Luxury property prices rose 2.7pc up to Q3

Kuala Lumpur ranked 29th in the Knight Frank index with prime property prices up 0.7 per cent over the 12-month period.

 

Published in NST Property on November 22, 2018 

 

THE price for luxury properties increased 2.7 per cent on average across 43 cities in the year to September 2018, according to the latest Prime Global Residential Cities Index Q3 2018 launched by Knight Frank. The price increase represents the index’s weakest performance in annual terms for almost six years.
Knight Frank Asia-Pacific head of research Nicholas Holt said: “Prime residential markets continued to slow in Asia-Pacific in the third quarter (Q3) of 2018, with 13 of 17 regional markets seeing growth decelerate on the previous quarter. Rising interest rates, cooling measures and worsening prospects for global growth are all contributing factors to this region’s prime market slowdown.
 “While pockets of out performance remain, these growing headwinds are likely to ensure that sentiment in many prime cities’ residential markets remains muted towards the end of the year.”
Leading the index is Singapore with prime prices up 13 per cent over the 12-month period (Q3 2017-Q3 2018), driven by the limited availability of prime properties and a strong market outlook in the first half of this year.
Analysts in Singapore are expecting a new peak in private home prices by year-end as developers put in the market new launches on land they have acquired at significantly higher prices.
The Urban Redevelopment Authority (URA) showed that private home prices rose for the fourth straight quarter, up 3.4 per cent in the second quarter after a 3.9 per cent increase in the first quarter.
“Hong Kong and Singapore, Asia’s two premier cities, have traded places in the last year. Both cities saw cooling measures introduced over the summer months and although the rate of annual price growth in Hong Kong has already slowed to 5.5 per cent, Singapore may not be far behind with its quarterly growth weakening to 1.7 per cent in the third quarter of 2018,” Knight Frank said.
Kuala Lumpur ranked 29 in the index with prime prices up 0.7 per cent over the 12-month period (Q3 2017-Q3 2018).
Knight Frank expects to see improvements this year in the Kuala Lumpur luxury condominium market on the back of renewed confidence and improving market sentiment.
The firm said in its Real Estate Highlights report for the first half of 2018 that Malaysia is expected to be on investors’ radar after the market stabilises with more clarity in the policies of the newly-elected government.

MIXED PERFORMANCE
According to the index, Europe’s performance is mixed compared with a year ago. Some European cities are still performing strongly (Edinburgh and Madrid), others have swapped spectacular for steady (Berlin and Paris), while for a few, price growth remains in negative territory (London and Dublin).
In London, prime prices dipped 2.9 per cent in the last year as uncertainty around Brexit continued. This trend has been exacerbated by growth in supply as more landlords attempted to sell their property following tax changes.
The year 2018 marks a watershed for the index. The overall narrative of lower growth, which Knight Frank predicted last year, has materialised. The rate of growth has declined for three consecutive quarters and has now reached its lowest rate since the fourth quarter of 2012.
A combination of uncertainty surrounding Brexit, rising interest rates across major economies, a tighter regulatory environment and the remnants of high supply in some markets is impinging on price growth.
The index’s headline figure of 2.7 per cent growth conceals significant variations both within continents and even within countries.
In Canada, for example, Toronto (8.5 per cent) continues to see prime prices rise in its exclusive areas of Rosedale and Yorkville.
Vancouver (-11.2 per cent), however, sits at the bottom of the rankings as upmarket areas such as West Vancouver have seen a marked slowdown in sales and prices as a result of the raft of measures introduced in February’s Budget.
This quarter sees the addition of Auckland to the prime index for the first time. Despite a ban on the purchase of existing properties by overseas buyers from July1(this excludes new homes), luxury prices increased 8.5 per cent in the year to September.

Singapore’s prime property prices were up 13 per cent over the 12-month period.

Mah Sing to host preview for Tower C

Mah Sing chief executive officer Datuk Ho Hon Sang (left) with chief operating officer Yeoh Chee Beng at M Vertica’s sales. - PIC BY SADDAM YUSOFF

 

By Sharen Kaur - Published in NST Property on November 22, 2018

 

Despite a soft property market, Mah Sing Group Bhd is hosting a public preview this weekend for Tower C of M Vertica project in Cheras and is bullish on sales.
The first two Towers in M Vertica — Tower A and Tower B —have achieved 85 and 80 per cent sales, respectively, since their launch in February and March this year.

Mah Sing chief executive officer Datuk Ho Hon Sang (right) and chief operating officer Yeoh Chee Beng. - PIC BY Saddam Yusoff

The two towers offer a total of 1,493 units, selling from RM450,800 or RM530 per sq ft (psf).

Majority of the units were bought by first-time house buyers and upgraders in the Cheras area, said Mah Sing’s chief executive officer Datuk Ho Hon Sang.

