Market Analisis | Sarawak | Strategic Management

GROUP 5

BORNEO RIVERFRONT
MARKET ANALYSIS

samarahan, SARAWAK
Lavender Planning Consult Sdn. Bhd.

I. INTRODUCTION The purpose of this report is to provide an informed recommendation to State Planning Unit regarding plans to develop all or a portion of an estimated 552.94 acres of property in Borneo’s Riverfront Opportunity Area. This land includes property between state land, Hock Seng Lee Bhd and Tiya Vista Properties Sdn Bhd.

To evaluate the development potential of the Riverfront Plan Area, a preliminary development program that focuses on a 552.94 acre site. The Phase 1 program conforms to the vision laid out in the Samarahan Area Plan and identifies proposed land uses and cost estimates associated with acquiring property and converting raw land into finished pads that will be sold to private developers. Lavender Planning Consult Sdn Bhd financial analysis uses a residual land value model to identify the maximum price per square foot that a private investor could afford to pay for raw land while ensuring the project is financially viable.

BORNEO RIVERFRONT
MARKETING ANALYSIS

A. Objective of the Market Study There are several key considerations that must be met for a real estate development project to be successful. In general, a successful project is the product of a clear vision with a well-defined set of goals and objectives. With a clearly defined vision, it is possible to conduct effective market research to determine if there is identifiable market demand for the project at a supportable price point. For example, as described in the introduction, a residual land price model may be used to determine how much a developer can afford to pay for land and how much finished pads must sell for to make a project “pencil.” Alternately, for projects such as housing and speculative office development, market research can help determine appropriate rents/sales prices for finished products. The second required component for development is a capable team with the financial capacity to see it through. Finally, successful development balances expectations with market reality.

BORNEO RIVERFRONT
MARKETING ANALYSIS

In addition to interviews. commercial. Lavender Consultant Sdn Bhd team incorporated current and historic residential. recreation and institution market trends published annually by State Planning Unit.B. BORNEO RIVERFRONT MARKETING ANALYSIS . including a survey of comparable office and housing developments and site visits of newer projects. commercial appraisers and local developers that have recently undertaken housing and mixed-use development projects that incorporate development guidelines and principles similar to those envisioned for Samarahan. Qualifications of the Analyst The research process consisted largely of interviews with local real estate experts. office. Chief Minister’s Department of Sarawak. including licensed commercial and residential brokers. Finally. Lavender Consultant Sdn Bhd team conducted on-the-ground field research.

C. Certification Letter BORNEO RIVERFRONT MARKETING ANALYSIS .

offices. BORNEO RIVERFRONT MARKETING ANALYSIS . this market feasibility analysis evaluated two key factors to test the viability of the development concept: • Whether there is market demand for the uses the site.II. the mix of urban housing. and envisioned on • Whether the development is economically feasible given today’s land prices. In order to evaluate the effectiveness and appropriateness of anticipated public investments. and supporting retail will have a range and intensity of uses not seen anywhere else in Samarahan. Fulfilling a long-standing community desire for revitalization. Executive Summary The Borneo Riverfront Development is envisioned to revitalize the Samarahan district with an urban mix of uses along the Tuap River and Stutong River.

the first and most important step to understanding the feasibility of the project is to know at what “net effective” price land can be purchased while not negatively impacting the feasibility of subsequent steps of development such as site preparation. Thus. lot sales. Land prices were estimated using a residual land value model. site conditions.Thus. In order for the project to be realized.70 per square foot of raw land. the State Planning Unit or a developer must assemble parcels large enough to initiate a phased development. BORNEO RIVERFRONT MARKETING ANALYSIS . the development feasibility analysis must take into account existing economic factors. competitive projects. development costs. The following are the conclusions of the analysis: • With positive market demand. 4-year development program can be supported at land prices ranging from RM2. and Samarahan’s relative position to other opportunity sites. • A modest first phase of development should focus on office uses with supporting retail on a site of between 10 and 12 acres. and building construction. the Phase 1.

