Just next to the iconic Shah Alam stadium lies a legendary serviced apartments which calls to mind the warm comfort of tropical breezes and swaying palm trees, which coincidentally or not, is captured in Accapella’s logo. We chatted with Mr Ong Boon Cheow, the Managing Director of Sri Accapella and the upcoming Accapella Residences and All-suite Hotel, which is exclusively brought to us by Equipark Sdn Bhd, as we went on a walkabout tour of Sri Accapella’s impressive grounds.

iProperty: When Sri Accapella came up, what was Equipark’s main area of business?
Ong Boon Chow (Equipark): Equipark is a diversified group of companies that specializes in all aspects of property development, from project conceptualization all the way to marketing, project management, planning & design to construction & property management. Our landmark project was when we developed two gleaming seven-storey industrial buildings in Bukit Jelutong, Shah Alam for Pacific Bank (now part of Maybank Group) and a foreign investment firm.

The current place we are in, Sri Accapella Serviced Residences, was completed in 2004 and was first conceived as smaller units of apartments which were either 2+1 or 1 room studios that came with a full range of fittings and furnishings, akin to a home away from home right here in Shah Alam. When we first came up in Shah Alam, we thought that we would have a lot of resistance to the take-up rate, but we found out otherwise as there was a ready group of people who were looking for a good balance of better quality of life with smaller spaces to maintain and were either young urban professionals or the silver haired generation who have had their fill of maintaining larger compounds and living spaces.

iP: As it is a new year, what new offerings can we expect from you in 2012?
EP: In the pipeline is the development of 3.2 acres on the other side of the current land here in Shah Alam. We have submitted plans for a neighbourhood shopping mall which taps into the current demand of local residents’ desire of not wanting to travel far to enjoy the high-end offerings of branded high-street labels such as seen in more established neighbourhoods like Bangsar’s BSC and Subang Jaya’s Empire Shopping Gallery. We truly believe that a neighbourhood’s growth is about providing access to exclusive lifestyle experiences. In addition to that, we plan to include a hotel, office and SoHo block which will add up to a plot ratio of five phases. With this, we are looking at incorporating three floors of a shopping mall with three blocks above the retail podium.

That said, the development of certain units is aimed for 2013 where we are selling only a few hundred units instead of thousands of units, which leads to our difference in strategy to sell less but price it differently. It is all about generating the same amount of revenue but lowering the risk substantially with the laws of supply and demand moving towards quality, branding and the positioning of our product. Crucially, it is all about changing the current mindset of buyers that Shah Alam is too far from amenities and is too set towards a certain segment of community. These are all things that we can change slowly.

iP: What are the special features of your featured projects?
EP: I think one of the main features that our current residents like is the fact that we provide full-fledged facilities which means that you only have to look after your apartment, which if you desire housekeeping services, can also be managed for you. This speaks of the evolving trends in the market for people who are specifically looking to downsize from their current premises.

Another interesting feature is our signature Sky Park in future which is still being thought through but it is definitely something which has not been done before where we take trees from the ground level and elevate it to the rooftop for a natural ‘umbrella’ from the elements. The Sky Park will be a rainforest on the roof with space frames and platforms guiding not only the vegetation through the park but will function as a natural guide for residents and guests to luxuriate in its shade. This green lung will exist above both apartment and hotel blocks.

In terms of security, we have a 4-point check with carpark entry which has a dedicated zone for residents only and there is an access-card access to the entry points on the ground floor, lift and other general amenities and the CCTV and 24-hour daily guard presence all contributes to peace of mind. In fact, there were no reported incidences so far in our Sri Accapella Serviced Residences so far.

iP: What kind of investment value can buyers expect from Accapella Residences using Sri Accapella as a guide?
EP: With the Sri Accapella Residences charting a 6.5% triple net income for five years, we have a pretty good package for investors in which the owner doesn’t have to do anything but reap the rewards of their investment. Our property management service takes care of all outgoings including quit rent assessment, tenancy and repairs. In terms of property management, this is a good investment market.

As for integrity and reputation, our last five years here at Sri Accapella is good track record of how our property management has done much to increase the value of the property. Property and rental value for a RM120,000 1 bedroom studio apartment is now about RM180 psf. As for location and the reputation of the developer, Sri Accapella has been one of the better condos or serviced apartments to stay in.

Currently, the for sale price has increased from RM140,000 to RM360,000 after furnishing and then there is rental yield. The current rental rate is at RM1,000 to RM2,000 if it is not serviced. However, serviced apartments with corporate check-ins are our repeat customers and during weekends, the apartments are usually packed.

iP: How do you foresee the property market outlook in Q1 of 2012?
EP: I would say that it depends on the global slowdown in China, US and the Eurozone as fiscal discipline is practiced via belt-tightening measures. As for how this is affecting the local market, there are signs of oversupply in some residential offerings with vacancy or occupancy rates in certain pipelined projects occurring. There are also signs of Government lending policies being more stringent and household debt is now more carefully managed with many looking into investment being more prudent.

With that said, location and value continues to fuel demand for new properties as most investors research the area before buying. Meanwhile, the goodies handed out in the last budget seems to have lesser impact on speculators and demand is driven by those who buy to stay or invest as it is still seen as a safe haven against inflation and because the capital gains tax in Malaysia is low compared to other more developed nations.

Finally, developers are seen to be more benevolent to buyers with the offering of DIBS which absorbs 5-10% of capital risk. So while the first quarter may be soft, but it is also potentially exciting as it is dependent on many factors.