This article first appeared in City & Country, The Edge Malaysia Weekly on June 5, 2023 - June 11, 2023

Known for its projects in Bangsar, Kuala Lumpur, BRDB Developments Sdn Bhd has also been making its mark down south. The 1,400-acre Bandar Baru Permas Jaya in Johor was launched in 1981 and has been developed for almost 42 years.

In an exclusive interview with City & Country, BRDB CEO Christopher Manivannan says Bandar Baru Permas Jaya is one of the developer’s most significant projects in Johor. The township is being developed by its wholly-owned subsidiary Permas Jaya Sdn Bhd, which was also established in 1981.

“We bought the 1,400 acres back then and set up our subsidiary, Permas Jaya, to develop it into a township. We have about 250 acres of land remaining there,” he says.

He adds that BRDB has been involved in many aspects of developing the township, including conceptualisation of design, design development, selection of architects and consultants, project implementation as well as marketing.

Bandar Baru Permas Jaya comprises residential, commercial and industrial developments as well as public infrastructure. Christopher says the township’s location, which is to the east of Johor Baru, and its property offerings are its most unique features.

“It takes about five to 10 minutes to drive to Johor Baru [city centre] if the traffic is clear. The game changer was when we completed the Permas Jaya Bridge in 1994, which crosses the Tebrau and Plentong rivers. It was built to shorten the travel distance between Bandar Baru Permas Jaya and the Johor Baru city area, from about 18km to 6km,” he adds.

“Then we started the construction of the Second Permas Jaya Bridge in 2008, which was proposed under the Iskandar Malaysia development plan. The bridge was completed and opened to the public in 2012 to provide a direct connection to the Johor Bahru East Coast Highway.”

The township is also accessible via the Eastern Dispersal Link (EDL) and linked to the North-South Expressway, Pasir Gudang Highway and the Johor-Singapore Causeway, which is about 10km away.

According to Christopher, Bandar Baru Permas Jaya had an estimated population of 70,000 to 80,000 in 2021. Among its key highlights are the nine-hole Permas Jaya Golf Course, Aeon Permas Jaya Shopping Centre and Permas Jaya Sports Complex.

During a tour of Bandar Baru Permas Jaya, Christopher mentions that many Japanese and Korean expatriates live in or frequently visit the township. “A number of them work at the manufacturing and engineering companies in Pasir Gudang.The township offers plenty of retail options and is only about a 15-minute drive from Pasir Gudang, so that is an attraction in itself. Some send their children to international schools and colleges in Johor and prefer to live in [Bandar Baru] Permas Jaya because of its location and amenities,” he says.

He adds that some of them work or study in Singapore and prefer to live in the township due to the slightly lower cost of living compared to Johor Baru.

Many Korean barbecue restaurants were spotted along Jalan Permas and Jalan Permas Utara during the tour. Christopher says some of them are run by Koreans who reside there while others are owned by locals.

In terms of price trends, the residential properties in the township have had huge capital appreciation, he says. “We did our analysis from 2010 to 2023 and found that residential properties purchased before and during this period had a capital appreciation rate of 100%. The projects include the Permas Ville apartment comprising two blocks that were completed in the early 2000s. Block A consists of 243 units while Block B has 291 units. Another development is the strata-titled The Straits View Residences comprising 218 units of semidees and bungalows. It was completed in 2014.”

Meanwhile, the 3- and 4-storey shopoffices in the township that were completed in 1995 have current rental rates of RM6,000 to RM7,000 for ground floor shops while entire 3- and 4-storey en bloc units are being leased for RM10,000 to RM12,000. The occupancy rate for most of our shopoffices is about 80%, says Christopher.

BRDB is set to launch the 8.42-acre Permas Avenue, comprising 3- and 4-storey shopoffices, this month in Bandar Baru Permas Jaya. With a gross development value (GDV) of RM250 million, the project will feature 105 units with lot sizes from 22ft by 80ft for intermediate units and 34ft to 41.5ft by 80ft for corner units. The shops will have a selling price of RM1.7 million to RM4.4 million. The 4-storey corner units will be equipped with lifts, says Christopher.

Another upcoming project is Bayu Permas Residences, a low-rise residential development with a GDV of RM60 million that will be launched in 4Q2023. Sitting on a 2.5-acre tract, it will comprise 100 apartment units in two blocks, of five and six storeys. The units will have built-ups of 882 to 1,356 sq ft and selling prices start from RM550,000.

According to Christopher, Johoreans prefer to live in low-density areas, which is why the developer decided to focus on low-rise projects. “From what we have observed, Johoreans in general don’t like to buy properties in high-density residential areas. We have had a few mid-rise projects here but that was before the pandemic. This time, we have decided to change things a bit to cater for what the Johor market currently wants.”

He adds, “If we compare Johor and the Klang Valley, I think people in the latter don’t mind living in high-rises. Also, there is no choice but to build high-rises in the Klang Valley due to land scarcity.”

