This article first appeared in City & Country, The Edge Malaysia Weekly on May 23, 2022 - May 29, 2022

We arrive at the Royal Selangor Visitor Centre café in Setapak for an interview with SkyWorld Development Group Sdn Bhd CEO Lee Chee Seng on a grey Thursday morning. In contrast with the gloomy weather, Lee, who took the helm in January, appears exhilarated as he tells us about the company and its upcoming plans.

“We endeavour to continue improving on building and designing quality properties for homebuyers. Buyers nowadays have different needs and wants — they are demanding more space in a property as a result of the Covid-19 pandemic. Thus, we are more focused on creating value for buyers,” says Lee, as he sips his coffee.

In March, the developer introduced Solution Plus (Solution+), an ecosystem and e-commerce platform that connects SkyWorld purchasers to vendors. Lee says it works in a similar manner to online shopping platforms.

“We are the first developer in the country to launch this kind of app. With the introduction of Solution+, we will be elevating the entire sky-

living experience at SkyWorld to a whole new level,” he adds.

“For instance, if you need to search for contacts, recommendations and price comparisons for interior design, renovations, furniture and other home solutions, Solution+ will address these issues, all at your fingertips. Thus, homeowners will be able to enjoy great savings and special packages from the preferred home solutions partners.”

Lee says all Solution+ partners have been selected through a stringent process. Its partners include Electrolux, Panasonic, Samsung, Buenos Kitchen, Maju Home Concept, BestMas and Profound Axis. The platform offers prices that are lower than the market rate.

The main aim of the platform is to retain existing buyers and attract new buyers, he continues. “We felt that word of mouth is very important as it is a cost-­effective way to spread word about our company and its products in online and in-person communities. To date, we have sold more than 10,000 properties, which translates into over 10,000 followers, hence these buyers will be able to introduce our products to their families, friends and relatives.”

Lee hopes that buyers will be able to enjoy comfortable and quality living conditions when they purchase properties from SkyWorld. “We want to let the public know that we are doing something that matters to buyers and not something that only benefits the developer or architect.”

In this regard, it is crucial to understand the customers’ pain points during the product development process to create products that satisfy their needs. “We spend a lot of time and effort on planning and designing unit layouts to ensure that they are functional and that buyers will be able to utilise the spaces effectively and efficiently,” he remarks.

Lee points out that vertical transport systems in high-rise developments are important. “When we work on the lifts for our developments, we try to provide at least four lifts and increase the speed. In conventional apartments or condominiums, one has to wait five to 10 minutes for the lift to arrive and the maximum speed is often fixed at 2.5m per second. But for our projects, we have increased the speed to 3.5m per second, which will help reduce the waiting and travelling time.”

To better understand customer needs, in April, the developer virtually launched SkyCraft — an online initiative to engage with future homebuyers to build their dream homes together. It is a co-creating platform that allows the public to take part in the home-making process before SkyWorld starts development.

The platform currently allows SkyCrafters to be involved in two upcoming projects — SkyAmanyi in Cheras and SkyRia by the Hills in Desa Melawati. “We are at the drawing board stage for both projects and now is a good time for us to engage with potential buyers to see what innovative designs would be good to have that can be incorporated into our new launches and build homes that meet buyers’ demands,” says Lee.

According to him, the SkyWorld brand is synony­mous with quality products. “We not only focus on the product quality, but also the service and sales quality, as well as the quality of the entire ecosystem. This means that from the first day buyers walk into the sales gallery and sign the sale and purchase agreement until the day they receive the key, [they can be assured of the quality of] the whole process.”

The developer believes that it is important to keep up with the latest innovations and trends. “We strive to build projects that are trendy and sustainable but not overdone, so as to minimise maintenance costs for purchasers,” says Lee.

“For example, we have incorporated designated parcel lockers for all our developments, including our Awani [affordable housing] series, as we feel that this has become a necessity under the new normal. The delivery person will key in the resident’s phone number on the locker and the resident will be notified via their mobile device.”

Another example is the Destination Control System. “DCS is a lift control system that interprets residents’ data stored in our SkyWorld Connects app — a mobile app for effective and efficient communication between SkyWorld residents, its management and the security team — and will assign lifts to take them to their respective floors. This will help reduce the waiting time and minimise the number of intermediate stops,” he says.

DCS is also integrated with a seamless mobile access system (SMAS), which is an entry system that uses Bluetooth technology on residents’ mobile devices to transmit their data to the Bluetooth reader installed at the entry point of the development’s boom gate, lobby main entrance, lift lobby and facility areas. A physical access card is provided for those who may not have their phones with them or when their phones are not usable.