Ho said Tower C will have 752 units with built-ups of 850 sq ft (three bedrooms) and 1,000 sq ft (four bedrooms), and the price starts from RM506,000 or RM540 psf.
He said about 1,500 people have registered for Tower C and the sales will be on first-come-first served basis.
“We are expecting Tower C to replicate a similar strong take-up rate of Tower A and B during their initial launch,” Ho said.
M Vertica consists of five towers of service apartment with 74 units of two-storey retail shops at the bottom levels. There will be a total of 3,684 units of serviced apartments with built-ups of 850 sq ft (three bedrooms) and 1,000 sq ft (four bedrooms).
“M Vertica is an affordable, yet luxury product from Mah Sing. If you compare our project with other developments in Cheras, our prices are very reasonable.
We are able to sell them cheaper because of economies of scale. We are building 3,758 units all together with shops. Although we are spending a lot to add more than 40 facilities in M Vertica and improving the infrastructure to make this an ideal living space for people, it still makes good financial sense for Mah Sing to develop it,” Ho told NST Property.
The project will have 4.54 acres of landscape and facilities deck (housing over 40 facilities) to cater for residents from all age group.
Ho said the facilities podium would be built on top of the residential parking to enable residents to enjoy the Kuala Lumpur skyline view.
The retail shops are ideal for food and beverage and pharmacy as there would be a catchment of more than 10,000 residents once the development is completed by 2022.
“For Mah Sing, our affordably priced projects come with features that enhance the lives of our buyers. For M Vertica, we bank on the tagline ‘luxury you can afford’.
We already have the target market to look at when we designed the project. The units are just right. We did a study and found that most people want three- to four-bedroom apartments, whether they live alone or with their family.
“We also emphasise highly on safety features for our residents by incorporating the high frequency tag system for car access, CCTV at all entry points, and separate entries for retail and residential carpark, among others.
“We will continue to add value to the development. Among the initiatives are electrical-vehicle (EV) charging stations, co-working space and facilities in the clubhouse, mini home theatre, designated drop-off area for ride sharing services to name a few,” said Ho.
Green features in the project include stream Pneumatic Waste Management system, LED lighting for common areas, rain-water harvesting for landscape, low glass for units facing west direction, low volatile organic compound paint for internal only, and cross natural ventilation in common corridor.
“All bathrooms are designed to be naturally ventilated. A rare thing to find in most housing developments is EV charging stations, but M Vertica has a few of those as we anticipate more electrical cars on the roads,” said Ho.

KEY FEATURES
Mah Sing chief operating officer Yeoh Chee Beng said the current selling price from RM506,000 for Tower C units is affordable for first-time buyers.
He said the strategic location is a key factor that has attracted buyers for earlier launches at M Vertica.
Standing at 53 and 54 storeys, M Vertica will also be the highest residential towers and an iconic landmark in Cheras upon their completion in 2022.
“M Vertica’s key feature is that it is a transit adjacent development (TAD), only 500 metres to the Maluri LRT (light rail transit) and MRT (mass rapid transit) interchange station and 800 metres to the Taman Permata MRT station. Projects developed near to LRT and MRT stations are expected to do well with higher rental and better capital appreciation. similar projects in the Cheras area have been generally well taken up and are fetching a rental of RM1,300 and above.
“However, those who are looking to buy and stay in M Vertica, they will be able to gain good value and also own a property in a well-established neighbourhood,” Yeoh told NST Property.
Being a TAD project located close to Kuala Lumpur city centre, connectivity and accessibility is one of the main factors contributing to the success of M Vertica, he said.
M Vertica is easily accessible via major roads and highways such as Jalan Cheras, Jalan Loke Yew, Jalan Pudu, Jalan Tun razak, Kuala Lumpur-Seremban highway, the Stormwater Management and Road Tunnel as well as other road arteries.
The nearest malls are Aeon Maluri (500m), Sunway Velocity (800m) and Ikea Cheras (2.5km).
“We will build covered walk-ways for M Vertica residents to MRT stations. The Maluri LRT and MRT interchange is only two MRT stations away from the International Financial District (Tun Razak Exchange) and three MRT stations to Bukit Bintang and Golden Triangle areas... this suits the living criteria that most Kuala Lumpur working folks are looking for, transportation mode that save time and distance.
“We are also looking to develop a dedicated direct ingress and egress ramp to and from Jalan Cheras for M Vertica. The proposed direct ramp is pending local authorities’ approval. This will ease traffic in the area as the development matures.”
Yeoh is confident that future launches in M Vertica will also be well received because “it is a product that is in the right location with fantastic view of KL city skyline which has the right pricing, connectivity and over 40 facilities”.
The public preview this weekend will take place at the M Vertica sales gallery in Jalan Cheras.
The sales gallery houses two lavishly designed fully furnished show units. It features a 850 sq ft unit and a 1,000 sq ft residential unit, which give buyers an idea on what they can create or utilise with the layout.
Buyers can also visualise the completed integrated development of M Vertica with the available scale model at the sales gallery.

Growing homestay potential in Bentong

By Sharen Kaur - Published in NST Property on November 22, 2018 

 

BENTONG is formerly a tin-mining settlement in the western part of Pahang, opposite of the Titiwangsa Range.
According to old stories, Bentong was formerly known as Kapong. Back then it was centred around the market area at the confluence of the Repas and Perting River. It became the focal point of attention when tin was discovered in both rivers.
Tin miners had built a ridge known as Ban for the mining of ore to get more profitable outputs.
It became the talk of the town for outsiders who started calling the place “Ban Untung” (profitable ridge).
The name Ban Untung became more popular than Kapong and over time it was known more as Bentong.
The tin-mining activities in Bentong expanded when a prominent figure, Loke Yew, was offered some 1.619 hectares of tin-mining land in 1897.
Details on the historic past of the town and what it was like during the mining era are available at the Bentong Gallery in Jalan Loke Yew.
Bentong Gallery was formerly an old shoplot owned by Loke Yew where he operated his business activities. It has been refurbished but the original facade still stands.
The gallery provides information on tourist attractions throughout Bentong, such as Bilut Valley Bee Farm, Bilut Extreme Park, Jimmy’s Durian Orchard, Chamang Waterfall, Bentong Hot Spring, Botanical Garden and Bentong Market.
There are also many heritage buildings like Chinese Town Hall and Kwong Fook Temple, as well as old villages.
In recent years, Bentong has become increasingly popular for homestays.
According to Jimmy Loke, founder of Jimmy’s Durian Orchard, developers and investors have been buying up agricultural land in Bentong as an investment.
“They are building homestays or planting fruit trees, especially durians. Some are also taking the opportunity to buy land in Bentong because the price is cheap compared with Kuala Lumpur and Selangor, to build a retirement home. People want to escape the hectic city life and the hot and dusty air when they retire. I understand land prices are slowly inching up in Bentong,” he told NST Property.
Jimmy’s Durian Orchard is situated on about 8ha of land right alongside the Karak highway near the Selangor-Pahang border.
“I started this orchard when I was 28 years... that is more than 30 years ago. I planted Musang King, XO, Tekka and 101 varieties. There are about 200 trees and I’ve been reaping the fruits of my labour for many years now.
“My aim is to turn this farm as my retirement home. I’m currently building homestays for local and foreign tourists,” he said, adding that the homestay will have 13 rooms, two dormitaries, a dining area and lounge.
Loke is investing about RM1 million to build the homestays which will open their doors soon.
“Staying inahotel or resort costs a bit of money, so people are resorting to homestays as their weekend getaway, especially when they travel inabig group. The unique selling preposition for homestay is that you get to enjoy the environment, have your own little heaven, and you’re away from the hustle and bustle of city life,” said Jimmy.
  Homestay is a popular form of hospitality and lodging whereby visitors stay at the residence of a local in the city they visit.