While Johor appears to be headed in the same direction with fewer tracts available for development, the team at BRDB believes the market there currently prefers landed and low-rise properties, he adds.

Christopher opines that improving connectivity may lead to a shift in preference to high-rise residential properties. “I suppose city dwellers don’t mind living in high-density areas because connectivity is not an issue. The Klang Valley is well connected through public transport such as the MRT, LRT and KTM Komuter, but that’s not the case for Johor.

“However, with the upcoming Rapid Transit System Link (RTS Link), I foresee Johor having its own feeder transport system in the future, which will definitely improve connectivity here.”

Following the success of Bandar Baru Permas Jaya’s first strata-titled landed residential development — The Straits View Residences, comprising semi-detached homes — BRDB is gearing up to launch its second strata-titled landed project in 2024 named The Straits View Garden, comprising cluster homes, semi-detached houses and bungalows. A private clubhouse with facilities has been proposed for the project.

With a GDV of RM280 million, the 18.9-acre development will offer 198 units of cluster homes, semi-detached houses and bungalows. The cluster homes will have built-ups from 2,210.05 sq ft and land sizes of 30ft by 70ft and 32ft by 70ft. The semi-detached houses will have built-ups from 3,466.41 sq ft and a land size of 38ft by 90ft while the bungalows will have built-ups from 3,714.52 sq ft and a land size of 50ft by 90ft.Prices will start from RM1.5 million for the cluster homes, RM2 million for the semi-detached houses and RM3 million for the bungalows.

“The majority of our landed residential developments have individual titles because that is what the Johor market wants. I think Malaysians in general prefer to do renovations, which is why we opted to develop non-strata landed properties here,” says Christopher.

“But we have come to a point where we want to up our game a little and elevate the lifestyle here by providing something extra for purchasers who wish to upgrade their living conditions. Units in The Straits View Garden can be considered luxury homes as they will be partially furnished with kitchen fittings and bedroom wardrobe, among others.”

He anticipates Johoreans and Singaporeans buying units at The Straits View Garden for their own use.

Bandar Baru Permas Jaya is 80% developed and is expected to be fully completed in 10 years.

Christopher says BRDB has always been cautious when it comes to launching new developments. “We were fortunate because we were cautious even before, and also during, the pandemic. Because of this, we didn’t suffer any major liquidated ascertained damages (LAD) that would be caused by a delay in handing over units to purchasers.

“We had an ongoing project in Australia during the pandemic, but we were fortunate because the construction sector was considered an essential service there, so [our operations were not halted]. We managed to finish the project on time and delivered vacant possession on time too.”

The Malaysian government, in contrast, had paused construction work during the pandemic. Thankfully, the developer had not embarked on many local projects at the time.

“Having that cautious [approach] helped us mitigate the effects of the pandemic without having to suffer any major losses. We usually conduct a market study by engaging valuers and experts before starting a project,” he adds.

In the past two years, BRDB has been looking to develop more residential and commercial projects in Bandar Baru Permas Jaya, says Christopher. “For each of the projects planned in the township, we will launch a residential phase first and then build a commercial component in close proximity.”

In Johor, he says, the authorities have their own requirements of what can and cannot be built due to property overhang concerns. “The overhang in Johor has been largely contributed by serviced apartments because they come in high-rise blocks, which are massive and very high density. We know there is a struggle in selling such units, so we’re not going to work on serviced apartments for the time being.”

In terms of challenges, Christopher says the developer did not face many difficulties when developing Bandar Baru Permas Jaya. “When we [began developing] this township, we were the pioneers. So, the only challenge then was connectivity. But I think we managed to resolve that by building the bridges.”

BRDB’s other development in Johor is the 111-acre Emerald Bay in Puteri Harbour. A 60:40 joint venture between BRDB and UEM Sunrise Bhd, the project offers high-end resort-style courtyard homes, semi-detached villas and bungalows by a waterfront. Christopher says Emerald Bay is the first residential development in Malaysia to offer private yacht berths.

To date, about 13 acres have been developed, with Phase 1A comprising 82 units of 3- and 4-storey courtyard homes, semi-detached villas and bungalows with built-ups from 3,292 to 5,896 sq ft. Priced from an estimated RM2.7 million to RM7 million, the homes are 80% taken up. Phase 1B, called The Island, offers 12 units of exclusive 3-storey bungalows with built-ups of up to 8,870 sq ft. Priced from RM8.2 million to RM11.6 million, the units are 25% taken up.

In Australia, BRDB plans to launch a high-rise residential project and is looking to increase its land bank in New South Wales.

Meanwhile, following its Defence Raya Golf Resort project in Pakistan, the developer is looking to partner with the Defence Housing Authority of Lahore again to venture into other locations in the country, says Christopher.

BRDB is also actively on the lookout for more land in the Klang Valley, Johor, Australia, Pakistan and London.

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