DURING a downturn cycle, luxury properties are the first and most to be impacted.
Buyers usually opt for more economical alternatives or just hold on till the market improves, said Sheldon Fernandez, the country manager for PropertyGuru Malaysia.
There has been a slowing down of transactions for properties above the RM1 million mark and a bigger cooling off in interest for properties priced above RM2 million, especially in Zone 1 of the KLCC area.
Zone 1 is where luxury residences like One KL, The Troika, Marc Residences, Park Seven, Stonor Park, The Binjai on the Park, The Oval, Platinum Park and the ongoing The Four Seasons Place, The Ruma Hotel & Residences, 8Kia Peng and Star Residences are located.
According to Fernandez, PropertyGuru observed that property supplies in Kuala Lumpur from the fourth quarter of last year to the first quarter of this year dropped by 21 per cent, but asking prices rose three per cent.
He said despite the uncertainty in the market, there are a number of luxury projects that are doing fairly well in the Kuala Lumpur city centre.
These include YOO8 at 8 Conlay and Pavilion Suites.
“YOO8 is hailed as one of the most expensive properties around Kuala Lumpur. Reaching an astonishing price of RM3,200 per sq ft (psf), many are anticipating eagerly the outcome of this ambitious undertaking,” Fernandez told NST Property.
Pavilion Suites, consisting of a 51-storey serviced residence tower with 383 units (718 to 1,254 sq ft), sells from RM2.5 million per unit.
The residences offer world-class concierge service and personalised assistants to run errands and chores.
KING OF THE HILL
For 8Kia Peng @ KLCC, sales may be slow but developer I-Berhad and its founder Tan Sri Lim Kim Hong are unfazed.
This is a RM1 billion luxury residential project sited on 0.44ha of prime land at the hill of Changkat Kia Peng, off Jalan Kia Peng, in Kuala Lumpur.
It comprises a 50-storey tower with 442 luxury residential units ranging between 716 sq ft and 987 sq ft each.
The units are selling from RM1.6 million, or more than RM2,300 psf, and are currently about 15 per cent sold.
Lim said the company has received offers from foreign investors looking to buy the units en bloc.
“We are still considering the offers. This is a good project and we are in no hurry to sell, but if the price is right then we may consider the offers.
“We are selling the lifestyle experience, the address and its future investment value. These are among the strategies we have for 8Kia Peng,” said Lim, adding that the units are also fully fitted and furnished, thereby making it the first residential development in the KLCC area to offer such ready-to-move-in luxury.
8Kia Peng, which is the first luxury project by I-Berhad, was unveiled on March 14 last year by Prime Minister Datuk Seri Najib Razak.
Construction of the tower is targeted to be completed by end-2019 with the handing-over of keys to buyers expected in early 2020.
8Kia Peng has been dubbed “King of the Hill” for its historical essence and because of the site’s terrain that is higher than others in the area.
Jalan Kia Peng pays tribute to one of the city’s most illustrious figures, Choo Kia Peng (it is a surname shared by the first emperor of Ming Dynasty China Zhang who rebuilt the Great Wall of China along high mountain passes), and was once home to many Malaysian elites, including Malaysia’s founding father Tunku Abdul Rahman.
The higher ground where 8Kia Peng is located gives it the advantage of a commanding skyline of the Kuala Lumpur city centre.
“There is a lot of uncertainty in the market, but if you have a good product, there is really nothing to worry about. The mantra — location, location, location — still stands strong. 8Kia Peng is in a good location. It is tucked in a quiet and private enclave and only within five to 10 minutes’ walk to international five-star hotels like Grand Hyatt and Mandarin Hotel, shopping malls that include Pavilion and Suria KLCC, and the KL Convention Centre.
“Our pricing is also below those of our neighbouring projects. This gives room for our buyers and investors to enjoy price appreciation,” said Lim.
The Four Seasons Place, which is next to KLCC, was selling at an average RM2,950 psf, beating the RM2,900 psf record held by Binjai on The Park.
The Troika, completed in 2010, sold at RM2,500 psf.
The remaining units at The Four Seasons Place are selling above RM3,000 psf.