SINCE 2010, one trend stands out in the Kuala Lumpur City Centre (KLCC) area. Condominiums in this district are continuing to set pricing records in Malaysia.
Back in 2010, the Binjai On The Park development caused a stir in the market when one of its two super penthouses was sold for RM38mil, making it among the most expensive homes to have been sold in Malaysia in recent years.
On June 22, 2010, the wealthy buyer bought the triplex penthouse, measuring 14,300 sq ft, on the 42nd floor of Binjai’s Tower B. The price tag of RM38mil meant that the penthouse was sold for almost RM2,660 per sq ft (psf). Since then, the Binjai On The Park has broken that record with the subsequent sale of its other smaller units.
Now, new entrant The Four Seasons Place looks poised to set new record prices. Out of its 242 units, it has recorded close to a 70% take-up rate, with an average price of RM2,950 psf. As at press time, two of its penthouses which were initially reserved at a whopping RM37mil or RM3,026 psf have yet to be sold.
These prices are amazing feats. At these price levels, the condos are sold at per sq ft prices that are two to three times higher than other condos of similar sizes in the vicinity.
What sets this condos apart from the rest? In the past five years, buyers have been willing to pay significant premiums namely for two types of condos in the KLCC area.
Firstly, those with prime locations and spectacular views of both the iconic Petronas Twin Towers and the KLCC Park. Secondly, contemporary buildings designed by internationally famed architects have also achieved stratospheric kind of pricing.
This was first achieved by Bandar Raya Developments Bhd’s (BRDB) The Troika, completed in 2010, and set a new record price of RM2,500 psf on the back of world-renowned architect, Lord Norman Foster.
Now there is a third type of condo in the KLCC area that can equally command that sort of lavish premium. These are franchised condos – condos that carry strong international branding and offer five-star hotel services.
A trend is emerging where local developers partner international luxury hospitality and lifestyle brands. Full-fledged hotel services such as concierge and room services are provided for.
New franchised condos that have emerged in the KLCC area include the Four Seasons Place and the Banyan Tree Pavilion Signatures Kuala Lumpur.
In the case of Banyan Tree, 99% of its 441 units were sold at an average price of RM2,000 psf.
Other franchised condos that will be making their debut include the 150-room and 353-unit W Hotel & Residences on a 1.28 acre site in Jalan Ampang at an indicative price of RM2,500 psf and the Harrods Hotel & Residences.
Despite not even having a full view of the Petronas Twin Towers, real estate agents say that sales of The Four Seasons Place has been strong, especially for its smaller units. Consisting of 65-storeys, this luxury hotel, residential and retail project will house the 231-room Four Seasons Hotel, 242 units of private residences and 300,000 sq ft of upscale retail space.
The Four Seasons Place in Kuala Lumpur is the first Four Seasons Place in South-East Asia. Many view the Four Seasons as “limited edition” pieces. “Rather than ploughing money into a Lamborghini or a Porsche, why not put that money into a stable asset that will definitely sustain in value and yield capital appreciation in the future. These are the literal words from some of the buyers,” says one real estate agent who helps market The Four Seasons Place.
“At these super prices, the buyers are not thinking about rental yields. Some don’t even stay. I know of someone who bought the Binjai On The Park who left it empty for a year. He just wants to own a prime property in KL,” says KGV Lambert Smith Hampton (M) Sdn Bhd director Anthony Chua.
In the meantime, there are key differences between the franchised condo and the usual condos in Kuala Lumpur. The franchised condos comprise of hotel and residential development. It is more costly as the developer pays a franchise fee for the naming rights of the condo, possibly for a fixed period or in some cases, indefinitely.
“This fee ranges between 4% to 12% of the gross development value, depending on the location and traffic that the hotel is able to garner. The fee is either one-off or for a fixed period, say 20 to 30 years. When the licensing agreement has expired, the franchiser and developer will once again renegotiate the terms based on an agreement first entered into between them,” says a property director who is familiar with franchised condos.
The developer will have to construct and meet building, rooms and interior design specifications for both the hotel and residential units set by the franchiser. For franchised-type condos, residents cannot simply embark on their renovations plans.
They will first need to get the agreement of the franchisee. “Say, for instance, a resident of The Four Seasons Place wants to have a balcony feature, he would first need The Four Seasons’ permission. This is because there are certain standards that need to be upheld to maintain the branding and aesthetic quality of the building,” he says.
