our target markets are choosing this type of property as their preference during survey.

12 | P a g e
3.0 Market Opportunities

Condominium with serviced apartment

The concept of condominium living in Malaysia is already promoted for many years
and almost most of the citizen in this country has accept this type of housing other than landed
property. Condominium has become most popular housing types in Malaysia due to the rapid
rate of urbanisation and scarce of land available which will lead to maximise the usage of land
available with providing the facilities.

One of the market opportunities for our condominium is the demand of condominium
is rise in crowded cities especially in Bandar Utama. Factors that contributed to this high
demand would be scarcity of land and high land cost around that area due to massive population
migration. Because of the limited land available in cities, it driven up the land price. Therefore,
in this case, it bring a good opportunity to market by building the condominium to let the citizen
to have their own house. As the population increasing, some places are facing shortage of
housing. Condominium are normally constructed without required large piece of land
compared to other type of property such as terrace house and bungalow that required large acre
of land. Therefore, it is an ideal property type which solved the issues of scarcity of land but
facing shortage of housing in Bandar Utama.

In addition, other than population migration, the needs of people and changing lifestyle
has also contributed to the development and act as a market opportunity for the high rise
building, especially for condominium and service apartment, over the area of Bandar Utama
even the country. Condominium generally known for having complete lifestyle amenities and
modern facilities. There are many facilities provided to consumers by living in condominium
or serviced apartment such as swimming pools, gym, function rooms, 24-hour security, parking
lots, landscaped garden and kids garden. Unlike landed properties, they are come short on this
department. Some might have amenities and facilities but they are not as extensive as those
seen on condominiums. In addition, as nowadays the area of Bandar Utama is not really safe
and secure, this cause people in that area have more interested in living in a more safety and
peaceful environment which our condominium have that facilities like 24-hours security to
fulfil their needs. Hence, this will bring a market opportunity to our company as people
nowadays are changing their lifestyle and are desire to enjoy those facilities in their housing
area.

13 | P a g e
 Besides that, consumer purchasing behaviour will also act as one of the market
opportunities to TU Property Development. By living in a condominium, consumer able to
obtain several benefits for them. Thus, there are many reasons why people make their homes
in condominiums. Some is because it is cheaper to buy a unit in a condo compared to a landed
property in the location they want. Other consideration might because their children have
grown up and moved out, and their current homes are now too large for them. Moreover, living
within the condominium where neighbours can be easily call upon when problems arise. These
consideration factors may lead people to buy a condominium instead of landed property and
hence it brings a high sales and profits to our company.

Furthermore, large number of foreigners or tourist who require temporary stay for
longer period in Bandar Utama is also one of the market opportunities of serviced apartment to
TU Property Development. This is because there are many multinationals close to One Utama
Shopping Mall such as IBM Malaysia Sdn Bhd, KPMG Malaysia, Schlumberger Business
Support Hub Sdn Bhd, Toyota Capital Malaysia Sdn Bhd, Quintiq Sdn Bhd, PayPal Malaysia
Careers, and more. Their foreign workers or business traveller would more interested living in
serviced apartment instead of hotel which is costly if compared to serviced apartment. They
mostly require accommodation for extended periods approximately from three weeks to six
months for certain purposes such as training or meeting. On the other hand, according to the
Travel Daily News which updated in 15 march 2017, Malaysias tourism industry is indicating
signs of recovery in 2016 with latest figures showing more tourists visiting the country after
the slowdown in 2015 which mean the number of tourist is rising. Based on the research, the
tourist based clientele are mainly from Singapore, Indonesia and China as Malaysia is a
preferred tourist destination because of hundreds of tourist attractions including the Worlds
6th Largest Mall , 1 Utama Shopping Centre and destinations spread across the country. So,
tourists that wanted to stay for longer period around the area of 1 Utama Shopping Centre but
in low budgets would definitely more interested to live in serviced apartment which are more
economically for longer stays, group travel or family parties. Thus, the booming number of
foreigners or tourists is one of the market opportunity to our serviced apartment as it can attract
different type of consumer group to consume our product other than local consumer in
Malaysia.