Chinese Town Hall is one of the famous landmark in Bentong.

Bina Puri taps hill attractions

Bentong is a popular industrial area and is home to many light and medium sized industries.

 

By Sharen Kaur - Published in NST Property on November 22, 2018

 

BENTONG is both a town and district in Pahang. It covers 183,112 hectares of area, but most of the land is hilly and suitable for hospitality property development, such as resorts and villas.
The distance from Kuala Lumpur to Bentong town via Karak Highway and Kuala Kubu is 75km, or about an hour and 10 minutes of drive.
Bentong is a popular industrial area and is home to many light and medium-sized industries, such as saw mills, food manufacturing and electrical component collection factories.
An increase in urban development has enlightened the Bentong Municipal Council towards transforming the town into a developed, prosperous and tranquil urban area.
In the last five years, the quaint town has been gaining interest from developers. There are a number of development projects, which have started or are in the pipeline, leading to the town centre of Bentong.
Besides Bentong town, there are several other areas that have become attractive to developers, such as Karak, Bukit Tinggi, Simpang Telemong and Pelangai.

The Valley has 600 acres allocated for homesteads divided into two phases

 

One of the biggest developers in Bentong currently is Bina Puri Holdings Bhd. The construction and property firm had in 2014 acquired 1,600 acres of agriculture land for RM47.5 million as an investment, or less than RM30,000 an acre.
The land is located just a short 7km away from Karak Town and the exit to the Karak Expressway, which connects Kuantan and Kuala Lumpur.
Bina Puri has started a project called the Valley, which is estimated to have a gross development value (GDV) of RM279 million.
Two years after Bina Puri bought the land, Global Oriental Bhd acquired 113.26ha of freehold land for RM170.67 million as it saw the potential for “resort-like residential and commercial development”. The purchase consideration is based on the selling price of RM14 per sq ft.
In the same year, Golden Frieden Development Sdn Bhd launched its maiden commercial project, One Bentong, on a 4.3-acre tract along Jalan Bentong-Raub. The project comprises 39 units of two- and three-storey shop offices and were priced from RM859,000.
With big names in Bentong, optical disk maker GSB Group Bhd, which has an ongoing development there known as Taman Bentong Makmur, decided to buy more land. GSB acquired 21.08ha to under take a mixed development witha GDV of RM374.8 million.

THE VALLEY
The Valley by Bina Puri is nestled in a prime location between tourist hotspots, such as Genting Highlands and Berjaya Hills in Bukit Tinggi.
The 647.5ha project is divided into several development zones with 243ha allocated for homesteads (land or homes meant for weekend retreator within a resort scheme).
“We have 1,200 acres(486ha) offreehold land, and 400 acres (162ha), which is leasehold. The leasehold land has recently been sold to a private investment group for agricultural activities. For the freehold status land, besides the 600 acres (243ha) allocated for homesteads, Bina Puri has taken up 230 acres (93ha) to plant durian trees.
The remaining land we are looking at selling,” said Bina Puri Properties chief operating officer Lee Tong Leong.
The homesteads are known as the “Kerau”, which is after the river that meanders through the entire project.
Lee said the project would provide the residents with facilities and an access to a landscaped grass lawn courtyard for breath taking views of the valley.
Lee said the homesteads are divided into two phases. Phase 1 comprises 158 homestead lots (each lot is one acre or slightly more) and 80 per cent has been sold. Phase2 has 128 homestead lots and about 40 per cent has been sold.
Phase 1 sold at between RM5 and RM6.50 per square feet (psf) while Phase 2 is selling from RM7.30 to RM8.20 psf, said Lee, adding that prices for the remaining lots would increase next year because of infrastructure development.
“The Valley project comes complete with water supply and electricity. That is the infrastructure that we are providing, including landscaping at common areas, and security to both entrances.
“We have also crafted the existing streams into natural water course and retention ponds cascading naturally through the project. For Phase 2 and the naturally elevated ground, two new courtesy ponds with natural water source will be provided for the adjacent land owner to draw the water.
“The hilly and curving slopes are most suitable for fruit orchards such as durian, as proven by the vast number of durian orchards that you see here,” Lee told NST Property during a site visit.

The Valley by Bina Puri is nestled in a prime location between tourist hotspots such as Genting Highlands and Berjaya Hills in Bukit Tinggi.