Ultimately, SkyWorld aims to not only sell properties to buyers but also improve their quality of life. “We believe urbanisation is here to stay within the next 10 to 15 years as the average age group in the country is below 30 years old, which is still very young. Our projects are mainly located in Kuala Lumpur with easy access to amenities and infrastructure. Thus, when people decide to purchase properties in KL, we hope that our projects will be top of mind,” says Lee.

SkyWorld’s projects take into account environmental, social and governance (ESG) factors, says Lee. “When we develop a project, for example, we will try to preserve the surrounding environment. We will keep the [construction] site clean by having a proper drainage system to prevent excess water from accumulating either on the ground or underground. Excess water, especially from rain, can easily build up without a proper drainage system.”

For the design of the developer’s products, daylight analysis is conducted, whereby the units are planned with a wide frontage to increase cross-ventilation and lighting, says Lee. Also, a thermal ­analysis is carried out to identify the wind direction, so as to provide units with the optimum position. All these measures are conducted prior to putting the designs on the drawing board.

Lee believes that the car park is also an important component of the development because it is the first place residents arrive at upon reaching home. “When designing a car park’s layout and the dimensions for our projects, we always try to have a rectangular-shaped design to maximise natural lighting, as this will save energy and lower maintenance costs. If the car park has a square shape, the middle portion will not receive sufficient natural light,” he says.

“The number of steps considered convenient for residents to walk from the car park to the lobby is also important. In our mind, it should not be more than 50 steps.”

SkyWorld will incorporate an automated waste collection system (AWCS) in all its developments, except for the Awani series. “All technology comes at a cost. The result will be the value that the system brings to the development. We have incorporated AWCS in most of our projects as the concealed disposal of waste will lead to cleaner surroundings,” says Lee.

“With this system in place, security will also be enhanced because there will be less of a need for sanitary workers to go to the refuse chambers on all floors. Thus, this will boost the health and comfort of residents.”

Timely project delivery is also important. “So far, we have been able to deliver all of our projects either ahead of schedule or on time, regardless of the pandemic and various iterations of the Movement Control Order,” he says.

SkyWorld has four projects in the pipeline, namely Curvo Residences in SkyArena in Setapak; ­SkyRia by the Hills in Desa Melawati; SkyAmanyi in Cheras; and The Vesta Residences in SkySierra in Setiawangsa, all of which are slated to be launched in the second half of this year (2H2022).

“The country’s economy is recovering and borders have reopened, thus we feel that 2H2022 will be a good time for us to start launching projects. The real estate market fluctuates all the time, so we will only set a sales target when we want to launch the projects,” says Lee.

Sitting on a 4.4-acre leasehold parcel, Curvo Residences is the third phase in the 28-acre integrated township SkyArena and will comprise two blocks, of 30 and 40 storeys, with a total of 830 units. “The three-bedroom units, with indicative built-ups of 800 to 1,300 sq ft, will cater for the middle-income group, such as families and parents who are buying for their children,” he continues.

SkyArena, which has a gross development value (GDV) of RM2.9 billion, has four phases — three residential and one commercial. Phase 1, named Ascenda Residences, was launched in 2014 and the units were handed over to buyers in September 2017. The developer launched Phase 2, Bennington Residences, in 2016 and the handover started in 2019. Both phases are fully taken up. Phase 3 will be Curvo Residences while Phase 4 will be a commercial and retail component.

The Vesta Residences, meanwhile, is Phase 2 of the 13.6-acre SkySierra. Occupying a 2.3-acre parcel, it will comprise two 44-storey blocks with a total of 1,001 units. The units will have indicative built-ups of 750 to 1,100 sq ft and are targeted at youngsters who want to live near the city centre, says Lee.

He adds that the RM1.8 billion leasehold ­SkySierra will be launched in four phases. Phase 1 is The Valley Residences with 1,309 units in three blocks. Towers A and B were launched on Feb 16, 2020, and have been fully taken up while Tower C was launched on March 15, 2021, and is 85% sold. All three towers are expected to be handed over in mid-2024.

Phase 3 will be a 30-storey office tower, of which the floorplate is 6,000 to 8,000 sq ft. The fourth and final phase will be a retail component, which is still in the planning stage. Lee reckons that the office sector remains challenging and faces an oversupply situation with occupancy rates dropping.

However, he points out that there is no office tower in Setiawangsa, and that most office units in the vicinity are located on the upper floors of shophouses. Thus, this may provide an opportunity for the developer to fill the gap.

Situated behind Leisure Mall and next to Taman Supreme, SkyAmanyi occupies 2.9 acres in Desa Aman and will comprise 510 residential units in a 43-storey block. The development sits on an undulating piece of land, thus it will have a resort concept with water cascading features. The units will measure 1,000 to 1,300 sq ft, catering for families, upgraders and retirees.