• There is no precedent in the Kuching-Samarahan Metro area for waterfront development of the scale and density envisioned by the Borneo Riverfront Plan. Therefore, it is not possible to accurately predict the likely demand for or absorption of the planned land uses as there is too little historical data to draw any conclusions. This is particularly true for riverfront housing at urban densities. • Generally, the Samarahan area is significantly blighted and properties in the surrounding area should be upgraded in order to create a positive environment for new development at the riverfront. In such environments, office uses typically fare better than housing as a pioneering use because there are generally fewer conflicts between industrial and office users. Offices conduct most of their business between the standard 9 to 5 business day and do not require as many amenities and services as residential communities. Further, prospective homebuyers are likely to view an area such as Samarahan, which has a high concentration of industrial and commercial users and a limited supply of residential uses, most of which are older, low value residences and mobile homes, as a less desirable place to purchase a home in the short term.

BORNEO RIVERFRONT
MARKETING ANALYSIS

Given that the supportable land prices are lower than recent asking prices, the City has a number of choices for moving forward. These include:

• Wait until the market strengthens for urban housing. The Samarahan division is a relatively immature market for these product types when compared to Kuching. Further, urban housing almost always begins in downtowns and expands to other regional locations over time. Given that downtown Kuching has seen only a tiny amount of new urban housing, Samarahan should consider waiting to move forward until a few housing projects have been completed and the urban housing market has been better established. There is no specific indicator of when the market is mature, but if at least 5 to 10 new urban housing projects had been built over a 2 to 5 year period in downtown Kuching, it would be safer to move forward on Samarahan.

BORNEO RIVERFRONT
MARKETING ANALYSIS

In the meantime, State Planning Unit could selectively assemble land in Samarahan at higher than market prices to land bank until the time when the opportunity is ripe. Alternately, State Planning Unit could write down the cost of land and sell it to private developers at below market prices to encourage investment in Samarahan. Likewise, targeted blight removal and beautification efforts in Samarahan should be pursued so as to create a more receptive context for new investment. • Office development should precede housing development in Samarahan and set the stage for revitalization.

BORNEO RIVERFRONT
MARKETING ANALYSIS

ii. Business development (small business loans. there are many actions that State Planning Unit could take to prepare themselves for either the time when the market matures or when an unexpected opportunity presents itself. iii.• As an alternative to the riverfront development concept. Examples of targeted investments that State Planning Unit could undertake include: i. BORNEO RIVERFRONT MARKETING ANALYSIS . including projects and programs that target specific properties in the riverfront area as well as other parts of Samarahan. marketing programs. training). Building reuse. State Planning Unit could reevaluate the development strategy and focus on more targeted revitalization efforts. While the market is not ripe today. such as a large anchor user or institution.Storefront improvements (loans or grants).

v. In the development industry. BORNEO RIVERFRONT MARKETING ANALYSIS . time is often more valuable than money. sidewalks. telecommunications). it should be the easiest part of the City in which to do business.iv. Transportation investments (street paving. Utility investments (sewer. etc. Removing regulatory hurdles for compatible projects is a big incentive for developers. If the City wants Samarahan to attract the highest quality development.). water. Development and implementation of a streamlined permitting process. vi.

the easier it will be to attract investment. Additional industrial employment projects should be considered. Actively pursuing a large employer. and annexation.vii. Anchor users provide confidence in the market that attracts additional investors. including an update to Samarahan’s Transportation System Plan. Completing these efforts ahead of development is important. viii. or corporate headquarters will place Samarahan “on the map” and send a positive signal to the community. • Indeed. infrastructure and planning studies. improves property. To the extent that the City can create planning certainty in zoning. and creates tax increment to support additional projects (once the tax abatement incentive expires). educational institution. transportation. BORNEO RIVERFRONT MARKETING ANALYSIS . the recent expansion of the Sarawak Black Paper is an example of revitalization that creates jobs. large manufacturer. Completion of transportation. An “anchor”user such as a hospital.

Which it is a huge island that located on the East of Peninsular Malaysia. This development site is surrounded by the river. there is no existing riverfront development in the district of Samarahan and also at the surrounded area. Because of that.III. The main reason why the concept of Riverfront has been chosen is because. in this development we try to implement the Borneo culture in the view of urban design. BORNEO RIVERFRONT MARKETING ANALYSIS . These make it a strategic place for the Riverfront Development concept in the area of Samarahan.Project Description This development is named Borneo Riverfront and located at the Borneo Island. Besides that. this site area has a potential for Riverfront Development and also for tourism centre. Proposed Project Summary A. It shows another potential of this development is a feasible development to be develop.

