PROPCAFE happened to pass by few latest new township developments while we were driving around the country during the holiday season. So many marketing banners and signage to claim their accolades of being the best new townships. All sites have been hoarding up and some comes with new flyover bridge to link with other township. Along the way, you will notice all the wow features on the board like wetland, theme park, leisure park, shopping experience in its master plan and one even has trams to run through the township!
Investment or buying a home for ownstay in a brand new township is never an easy decision and many said that you need to have your imagination and also visionary enough to make a buy call. Instead of just keep “imagining” it, let’s talk about the 10 things that you must look at before commit your purchase in a new township! It is not a magic wand but this checklist is a must!
1. Developer
Make sure the developer is big, financially strong and experience enough to execute the multiple phases of a new township, which normally or easily take 15 to 20 years. Seriously, building a new township is not for all developers!
2. Sustainable Master Plan
Study the plan and think about the feasibility and factors that can make the town sustain in a longer term. Would the plan creates job opportunities, economy activities, population growth, livable environment, and amenities. In the end of day, it is all about Human. You need more residents than visitors! The master plan must be able to make that happen.
3. Linkages to Other Townships
Last thing you want a new township is an “island” that isolate from city or other townships. No “lonely” township will be successful. If you observe all good townships, it always near to or link up with other townships to create “synergy” and increase human traffic and expedite “migration”.
4. Accessibility
It is a basic for all townships to have multiple accesses to and from the township so that the “flow” will happen. Almost everyone need to travel everyday. If there is MRT/LRT/KTM, it will be a bonus (normally you don’t get this in new township as the population and ridership do not justify it). At least, the township must come with highway(s) or direct access(es) to main city road (eg. Federal Highway etc) or city. No link “Road” means No “Way”!
5. Execution Plan
Many buyers always forget to study the developer’s execution plan. It is very crucial! Why? Firstly, it can set your own expectation right in term of the time needs for the township to grow and mature. It will align with all the preparation you need for the move in timing, so you won’t moan when you get the key. Secondly, while you hope developer can quickly execute the plan fast, you do not want to buy into a new township with the focus is on building many residential properties in first two phases! The typical example would be the famous project in down south Iskandar and Forest City. The mere volume and supply in one go will kill all the demand. Residential plan in new township should properly craft out to meet the realistic demand in the area. Over estimation and over build in first few phases in relatively short periods will not provide right signal as it is natural that occupancy takes time. A wrong start and bad perception to the township will ruin the master plan. Ask more about it and understand the logic and explanation from developers. A good developer will make an appropriate time execution in phases especially comes to residential properties. From buyers perspective, comes to infrastructure and amenities, by all mean…. be FAST!
6. Basic Needs on Amenities, School and Safety
Other than all the fancy mall, commercials and etc, one should always zoom into the basic needs that a township should possess. Check with the developers on public infrastructure like cycling lane, public pedestrians walkway, cover pathway, recreation park/lake, community public/ multi-functional space for events, and designated green lung. The most basic needs like the plan of schools, market, police/fire station, and hospital. Many new township is more advance by including surveillance in public area like CCTV near traffic lights or specific secluded area. It is understandable that not all new townships can put in a perfect infrastructure and amenities in a short time, but plan needs to be there. If some are not in the plan, you need to ask the developer where and how can you get it to make your expectation right. In the situation that developer cannot answer you or have no idea or proper plan at all, you may just move on to another township.
7. Government Initiatives
Ideally, the new township should be on the corridor or region that fall under government’s big plan. Think about it, the township will grow in much faster space if there are plans from government to develop the area nearby so the new township can leverage it and mature in a shorter time as the completion of infrastructure development normally needs government’s help and solely based on developer will take a long time. To note, if government is not in there, then you may look for those infrastructure construction based developers have the upper hand on this. Alternatively, check the other townships that built by the developer.
8. Lifestyle Choice
Every township has its own design focus. Some go with excitement and vibrant design with work and play in mind. Others may go for lake, peace, less bustling environment to let those people who are “sick” with “crowds” but want to have a more green and “chillax” environment. Of course, majority would like to be in the middle ground! You have to make you mind up on your preferred lifestyle before commit it. Bear in mind, every township has its character. Your definition of ghost town can be the most chill environment for others. Your busy streets and malls can be the nightmare to many as well. Make sure you can fit into the lifestyle you buy into. For investors, well, you just need to do more homework to understand more your target tenants or buyers, which is not easy at all.
9. How Many Developers Are There?
The alliance of developers especially with big developers has its advantage of growing the township faster. Single township developer has its benefit to manage and make the township more “structured” but it lose the time factor to make it vibrant due to the scarce or limited resources. Having said that, it also depends on the size of the land in a township. The small township like Desa ParkCity does not need another developer. Mont Kiara in the other hand can be a wonderful township. Unfortunately, without master developer, the lands were sold to many developers which the township is totally out of control and now ended with as a concrete jungle and severely lacking of some urban lifestyle needs like park, lake and community touch points. In short, study the township land size and developers that involve will certainly help in your decision making.
10. Price Factor
Your entry of new township must give you an advantage in future with reasonably low pricing compares to other nearby townships with similar concept. It has to be similar in order to not compare apple with orange. No matter what, you are the “warrior” as the pioneer to venture into a new township, higher risk reward has to be there for you! If the price is already at the high side, you are technically facing high risk but getting relative lower return. So compare and do not go crazy about all the wonderful plans from developer. Cool mind makes great decision. As for the ownstayers who like the master plan and will stay in the new township for more than 10 years or unlikely to move again, then it is rather easier to decide as it is totally back to your own preference of future retirement home and township.
Property purchase is a big decision in our life. New township purchase can be very rewarding if you make a right choice but at the same, it can end with a total nightmare. To mitigate the risk of making a wrong move, you do not need to go seminar or pay for other to help you, you can just do it yourself by doing more homework. Yes, it starts here with PROPCAFE Guide. We have plenty of PROPCAFE Guides in our blog to help you! First, start with our PROPERTY BUYER Dictionary – 120 DON’T When You Purchase Your Residential Property here!
Ciao! Happy Hunting!