Southkey JB aims to launch RM800 mil GDV development next year

PETALING JAYA (Sept 2): The Southkey development in Johor Bahru City Centre is slowly taking shape. Its third development — Precinct 1B with an estimated gross development value (GDV) of RM800 million — will be unveiled in the second half of next year.

Southkey Properties Sdn Bhd executive director Quek Cham Hong said the development plan for Precinct 1B is now pending approval from the local authorities.

“The 12-acre mixed-use development comprises shop offices, SoFo units, serviced apartments and shared office facilities such as meeting rooms. The commercial element targets small and medium enterprises,” he told TheEdgeProperty.com.

Apart from that, the construction of a 268-room business hotel started in July. The construction will take about two and a half years, said Quek.

“Infrastructure and amenities development are in progress. We sold a 3.5-acre plot to Columbia Asia, an international healthcare company, in August last year. The construction of the hospital will start at the end of this year and is expected to be completed by 2018,” he added.

Meanwhile, the construction of the Mid Valley Southkey Megamall is progressing and phase 1 of the development is expected to be completed in 2019.

The 37-acre megamall development by Southkey Megamall Sdn Bhd, is a 30:70 joint venture between Southkey City Sdn Bhd and IGB Corp Bhd.

The 330-acre Southkey is accessible through the Eastern Dispersal Link (EDL), Tebrau Highway and the newly upgraded six-lane Jalan Bakar Batu which connects to Bandar Baru Permas Jaya — the linkage to Northeast Johor Bahru.

With all the ongoing construction, the previous Majidee military camp land in Johor Bahru which faces Wisma Daiman has seen its value escalating.

Quek said the first serviced residence development — Southkey Mosaic serviced residences — has seen the selling price of the second tower rise nearly 30% to RM880 psf within five months after the launch of the first tower in early 2013.

“When we launched Tower A (first tower) in 2013, the selling price was from RM460,000 or an average of RM680 psf. The take-up rate of Tower A has reached 95% while Tower B’s minimum selling price has increased to RM570,000 or an average of RM880 psf,” he explained.

The two-block Southkey Mosaic serviced residences houses 584 units with built-up sizes from 676 sq ft to 1,509 sq ft.

He noted that Tower B has seen 50% of its units sold after the launch. The developer has recently obtained approval for the release of the unsold Bumiputera units.

The serviced residences are part of the Southkey Mosaic leasehold mixed-use development which also comprises 41 units of 4-storey shop offices and five units of 4-storey freestanding Boutique Pods.

“The shop offices are selling from RM2.8 million. All 41 units were fully sold within a day at a preview in 2013,” he added.

Meanwhile, one of the Boutique Pods, which had targeted en-bloc buyers, has been sold for RM33 million to a financial service provider. The built-up sizes of the Boutique Pods range between 20,875 sq ft and 59,000 sq ft with prices from RM17 million.

Overall, the construction of the residential component at Southkey is reaching 60% while commercial projects are nearing completion.

Looking ahead, Quek said the company is also  planning for more joint-venture opportunities to develop the remaining parcels of land in Southkey.

“Currently, we are in talks with several parties to bring in an international or private school to Southkey. We have allocated about eight acres of land for the school,” he added.

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