Block 14. Block 14. Muara Tuang Land District. Samarahan-Tiya Vista Properties Sdn. 200’ 0’ 200’400’ 1000’ 0 BORNEO RIVERFRONT MARKETING ANALYSIS . Samarahan-State Land Lot 893. Muara Tuang Land District. Lot 672.U Our Development Consist Of Part of Lot 675. Samarahan-Hock Seng Lee Bhd. Muara Tuang Land District. Bhd. Block 14.

Propose Unit and Project Amenities BORNEO RIVERFRONT MARKETING ANALYSIS .B.

Site Description Re g i o n a l c o n t a c t kuching BORNEO RIVERFRONT MARKETING ANALYSIS Located at the centre of south east asia Gateway to the Borneo Island .IV. Proposed Site Analysis A.

Sri Aman Division.449. Sarikei Division.• • • • • • • Sarawak is located on the island of Borneo. Sarawak also known as the Land of Hornbills. Betong Division. Samarahan Division.51 sq. Kuching is the capital of Sarawak. Sibu Division. The rainforest is home to an incredible variety of more than 8. history and heritage. Bintulu Division. Miri Division and Limbang Division. km or about 37% of the Malaysia total land area. The State of Sarawak covers an area of 124. Sarawak is the largest of Malaysia's 13 States.000 species of flora and over 20. Kapit Division. The administrative of Sarawak is currently divided into eleven divisions namely Kuching Division.000 fauna. Mukah Division. Sarawak also rich in culture. • BORNEO RIVERFRONT MARKETING ANALYSIS .

Kuap and Sg. Bayor PROPOSED SITE KUCHING AIRPORT UNIMAS BORNEO RIVERFRONT MARKETING ANALYSIS .BANDAR KUCHING EXISTING HOUSING SCHEME 7km from Kuching City close to airport accessible via expressway between Sg.

KAMPUNG BINYU SAMAJAYA INDUSTRIAL ZONE PROPOSED SITE SARAWAK INTERNATIONAL MEDICAL CENTRE UiTM SARAWAK BORNEO RIVERFRONT MARKETING ANALYSIS .

BORNEO RIVERFRONT MARKETING ANALYSIS .

Sg . Ba y or Sg.o f f p a Ku S g. Jerenang U 200’ 0’ 200’400’ 1000’ BORNEO RIVERFRONT 0 MARKETING ANALYSIS .H y d r o l o g y sy st e m a n d w a t er r u n .

Sl o pe & h i g h a n a l y si s U 200’ 0’ 200’400’ 1000’ 0 • Flat and no slope area • Suitable for any development BORNEO RIVERFRONT MARKETING ANALYSIS .

So i l & g e o l o g y Swamp – river area U 200’ 0’ 200’400’ 1000’ 0 Sandy – centre area BORNEO RIVERFRONT MARKETING ANALYSIS .

Su n pa t h & w i n d d i r e c t i o n Northeast wind (nov-mar) west east U Southeast wind (may-sept) 200’ 0’ 200’400’ 1000’ BORNEO RIVERFRONT 0 MARKETING ANALYSIS .

B. Site Access and Visibility Ac c e ssi b i l i t y Kuching – Samarahan Expressway Project Site BORNEO RIVERFRONT MARKETING ANALYSIS .

Proximity to Community Services BANDAR KUCHING 7km from Kuching City close to airport accessible via expressway between Sg. Kuap and Sg. Bayor PROPOSED SITE BORNEO RIVERFRONT MARKETING ANALYSIS .C.

V. Market Area Analysis A. Market Area Description Go v e r n m e n t po l i c i e s BORNEO RIVERFRONT MARKETING ANALYSIS .

