The Lure of KLCC

CONDOMINIUM prices in the famed KLCC neighbourhood seem to be in a state of flux, with foreign investors and fund managers zeroing in only on prime developments that offer potentially good returns.
According to Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng, the most popular properties are those that actually face the Petronas Twin Towers.

The KLCC area offers instant recognition due to the prestigious Petronas Twin Towers, says Teng Chee Meng
“The KLCC area offers instant recognition due to the prestigious Petronas Twin Towers, and a lot of buyers are partial to units with prime views. The location also offers convenience in terms of shopping, entertainment, recreation, transportation links as well as proximity to major office buildings.”
He said that in terms of living environment, places like Bukit Tunku, Damansara Heights and Bangsar were, however, better choices.
“However, many are wary that today they may have the view of the towers but tomorrow they may not. There are still parcels of land for property development around the KLCC focal point so buyers have to beware of future high-rise developments.”
Of late, Tang and other property consultants like him, have been busy briefing foreign clients on which high-end condominium developments are worth investing. But most of them only want to buy in the KLCC area.
“A lot depend on when the condo-development is to be completed and what rental will the units fetch. Investors normally look at the yield and capital appreciation.
“We get a mixed group of investors. Some are institutional investors managing foreign funds while some are property traders like those from Singapore who buy and sell. They take up a chunk of 30 to 50 units. And they sell them off through their network in Singapore. There are some who hold on. These traders may have lost out on opportunities in Singapore so they turn to KL and don’t intend to lose out again.
“For instance, those who have bought Marc Residence units at the average price of RM600 per sq ft (psf) can now sell them for RM1,200-RM1,300 psf. We have a client who sold at RM1,350 just last week.
“Investors who have benefited from their capital gain, are now ready to re-invest in the property market or stock market.”
On the most luxurious condo-developments in the KLCC area, Tang listed these:
Four Seasons – Yet to be officially launched but rumoured to be above RM2,000 and up to RM3,000 psf.
Binjai, KLCC – Yet to be released for sale but purportedly in the range of above RM2,000 psf.
K Residence – Revised asking price for one of the penthouse units up to RM2,000 psf.
The Troika – Revised pricing up to RM1,800 psf.
One KL – Sold at up to RM1,600 psf.
Avare – Revised pricing up to RM1,500 psf.
Marc Residence – Resale at RM1,000-RM1,250 psf.
Pavilion – First block sold at RM900-RM1,000-plus psf.
Suria Stonor – Revised pricing of remaining units at RM1,000-RM1,250 psf.
Dua Residency – Developer’s revised pricing for remaining units at around RM1,000 psf
The Oval, KLCC – From RM700-RM1,100 psf (pricing may yet be revised).
Park 7 – From RM800-RM1,000-plus psf.
Some of the latest projects to be launched in the will be above RM1,000-plus psf.

It is a fact that there aren’t any condominium developments outside the KLCC area which are more expensive or grander.
As for Tang’s list of the most expensive condominium developments, he said it had yet to be seen whether they could be considered good investments.
“Yet to be seen until they are completed,” he said. “Rentals have to rise to new benchmark levels in order to provide a better yield to investors. However, compared to other major cities, KL’s residential prices are still cheap, so there could be room for capital appreciation, provided that the economy and stock market continues to perform well.”