At what price the pursuit of novelty?

A month or so ago, there was an advertisement marketing a new development comprising 88 villas located on about 80 acres.

In terms of density ratio, that works out to 1.1 villa per acre. That probably works out to one of the lowest density developments ever.

For comparison, an average bungalow development will have about four to five units to an acre. If it were a terraced house project, there will be about 20 units to an acre.

The built-up of the villas range from 2,200sq ft to 5,500sq ft with the smallest having one bedroom and the largest three bedrooms. Wow! You wonder, imagine 2,000 sq ft and there is only one bedroom.

This must be the biggest one-bedroom villa ever. Again, for comparison, a 1,200 sq ft apartment may have up to three rooms, on average. Some of the most luxurious 2,200sq ft KLCC condominium units come in 3+1 configuration.

So let us establish this, in terms of size and use of space, this project stands apart from the average development.

There are other features which set it apart from many other developments.

Instead of bricks and mortar, all the villas will be built from timber; some of the most hardy ever to be found in Malaysia. A large part of the units, from flooring to walls to roof will be built from timber.

The villas also come with heating and air-conditioning facilities. The heat generated from the air-conditioning and solar panels installed in the development will be used for heating purposes. So in some ways, the developer is alluding to elements of “being green”, or environment friendly.

The project is really private, located away from the hustle and bustle of the city. No industrial or traffic pollution, just fresh air and sunshine. After all, you will have about an acre of space to yourself.

The closest thing to civilisation is 15 to 45 minutes away, depending on how fast your transportation will allow you to go, and weather conditions.

The waste disposal system and the main support services like utilities will be located at one end of the development, which from end to end, spans 1.2km.

Each of the 88 villas will have its own swimming pool, or maybe it will be a lap pool.

Despite having a pool, which usually equates high maintenance and service fees, there is no service charges. It is things like lifts and swimming pool which jack up maintenance fees because these need constant maintenance.

Besides the free maintenance, the other attraction is the yield. It comes with a minimum 7% annual returns for the first five years with no management or management fees. There will be a 10% compounded interest every five years, which means from the sixth to the 10th year, the owner will receive 7.7% annual returns.

There is something you must know, though.

Unlike leases which either come with 99-year lease or freehold, the lease to this project expires in 2067, which is about 40 years away.

But despite that, some buyers are not bothered by this as about 40 units, or 50% of the project, has already been sold - three to foreigners and the rest to Malaysians.

Piling work has started and to ensure that construction and lifestyle is environmentally correct, the company has done an environmental impact assessment (EIA), which was approved after three years.

The entire development will be fitted with a special waste disposal system, what an environmental consultant calls a hydroponic waste water disposal system and the solid discharge will be transported away for use for fertilisers.

Each year, the owner will have a 21-day stay in his villa, which is expected to cost about US$700++ minimum a night.

By now, you will probably have guessed, this is a time-sharing development. So, how much are the villas? How does RM2.8mil to RM5.5mil sound to you?

There is one other thing, though.

The entire project is built in the sea, off the island of Mabul in Sabah, near the famed diving spot of Sipadan. Semporna will be the push-off point.

The managing director of Jewel of Mabul Development Sdn Bhd, Louise Lang, said the company “has acquired the submerged land title from the Sabah state government to build on the site.

The buyers will receive master titles to the villas.”

Ordinarily, when a jetty or a resort is built in the sea, a temporary occupational licence (TOL) is issued by the state, which means that the area on which a project is build can revert to the state.

A TOL is also issued for sea-farming activities, as when clams or fish was being bred for commercial purposes.

In the case of this development, because the villas are to be sold to individuals, the project will be built on a “submerged land title”, as in the land being underwater.

The price is for the villas but not the area it is located on.

Known as Alorie Lepa Lepa, the project is being initiated by three Malaysians who put up their resources to build the RM280mil project.

The developer's environmental consultant Don Baker said the project would be constructed on spun concrete piles of about a foot in diameter each.

About 4,000 of these piling will be driven as deep as 18 metres into the sea.

Baker says if a coral reef bed were in the way, the company will “move the coral reef out of the way.”

Since 90% of the development are on “shallow water of between two and three metres between low and high tides” there is every likelihood that a large part of the development will be sitting on a coral reef bed as they need sunlight to grow.

What is interesting is the impact of a project like this in such a pristine setting because the marine eco-system is a fragile one.

Whether it is from an investment, construction or environment standpoint, assistant news editor Thean Lee Cheng thinks the pursuit of novelty seems to be heading towards uncharted waters.