9 2.1 36. Population and Households Sarawak: Area. 1991 & 2000. Department of Statistics Malaysia Note: Population figures shown have not been adjusted for under-enumeration.3 4.7 Kuching Bau Lundu KUCHING DIVISION Samarahan Serian Simunjan Asajaya SAMARAHAN DIVISION 1.4 1.039.VI. km) Population Density (Person/Sq.3 47.559.3 15.2 1.8 94.4 39.0 16. BORNEO RIVERFRONT MARKETING ANALYSIS . Demographic and Economic Analysis A.1 0.7 Area (sq.0 3.7 1.6 302.6 Population 2000 (‘000) 494.5 429.4 Average Annual Growth Rate (%) (1991-2000) 3.2 38. km) (2000) 265.1 123.7 1.3 47.2 3.1 41.8 884.217.812.5 192.2 71.7 1.5 115.6 37.0 24.8 27. Population.4 Source: Population and Housing Census of Malaysia.5 33.9 35.862.5 407.0 79.3 563.1 24.967.4 164.3 28.8 4.1 2. Average Growth Rate & Population Density by District Division / District Population 1991 (‘000) 369.9 1.

893 494.950 23.477 Female 991.045.869 41.018.036 2000 Total 2.287 28. (e) Estimate BORNEO RIVERFRONT MARKETING ANALYSIS .585 246.600 56.109 41.064 Rural 1.308 247.513 2.572 20.632 37.513 Urban 964.824 27.300 92.240 23.966 79.537 21.325 13.345 23.824 27.395 23.852 14.200 42.499 13.345 46.009. January 2007 Note: Figures presented in this table have not been adjusted for under-enumeration.900 31.002 18.Sarawak: Population by Administrative District 2000 & 2007 Administrative District SARAWAK Kuching Bau Lundu Samarahan Serian Simunjan Asajaya Male 1.404.632 37.287 28.435 14.100 2007 e Source: Population and Housing Census of Malaysia 2000 Monthly Statistical Bulletin Sarawak.500 71.902 79.500 32.200 593.393 422.383 39.630 18.583 40.000 48.

190 28.070 48.421 197.301 146 69 601 180 52 86 Others Non Malaysi an Citizens 8.750 7.012 47.516 12.475 2.098 29.205 3. BORNEO RIVERFRONT MARKETING ANALYSIS .342 23.204 1.042 38.539 8.682 10.957 3.Sarawak: Total Population by Ethnic Group and Administrative District.955 9.717 3.215 10. 2000 Administrative District Total Iban Chinese Malay Bidayuh Melana u Other Bumipute ra 3.147 16.190 9.720 63.068 82.434 87 49 225 115 132 7 Source: Yearbook of Statistics Sarawak 2006 Note: Figures in this table have been adjusted based on the estimates of under-enumeration derived from the Census Coverage Evaluation Survey.138 49.943 29.519 19.673 2.608 64 86 506 149 72 61 3.579 242 532 210 611 45 66 Kuching Bau Lundu Samarahan Serian Simunjan Asajaya 509.597 648 3.374 43.117 307 119 3.583 9.328 27.532 180.

0 109.1 102.2 147. BORNEO RIVERFRONT MARKETING ANALYSIS .3 166.0 196.7 34.1 62.2 243.1 133.1 192.4 41.6 110.2 2.6 156.1 155.3 210.4 82.6 166. January 2007 Note: (e) Mid-year estimate.2 Source: Yearbook of Statistics Sarawak 2006 Monthly Statistical Bulletin Sarawak.1 202.1 25.1 274.8 173.6 85.7 79.9 1.404.Sarawak: Population by Age Group Age Group 0–4 5–9 10 – 14 15 – 19 20 – 24 25 – 29 30 – 34 35 – 39 40 – 44 45 – 49 50 – 54 55 – 59 60 – 64 65 – 69 70+ Total 1991 (‘000) 223.6 54.5 44.071.1 180.7 173.1 44.9 59.3 36.3 187.4 2000 (‘000) 265.3 52.5 2007 e (‘000) 281.9 127.9 2.2 68.0 164.9 176.718.7 68.6 231.4 129.2 43.4 217.5 213.

465 8.0 12.225 14.8 0.4 Per Capita GDP (RM) 4.2 10.770 13.0 10.3 11.451 14.486 10.641 13.444 9.986 13.006 12.8 4.9 -4.7 -4.119 7.0 22. Household Income GDP and Per Capita Income.4 12.1 11.461 10.970 7.363 5.520 7. Sarawak & Malaysia at Current Prices: ADMINISTRATI VE DISTRICT Year 1987 1988 1989 1990 1991 1992 Sarawak Annual Growth % -1.8 -2.2 -4.7 4.047 6.1 8.7 13.877 5.819 15.1 8.185 10.8 2.307 11.2 Per Capita GDP (RM) 6.8 8.939 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002e 2003e 2004f 4.291 9.3 0.B.690 14.567 15.163 16.938 Malaysia Annual Growth % 10.5 -1.516 6.6 10.8 3.343 14.924 13.0 11.703 14.954 BORNEO RIVERFRONT Source: Basic Data on Sarawak MARKETING ANALYSIS .4 8.911 6.4 10.317 12.3 8.8 14.567 11.9 -1.126 7.3 9.447 6.071 11.3 5.1 7.

