In this edition of our UpClose & Personal interviews with local businesses in Kota Damansara we spoke to Mr. Howard Chew, Founder and Group CEO of fast-rising realtor company Chester Properties Sdn Bhd and Chester Group of Companies.

The following is the full transcript of the UpClose & Personal interview which was conducted at Wisma Chester. If you would like to listen to the actual audio of the interview, please click the audio layer below. Do enjoy 
 
   
UpClose with Howard Chew of Chester Properties

Date of Interview : 3rd April 2012
Time of Interview : 11:00am
Place of Interview: Wisma Chester
Interviewer(s)    : Sarah (KotaDamansaraBusinessDirectory.com)
                           : Steven (KotaDamansaraBusinessDirectory.com)
Guest(s)             : Howard Chew, Founder and Group CEO (Chester Properties)
Local Business    : Chester Properties Sdn Bhd
                             Wisma Chester
                             8-2, The Strand, Jalan PJU5/22,
                             Pusat Perdagangan Kota Damansara,
                             47810 Petaling Jaya, Selangor.
     

Sarah & Steven (KD) : Hi everybody, this is Sarah Chew (and I am Steven Pang) from KotaDamansaraBusinessDirectory.com. Welcome to another series of UpClose & Personal interviews with local businesses in Kota Damansara. Our special guest today is Mr Howard Chew, the Founder and Group CEO of Chester Properties, an established realtor company that has spread its wings beyond our shores to Korea. Hi Howard, great to have you with us today.

Howard (Chester Properties) : Hi, morning!

Steven (KD) : Welcome!

Sarah (KD) : Let’s start by giving us an overview of your business and what can people expect from Chester Properties.

Howard (Chester Properties) : Basically, we are doing more on marketing side. We tie up with developers, with their new launch. So, when customers look for a new property or 2nd hand property, they will look for us. We will provide a consultant service to them, rather than just sell a home. We’ll advise them what to do, what to buy and where to buy and what is the best for investment, that kind of concept, you know. Nowadays, every property is very competitive, so we must do something different in order to meet the customer’s requirement.

Steven (KD) : Value added services.

Howard (Chester Properties) : Value added service, yes, that’s right.

Sarah (KD) : How long have you been in business?

Howard (Chester Properties) : Our company – six years already. We started in 2006.

Sarah (KD) : So, who are your current customers?

Howard (Chester Properties) : Our current customers – for developers, we have Mah Sing, Sunway Group and then Glomac, a lot actually. Mostly, we can say top 10 developers are all our customers, for the developers’ side. And then, for the customers who buy properties, we have all the VVIPs, government servants and Malaysia top businessmen. They also buy a lot of properties from us.

Steven (KD) : I understand that you have a investors’ club which is something very new in terms of concept. Can you tell us a bit more about that?

Howard (Chester Properties) : The concept of the investors’ club is we gather the investors together and go and buy properties. So, the benefit for this is -all the customers can get some discount because we are buying in bulk. We have a negotiate power with the developers. If you are end user, you walk in to developers to buy one, they won’t give you anything. It’s just one-to-one, right? If you have 50 customers to go and buy from the developers, they are sure to give us some benefits like a few percent discount or whatever, so it’s like a win-win situation. Developers sell in bulk and purchasers get some discount. So, the concept actually, we copy from Taiwan. Taiwan has already been practising this bulk purchase for 10 years.

Steven (KD) : In Malaysia, are you the only company doing this?

Howard (Chester Properties) : To be very honest, there are a few. There are big ones and small ones, but we are more on solid investors, meaning to say we are not having a lot of members, maybe we only have a few thousands but solid investors. Whatever projects that we bring in, we think it’s good investment, they sure will follow us because they make money from the previous projects that we brought in.

Steven (KD) : So, track record?

Howard (Chester Properties) : Yeah! Track record!

Sarah (KD) : So, this is what makes the business unique.

Howard (Chester Properties) : Right! Something like that!

Sarah (KD) : What are some of the main reasons for you to do business in Kota Damansara? Do you have plans to have more branches?

Howard (Chester Properties) : Yeah! Currently, we have 6 branches, one is in Sri Hartamas, one in Sunway Mas, Cheras, Puchong and another one in Klang. The reason why we started up in Kota Damansara is because a few years’ ago, we saw it’s a very potential area. It’s a well-booming area, they call it, right, as compared to SS2, Taman Tun etc. Here, it will be the commercial hub already. So, in fact, today we can see everywhere here is so jammed, Giza etc

Steven (KD) : And parking is also a problem.

Howard (Chester Properties) : Yes!

Sarah (KD) : Very busy area.

Steven (KD) : But more developments are coming up as well.

Howard (Chester Properties) : Of course, yes.

Sarah (KD) : Can you share with us about your own story and why you started this business in the first place?

Howard (Chester Properties) : Of course, for starting a business, we must have the interest, passion for the job. If it’s just for the money, we can’t go far. So I like to see property. I like to build property, so every property launching, I must go and see. It’s like my interest already. See how they do, how developers package the marketing side, that kind of things, you know. So, and then after that, we realize that all the rich people come from real estate. They get rich from real estate. So, we just follow the rich people, I believe it’s no wrong.

Steven (KD) : Most important thing, you must have passion in the things you do.

Howard (Chester Properties) : Yeah! Passion, yes.

Sarah (KD) : You love what you do everyday.

Howard (Chester Properties) : Of course.

Sarah (KD) : What have been some of the biggest challenges in your business?

