GOING back 10 to 20 years ago, there was nothing much to talk about Pagoh, one of the constituencies in Muar, Johor, except for the booming oil palm and rubber industry and some other forms of agricultural activities.
Perhaps what was significant in the area then, or still is today, is the infamous Bukit Kepong Police Station, which holds one of the most tragic histories involving communist insurgents that occurred on February 23 1950, prior to the independence of Malaya.
Bukit Kepong has now become a tourist destination. People go there to learn about the tragedy and visit the police museum.
Pagoh, which encompasses the Muar River, has made the headlines twice for being inundated by two of the worst floods the country had ever seen — in 2006 and 2011.
But despite its reputation of being a flood-prone area, it does not hinder the progress of developments, both property and infrastructure, there. This is a result of Pagoh being gazetted as Bandar Universiti Pagoh (BUP) — a new education hub in the northern region of Johor.
With the influx of students from four different higher learning institutions, namely International Islamic University of Malaysia, Universiti Tun Hussein Onn Malaysia, Universiti Teknologi Malaysia Research Centre and Politeknik Pagoh, which have made Pagoh their temporary abode, adjacent towns are also benefiting from this.
Another factor that is changing the whole Pagoh landscape from a laid-back town to something more happening is the planned high-speed rail (HSR) project that will link Kuala Lumpur and Singapore.
A station for the HSR will be built in Pagoh, close to the education hub. By the time the HSR project is completed around 2026 and 2027, the education hub would have further expanded.
And like any other successful university towns in the world, Pagoh is bound to attract more people consisting of residents, students and the working population. This would result in new developments coming up, both residential and commercial, including shopping malls and perhaps even hotels, to cater to the growing population.
BANDAR UNIVERSITI PAGOH
Continuing its series of townships, dotted along the North-South Expressway, (starting from Guthrie expressway- Elmina, Denai Alam, Bukit Jelutong, Putra Heights, Serenia, Nilai, and Ainsdale) BUP is another development by Sime Darby Property Bhd that is strategically located in the Muar district, off the Pagoh Interchange.
BUP is just 15 minutes away from Pagoh town and it takes about half-an-hour just to get to Muar town by car.
According to Sime Darby Property business unit 3 general manager Mohamad Jalani Mohamad Said, there were challenges at first when he took over the BUP project.
“It was very tough initially because of the soil condition and as the place lacked proper infrastructure. There was also no proper drainage system, which caused flooding in the area.
“When we started the project, we brought in a drainage system and it has been very effective. There has been no flooding in the area ever since we did that,” he said, adding that the company has reserved about 160.8ha for the water catchment area.
Jalani added that Sime Darby Property has invested a substantial amount to develop the infrastructure, including the drainage system.
The total gross development value for BUP is RM6.2 billion.
“We did a lot of upfront investment and that is why in the first stage of development we were struggling to get a good margin. But it has paid off well today. People are buying houses there because of the increasing student population,” he said.
Jalani said even the old Muar town is benefiting from the BUP establishment.
“Many of the land parcels in the old Muar town are Malay Reserved, hence it is very difficult to convert them into commercial title. Furthermore, there might be other land issues.
“In contrast, for BUP, it is all land with commercial title. On top of that, there is good infrastructure where you can also see the roadwork coming this way,” he added.
RESIDENTIAL AND COMMERCIAL COMPONENTS FOR BUP
Sime Darby Property launched the first two phases of BUP — Harmoni Vista 1 (206 units) and Harmoni Vista 2 (177 units) — in June last year and January this year, respectively, and owners of the 20’ x 65’ double-storey link houses are expected to get their keys by the middle of next year.
The company is now looking to launch Harmoni Permai, the third phase of BUP’s residential component by March next year. It will consist of 491 units of 1,500 sq ft two-storey linked houses, selling from RM380,000.
For Sarjana Square, which is the first commercial offering at BUP launched in August 2015, the buyers are expected to get their keys anytime soon.
Sarjana Square comprises 35 units of two- and three-storey shop offices.
Buyers are getting their keys sooner than expected as the completion of the project is ahead of time by a year, said Jalani.
The next commercial offering is taking place this month and it is called Sarjana Promenade. It consists of 171 units of two- and three-storey shop offices and two commercial plots.
Pipeline developments include the 95.68ha Managed Business Park, which is located at the southern-most part of the development. “We are bullish on this. It is a prime location, fronting the North South Expressway and has excellent accessibility,” he said.
Meanwhile, Jalani said there is also potential in the future for every household in BUP to be readily equipped with a 100 megabyte Internet speed.
“Harmoni Permai purchasers will be able to enjoy a free two-year Internet service microgate and CCTV under the same package.”
According to Jalani, Sime Darby Property’s strategy has always been to launch residential units first, followed by commercial.
“When you do a development, the infrastructure will come in first. Students may not need a house because they already have hostels to stay in, but what they need is a place where they can hang out, do their laundry, go to the bookstore, and enjoy the F&B (food and beverages).
“Can you imagine by the end of 2018, when the student population in BUP hits 10,000 and with the new polytechnic coming up, where do they go? It is the commercial development that would cater to their needs,” added Jalani.
TARGETING A WIDER MARKET
With the station for the Kuala Lumpur-Singapore HSR rail project coming up in Pagoh in the next 10 years, Sime Darby Property is already targeting to bring in residents from neighbouring districts and towns to buy up houses in BUP.
Jalani said there are already many purchasers coming from Bukit Gambir, Segamat and Gemas, adding that he was also surprised as some bought houses in BUP in cash.
“There has not been much development in their respective area. They have been holding on to their money and waiting for the right time to buy.
“We are now targeting people from Muar, Batu Pahat and Johor Baru. We are also aiming for buyers in Melaka, which is quite close to us.
“I believe that with the HSR coming up, there won’t be an issue when selling properties in BUP, if we were to launch new phases. There are people who live in Pagoh and head down to Johor Baru and Singapore daily to go to work. They don’t want to live in Johor Baru and Singapore because it’s costly.
“Now with BUP, they can upgrade their house and go for bigger properties while also improving their lifestyle,” said Jalani.
Meanwhile, BUP head of township Ahmad Zaini Md Lazan said the rental rate for houses in Pagoh has doubled across the board over the last few years.
“A single-storey link house can now get a rental of RM700 a month, while a double-storey link house can fetch RM1,200. Before BUP started, the rental for a double-storey house near BUP was around RM400 a month,” he said.
Zaini also pointed out that some major retailers are looking to set up their businesses in BUP and in the surrounding area.
Meanwhile, Nawawi Tie Leung Property Consultants Sdn Bhd executive director Brian Koh said despite the optimism for the BUP township to have a HSR station nearby, it won’t have a significant impact on the commercial and industrial offerings because of the fare.
“The fare won’t be cheap and we don’t think the HSR will have a huge impact on the industrial and manufacturing activities in Pagoh. We have the main city (Johor Baru)... Pagoh is probably the third or fourth in hierarchy of urban centres, so I suppose the whole concept of a university town may help to bring in more developments similar to Bangi,” he said.
For adjacent towns near Pagoh like Batu Pahat and Muar and how will they be impacted by BUP, Koh said: “There will be some spillovers with all the students and lecturers coming from Pagoh. These towns will benefit commercially because they are more commercially developed than Pagoh itself.”
