Monday February 4, 2008
KLCC magnet for local and foreign
In Part One of our focus on
KLCC, we look at the growing interest among investors and developers in the
prime real estate hotspot. Part Two will appear on Feb 18
Stories by ANGIE NG, FINTAN
NG and SHANNEN WONG
THE Kuala Lumpur City Centre
(KLCC) enclave is emerging as an international real estate destination with
growing local and foreign interest to develop and invest in residential and
The Petronas Twin
Towers and the
surrounding 50-acre central park have been “magnets” in attracting real estate
investors and developers.
Interest in the KLCC area
started in early 2000 after the Kuala Lumpur City Hall (DBKL) set out to make
Kuala Lumpur a world-class city and to promote inner city living in line with
the KL Structure Plan 2020.
Medium-density high quality
residential developments were designated in areas around the KLCC, Jalan Yap
Kwan Seng, Bukit Ceylon,
Jalan Inai/Imbi and Jalan Stonor/Conlay.
The early launches in the KLCC
area included the Stonor
Park, Marc Service
Residence, Dua Residency and Binjai Residency.
In the last few years, these
apartments, which were sold for between RM500 and RM700 per sq ft (psf), have
recorded price appreciation of between 70% and 120%.
The interest in high-end
luxury residences within the KLCC enclave is driven by the changing lifestyle
and the strong appeal of inner city living.
According to Zerin Properties
chief executive officer Previndran Singhe, owning a property in the KLCC area
has become a status symbol for the affluent and a dream for many people.
“Malaysians are moving to the
city in recent years similar to the trend in Hong Kong and Singapore a
decade ago. Living in the inner city has become a choice for a growing group of
people who are opting for a change in their lifestyle and the conveniences
offered by city living,” Previndran said.
Besides the many amenities
from shopping complexes to eateries, the worsening traffic woes in the city
make walking home from work fun and time-saving.
A growing expatriate
community, including diplomats and professionals from the information
technology, oil and gas, and banking industries, is also opting for the KLCC
Their high rental budget has
pushed rental rates in the surrounding residences from RM3 psf previously to
RM8 psf now.
Industry observers said
properties in the KLCC vicinity, including residences and office blocks, were
changing hands at prices that were once thought not possible in Kuala Lumpur.
Over the years, prices of
residential properties in the KLCC area have recorded strong capital
appreciation, and market observers are confident that prices would continue to
reach new heights as land become a scarce commodity in the KLCC area.
Zerin Properties assistant
head of agency Terence Yap said KLCC properties were being traded like
commodities rather than investment assets and prices had skyrocketed in the
Abbey Woods Sdn Bhd chairman
and managing director Datuk Wong Choon Kee said the strong outlook for the KLCC
market would continue, given the country's political stability, strong economic
fundamentals, and the investment friendly environment, to promote greater
foreign participation in real estate.
“The exemption of real
property gains tax last April is a welcome start to get Malaysia on the
radar screen of investors. Kuala
Lumpur properties are still relatively cheaper
compared to other Asian cities and there is strong upside potential,” Wong
“With prices breaking RM2,000
psf and fresh frontiers in luxurious living being opened with each new project,
the possibility is there for residences in the KLCC enclave to be on par with
world renowned residential enclaves such as the Hyde Park in London
and the Central Park in New York.
“We are now looking at new
levels, some new launches touching RM3,000 psf this year,” Previndran
The Star Online, 2008)