Andaman adopts Blue Ocean strategy

  • Putrajaya submits early report on flight MH370, but won’t publicise it, says CNN
    Putrajaya submits early report on flight MH370, but won’t publicise it, says CNN

    Putrajaya has sent its preliminary report on the disappearance of flight MH370, but has yet to release it publicly, CNN reported today, despite insisting that it has nothing to hide. “It just adds fuel to the fire – which is like a furnace now – of disbelief, particularly in China, as to what is going on,” Geoffrey Thomas, managing director of... …

  • It’s Obama’s right to see Anwar or not, says Dr Mahathir – Bernama
    It’s Obama’s right to see Anwar or not, says Dr Mahathir – Bernama

    Former prime minister Tun Dr Mahathir Mohamad said it was up to the president of the United States whether to see opposition leader Datuk Seri Anwar Ibrahim or not. "It is his (Obama) right, up to him who he wants to see, he does not even want to see me, a former prime minister," Dr Mahathir (pic) told reporters in Putrajaya today. He was... …

  • Karpal’s Bukit Gelugor seat will stay DAP’s, analysts say
    Karpal’s Bukit Gelugor seat will stay DAP’s, analysts say

    GEORGE TOWN, April 24 — Analysts believe that Barisan Nasional (BN) does not stand a fighting chance in Bukit Gelugor, and even said it may not be worth the ruling pact’s time to contest the seat... …

  • Tuhan Harun case postponed again to July 22 – Bernama
    Tuhan Harun case postponed again to July 22 – Bernama

    The Lower Shariah Court today postponed again the case of leader of the “Tuhan Harun” deviant sect, Harun Mat Saat, to July 22. Judge Abdul Wahid Mohd Ali set the date after hearing the application from Pahang Islamic Religious Department deputy prosecutor Mohd Fahmi Abd Jalil that he needed more time to examine the legal representation... …

  • What if flight MH370 is never found?
    What if flight MH370 is never found?

    Despite assurances from Malaysia and Australia that the search will continue for Malaysia Airlines flight MH370, the lack of significant leads after almost seven weeks are leading many to ask: What if the jetliner that disappeared over the southern Indian Ocean is never found? At the start of the massive international search effort, such a... …

  • New law to give Sarawak natives freedom in purchasing customary rights land
    New law to give Sarawak natives freedom in purchasing customary rights land

    Bumiputera from Sarawak could eventually buy Native Customary Rights (NCR) land outside their ethnic group or community when the state amends its Land Code in November. Chief Minister Tan Sri Adenan Satem (pic, right), in disclosing the government's intention to table the amendment at its Budget sitting, said with the amendment the Iban, for... …

Petaling Jaya (The Star/ANN) - Sometimes staring competition straight in the face just will not get you anywhere. It is then that most tend to look to adopt different strategies to combat competition.

Although it may first come across as unconventional, it could eventually prove to be the best strategy.

Andaman Property Management Sdn Bhd, the property division of Andaman Group, has adopted a Blue Ocean strategy in its property developments.

A Blue Ocean strategy pushes companies to tap into uncontested markets instead of battling it out with fellow competitors.

Sales and marketing director Dr Vincent Tiew says the company often looks for niche markets that give it the ability to monopolise.

The group is launching and developing seven projects over two quarters. The first two projects, namely Taipan City @ Ipoh and Taipan @ Pantai Remis were launched in November.

One project will be launched this month, while two more will be launched in January. Meanwhile, February and March will see one project launch each.

Taipan City @ Ipoh is a commercial development in Perak, which features 40 units of three-storey shops with a total gross development value (GDV) of 60 million ringgit (US$19.63 million). Taipan @ Pantai Remis is a 13.3-acre commercial centre, also in Perak worth 80 million ringgit in GDV.

In December, Andaman is launching another commercial centre, Taipan @ Slim River, which spans 12.7 acres and is worth 80 million ringgit in GDV. Next year in January, Diamond Residence @ Serdang and Westlake @ Sungai Siput will be launched. Diamond Residence @ Serdang is a residential development, which carries a total GDV of 120 million ringgit. Meanwhile, Westlake @ Sungai Siput is an 350 million ringgit GDV township.

