Condos Still Command Top Prices

The Star: February 21, 2009

PRICE correction or not, condominiums in the Kuala Lumpur City Centre (KLCC) area still command the highest price  compared with those in other parts of the country largely owing to its significant appreciation in the past five years.

Prices of newly launched condos in the vicinity have appreciated from RM500 per sq ft in 2004 to around RM1,000 in 2006 and RM2,000 in  July 2008. And in August last year, prices peaked at just over RM3,000 per sq ft following the soft launch of The Binjai on the Park by KLCC Property Holdings Bhd.

Other recent launches include the Regent Residences comprising 105 upmarket residences on top of the 5-star Regent Hotel in Avenue K with an average price tag of RM2,500 per sq ft. Since its soft launch in April last year, it has sold 60% of its units.

The unveiling of the much-awaited luxury residential project – Four Seasons Residences – by Venus Assets Sdn Bhd scheduled for late last year was postponed due to weak market sentiments. The 173 super luxurious residences are touted to have built-up of 3,000 sq ft each with a whopping price tag of RM3,500-RM4,000 per sq ft.

The latest KLCC project to be unveiled is The Binjai on the Park, which has chalked up a take-up rate of 20% since its soft launch last August. Offered under the build and sell concept, the residences are only offered to selected buyers.

The 171 residences with built-up from 2,500 sq ft are priced from RM2,500 to RM3,200 per sq ft or RM5.5mil to RM10mil a unit.

The super high-end residences offer direct view of the Petronas Twin Towers, direct access to the KLCC park, excellent quality finishes and  management. Other future projects lined up include Millennium Residences, 6 Stonor and IMC Parkville.

YY Lau Property Solutions chief executive officer Y.Y. Lau says the luxury residential market in the KLCC has gone up a notch with The Binjai project, and developers will have to pay more attention to finer luxury concepts in the future.

She also says the practice of extending special invitation to pre-selected potential buyers seems to have been effective as in the case of selling The Binjai. “By extending special invitation, the potential buyers are made to feel important and the chances of securing a sale is higher.”

Despite the apprehension over the property market’s outlook, Lau believes it’s a good time for serious buyers to scour the market for attractive buys.

“They stand a better chance of negotiating a better deal for some prime properties in selected locations,” she says.