GOING INTO GREEN

New Bob Group’s first experience in green properties leaves it wanting more

Green living is certainly a reality now especially with the steady uptake of eco-friendly and sustainable properties projects by real estate developers in Malaysia. Riding on this emerging trend in the country is Penang-based New Bob Group, a corporation that is championing the movement in the Northern region.

The group started its humble beginnings in 1959, where it was the leading real estate company in the Penang and Northern vicinity. Since its inception, it has diversified its portfolio of companies, boasting of involvement in many different industries, with brands such as New Bob Realty, New Bob Rent-A-Car, Expatriate Homes (MM2H), NB Tropics and Era Malaysia under its belt.

“We are involved in property development, property management, assisting expatriates to obtain legal residency in Malaysia and providing car rental for travellers’ convienience,” shares its Director, Dr. Lee Ville.

The New Bob Group has garnered various accolades and recognition for its outstanding product and services, both local and foreign. Solidifying its foodhold in the overall real estate industry in Malaysia, the group also received acknowledgement during the Asia Pacific Property Awards 2011.

A NEW BUSINESS MODEL

While the group has indeed expanded its business offerings, its one true passion is in property development. Since 1990s, the New Bob Group has involved itself is several residential bungalow projects. It has since evolved from managing low-cost housing projects to catering the high-end market, where its foray into green property development has been in motion recently. Its pride and joy is in the Preston Oaks landed residential project.

“Preston Oaks is an eco-friendly and sustainable property development, where we have incorporated various sustainable products into the development such as recycled wood and rain-water harvesting,” says Lee.

Additionally, the development has taken each of the property’s design orientation into consideration. From being mindful of the window openings and where does the sun hit the building, the developer hopes to achieve natural ventilation and lighting – a sure win when it comes to energy conservation.

“This will be the first landed residential project in Penang that has gone for the prestigious green mark certification, which is recognised worldwide. We are targeting for the Gold certification for Preston Oaks, ” he adds.

THE PRICE OF GREEN

When it comes to “going green”, the question often asked is whether does being sustainable and eco-friendly comes at a price. The same can be related to the property segment in the country.

Lee believes that it does indeed warrant for a more premium pricing, seeing as “most eco-friendly products are not locally available in Malaysia.”

He opines, “We have to get a lot of the products used from Singapore, mainly. That said, it is becoming more widely available locally. I do believe that in time, the prices will eventually come down. I do believe that many green projects in Malaysia at the moment, especially the ones developing small volumes, are looking at between 20-30% premium over conventional developments.

Lee also feels that the company will continuously evolve its design based on the feedback from its customers and the availability of new products in the market.

“In fact, for the Preston Oaks project, the margin is relatively small if we talk about buying and developing new parcel of land. However, we are looking at providing value to our customers as this is our maiden green projects,” shares Lee.

“Additionally, the New Bob Group hopes to balance its cost and profit, as land prices are seeing a steady increase.

He shares: ” In terms of further managing the balance, we often look at securing good deals at the early stages of development. We always purchase them at the right time, thus being able to manage our cost by not purchasing during the peak season. This is how our sister agency, the New Bob Realty, assists us. The team is constantly on the lookout and help us source good land deals.”

FUTURE DEVELOPMENT

Moving on from its first experience in green property development in Penang, the New Bob Group is targeting for its next project to be within the affordable price range.

“We are targeting for our Permatang Pauh project to be the first green condominium in Seberang Jaya. This will be our first entry level, affordably priced green project,” says Lee.

“Based on what we have learned from our first few projects, we are applying the design concept in the condominium, as well as injecting passive features including the design and orientation of the building, instead of using active design elements such as low e-glass and timber doors.”

Thus far, it is concentrating its efforts in Penang but agrees if there are better opportunities to expand in the Klang Valley, the New Bob Group are open to the ida.

“However, with our existing and future projects, we will be kept busy for at least the next three to four years,” concludes Lee.