 

Lee said majority of the investors bought between one and five areas of the homestead lots to build either a small retirement village and to lease it out, or a house with plantation for themselves.
He said the Valley clubhouse is under construction and would serve the residents when it is fully completed by early next year. The clubhouse will provide resort living facilities, with a
swimming pool, gymnasium, lounge, outdoor barbecue pits, exhibition spaces and meeting rooms.
“There are a lot of resort and recreational activities in Bentong. More and more people are coming to Bentong and looking for a place to build a holiday home. At the Valley, we are not selling bare land, but developing the infrastructure and landscape, and building a clubhouse to provide convenience for the owners. The minute you buy a homestead lot, you can take over the site immediately and start planting or constructing your home,” said Lee.

Alpine White Xmas at Dorsett KL

  It’s Alpine White Christmas at Dorsett Kuala Lumpur.
  The hotel presents to you a White Christmas tree at the lobby embellished with traditional Christmas items such as Christmas lanterns, tree logs, snowflakes, white and blue ornaments etc. boasting the hotel’s ‘favourite little things’ in 2018.

  As part of the Dorsett global brand initiative and brand belief to constantly deliver the iconic Dorsett end-to-end guest journey, Dorsett hotels open up the doors to all vibrant inspirations such as social connectivity and vibrant engagement which falls under the brand promise – “Stay Vibrant”.

White Christmas Tree at Dorsett Kuala Lumpur

   One of the key highlights at Dorsett Kuala Lumpur during this festive season for 2018 would be the launch of its very first “12 days of Christmas Market” at the hotel’s Windows Lounge in collaboration with various vendor partners selling pretty little things perfect for Christmas gifts from 10th to 21st of December 2018. There will be a good variety of gift categories at each booth such as local designed and made fashionable Batik outfits, copper cutleries, pots and pans, local designer perfumes, Borneo beads, handicrafts and bags, handmade soaps, contemporary accessories etc. It’s time for giving and sharing. Head over to check out the Christmas Market and have your Christmas gifts ready for your loved ones.

Copper Jugs

  Come 24th December 2018, Adele Ang, the General Manager of Dorsett Kuala Lumpur leads the Christmas Tree Lighting Ceremony at the hotel lobby as part of a warm and cosy gathering with associates and guests. At the same time the hotel will host a group of Myanmar refugee children from the UNITED Learning Centre (ULC) who will serenade the guests with some sweet Christmas Carols at the lobby during the event.
  Meanwhile as part of the hotel’s 20th anniversary this year, the hotel offers a Christmas Promotion only for the month of December at Windows Lounge with 20% off total receipt for dine-in drinks and meals (except 31st December).
  Come 24th December 2018, an unforgettable Christmas Eve Buffet Dinner at RM118 nett per person awaits you at Checkers Café, the hotel’s all-day-dining. There will be 2 serves of drinks and canapes from 6:30pm onwards at Windows Lounge, followed by dinner from 7:30pm onwards at Checkers Café. Gather together and indulge in a traditional and international Christmas feast with your loved ones, make your reservations earlier!
  Christmas Treats is available at Checkers Café in the month of December, such as the must-have Roasted Tom Turkey, Roasted NZ Leg of Lamb, Gingerbread, Christmas Cookies and the Christmas Almond Stollen Bread just to name a few.

Turkey Christmas Buffet

    For those who are still searching for a venue to dine, party and celebrate New Year’s Eve, Dorsett Kuala Lumpur has what you’re looking for on 31st December 2018. Head over with your family and friends for New Year’s Eve buffet dinner at Checkers Café for RM118 nett per person from 7 pm onwards, and most importantly head over to Dorsett Residences Bukit Bintang annexed to the hotel to catch the fireworks and indulge in 2 serves of drinks at Level 30’s rooftop pool area. Bid adieu to 2018 and ring in the New Year in style.
  Additionally, experience a Vibrant Way to Stay with Dorsett – Your Rewards this Christmas. Reward yourself with our new global loyalty programme, offering you a diverse menu of rewards designed to enrich your stay with hotels under the Dorsett and d.Collection brands
Sign up now to enjoy a free upgrade to silver membership benefit.

X2 puts on sale RM35m assets in KL

(File pix) Megan Avenue 2 Penthouse front desk.

 

By Sharen Kaur - Published in NST Property on November 15, 2018.

THREE distinct strata office spaces worth a combined RM35 million and owned by private investment group, X2, are up for sale in the KLCC area.
X2 is selling an office block in Megan Avenue 1, Jalan Tun Razak, a Penthouse in Megan Avenue 2, Jalan Yap Kwan Seng and two floor spaces in an office building in Menara Avenue, Jalan Tun Razak.
It is understood, the owner of X2 bought the office spaces in the late 1990s at about one third of the price. X2 also owns several other commercial properties and residential units.
Zerin Properties chief executive officer Previndran Singhe said the owner is selling the assets to fund his business expansion in the Southeast Asian region.

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“He is a motivated seller who is disposing of the units in a bid to expand his business. The idea of motivated sellers is not to sell fast. He is not under any compulsion to sell. The deal will close when there is a right offer on the table,” Previndran told NST Property.
Zerin Properties is the exclusive marketing agent for the strata office spaces owned by X2. Megan Avenue 1 (formerly known as Megan Phileo Promenade) is an office complex comprising five 10- to 12-storey blocks.
It is the predecessor of Megan Avenue 2, which is located just a few hundred metres away from it. This office building is built together with Menara Avenue and Menara TM Asia Life.
X2 owns a 12-storey building (Block C1) in Megan Avenue1 with total office space of 20,000 sq ft. Itis selling the building for RM13.8 million of RM695 per sq ft (psf).
Previndran said the owner has approval obtained from the Joint Management Body (JMB) for hotel conversion.
“As a former hotelier myself, I believe the enbloc property would be suitable for conversion into a small boutique hotel. It is an easy way to maximise asset values within today’s markets.
“X2 is also open to a sales and leaseback option, yielding an ROI (return on investment) of six per cent to the new owner,” he said.
Megan Avenue 2 is a commercial office building in which X2 owns a fully-fitted penthouse on the 20th floor with built-up of 5,340 sq ft. The sale price for the penthouse is RM5.5 million or RM1,000 psf.
In Menara Avenue, X2 owns the ground and mezzanine floors with total size of 17,287 sq ft.
The fully furnished units are selling for a combined RM15.8 million or about RM900 psf.
“X2 is looking at selling them all en bloc. However, interested buyers can make an offer to buy them separately. These are strata-title properties with freehold status and rarely you will come across anything like that in the KLCC area for sale. They are walking distance to Ampang Park LRT (light rail transit) station and the new MRT station.
“I don’t think there is such thing as a good time or bad time to sell properties. When you want to sell, you just want to sell. On the other hand, people who are looking to buy, if they find a good asset, they will buy no matter what the market situation is,” said Previndran.