Apart from this, students from university nearby are also act as a market opportunity
for serviced apartment. The university that locate in Bandar Utama is First City University
College (KBU), the students would probably prefer renting a serviced apartment rather than

14 | P a g e
landed properties when they do not want to stay in on-campus accommodations. This is because
landed properties are consider pricier in terms of rental which are less affordable for students.
Although students needs vary depending on where they are from and what level of studies
they are undertaking at the university, but affordable, security, cleanliness, would probably
their most concern issues. Hence, renting to university students would no doubt become our
market opportunity as our serviced apartment is thus their solution as well as our serviced
apartment has fulfil their needs by providing 24-hour security, amenities, housekeeping and a
range of services where most utilities are included within the rental price

In short, constructing a condominium with serviced apartment brings 5 different market

opportunities to company such as demand of condominium is rising, the needs of people and
changing lifestyle, consumer purchasing behaviour, increasing number of foreigners or tourists,
and student from university nearby. The concept of condominium and serviced apartment
development is consider quite success in the crowded city compare to rural area. This has
helped to create a market for condominium housing and citizens have more choices to choose
according to their favourite.

15 | P a g e
4.0 Data Analysis of Malaysia Property Market

4.1 Top Products

INTEREST Most popular products based on leads

Terrace house ranging 1,500 2,000 sq ft were the most popular product type aspiring
homebuyers were searching for. 10.8% of visitors to iProperty.com were interested in this kind
of property and dropped enquires to real estate agents to explore more about the property. The
second and third respectively were condominiums ranging from 1,000 1.250 sq ft and
apartments ranging 750 1,000 sq ft. The top 6 property type searched for above respondents
50% of the total leads sent to agents.

16 | P a g e
 SOLD Most popular products sold compared to leads received

This bar chart illustrate that there is a gap between what homebuyers are interested in and what
they ending up purchasing. The reasons for the discrepancy between demand and actual sales
could be due to a combination of factors, especially affordability. Hence, that is why the
number of leads at 5% is much lower than the actual sales of 12% (3,300 units sold). The
median price of flat category was RM100,000. The property type which garnered the most
leads, terrace house is in the range of 1,500 2,000 sq ft emerged as the third most popular
property brought. The median price for this product type stood at RM625,000.

4.2 Reason for Dissatisfaction/ Satisfaction with the property prices.

17 | P a g e
The most common factors for dissatisfaction amongst property buyers are overpriced properties
at 83%, followed by dissatisfaction towards the current economic state (66%), increment of
property prices (62%), unpredictable market conditions (41%), and property loan application
approval rate (37%). Whereas, the most satisfying factors that property owners find joy in is
the agreeable capital appreciation of their properties with 49% of respondents concurring in
that point. Another important points such as the resiliency of the property market (28%),
material and quality of developments (27%), and good financing options (19%) are not of
concern to homebuyers.

4.3 Duration of stay in current property

According to the survey results of Property.Guru, majority of these home owners clearly
brought their homes during the last property boom before prices skyrocketed, as 40% of
respondents have owned their property for less than 5 years. The second majority group of 26%
have owned their properties for a duration between 5 to 10 years. Hence, the fact that the
majority group brought their homes only during the last 5 years indicate that a good part of
them may have foreseen that property prices would be inflating beyond bounds in the future,
or that the majority of them may just be property speculators.

18 | P a g e
4.4 Important factors to consider buying a property

There are many factors that affect homebuyers decisions in the market, whether it is the land
title, land tenure, size or location of the property. Running close behind each other below is a
list of the factors in importance rated by respondents with location (61%), price per sq ft (59%),
and the future developments in the area (58%) being the most important.