C. Employment BORNEO RIVERFRONT MARKETING ANALYSIS .

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BORNEO RIVERFRONT MARKETING ANALYSIS .

Housing BORNEO RIVERFRONT MARKETING ANALYSIS .D.

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BORNEO RIVERFRONT MARKETING ANALYSIS .

BORNEO RIVERFRONT MARKETING ANALYSIS .

New Housing Units 2008 6 Type Units completed Units Under construction Units Launched 2007 Units Construction Started 2008 Kuching SS terraced DS terraced SS semi-dee DS semi-dee Quadruplex Total 263 (650) 234 (1210) 50 (207) 54 (384) 0 (504) 601 (2955) 0 (995) 83 (396) 0 (124) 32 (82) 115 (1597) 237 (279) 348 (833) 2 (22) 96 (339) 683 (1473) 15 (44) 12 (221) 0 (0) 41 (76) 68 (341) 718 (387) 95 (407) 55 (166) dee 136 (274) 1004 (1234) 2471 (7600) 789 (993) 1384 (1410) 289 (196) 510 (526) 0 (0) 2972 (3125) 1535 (1535) 289 (372) 142 (142) 74 (106) 2040 (2155) 1100 (694) 1693(1479) 74 (50) 484 (460) 3351 (2683) 243 (148) 195 (114) 8 (0) 42 (55) 488 (317) 390 (985) 286 (268) 197 (199) 315 (212) 1188 (1664) 10039 (9944) 80 (261) 348 (913) 143 (142) 58 (418) 0 (0) 629 (1734) 56 (1353) 0 (133) 14 (70) 0 (4) 70 (1560) 168 (188) 691 (487) 22 (14) 168 (190) 1049 (879) 62 (160) 93 (24) 12 (8) 28 (28) 195 (220) 28 (229) 93 (121) 21 (199) 152 (100) 294 (649) 2237 (5042) 59 (752) 208 (973) 143 (142) 38 (376) 0 (0) 448 (2243) 0 (713) 0 (117) 0 (46) 0 (4) 0 (880) 633 (531) 493 (572) 28 (42) 110 (230) 1264 (1375) 110 (160) 93 (24) 8 (0 ) 28 (0 ) 239 (184) 123 (736) 113 (222) 53 (208) 239 (123) 528 (1289) 2479 (5971) Samarahan SS terraced DS terraced SS semi-dee DS semi-dee Total Sibu SS terraced DS terraced SS semi-dee DS semi-dee Total Bintulu SS terraced DS terraced SS semi-dee DS semi-dee Total Miri SS terraced DS terraced SS semi-dee DS semiTotal Grand Total * Figures in ( ) denotes whole year figures for 2007 BORNEO RIVERFRONT MARKETING ANALYSIS .

209.168.350.130.000 .000 .000 226.450.000 Samarahan 130.000 .000 From 210.Selling prices of houses launched in 2008 (RM) Type SS terraced – Int.800 DS terraced – corner SS semi-dee 286.359.336.000 275.310.000 .000 165.000 .000 Bintulu 85.000 Sibu 150.224. Kuching 149.203.229.000 - 232.338.190.000 .000 NA 240.550 psm 200 psm N/A NA NA Source : WTWY Q2 2008 survey BORNEO RIVERFRONT MARKETING ANALYSIS .000 .000 - 230.000 - 285.738.000 .000 Detached plot 200 .000 145.000 Miri - SS terraced – corner DS terraced – int.000 .390.000 DS semi-dee 359.000 .000 238.000 388.000 .000 .000 .310.000 .000 185.000 - 355.458.000 .000 .000 120.338.550.000 .000 240.220.000 From 198.000 370.000 .000 .

