Given the passion he displays for the subject, it would be hard to imagine Steve Chong talking about anything else but property development.

This enthusiasm came across during a visit to the show unit of a cluster house in Austin Heights in Johor Baru, one of the latest ventures of the Southcon Group of Companies of which Steve is the managing director.

In the living area of this show unit with an interior design that would undoubtedly appeal to upwardly mobile Johoreans, Steve talked about his 197-acre freehold development situated in the Tebrau development corridor 8km from JB’s city centre.

Over the course of an hour, Steve animatedly explained his ideas on development and his vision for Austin Heights, at times uninhibitedly kneeling on the floor by the coffee table referring to the sales literature and layout plans on it.

The 49-year old engineer by training no doubt had reason to be
enthusiastic about Austin Heights considering the fact the development has raked in close to RM100 million in sales just a little over a month after its cluster houses and linked bungalows were launched in early January.

But perhaps, there is another reason why Steve is pleased. The quick take-up is quite likely an indication that the Johor market and to an extent, Singaporeans, understand and appreciate what he’s attempting to achieve. And to someone who is as passionate as he is about development and his “baby” Austin Heights, this must be immensely gratifying.

Although the Southcon group as it stands isn’t the most aggressive
player in the Johor market, it has the potential of becoming a force to be reckoned with given Steve’s passion for the development game. Perhaps not as a township builder such as Pelangi Bhd or Daiman Developments Bhd, but one that caters to a niche containing discerning buyers looking for something which he describes as being “more than just row upon row of houses”.

Ipoh-born Steve is also motivated to make a difference in what is becoming an increasingly competitive market because he is now in the position that he has been working towards since he started plowing through engineering tomes as a student in the United Kingdom.

“Since a student, I’ve always wanted to be my own boss,” he declared.
Being “self-employed” as it were, he now has a free reign to bring to reality the ideas - backed by a solid foundation in civil engineering - that have been germinating inside his head all these years.

Upon completing his degree in London, he started his career as an assistant engineer with a firm of consultants in 1979 before joining the Public Works Department in Terengganu, working on the State Assembly building and sports complex. Steve also had a stint with the YTL group working for Syarikat Pembinaan Yeoh Tiong Lay Sdn Bhd as a site/structural engineer before leaving in 1985 for another engineering consultancy firm.

The common thread that runs through Steve’s career in construction was his frequent contact with Government and PWD officials, a contact base that led him to Johor after his involvement with a World Bank-funded RM200 million water supply project in Kluang.

“I was head consultant for the project and frequently met with PWD officers of Johor,” he said. Eventually in 1987, he was appointed Chief Resident Engineer for the project.

Besides that, his years as an engineer with PWD and in the private sector with YTL and various engineering consultancy firms provided him with a broad-based experience that has undoubtedly come in handy in property development.

In 1990, Steve decided to strike out on his own, fulfilling the
ambition of being his “own boss” by forming Southcon Engineering & Construction Sdn Bhd. As its name implies, the company was involved only in construction and engineering works. Since then, the Southcon family has grown to comprise nine companies focussing on development and property management as well.

But it was only in 1994 that Steve’s Southcon group delved into property development through privatisation projects from the State authorities.

“Development is very capital intensive, heavy on bank borrowings. But with privatisation, you can avoid this.”

One such venture embarked on in this manner was the Johor Tourist Information Centre (Jotic) in JB near the High Court.

Over the years, Steve steered the Southcon group away from the construction business which for the past decade saw it executing contracts worth about RM500 million. Currently, development is its mainstay, contributing 80 per cent of the group’s income. Consultancy work, property management and investment bring in the remaining 20 per cent.

Unlike other construction players that moved into development because of increasing competition, Southcon’s change in focus was in Steve’s words due to it (construction) being “too much work”.

“Even Austin Heights is being undertaken on a turnkey basis.”
While the motivation for the shift may be practical, this new area of focus allows Steve greater freedom to implement his ideas, many of which have found their way into Austin Heights. It also allowed him to immerse himself in every aspect of the development process.

“I have a very hands-on approach. I’m involved in all aspects. It’s a ‘one-leg kick’ kind of scenario.”

No doubt the hours are long, but he undertakes the job with relish. In fact, listening to him speak about Austin Heights, one cannot but come to the conclusion that he is enjoying himself tremendously. He is, by his own admission, exactly where he wants to be, doing exactly what he wants.

His passion for the job was made all the more evident when he declared: “I think about this project all the time. I enjoy it. I feel good doing it.”

It is under such circumstances that ideas spring forth to become reality.

Take for example the cluster houses Steve introduced in Austin Heights.
“We took back the 20ft-wide back lane and the 10ft yard and distributed the extra land giving each house more than 600sq ft in land.”

He is also proud of the fact that Austin Heights is the first development in Johor to introduce linked bungalows to the market.

These units which are essentially semi-detached houses connected at the rear as opposed to the side together with those of the cluster variety were conceptualised with buyers’ interests at heart. At the same time, they allowed Southcon to offer something different to the market.

“About 90 per cent of new house owners extend the rear of their homes. By having this design, there’s no need for them to incur additional costs
as we have maximised the built-up space.”

Steve revealed that the other rationale for the design was to preserve the aesthetic integrity of the development, so it is not marred by uncontrolled renovation works.

He is also ensuring this by using sheer walls in the construction of the houses.

“These walls are load bearing, so it’s difficult for owners to knock them down for renovation purposes,” he said with a wry smile.

Steve, however, is leaving no stone unturned in ensuring that Austin Heights will be preserved the way he builds it. A deed of mutual covenant will be employed to secure buyers’ cooperation.

“A RM2,000 deposit will be collected and will be returned to owners if and when they sell the house but on condition they secure the agreement of the new buyer to execute the deed as well.”

To Steve, development is very much a learning process. In his own words, he is “constantly trying to understand what makes a project successful or for that matter, a failure”.

As a result, many ideas are being formed and nurtured in his mind, awaiting implementation in Austin Heights and perhaps in his other future development endeavours.

He is, however, confident of his ability to deliver a product that is not just different, but one that buyers would aspire to own.

“If you are not happy with it, I’ll buy it back from you.”
This should score points with buyers in the State who are known to be quite demanding. Perhaps it’s a result of being so close to Singapore that some of the kiasu values have rubbed off on them. Whatever the case, Steve is a builder Johor buyers should look out for.

- Property Times 16 March 2004 issue -

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