4.5 Average number of people having property at age 25 85+

19 | P a g e
4.6 Future of Peninsular Malaysia

20 | P a g e
5.0 Proposed Project Details

5.1 General Information

TU Property Development has a land bank including a piece of land at 10 acre beside One
Utama Shopping Centre. After analysing the survey, TU Property Development is working on
developing the land into a high rise residential building, First U-Residence, which made up of
condominium and serviced apartment that designed to appeal to students and working adults.

This exclusive and elegantly-built condominium and serviced apartment is well-facilitated and
features full condominium facilities that enable our residents to relax and rejuvenate, hence
promoting a quality and balanced lifestyle. First U-Residence comprises of one 36-storey
condominium and one 35-storey serviced apartment with a total of 852 units ranging from 656
sq ft to 1216 sq ft that can be customised to suit different requirement. The condominium units
will come in various designs from 1 to 3 bedrooms options as well as serviced apartment will
comes with an optional fully furnished package in various designs that offer to students,
business travellers, or tourists. Our fully functional layout design, combined with modern
finishing is highly suitable for both work and everyday living. There are 12 units on each floor
and the condominium and serviced apartment are served by a total of six high speed elevators.
Each unit is provided two sheltered parking lots.

Our First U-Residence is an eco-friendly and energy efficient residence by using

environmentally responsible building materials in construction and decoration of condo units.
This includes the use of low volatile organic paints, carbon monoxide sensors which are within
car park, windows designed to minimize heat loss and high-efficiency heating and cooling
system. Furthermore, we have provided family-friendly spaces such as playground and indoor
play structure which is designed for kids age 12 and below. It is a two-storey indoor play
structure where kids can climb, slide, swing or play in the ball pit. In addition, First U-
Residence has some good outdoor space for our residents to relax, barbeques and gatherings
such as shaded pavilion, BBQ area, and plaza area. The lots of bicycle parking and car pickup
and drop-off area are also provided in First U-Residence. Besides that, First U-Residence also
provide fitness and spa facilities. Residents can enjoy the convenience of not having to pay
separate gym fees or travel far from home to enjoy a healthy and relaxing lifestyle. These
facilities may include gym equipment, yoga deck, steam rooms or saunas and hot tubs. Other
amenities that will be provided are indoor games room, swimming pool, wading pool, residents

21 | P a g e
community garden, look out deck and surau. Moreover, Wi-Fi access is also provided within
facilities floor. 24-hour security service is provided and the implementation of smart card
access system and CCTV surveillance further enhances and assures the safety and privacy of
our residents.

5.2 Competitive Advantages

However, due to the high demand of condominium in Bandar Utama, there will be many
competitors in this market. Hence, First U-Residence has some competitive advantages to
compete with them. For instance, First U-Residence is in a strategic location which is in the
centre of the Bandar Utama meaning it is more convenient for residents to access to everywhere
such as shopping mall, restaurants, hospitals or clinic, parks, financial centers, tourist
attractions, government agencies, bars and public transports. Moreover, environmental friendly
and energy efficient features also a competitive advantage for this residence. These eco-
friendly appliances make a positive impact on the environment, and the reduction in energy
usage which will attract residents who want to save money on utility bills in long term. Besides,
First U-Residence also has an advantage over their unique design of the building and providing
multi amenities to let our residents have a nature-inspired living.

22 | P a g e
 5.3 Site Plan of First U-Residence

TO 1 UTAMA

Block B
35 Storey

Block A
36 Storey

23 | P a g e
5.4 Facilities of First U-Residence

24 | P a g e
5.5 Floor Plans

Type A unit plan (1 Bedroom + 1 Bathroom)

Type A floor plan

25 | P a g e
 Type B unit plan (2 Bedrooms + 2 Bathrooms)

Type B floor plan

26 | P a g e
 Type C unit plan (3 Bedrooms + 2 Bathrooms)

Type C floor plan

27 | P a g e
5.6 Project Location

First U-Residence

First U-Residence is located at the centre of Bandar Utama. First U-Residence can be reached
via Lebuhraya Damansara Puchong (LDP), Jalan Damansara, Lebuhraya Lembah Klang
(NKVE) which can direct access to KLIA, and Penchala Link. It is located in 5 minutes walking
distance to 1 Utama Shopping Mall where citizens can get their shopping, food and recreational
fix without going too far. The location of First U-Residence is also easy access to public
transportations, 24/7 cabs availability and bus terminals in just 5 minutes walking distance.