DEMAND FOR FLEXIBLE SPACE
Previndran said there’s more demand now for strata offices within the KLCC area, driven by the increasing take-up of flexible space by corporate businesses and small and medium enterprises.
“The high returns from strategically-located office spaces have driven independent flexible space operators to expand their footprints in the market,” he said.
High returns from strategically-located office spaces have driven independent flexible space operators to expand their footprints in the market.
“The Kuala Lumpur market has seen an influx of flexible space operators, with names such as Common Ground, WeWork and Colony, expanding their presence. We believe that flexible working environments and co-working spaces should accelerate within the next five years,” said Previndran.
According to his research team, the take up of flexible office space is less than five per cent of total office stock in developed cities, but could grow to the region of 25 per cent within the next decade or so.
Previndran said the ease of access via public transportation further adds to the value of the properties in the flexible space landscape given that the target demographic requires ease of access to travel to and from the different branches of their preferred flexible space operators.
He noted that start-ups and small and medium enterprises (SMEs) are the growth drivers for the increase in demand for flexible spaces.
“Cost-saving factor is a compelling reason for a startup or a SME to opt for a flexible space as opposed to a conventional office.”
According to Previndran, X2 has an arrangement with a co-working space operator for the 17,287-sq-ft office space it owns in Menara Avenue.
“The contract starts as soon as the new owner comes in. The findings by the co-working space operator show that the office space could see a yield of 33 per cent a year, given the location,” he added.

Laman Villa offers luxury lifestyle

A completed unit in the luxury Laman Villa development. Bina Puri Photo

 

By Sharen Kaur - Published in NST Property onNovember 1, 2018

 

LANDED properties and sky villas are highly sought-after in Mont Kiara due to their high capital appreciation. But with scarcity of land in Mont Kiara, one can’t find such new projects as developers are moving to Mont Kiara North (Segambut Dalam) to build them.
There is Laman Villa, which is jointly developed by Bina Puri Holdings Bhd and Norwest Holding Sdn Bhd through a joint venture (JV) company Bina Puri Norwest Sdn Bhd.
The luxury housing project consists of Garden Villa and Sky Villa with a gross development value of RM115 million and sits on a 1.35ha of sloped freehold land with a nice view of Mont Kiara.
Garden Villa comprises 22 units of three-and-four-storey landed villas, while Sky Villa is a low density condominium development with 20 units.
The landed villas were launched in 2014 with 15 units having been sold mostly to Malaysians, said Bina Puri Properties Sdn Bhd chief operating officer Lee Tong Leong.
He said the company is selling the remaining seven villas in the gated community at between RM3.6 million for a three-storey villa and RM4.9 million for a four-storey villa.
“When we launched the villas in 2014, they were selling at about RM850 per square feet (psf). The price has since increased to about RM900 to RM930 psf. Connectivity is key here. Compared to three years ago, accessibility to various parts of Kuala Lumpur and Selangor have improved significantly,” Lee told NST Property.
He said Bina Puri Properties is offering a special package comprising an interest free and deferred payment scheme for the seven villas, with built-ups from 3,921 to 5,459 sq ft.
“Most high-profile buyers can only get 70 per cent margin as they own more than two properties. With our special package, home buyers just have to place 10 per cent down payment and they can move in. The balance 20 per cent will work out as deferred payment over two years. This way anyone can buy and own the villa,” said Lee.
Each unit comes with a lift, three parking bays and a covered central driveway for homeowners to drive directly to their units.
There is also a small clubhouse built at a cost of RM2 million and which includes a swimming pool, function room, gymnasium and other amenities.
Lee said the company will be launching Sky Villa next year. The units, with built-up ranging from 1,645 to 1,880 sq ft, will be priced between RM1.7 million and RM2 million (RM1,100 psf).
“The selling price is on par with market price. We are targeting upgraders because they are sizeable units. There are only 20 units. So we believe we will be able to sell them within a year,” he added.

Mont Kiara extension: From estates to high-end haven

(File pix) The extension project in Mont Kiara has started.

 

By Sharen Kaur - Published in NST Property on November 1, 2018. 