Meanwhile, SkyRia by the Hills, which has a similar concept to SkyAmanyi, is a tranquil development located near the Bukit Tabur Forest Reserve. Comprising two 40-storey blocks with 479 units in total, the leasehold development takes up only three acres of the 9.5-acre undulating piece of land. “Six acres of land will be preserved for future residents to go jungle trekking and we will also build a link bridge to connect the development to the forest reserve,” says Lee.

He adds that the typical units will have indicative built-ups of 1,000 to 1,600 sq ft while the limited penthouse units will have built-ups of 2,200 to 3,400 sq ft. The target market is the upper-middle-income group, including upgraders, young professionals, families and retirees.

SkyWorld has a floating policy to mitigate issues of unsold stock — that is, all its projects are required to achieve a sales percentage of 80% to 95% before a new phase or project can be launched. “This will allow us to have a dynamic sales process,” Lee explains.

Its ongoing projects are EdgeWood Residences in SkySanctuary in Setapak; SkyVogue Residences in Taman Desa; and The Valley Residences in SkySierra.

The developer opened for sale the first tower of EdgeWood Residences in April 2021, followed by the second tower in December 2021. To date, the towers have achieved a take-up rate of 91% and 30% respectively. The RM514 million development sits on a 3.79-acre leasehold parcel and will comprise two 44-storey towers with 960 residential units in total. Due for completion in 2Q2025, the units will come in three- or 3+1-bedroom, two-bathroom layouts with built-ups of 865 to 1,280 sq ft and prices starting from RM420,000.

EdgeWood Residences is the first phase of the 40-acre SkySanctuary township. Lee says the RM3.5 billion township will have five residential and two commercial parcels, and these properties will be built around a three-acre private central park. “The park has four sections, namely Celebration Light Piazza, Treasure Fantasy, Isle of Dreams and Tropical Haven, offering more than 20 facilities such as a zen deck, bamboo adventure park, garden bridge, outdoor gymnasium, jogging trail, forest trail and fitness field.”

The RM274 million SkyVogue Residences has seen a take-up rate of 95% since its launch in March last year. Sitting on a 1.34-acre leasehold parcel adjacent to Armada Villa, the 45-storey condominium block has a total of 333 units and is expected to be completed in 4Q2024.

The typical and special units will have built-ups of 1,085 to 1,940 sq ft with three- or 3+1 bedrooms and a study. The 3+2- or 4+2-bedroom duplexes will have built-ups of 1,970 to 2,415 sq ft, while the 4+2- or 5+2-bedroom penthouses will measure 2,195 to 2,650 sq ft. Selling prices start at RM650,000.

SkyWorld’s two completed projects are ­SkyMeridien Residences in Sentul and SkyAwani 3 Residences in Setapak.

The RM497 million SkyMeridien Residences was handed over in March this year. Launched in September 2018, the project is more than 95% sold and comprises two towers, of 39 and 38 storeys. It has a total of 780 residential units, with built-ups of 581 to 1,318 sq ft and priced from RM388,000.

SkyAwani 3 Residences, one of the projects under the developer’s Awani series, has been fully taken up since its launch in July 2017. With an estimated GDV of RM570 million, the Residensi Wilayah project has 1,905 units in three 52-storey towers. The units, which were handed over on May 21, have built-ups of 800 sq ft and are priced at RM300,000.

To date, SkyWorld has 64 acres of undeveloped land bank in Kuala Lumpur with a total GDV of RM6.5 billion. “We have been aggressively looking for suitable land bank in city or urban areas in KL. Every year, we aim to acquire several plots with a potential total GDV of about RM2 billion in the Klang Valley,” says Lee.

He remains positive about the real estate market, particularly properties that are located in prime locations, that are priced attractively and launched at the right time. Nowadays, buyers are more cautious when it comes to making big-ticket purchases such as properties and thus, it is crucial to develop post-pandemic homes that meet buyers’ needs, he points out.

In terms of the construction sector, Lee notes that the increase in raw material costs has affected the cost of doing business, leading to a rise in construction costs. “Nonetheless, we remain supportive of our contractors, which allows them to carry out the construction work smoothly and deliver projects on time,” he says.

“We have also received very good responses from our tile and sanitary ware suppliers. Prices have increased but this depends on how we manage our cash flow. And if we have a healthy cash flow, we will be able to maintain a positive financial relationship with customers and suppliers.”

Lee believes that the country’s real estate market is gradually recovering. “Developers have started to launch projects this year and 2023 will definitely be a better year,” he says.

“The extension of the Home Ownership Campaign last year was beneficial for homebuyers and contributed to the recovery of a negatively impacted property market. Thus, we hope the government will be able to provide more incentives to stimulate the market.” 

He adds that the reopening of borders and the low interest rate environment will attract foreigners to invest in properties in Malaysia.

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