28 | P a g e
5.7 Transportation

The location of First U-Residence is an easily accessible area as there is a transportation hub
in 1 Utama shopping Mall that are only within 5 minutes walking distance. Residents can
access to other places as the bus terminal is only at the back of new wing 1 Utama shopping
mall which is the main transportation hub for the PJ area. Buses to LCCT (Skybus), Genting
Highlands (Go Genting) or long-distance buses to Singapore and Penang like Aeroline or Five
Star can be found in that mall. It also a hub for local Rapid KL bus routes such as U43
(Putrajaya), U82 (KL Sentral), U86 (Damansara), and U89 (Kelana Jaya LRT). Recently,
residents can also go out by Bandar Utama MRT as it had start operating, which is right next
to TV3s broadcast centre, is a 450m walk away from the One Utama Shopping Mall.

5.8 Surrounding Facilities

As our First U-Residence is located in a prime location, numerous facilities and services are
surrounded in that area that bring much convenient to our residents. Services that are close
proximity to our condominium is One Utama Shopping Mall that interconnected to luxurious
5-star One World Hotel and high-rise offices Plaza IBM, KPMG Tower, 1 First Avenue and
Centrepoint. First U-Residence also close proximity to KBU International College and other
schools nearby such as The British International School of Kuala Lumpur, SMK Bandar Utama
Damansara 2, SJKC PUAY CHAI (2), and The Childrens Academy. For those living with
special medical needs, KPJ Damansara Specialist Centre, MJ AMHTS Kuala Lumpur
Preventive Medical Center, and Tropicana Medical Centre are there to cater and with a 24
hours security system in place.

29 | P a g e
6.0 Marketing Strategies

Web Marketing

Set up a responsive, user-friendly website with search functionality by providing all the details
about the First U-Residence, including photos of various units, floor plans, and the amenities
that provided in that building. Information about area facilities such as shopping malls, nearby
business developments and schools and restaurants nearby will be also provided. Visitors will
be asked to provide their email address to obtain news or updates about the condominium to
build the database of potential buyers. When developing a website, our company is
knowledgeable in best SEO (Search Engine Optimization) practice ensuring our content is
optimized for search engine such as Google and Yahoo, using keywords associated with our
product.

Figure 1: Example of Search Engine

Using Social Media

Social media is another effective way to market First U-Residence. Most homebuyers will
spend months researching homes online before they make a purchase. Getting our company
name and products in front of these potential homebuyers by using all of the famous social
media such as Facebook, Youtube and Twitter is one of the ways to show our new potential
clients how First U-Residence can help place them in the home of their dreams. For instance,
create a Facebook page to build trust with our potential homebuyers by sharing information of
First U-Residence, including pictures, to help them better understanding the work that went

30 | P a g e
into the development. Besides that, we will also film the interior of the First U-Residence and
post this video on Youtube and Facebook page to give potential buyers a virtual tour of the
buildings. Besides that, Facebook ads also allow us to target individuals who live in a specific
geographic location which in turn allows us to create ads that mention and target those locations
specifically.

Free Listing

From research, large numbers of potential homebuyers rely on the Multiple Listing Service,
also known as MLS, to find properties they are interested in viewing. Therefore, we will list
the First U-Residence to the websites that buyers may be using to view properties. Websites
that will list our condominium are iProperty.com.my, PropertyGuru.com.my, Propwall.my,
MalaysiaPropertyNews.com.my, Mudah.my and so on. We will provide as many details as
possible including pictures on our listing to attract more potential homebuyers. Our company
will also provide our Web address in the listing where buyers can view even more details about
the development.

