Property 101 - Developer

Human like ranking. Who is the richest man in Malaysia? Which is the best University in the world? Who is the staff of the year in your company?

So do developer ranking, they must be a way to rate and rank property developers in Malaysia. You may rank it yourself, or you may see how other rank them. Example in Malaysia, The Edge every year will come out with the list of top developers in Malaysia. Below are the top 10 developers ranked by The Edge in year 2009.

• Sime Darby Property Bhd
• SP Setia Bhd
• Sunway City Bhd
• IGB Corp Bhd
• Island & Peninsular Sdn Bhd
• IOI Properties Bhd
• Bandar Raya Developments Bhd
• Eastern & Oriental Bhd
• Sunrise Bhd
• Bandar Utama City Corp Sdn Bhd

However as mentioned above, it is important to grade the developer if you would like to success in Property Investment. For example:

1. Innovative Developer

Developer who dare to try new idea, new concept and able to execute it. For example, "Perdana Parkcity Sdn Bhd" who develop the "Desa Park City" is one of the innovative developer who dare to try out new concept and implement it in DPC. Fence-less house, common facility within each "taman", commercial center (waterfront) within the city, "high class" design even though it is just a terrace house.

This type of developer is the one who can double or triple your property value in short time, if they able to execute it.

2. Developer with Master Plan

Developer who build a township, instead of a block of condo, or few rows of terrace house. For example, IGB Corp Bhd who develop the entire Mid Valley City by building one of the hottest shopping center in Malaysia, surrounded with office tower and high rise residential. SP Setia who develop a huge townshop in Shah Alam named Setia Alam, Setia Eco Park and etc. UOA who plan to build Bangsar South City into another new township in KL, consist of retail mall, office towers and high rise residential condo.

As this is huge master plan, the developer must have the capability to deliver it right. Once the entire master plan is implemented, it should be no problem to double your property value in few years time.

3. Developer who piggy back on others

This is the developer who ridding on existing infrastructure at surrounding area. For example, building property near to LRT station, next to existing Shopping Center, or next to Collage and etc. Most of the developers fall under this category. Usually this type of property will not appreciate compare to the first and second type above, as all the existing infrastructure is already in place and usually the developer already factor in the "existing infrastrcuture price" when they launch the property.

So, start to rank your own developer today and it may will help you make better investment decision in future.