 

KAMPUNG Segambut Dalam settlement was originally an agricultural land encompassing a huge rubber estate.
It was a place where hundreds of squatters, workers and farmers called home. Narrow roads connected the sparse community settlements, which all had poor access to major parts of Kuala Lumpur and Selangor.
Things started to take shape in the 1990s, when property tycoon Datuk Alan Tong Kok Mau acquired 12 parcels of land totalling 40.47ha in the area. The land parcels he bought was developed and named Mont Kiara. Today, it is established and branded as a high-end locality with an eye on expatriates.
Tong, a property developer known as “KL Condo King”, founded Sunrise Sdn Bhd in 1968. The first project launched after he acquired the land was Mont Kiara Pines, which was completed in 1993. Launching at RM190 per square feet (psf), the project had 496 apartments. At that time, apartments in Bangsar were selling for more than RM300 psf.
Almost 90 per cent of the buyers were locals and the remaining came from Singapore. Following the success of the Pines, Mont Kiara Palma was next to be launched with 400 apartment units, and that project also received overwhelming response.
Looking at the success that Tong could deliver, the size of plantations in Segambut Dalam gradually whittled down as other developers followed suit and bought land in the area.
Besides Mont Kiara, new areas founded in Segambut Dalam included Dutamas. Developers like TA Global Bhd, Ideal Property Group, BT Homestead Sdn Bhd and Yakin Land Sdn Bhd have projects in Dutamas.
Mont Kiara today has more than 30 residential towers, shop offices, hypermarkets and shopping centres, majority of which were build by UEM Sunrise Bhd (Sunrise Bhd’s old name before it was acquired by UEM Land Holdings Bhd).
The other developers in Mont Kiara include Mah Sing Group Bhd, Bukit Kiara Properties Sdn Bhd and Ireka Corp Bhd.
UEM Sunrise chief marketing officer Kenny Wong told NST Property that the company still had 13.4ha of land to develop in Mont Kiara, and it would take at least 10 years to do so.
“These are pockets of land that we own all over Mont Kiara, and the estimated gross development value is well over RM5 billion,” Wong said.
Land price in Mont Kiara today, depending on its location, is going around RM350 to RM400 psf.
Just a year ago, Goh Ban Huat Bhd acquired a freehold land in the neighbourhood for RM39.53 million, or RM370 psf, as it sought to benefit from future capital appreciation while waiting for the right time to develop the land.
The land is located within 1km from The Plaza Mont Kiara and 1 Mont Kiara Mall, and around 3km from Solaris Mont Kiara.

Kepong— next Mont Kiara?

(File pix) Fortune Perdana is among new projects that have improved the landscape of Kepong. Asian Pac Pic

 

By Sharen Kaur - Published in NST Property on November 13, 2018 

 

DOES Kepong have what it takes to be the next Mont Kiara, especially with UEM Sunrise Bhd’s entry there?
UEM Sunrise is the pioneer developer of Mont Kiara. Its journey started in 1990s when Sunrise Sdn Bhd founder Datuk Alan Tong Kok Mau acquired about 40.5ha of land in Kampung Segambut Dalam settlement.
Tong named the area where he bought the land Mont Kiara, and established and branded it as a high-end locality with an eye on the expatriates.
The first project launched on the site was apartments that were priced at RM190 per square feet (psf). That was over 20 years ago. The apartments at UEM Sunrise’s recent launch, Residensi Astrea, are selling at RM870 psf.
UEM Sunrise has been buying land in Mont Kiara, but with only 13.35ha left for development, the company is banking on other areas in the central region to boost its property sales.
It has picked Kepong and recently acquired 29.14ha of land near Kepong Metropolitan Park from Kuala Lumpur Mayor at RM416.4 million, or RM131 psf.
Kepong Metropolitan, with 57ha of lake, is located at the northern end of Jinjang. The park is quite popular with developers, which have been buying land in the neighbourhood for the past few years.
UEM Sunrise managing director and chief executive officer Anwar SyahrinAbdul Ajib said the company intends to replicate the success of Solaris Dutamas and communities of Mont Kiara.
Anwar said the proposed 15-year project will have an estimated gross development value of RM15 billion.
Meanwhile, property consultants said despite UEM Sunrise coming into the picture, Kepong will be a far cry from Mont Kiara.
“Kepong is one of the earliest townships in Kuala Lumpur’s history. The older areas in Kepong like Bandar Menjalara, Taman Fadason, Taman Indah Perdana, Taman Kemacahaya, Taman Kepong, Kepong Baru, Desa Aman Puri, Desa Jaya, Jinjang Utara, Jinjang Selatan, Taman Bukit Maluri, Taman Bukit Desa and Taman Ehsan are home to thousands of low-,medium and high-end houses as well as traditional and heritage shops.
“Things started to improve in the last 10 to 15 years when new housing developments like Desa Park City, Metro Prima, Fortune Perdana and Laman Rimbunan were established. Property prices started to inch upwards, with the price benchmark of new apartments at hovering about RM600 psf.
“Mont Kiara is a different ball game. It is a luxury residential enclave and popular among expatriates, with prices doing about RM850 to 1,000 psf.
It’s not easy to replicate Mont Kiara in Kepong. It will take years and plenty of new high-end projects to get there,” said a consultant.
UEM Sunrise chief marketing officer Kenny Wong told NST Property that the company will look at developing the Kepong land in the fourth quarter of next year.
“We’ve just bought the land and won’t be developing it so soon. We have to look at market conditions and demand,” he said.

Branded residences gaining popularity

(File pix) The Royal Atlantis Resort and Residences in Dubai. Theroyalatlantisresidences.com Photo

 

Published in NST Property, November 1, 2018

THE first branded residence―The Sherry-Netherland Hotel ― opened its doors in Manhattan, New York, in 1927. More than 90 years on, the segment has expanded enormously to over 60 countries across the globe, including Malaysia.

Branded properties in Malaysia include The Residences@The St. Regis Kuala Lumpur, Banyan Tree Signatures Pavilion, Four Seasons Private Residences and The Ritz-Carlton Residences.

Knight Frank Malaysia head of residential sales and leasing and project marketing, Kelvin Yip, said branded residences are becoming popular as trophy assets that offer a high level of service,

facilities and quality.

This type of properties continues to attract affluent end-users and investors.