Figure 2: Example of MLS

31 | P a g e
 Signboards

Traditional advertising methods like signboards are still used by most of the developers. They
may seem old-fashioned, but they have been proven time and again to capture the attention of
drive-by traffic. Our signboards will designed to be high-impact, colourful photographs, and
appealing and will up for four to six weeks. They can showcase First U-Residences best
interior and exterior features, and invite those walking or driving to know more about what are
offering. Signboards can also be used to light for night-time viewing to offer day and night
exposure.

Figure 3: Example of signboard will be used

Open House
In order to better marketing First U-Residence as a potential home, our company will stage the
condo with furniture, clean surfaces such as windows, countertops, and floors and routinely
hold open houses. This may lead homebuyers to better visualize themselves in the unit. We
will then offer foods and beverages at open houses to give a warm and lived in feel in the
condominium that may help potential buyers picture themselves living in the unit. Moreover,
the act of scheduling an open house can cause buyers to submit an immediate offer. Open house
may give us the psychological advantage as a crowded open house can play on potential buyers
fears and motivate them to act quickly. Hence, this fear of loss can motivate some buyers to
write an immediate offer before the open house has a chance to take place.

32 | P a g e
 Brochures and Flyers
Collateral materials like brochures and flyers will be made and pass out to our realty agents as
well as potential buyers. These can be offered to buyers who have come to view our
condominium and serviced apartment during open houses, or those who have visited our real
estate office. Our collateral materials are attention-grabbing and professional. They showcase
the best aspects of our property and provide most of the details that a potential buyer could
want to know. Brochure and flyers is a must during open houses. The only way our property
will be more buyer viewed compared to others is if they take a flyer or brochure home with
them. They will keep our property in mind after they have viewed the house. Besides, most
buyers, after they have viewed a property, will show the brochure to their friends or family
later on which will then let more people to know our property.

Hire a professional real estate photographer

A vast majority of buyers start their search online or in local home magazines. The first things
they see of a listing is almost the pictures of the property. If not having pictures or having bad
quality pictures of the property will turn most buyers away. Therefore, we need to have great
images that showcase our First U-Residences best features and selling points. Professional
photographs will show our property in a better light and inspire more buyers to come to our
open house or as for information. Our professional photographs will be used online, featured
on the company website, and utilized extensively in social media, as well as brochures, fliers,
signboards and more.

33 | P a g e
7.0 Procurement Method

TU Property Development decided to use traditional procurement method in this project.

Traditional procurement method is a most common method that has been used in construction
industry. It is a procurement that the design work will separate from construction. We would
first appoints architect to design the projects in details and produce specifications of the
building. The consultant team will then is appointed to prepare tender documentation, including
drawings, work schedules, bills of quantities. Upon the completion of the design, a main
contractor is appointed to carry out the works through bidding after tenders for the construction
of the project have submitted. The lowest tenderer usually will be awarded the contract. The
project organisation for this method is shown below, illustrating main contractual links and
communication routes between the parties involved

TU Property
Development

34 | P a g e
Reasons for selecting Traditional Procurement Method

Time

Normally, time is identifies from inception stage until completion stage of the project. The
reason TU Property Development selects traditional procurement method is this project is
allows for sufficient time as we want to clearly know the actual cost to construct the project.
Although this project takes longer time to produce but it considered is the best approach
because we can get better design from consultants and get better quality control of the project
as our vision is providing products with prime value to our customers. Besides, we also can
use this longer time to make decisions and check the project design with consultant team before
start construction. Hence, traditional method is suitable for us to control the stipulated overall
time for this project.

Responsibility

Moreover, TU Property Development wishes to appoint designers and contractors separately

in this project. Traditional procurement method can be a clear cut division of design and
construction works. We want to engage different architects, engineers or quantity surveyors to
design the works and they will take full responsibilities for the construction works from pre-
tender stage until the completion stage. Therefore, this is also one of the reason why we choose
traditional method.

