| Singapore-listed Astaka Holdings is poised to enter into another property development project in Johor. It has entered into a non-binding MOU, through subsidiary Astaka Padu Sdn. Bhd. (“APSB”), with Straits Perkasa Services Sdn. Bhd. (“SPSSB”) for a potential collaboration for a mix-used development project. The stipulated land for development, owned by SPSSB, is located in the popular Johor Bahru township of Taman Setia Indah. The joint development will comprise of a mix-used development spanning across 2 acres of freehold land with an estimated gross development value of RM160 million. |
Khong Chung Lun (CEO, APSB), Daing Abd. Rahim Bin Daing A. Rahman (Director, APSB), Ang Swee Hau (Director, SPSSB) and Kenny Ang Wee Keat (Director, SPSSB).
The development will be within the vicinity of Taman Mount Austin, a vibrant township in Johor Bahru, which is renowned for its vast selection of restaurants and bubble tea shops.
It is also in close proximity to prominent amenities such as Austin Heights Water & Adventure Park, Eco Palladium, IKEA Tebrau and Tebrau Sport & Recreation Centre.
Incorporated in Malaysia and based in Johor Bahru, SPSSB was started in 1991, and has built its reputation in the Malaysian marine and shipping industry through its mooring services, and is the registered and beneficial owner of the subject land.
This is the second MOU signed by the Group for the development of real estate projects since the start of 2022.
Prior to this MOU, the Group had also entered into a non-binding MOU with DMR Holdings Sdn. Bhd. for joint development projects with a total land area of 42 acres and an estimated gross development value of RM1 billion.
Having established itself as a premium residential developer with its award-winning residential project, The Astaka @ One Bukit Senyum, the Group will look to
leverage on its expertise to bring a high-quality lifestyle and living development to this popular and growing township.
Outlook
Astaka noted that the local property market is expected to recover in the first half of 2022, with increased buying interest in both the primary and secondary markets, and the Malaysian economy is projected to grow at an estimate of 5.5% to 6.5% in 2022, as compared to 4.5% in 20211.
In addition, the elimination of the Real Property Gains Tax (“RPGT”) for property disposals has also provided an additional boost to the property market, especially for long-term property owners looking to upgrade and empty nesters looking to downsize2.
Astaka noted that the pandemic has also changed the demand for residential spaces. The implementation of the lockdown restrictions and normalisation of hybrid work arrangements have resulted in homebuyers demanding for residential developments in established areas with good connectivity and amenities
for convenience2.
The strategic location of the development, with its close proximity to various key amenities and highways, will add to the ease of convenience for these home-seekers.
 “We have been closely monitoring the local market and identified Taman Setia Indah as a township in Johor Bahru with great potential. It is located within the vicinity of Taman Mount Austin, a popular destination in Johor Bahru with a growing population. Through this collaboration, we look forward to developing a high-quality living and lifestyle development that will cater to the demand of the local township. "Owing to the prime location of this project where population is dense, we will look towards targeting young families and also those who are looking to upgrade their properties. With the 2 MOUs in quick succession, we have some good momentum towards potential joint development projects in Johor. Moving forward, we will continue to identify suitable opportunities for developing high-quality projects across Johor to grow the Group further." -- Khong Chung Lun, Executive Director and CEO of Astaka Holdings |
1 New Straits Times - The local property market will begin to recover in the first half of this year, according to Juwai IQI (https://www.nst.com.my/property/2022/01/759963/local-property-market-will-begin-recover-firsthalf-year-according-juwai-iqi)
2 New Straits Times - RPGT exemption for property disposals is expected to increase activity in the secondary market (https://www.nst.com.my/property/2022/01/760900/rpgt-exemption-property-disposals-expectedincrease-activity-secondary)