“More branded residences are scheduled for completion by 2021 and collectively they are expected to contribute more than 2,000 units to the existing stock,” he said.

Notable upcoming schemes include The RuMa Hotel & Residences, YOO8 serviced by Kempinski at 8 Conlay and SO Sofitel Kuala Lumpur Residences by the Accor Hotels Group.

According to Knight Frank’s Branded Residences Report: 2019, branded residences in Kuala Lumpur recorded a premium of 69 per cent against non-branded luxury residences last year.

This was the second-highest price premium seen among Asian cities.

The highest premium seen last year was in Bangkok, at 132 per cent above non-branded luxury residences, followed by Kuala Lumpur at 69 per cent, Manila at 36 per cent and Phuket at eight per cent.

The Knight Frank report states that branded residences are attracting significant premiums in Asian cities, with price differentials varying by up to 132 per cent compared to generic luxury developments.

Price premiums are driven primarily by location and can vary within the same city, it noted. For suppliers of branded residences, motivators include market differentiation, brand enhancement and year-round income, while for buyers, they include service, amenities, security and investment yield potential.

POSITIVE OUTLOOK

Knight Frank said growth in the branded residences sector will not be without potential pitfalls.

“There is a danger that in democratising the concept of branded residences, developers also risk devaluing it. The concept has always been aspirational. Now hotel companies are offering brands at a four-star level too.

“That risk may be unlikely to stall developers, however, with industry commentators saying that it is unlikely that we are going to move to a world where suddenly buyers are no longer concerned with the offerings of branded residences,” the firm said.

Knight Frank believes that the market will undoubtedly get more competitive, and there will be a few developers and brands squeezed out as a result.

“But that is unlikely to stop them from trying to capitalise on a market which still offers substantial benefits,” it said.

Knight Frank global head of research Liam Bailey said: “The global branded residences sector is growing exponentially. Until the 1980s, branded residences were a scarce commodity. They can now be found in almost every major city and holiday destination.

“Since a global residential benchmark was set at One Hyde Park, the London market has seen an increase in branded

residences at the top end of the market. In Dubai, the emergence of branded residences like The Royal Atlantis Resort and Residences mirrors the city’s transition from a holiday destination to one in which to invest in a more permanent home.

“The Asian market for hotel branded residences has seen strong growth, particularly in Thailand and Indonesia, with Asia now accounting for an estimated 30 per cent of 400 developments globally. This trend is set to continue.”

Knight Frank Asia Pacific head of residential, Victoria Garret, said Asia’s fast-growing, ultra-wealthy population is fueling demand for branded residences.

She said these buyers favour branded residences as they offer the convenience of high-quality services, delivered by a trusted brand and with the potential for capital appreciation.

“One example of this is One Barangaroo, Crown Residences in Sydney. As Australia’s first fully integrated, six-star hotel branded residences, the project has received a very warm welcome from both domestic and offshore purchasers since sales commenced. Like The Royal Atlantis, ongoing interest is driven by a combination of its lifestyle offering, design and location,” she Garret.

OVER 400 BRANDED RESIDENCES WORLDWIDE

Research by Knight Frank shows that there are more than 400 branded residences across the globe, the majority of which are hotel-branded.

The number and types of operators entering the space is now expanding and diversifying. Brands such as Versace, Armani and Porsche have all lent their names to developments in recent years.

Marriott International has, for example, Bvlgari-branded residences variation on price differentials between different global locations and different locations within cities.

Knight Frank said it is seeing renewedinterest in the branded concept given the rapid growth in global wealth witnessed since 2000.

Its Wealth Report highlights that the global ultra-wealthy population (owning US$50 milllion plus in net assets), grew 18 per cent in the five years up to 2017 and is forecast to increase a further 40 per cent over the next five.

“The market did not really take off until mid 1980s when Four Seasons opened condos next to their hotel in Boston. That really demonstrated the success of the model,” says Chris Graham, an expert on the sector.

The Aman hotel group launched the concept in a resort setting in 1988, with Amanpuri in Phuket, Thailand.

“Marriott alone has more than 60 branded residential projects in the pipeline,” said Daniel von Barloewen, regional senior director for mixed-use development for Europe at Marriott International.

This year and 2019 alone, Marriott plans to open 19 branded residential projects in nine countries.

Second fiddle to Mont Kiara

(File pix) Laman Villa is developed on 1.4ha land in Mont Kiara North.

 

By Sharen Kaur - Published in NST Property, November 1, 2018

THE Kampung Segambut Dalam settlement used to be a slum with many low-cost houses and small shops. It underwent various transformations just a decade ago with many kampung houses demolished to make way for the development of condominiums and apartments.

There was also improvement in infrastructure for better accessibility.

Segambut Dalam is playing second fiddle to Mont Kiara with property developers unofficially rebranding the southern part of Segambut as “Mont Kiara North” and banking on its name for sales.

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Since 2011,the name “Mont Kiara North” has been used by developers to link their developments in the area to Mont Kiara.

The first developer to use the term in its branding is BRDB Developments Sdn Bhd for its project called Verdana, followed by BCB Bhd for Concerto North Kiara.

Within Mont Kiara North there are also Bukit Prima Pelangi, Rosvilla, Prima Duta, Changkat View Condominium, Menara Duta 1 and 2,DutaRia Condominium, Anggun Puri, Sutramas and Prima Tiara.

High-end projects include Mesra Terrace, Villa Pines, The Serai, The Richmond and Laman Villa.

One of the earliest residential developments is Bukit Prima Pelangi by Brem Holdings Bhd.

Meanwhile, UEM Sunrise Bhd chief marketing officer Kenny Wong is not discounting the possibility of acquiring land in Mont Kiara North.