Price certainty

Price certainty is related to the company price for the total construction cost that will be
obtained at commencement of construction period. By using traditional procurement method,
design will be completed during tender stage and this will establish a high level of price
certainty except for the fluctuation of labour and material costs. So, we will choose traditional
method instead of other methods as price certainty is wanted in this project before the start of
construction.

35 | P a g e
 Quality level

The product quality level is one of the main factors that TU Property Development concerned.
Because the traditional procurement method able to produce high quality of work by
competitively tendered to a contractor before work starts on a lump sum basis. Each process of
construction is undertaken by different parties which having expertise in the building team and
thus, the quality of work will be higher. Hence, we select traditional as our procurement method
since product quality is required in this project.

Risk Avoidance

Risk avoidance is an important factor as the complex construction project having a long
production cycle and is involving many participants and therefore, associated with risks and
uncertainties. So, by using traditional method which the risks are generally fair and balanced
between parties to the contract, the concern of TU Property Development which is having a
balance of risk between our company and constructor can be achieved.

36 | P a g e
7.1 Advantages of using traditional procurement method in this project

It is accountability due to a competitive selection.

Can easily arrange and manage any variations to the contract as required by TU
Property Development.
We able to well understood the whole process or procedure of this project.
In traditional method, all tenderers produce a tender based on the same information.
Hence, we able to obtain the best or lowest price through competitive tendering.
Our interest is protected by the consultants who serve as advisors and independent
certifiers in this projects contract.
We are able to have a direct influence or better control over the design and quality of
the project since we have the closer control of the works. For instance, the consultant
team need to provide the design that meet our requirements.
Traditional procurement is easier to be adopted when compared with other procurement
methods. It is because this method had been commonly used for a long time, so both
contractor and consultant team are familiar to face or solve the risks during the
procurement state of construction progress.

7.2 Disadvantages of using traditional procurement method in this project.

The overall project duration require longer time to complete when compared with other
procurement methods as many time is required in the early stage for designing the
building before the construction commenced.
Open to abuse if any attempt is made to tender before the design is complete, resulting
in less certainty.
It may be too cumbersome for us to coordinate with various consultants at the same
time. We may hard to manage this project and may be miscommunication when
communicating with those organization.
No design or buildability input by the contractor as they are not appointed during the
design stage.
No or little overlap between design and construction.
The performance of consultants is very important because can directly affect the
progress of the works.

37 | P a g e
8.0 Constraints and Future Development

TU Property Development is going to develop the remaining 2 acres of land in the coming 2
years. The project will consists of 45 units of commercial building and car park. This
commercial building may consists of different kind of shops such as convenience shops
(Family Mart), restaurants, caf, hair saloon, dessert house, book and stationery shops, clinic
and so on. This commercial building are convenience to the residents in First U-Residence as
they are able to buy their necessities or eating nearby their residential area. However, there are
some constraints we need to face when developing or constructing this project. The first
constraint is environmental constraints. A large amount of waste is produced during a
construction project due to the mass amount of material used. The waste could include concrete,
plastic, lead pipes, asphalt, ferrous and non-ferrous, metal and paint. This waste may leads to
an excess of waste in landfills which can have potentially disastrous effects. The most common
impacts are leakage, methane emissions, odour problem, damage to roads and much more.
Therefore, to overcome this problem, we will plan for disposing the potentially hazardous
waste and make site improvements for better water management and water conservation such
as drought tolerant landscaping.

Moreover, there are also some technical constraints arising from restrictive area and congested
surroundings which are particularly applied to the site environment of our project. We usually
constrained with restrictive site area where storage space, transportation and temporary works
require input of careful planning by design engineers. Besides that, in order to ensure a rapid
return on the monetary and other resources that we have expended during the First U-Residence
project, our company will want to reduce the project duration to the minimum. Hence, when
developing the future development, we would use design and build procurement method
instead of traditional method that have used in the First U-Residence as traditional method take
longer time to complete because many time is required during the early stage to design the
building. Design and build method is cost certainty and faster track as we has to deal with one
form only rather than spending time to commit resources and contracting to designers and
contractors separately. Hence, this method is suitable for us, who want quick return on the
investment, especially for this commercial projects.