Howard (Chester Properties) : The biggest challenge usually is all about capital. When we enter with the developers like we are going to buy a bulk purchase a whole block of condominiums or buy a piece of land with the land owners, there will be bigger challenges. So, let’s say a condominium GDV is around RM200million, we need to buy enbloc with the developers and then we resell it to our investors club. So, for the RM200million GDV, we have to come up with RM20million i.e. 10% of the project. So, this will be the biggest challenge for us to gather the RM20million. RM20million is quite a lot, in terms of cash. And then for lands, let’s say, a piece of land costs about RM10million, we need to come up with RM3million because the bank only finances us 70%. So, usually, this is the biggest challenge for us. 2nd challenge will be the human factor because we are dealing with humans. All our agents or our staff are without a basic salary. We need to manage them, sometimes a bit headache.

Sarah (KD) : Complicated!

Howard (Chester Properties) : Complicated, yeah, right!

Steven (KD) : Every human has a different set of behaviour.

Howard (Chester Properties) : Yes, you are right.

Sarah (KD) : What are the defining moments that made Chester Properties where it is today, as in achievements?

Howard (Chester Properties) : So far, I can say we have a good partner and a good team, put together. Some of the seniors or some of the partners followed us for the past 6 years already. In our company, the concept is we are very flexible. We open all opportunities to our partners. Today, they just become a staff and (in time) they will be promoted to be the team leader and become a partner as well. I mean, there’s unlimited room for them to grow rather than just, ok, today, you are a team leader, maximum already. They are not. That’s why I believe this concept brings us to today’s achievement.

Steven (KD) : So, you have a solid progression plan for your staff. As you grow, your staff also grow. That’s very important.

Howard (Chester Properties) : Yes, otherwise company big, staff still small, no point, right?

Sarah (KD) : Can you tell us about some interesting or funny or perhaps crazy things that have happened within your industry, in your business? Unforgettable stuff.

Howard (Chester Properties) : Crazy things huh. I believe maybe it’s like after we finished a job, we expect the money will come in. But it never came. Somehow, it doesn’t come in. Let’s say for this project, we will earn RM2million. We’ve already spent RM500,000 for everything, marketing, staff salaries etc. So, after we finished the job, we will expect the money, let’s say to come in a month or 2 months’ time. Somehow, the developers or somebody never pay us. So, I believe this is quite frustrating for us. It’s a very big challenge for us to settle with the developers.

Steven (KD) : Unexpected. Certain things just happened suddenly.

Howard (Chester Properties) : Yes!

Sarah (KD) : Do you notice any kind of trend in your industry that affects the way you do your business now?

Howard (Chester Properties) : In Malaysia, it’s still ok because we always change. We always follow the market. What people want, we just do it. I mean, we are not just where we are. Let’s say, since 2006 until today, we can say every year, we make a lot of changes, to survive or to improve ourselves to meet the customers’ requirements. Those days, because of less competition, maybe in Klang Valley with only 1,000 agents but now, there are 6,000!

Sarah (KD) : 6 times!

Howard (Chester Properties) : Yes, 6 times! So, the cake is smaller for each agent. So, we need to do something. That’s why, as of today, we call ourselves as consultants rather than just an agent. Whatever customers want to buy, they will seek our advice, so then we can give them very good opinions, so they can choose only the best property, mainly for investors.

Steven (KD) : So, you basically assist in the whole buying process so that the customer knows what he’s buying, the kind of deals that he’s getting into, perhaps even the return on investments that he maybe able to expect.

Howard (Chester Properties) : Right, of course.

Steven (KD) : Fantastic!

Sarah (KD) : If someone is looking to purchase what you have to offer, what kind of advice can you give to help them make the best buying decision?

Howard (Chester Properties) : Usually, we will study what they want. This is very important. Price, locations, sometimes will be 2nd priority. What they want is the best investment. Let’s say as an investor, “I want to buy a commercial unit . My purpose is I want to get investment returns of a rental unit.” So, we must look somewhere with good potential for them to have good tenants. Some investors want to buy commercial units with high capital appreciations. So, we will advise them to buy new projects because anyhow, when you enter new projects, easily you will make around 20% three years later. This is very conservative already. So, what they want is very important. Usually we will ask them, they will tell us, then from there, we will do analysis of what is the best property for them.

Sarah (KD) : How are you currently promoting your business?

Howard (Chester Properties) : Currently, we are promoting, as usual, through website (which is) very common already, facebook, until today, I think we have around 18,000 likes already and also advertising in the media i.e. Iproperty, Homeguru etc.

Steven (KD) : Basically online media.

Howard (Chester Properties) : Online media, because nowadays the trend is there already. Everyone is using iPad or smartphones to view their properties. And then, the email system, email blasting system and the membership concept. When they join us, they will have the privilege. Whatever project before launching, they will sure know first before the public knows.

Steven (KD) : First-hand information?

Howard (Chester Properties) : First-hand information is very important.

Sarah (KD) : Are you running any current events or promotions?

Howard (Chester Properties) : Yes, usually, we will have the monthly property event, maybe in our office here or in developers’ office. Usually, we will invite our investors to come for the event. So maybe during that day, they will have some special entitlements, let’s say, whoever who book in the event will get a few percent discounts or they will get free TV or free iPad, just for our investors actually or for that day only.

Steven (KD) : So, those are your investors club members or part of your mailing list or ?

Howard (Chester Properties) : Actually, mixed. Depends on the projects. Let’s say some projects have only few units, of course only for our investors club. Some have few hundred units of condo, so it’s like mass marketing. We will invite everyone to get some entitlements.

Steven (KD) : Basically, the trick is to get into your list! Subscribe to Chester to get some privileges.

Howard (Chester Properties) : Yes, right.

Sarah (KD) : Great, Howard. Thank you for your time. We really appreciate the talk.

Howard (Chester Properties) : Ok, thanks!