Shop-offices/Shop-houses 2008 Region Type Units completed Units Under construction 0 (0) 0 (0) 437 (406) 126 (89) 563 (495) 43 (16) 20 (0) 63 (16) 53 (43) 201 (196) 22 (11) 276 (250) 114 (114) 7 (7) 121 (121) 48 (48) 54 (63) 102 (111) 1125 (993) Units Launched 2007 0 (0) 0 (0) 45 (147) 41 (53) 86 (200) 27 (16) 0 (0) 27 (16) 4 (49) 53 (91) 11 (0) 68 (140) 0 (0) 0 (0)0 (0) 0 (0) 0 (0) 0 (0) 181 (356) Units Construction Started 2008 0 (0) 0 (0) 118 (217) 39 (46) 157 (263) 27 (16) 20 (0) 47 (16) 4 (43) 53 (110) 11 (0) 92 (153) 0 (6) 0 (0) 0 (6 ) 0 (0) 0 (0) 0 (0) 296 (438) Kuching 1-storey shop 2-storey shop 3-storey shop 4-storey shop Total 0 (0) 0 (10) 87 (175) 2 (66) 89 (251) 0 (31) 0 (10) 0 (41) 0 (87) 66 (0) 0 (47) 66 (134) 0 (30) 0 (7) 0 (37) 0 (32) 9 (18) 9 (50) 164 (513) Samarahan 3-storey shop 4-storey shop Total Sibu 2-storey shop 3-storey shop 4-storey shop Total Bintulu 3-storey shop 4-storey shop Total Miri 2-storey shop 3-storey shop Total Grand Total BORNEO RIVERFRONT MARKETING ANALYSIS .

058.000 818.000 668.300.000 Sibu 295.000 1.000 768.000 1.000+ 350.000 1.000 680.000 888.000 3.000 4-storey int 4-storey corner 1.000 1.000 - Samarahan - - 780.000 - Kuching - 900.000 - - BORNEO RIVERFRONT MARKETING ANALYSIS .000+ - - Miri From 366.000 560.580.180.000 From 800.500.000 From 510.Selling prices of shop-offices/shop-houses 2008 (RM) Region 2-storey int 2-storey corner - 3-storey int 3-storey corner 1.080.000 750.100.

114 Under Construction No.3-star and above hotels Region Existing hotels No.950 792 386 1.235 0 No Data 560 Note : * 1 service apartment upgraded to hotel ** Sibu Kingwood Hotel’s extension BORNEO RIVERFRONT MARKETING ANALYSIS . 3 0 1 1 Rooms 1. 3 1 ** 0 1 Rooms 1. Kuching Sibu Bintulu Miri 15 5 2 6* Rooms 2.038 230 0 176 Proposed No.

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210.000.304.01 29.000.000.000.000.61 BORNEO RIVERFRONT MARKETING ANALYSIS .000.000.000.00 159.295.683.00 185.000.842.00 600.289.00 113.000.000.00 299.293.316.00 882.Chart Title 1.78 6.00 cashin flow 400.000.000.00 400.00 600.00 117.000.000.996.184.849.505.000.000.000.000.520.22 356.00 0.014.200.00 0.000.79 228.00 1.000.00 500.000.000.816.800.00 800.000.00 Year 6 month 1 year 2 year 3 year 4 year 5 year TOTAL cashin flow Cash Outflow Surplus/deficit 122.704.842.000.000.000.00 76.01 -122.000.000.300.520.00 200.00 40.000.000.000.142.289.00 300.000.000.000.00 Cash Outflow Surplus/deficit 900.000.00 100.00 196.00 800.00 700.000.210.000.000.000.000.520.000.40 80.00 cashin flow Cash Outflow 200.00 73.40 653.000.000.000.000.000.40 0 29.00 -200.