38 | P a g e
9.0 Conclusion

First U-Residence is a land of residential house which made up of a 36 storey of condominium

and a 35 storey of serviced apartment to fulfil the citizens need. There are 12 units on each
floor which comprises of 8 units of 656 sq ft (Type A), 3 units of 915 sq ft (Type B), and 1 unit
of 1216 sq ft (Type C). On the other hand, serviced apartment is a self-contained and fully
furnished apartment designed for short term and medium term stays with all the facilities and
fittings consumers need for an extended trip away from home. It is like having a condo unit
that is serviced like a hotel. Our serviced apartment give a more homely feeling compared to
hotel because of the space we offered, a separate living and sleeping areas. Besides, the cost-
effectiveness of our serviced apartment will also attract corporate clients. Not only is the rental
price for serviced apartment lower on average than a corporate rate for a hotel, but the
incidental business costs are also substantially lower. With many companies that looking to
reduce their travel budgets, our serviced apartment can offer considerable cost savings
compared to stays in traditional hotels. By offering short-term and fixed-term contracts, our
serviced apartments would be a real alternative to hotels for short-term stays for the corporate
traveller.

First U-Residence is an eco-friendly and energy-efficient residence. They have energy-efficient

home designs and energy-saving appliances such as windows, toilets, and shower heads. As an
eco-friendly building, we mostly used sustainable building material to minimize the pollution
effect. Besides that, family-friendly facilities will also provide by First U-Residence to let our
residents maintaining a healthy lifestyle such as swimming pool, indoor games room, shaded
pavilion, residents community garden, sauna, sport facilities and gymnasium. In addition, First
U-Residence is located within prime key districts which is located in the heart of city. Our
residence is only minutes away from One Utama Shopping Mall, schools, parks, medical
centres, office buildings, restaurants, bars, and public transports. With its close proximity to
these places, First U-Residence are indeed accessible as consumers needs are always within
their reach.

39 | P a g e
10.0 References

Bandar Utama. (18 July, 2017). Retrieved from https://en.wikipedia.org/wiki/Bandar_Utama

Bhasin, H. (11 July, 2017). Demographic Segmentation Segmenting by Demography.

Retrieved from https://www.marketing91.com/demographic-segmentation/

Construction Procurement Methods Compared. (23 March, 2015). Retrieved from

https://www.ukessays.com/essays/construction/procurment-systems-used-in-malaysia-
construction-essay.php

Dimaggio, D. (n.d.). 5 marketing strategies that generate real estate sales. Retrieved from
https://www.inman.com/2015/05/20/5-marketing-strategies-that-generate-real-estate-
sales/

Folger, J. (n.d.). Condo Buying Guide: Reasons to Buy a Condo. Retrieved from
https://www.investopedia.com/university/condo-buyers-guide/condo-buyers-guide3.asp

Malaysia Property Market Sentiment Survey Report. (2016). Retrieved from

http://images.edm.propertyguru.com/Web/PropertyGuruPteLtd/%7Bb8ae762a-df50-4d8b-
aa02-
86768492152b%7D_Malaysia_Property_Market_Sentiment_Survey_Report_2016_H1.pdf

SP Setia . (2017). Retrieved from http://www.spsetia.com.my/corporate/our-vision-mission-

values.asp

Su-Lin, C. (27 January, 2012). The rise of serviced apartments. Retrieved from
http://www.thesundaily.my/news/278343

SUNWAY. (2016). Retrieved from https://www.sunwayproperty.com/company/about-us

Sunway Property. (2016). Retrieved from

https://www.sunwayproperty.com/company/about-us

Trio by Setia. (2017). Retrieved from http://triobysetia.com.my/home.aspx

40 | P a g e