Scott Towers @ Larkin Condominium will be launched in February and will mark the first property Andaman is launching in Johor Baru. The total GDV for the condominium project is 120 million ringgit. In March, Andaman will launch the largest and first small office versatile office (SoVo) in Bangi, Selangor. The total GDV for the project is 110 million ringgit.

It is notable that Andaman's seven projects are heavily focused in Perak. Four of the seven projects are located in Perak, while one is in Johor Baru and only two in the Klang Valley.

While most property developers have been focusing their attention on popular areas such as the Klang Valley and Johor Baru, Andaman chose to diversify its developments in terms of location. Tiew says: "We try not to go to overcrowded areas."

Tiew says he prefers to buy land and develop in areas where land is extremely low in price and that would give the company a yield of between 15 per cent and 25 per cent.

Most of its projects are located in different small pockets of land. The company usually buys land that is between 5 acres and 30 acres. Tiew says the company has been able to finance its land acquisition without securing loans. "Without securing loans, we have the ability and the capability to adapt to any situation," he says.

Tiew believes in not leaving the land idle. "Within 12 months of purchasing the land, we will get it ready to be pre-launched or launched," he says.

He adds that this strategy is not really a just-in-time' approach. Tiew says it is all about the product, concept and price.

His efforts to decentralise the types of properties and locations of the properties is so that Andaman's cost can be kept at a low level. "This way, we can sell out fast, at lower prices per sq ft," Tiew says.

At the recent The Star Property Fair 2012, Tiew says the company received reservations for an average of 30 units per property. "This was valued at approximately 18 million ringgit to 20 million ringgit," he says.

He adds that the take-up rate exceeded his expectations. "Of course, now we have to wait to see if their loans get approved," he says.

Tiew comments that the property fair brought in a larger crowd this year but adds the company would like to see a larger percentage of bumi buyers. "It is an important segment to reach as all property developers need to fulfil the bumi quota," he says.

Cumulatively, the company has surpassed the gross development value of 3 billion ringgit over the past eight years of incorporation. Tiew states the company has seen about 750 million ringgit in sales revenue in 2012 and expects to maintain this level next year.

Past the seven launches the company would have done in the first half of 2013, Tiew says Andaman will see more project launches in the Klang Valley in the second half of 2013.

Recapping on the year, Tiew says about 15 per cent of property buyers did not take up any commitments due to expectations of the general elections being held in the second half of 2012.

"Also, the effectiveness of the PR1MA (Program Perumahan 1Malaysia) scheme has yet to be seen. In my opinion, it is because the financing facilities have not been clearly designed," he says.

The PR1MA scheme under the PR1MA Act 2012 was designed to develop cheaper homes, catering to middle-income households of a monthly combined household income of between 2,500 ringgit and 7,500 ringgit.

Tiew expects the property market in the first half of 2013 to be quite slow due to the upcoming general election, as well as any new regulations that may be implemented by Bank Negara, the central bank.

However, he does expect the property market to pick up in the second half of 2013. "With the right products and the right locations, most of our property projects should not face any problems in selling," he says.

*US$1=3.05 ringgit

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • MH370 passenger’s partner tells of strange email from sacked Fox officer The Malaysian Insider
    MH370 passenger’s partner tells of strange email from sacked Fox officer

    The partner of an American passenger aboard the missing Malaysia Airlines flight MH370 has spoken about how a Fox executive who was recently sacked by the news station had contacted her offering to raise funds on her behalf. Sarah Bajc, whose partner Philip Wood is among the 239 people on board the missing plane, told the Sydney Morning Herald... …

  • My last moments with Pa: Ramkarpal Singh The Malaysian Insider
    My last moments with Pa: Ramkarpal Singh

    A week after the tragic crash that took the lives of veteran lawyer and politician Karpal Singh and his personal aide, Michael Cornelius, his son Ramkarpal recounts the final hours with his father that fateful day. This is his story, as told to V. Anbalagan, assistant news editor. “My parents (Karpal and Gurmit) had gone to Pantai Hospital... …

  • In Disney's shadow, homeless families struggle Associated Press
    In Disney's shadow, homeless families struggle

    KISSIMMEE, Fla. (AP) — When they moved from Georgia to the theme park playground of central Florida four years ago, Anthony and Candice Johnson found work at a barbecue restaurant and a 7-Eleven. Their combined salaries nevertheless fell short of what they needed to rent an apartment, so the couple and their two children have instead been hopping among cheap motel rooms along U.S. 192. …