BORNEO RIVERFRONT MARKETING ANALYSIS .

whether the development is :  feasible  marketable  saleable  profitable  capable • Major element in the development marketing strategies:  Product strategies  Selling strategies  Pricing strategy  Promotion strategy BORNEO RIVERFRONT MARKETING ANALYSIS . • The strategy is to making sure that the development meet customer needs. • Use to identified.MARKETING STRATEGY INTRODUCTION • Marketing strategy is a vital in the development process.

which is defined as the creation of a technology that enables a new set of customers to perform a job that only specialists could previously perform. BORNEO RIVERFRONT MARKETING ANALYSIS . which is improving existing products and services to help customers get related or ancillary jobs done  New market creation. which involves creating a new product or service for customers who are trying to get a job done but cannot because no solutions or only ad hoc solutions exist.  Disruption. which consists of making improvements to products and services that already exist in order to help customers get a job done better. There are four potential avenues of innovation in the product strategy:  Core market growth.  Adjacent or related market growth. A robust strategy must consider all possibilities and generate growth and revenue along several potential avenues of innovation.MARKETING STRATEGY PRODUCT STRATEGY An effective product strategy must go beyond efforts to achieve core market growth.

MARKETING STRATEGY SELLING STRATEGY Understand the market price Understand the dynamics of our development and built a winning strategy based on market insights.  Discover what the market will bear for products  Learn from other development – what are the current pricing  Understand why other development properties have a higher price BORNEO RIVERFRONT MARKETING ANALYSIS .

MARKETING STRATEGY SELLING STRATEGY Measure Success  An effective development properties sellers actively measure their businesses with a few metrics measure. we are able to track growth over time and gauge the efficiency of marketing efforts.  Useful performance metrics :  Sales (overall and by category)  Cost of development  Estimation development profit  Cash flow every year BORNEO RIVERFRONT MARKETING ANALYSIS . By doing this.

MARKETING STRATEGY SELLING STRATEGY Experiment . Learn & Improve Experimentation is critical to development success.  Plan a new types of development  Use a variety of development component  Implement the latest features and initiatives  Develop creative promotion BORNEO RIVERFRONT MARKETING ANALYSIS . Market trends change every day and so should the development business.

shopping complex and office.MARKETING STRATEGY SELLING STRATEGY Selling by building Base on the proposed area. selling by building strategies are use to sell houses. Hired A Management Corporation There are a few component that needed to hired a management corporation to manage the component that are not saleable like the club house. BORNEO RIVERFRONT MARKETING ANALYSIS . peninsular park and jetty. thus increase properties sale. shop house. Selling by building will help most buyers to get full loan to buy the house.

Which they will reserve the renting fee and manage the component given. BORNEO RIVERFRONT MARKETING ANALYSIS . 15% discount will be given to the bumiputera buyer.MARKETING STRATEGY SELLING STRATEGY Surrender to the government Because one of the client of this development is the government. Which every development will done this strategy. This strategy is a very popular strategy. promenade and street mall. The component is outdoor amphitheatre. As an example. kiosk. There are a few component that need to be surrender to the government. Discount Another selling strategy is to give a discount for the buyer.

BORNEO RIVERFRONT MARKETING ANALYSIS .MARKETING STRATEGY PRICING STRATEGY Competition-based pricing Setting the price based upon prices of the similar competitor development. Target pricing Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production. Market-oriented pricing Setting a price based upon analysis and research compiled from the targeted market. and employed mostly by Internet based companies. Dynamic pricing A flexible pricing mechanism made possible by advances in information technology.

BORNEO RIVERFRONT MARKETING ANALYSIS . • Show house Show house will be built first as part of the promotion strategy. • Bank Loan Bank will be invited to help in the promotion by giving an explanation to the potential buyer. • Brochure of layout and house design The brochure will be have a complete information about the development component that for sale.MARKETING STRATEGY PROMOTION STRATEGY • Mass Media Advertise the development on the mass media like television. • Open day or Development Launch Invite people from the surrounding area for the development launching. magazine and newspaper.

especially people from Kuching and Samarahan who working in the government and private sector. BORNEO RIVERFRONT MARKETING ANALYSIS .MARKETING STRATEGY TARGETED BUYER This development targeted buyer is the people from the surrounding area. This program give an oppurtunity for the foreigner to buy their second home at this development. Local Buyer This development has a various targeted group. The main target people. Which it is suitable for all group people from the higher group income to the lower group income. Foreigners Buyer At Sarawak. because of various type of housing. is the local people who working at the city of Kuching and Samarahan. they have a My Second Home program.

Malaysia My 2nd Home Top 5 markets for participants to Sarawak BORNEO RIVERFRONT MARKETING ANALYSIS .

Financial strategy 2 approaches • Financial institutions • Company capital • Share partner .GLC BORNEO RIVERFRONT MARKETING ANALYSIS .

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