“Land is slowly diminishing in Mont Kiara. We came in about 40 years ago and still have 33 acres (13.35ha) that are undeveloped. We are looking around to replenish our landbank.

We are also planning new launches in the Mont Kiara area,” Wong told NST Property.

PROPERTY PRICES

Property prices in Segambut Dalam were within the affordable range in the 1990s as demand was weak.

Factors that contributed to the weak demand and lower prices in Segambut Dalam were the squatters and narrow roads, but that has changed in the last few years.

Bina Puri Properties Sdn Bhd chief operating officer Lee Tong Leong said in 2007, agriculture land in Segambut Dalam or the area that makes up Mont Kiara North was at about RM130 to RM150 per sq ft (psf).

“The land price today is about RM300 psf. We think it will slowly increase. Mont Kiara is doing about RM400 psf. If you look around, Segambut Dalam is no longer what it was 10 or 20 years ago. Back then there were hundreds of squatters and the roads were narrow.

“You still see squatters today, but their number has been reduced significantly. Over time they will also move out as developers buy up their land. There are many developers in Mont Kiara North today. While their selling prices may not be as high as those projects in Mont Kiara,they are slowly inching up,” Lee told NST Property.

Bina Puri acquired 1.4ha freehold land next to Bukit Prima Pelangi in Mont Kiara North to start a luxury project called Laman Villa.

Laman Villa could be the most expensive residential project in Mont Kiara North. The project comprises 22 units of three- and four-storey villas, and 20 units of low-density condominiums.

“When we launched the villas in 2014, they were selling at about RM850 psf. The price has since increased to about RM900-RM930 psf. Connectivity is key here. New highways and byways have emerged† in the Segambut locality,

boosting the prominence of this area and we think it will get better,” said Lee.

The main roads are from Jalan Tuanku Abdul Halim (formerly Jalan Duta), Jalan Sultan Azlan Shah (Jalan Ipoh stretch from Jalan Segambut to Jalan Pahang) and Jalan Kuching. These roads are connected by many expressways, including the Duta-Ulu Klang Expressway (Duke 1&Duke 2), North-South Expressway and New Klang Valley Expressway (NKVE).

Market analysis shows that there is still a price gap between properties in Mont Kiara North and Mont Kiara.

Condominiums in Mont Kiara North fetch between RM500 and RM700 psf, while newly launched condominiums by reputable developers in Mont Kiara sell between RM850 and RM1,100 psf.

“Mont Kiara North is more affordable as compared to properties at Mont Kiara, but prices will eventually pick up. Themarket at the moment is a bit soft. Give it another two to three years to see major improvements,” said Lee.

One of the newest launches within the Mont Kiara enclave is Trinity Pentamont by Trinity Group.

The 41-storey tower, which sits on a 1.17ha plot, was acquired from South Korea’s Daemyung Group in 2012 for RM55 million with a RM430 psf price tag.

The RM437 million project will have 330 units, with prices starting at RM640 psf.

Trinity founder and managing director Datuk Neoh Soo Keat said during the launch that the target market for Trinity Pentamont are upper-middle-class families, upgraders and those who are looking to downsize.

Mont Kiara extension: From estates to high-end haven

(File pix) The extension project in Mont Kiara has started.

 

By Sharen Kaur - Published in NST Property, November 1, 2018

KAMPUNG Segambut Dalam settlement was originally an agricultural land encompassing a huge rubber estate.

It was a place where hundreds of squatters, workers and farmers called home. Narrow roads connected the sparse community settlements, which all had poor access to major parts of Kuala Lumpur and Selangor.

Things started to take shape in the 1990s, when property tycoon Datuk Alan Tong Kok Mau acquired 12 parcels of land totalling 40.47ha in the area. The land parcels he bought was developed and named Mont Kiara. Today, it is established and branded as a high-end locality with an eye on expatriates.

Tong, a property developer known as “KL Condo King”, founded Sunrise Sdn Bhd in 1968. The first project launched after he acquired the land was Mont Kiara Pines, which was completed in 1993. Launching at RM190 per square feet (psf), the project had 496 apartments. At that time, apartments in Bangsar were selling for more than RM300 psf.

Almost 90 per cent of the buyers were locals and the remaining came from Singapore. Following the success of the Pines, Mont Kiara Palma was next to be launched with 400 apartment units, and that project also received overwhelming response.

Looking at the success that Tong could deliver, the size of plantations in Segambut Dalam gradually whittled down as other developers followed suit and bought land in the area.

Besides Mont Kiara, new areas founded in Segambut Dalam included Dutamas. Developers like TA Global Bhd, Ideal Property Group, BT Homestead Sdn Bhd and Yakin Land Sdn Bhd have projects in Dutamas.

Mont Kiara today has more than 30 residential towers, shop offices, hypermarkets and shopping centres, majority of which were build by UEM Sunrise Bhd (Sunrise Bhd’s old name before it was acquired by UEM Land Holdings Bhd).

The other developers in Mont Kiara include Mah Sing Group Bhd, Bukit Kiara Properties Sdn Bhd and Ireka Corp Bhd.

UEM Sunrise chief marketing officer Kenny Wong told NST Property that the company still had 13.4ha of land to develop in Mont Kiara, and it would take at least 10 years to do so.

“These are pockets of land that we own all over Mont Kiara, and the estimated gross development value is well over RM5 billion,” Wong said.

Land price in Mont Kiara today, depending on its location, is going around RM350 to RM400 psf.

Just a year ago, Goh Ban Huat Bhd acquired a freehold land in the neighbourhood for RM39.53 million, or RM370 psf, as it sought to benefit from future capital appreciation while waiting for the right time to develop the land.

The land is located within 1km from The Plaza Mont Kiara and 1 Mont Kiara Mall, and around 3km from Solaris Mont Kiara.