Once completed, the franchiser will manage the hotel section while the residential condos will be managed by a management committee set up by the residents. For the residential section, the management committee decides how it wants to manage the property. The developer basically does not have responsibility for this.
The fee and services can vary a great deal. Factors causing a fluctuation are the hotel’s star rating and operation level, and its physical location. Fees are generally costlier than for a primary residence. It is understood that The Four Seasons Place will charge below RM1 psf. Typical high-end condos charge in excess of 50 sen psf. Fees for such services typically include general unit utilities, common area utilities, grounds maintenance, exercise area and others.
Back in 2010, the Binjai On The Park development caused a stir in the market when one of its two super penthouses was sold for RM38mil, making it among the most expensive homes to have been sold in Malaysia in recent years.
On June 22, 2010, the wealthy buyer bought the triplex penthouse, measuring 14,300 sq ft, on the 42nd floor of Binjai’s Tower B. The price tag of RM38mil meant that the penthouse was sold for almost RM2,660 per sq ft (psf). Since then, the Binjai On The Park has broken that record with the subsequent sale of its other smaller units.
Now, new entrant The Four Seasons Place looks poised to set new record prices. Out of its 242 units, it has recorded close to a 70% take-up rate, with an average price of RM2,950 psf. As at press time, two of its penthouses which were initially reserved at a whopping RM37mil or RM3,026 psf have yet to be sold.
 |
| An artist's impression of Four Seasons Place. |
These prices are amazing feats. At these price levels, the condos are sold at per sq ft prices that are two to three times higher than other condos of similar sizes in the vicinity.
What sets this condos apart from the rest? In the past five years, buyers have been willing to pay significant premiums namely for two types of condos in the KLCC area.
Firstly, those with prime locations and spectacular views of both the iconic Petronas Twin Towers and the KLCC Park. Secondly, contemporary buildings designed by internationally famed architects have also achieved stratospheric kind of pricing.
This was first achieved by Bandar Raya Developments Bhd’s (BRDB) The Troika, completed in 2010, and set a new record price of RM2,500 psf on the back of world-renowned architect, Lord Norman Foster.
Now there is a third type of condo in the KLCC area that can equally command that sort of lavish premium. These are franchised condos – condos that carry strong international branding and offer five-star hotel services.
A trend is emerging where local developers partner international luxury hospitality and lifestyle brands. Full-fledged hotel services such as concierge and room services are provided for.
New franchised condos that have emerged in the KLCC area include the Four Seasons Place and the Banyan Tree Pavilion Signatures Kuala Lumpur.
In the case of Banyan Tree, 99% of its 441 units were sold at an average price of RM2,000 psf.
Other franchised condos that will be making their debut include the 150-room and 353-unit W Hotel & Residences on a 1.28 acre site in Jalan Ampang at an indicative price of RM2,500 psf and the Harrods Hotel & Residences.
Despite not even having a full view of the Petronas Twin Towers, real estate agents say that sales of The Four Seasons Place has been strong, especially for its smaller units. Consisting of 65-storeys, this luxury hotel, residential and retail project will house the 231-room Four Seasons Hotel, 242 units of private residences and 300,000 sq ft of upscale retail space.
The Four Seasons Place in Kuala Lumpur is the first Four Seasons Place in South-East Asia. Many view the Four Seasons as “limited edition” pieces. “Rather than ploughing money into a Lamborghini or a Porsche, why not put that money into a stable asset that will definitely sustain in value and yield capital appreciation in the future. These are the literal words from some of the buyers,” says one real estate agent who helps market The Four Seasons Place.
“At these super prices, the buyers are not thinking about rental yields. Some don’t even stay. I know of someone who bought the Binjai On The Park who left it empty for a year. He just wants to own a prime property in KL,” says KGV Lambert Smith Hampton (M) Sdn Bhd director Anthony Chua.
In the meantime, there are key differences between the franchised condo and the usual condos in Kuala Lumpur. The franchised condos comprise of hotel and residential development. It is more costly as the developer pays a franchise fee for the naming rights of the condo, possibly for a fixed period or in some cases, indefinitely.
“This fee ranges between 4% to 12% of the gross development value, depending on the location and traffic that the hotel is able to garner. The fee is either one-off or for a fixed period, say 20 to 30 years. When the licensing agreement has expired, the franchiser and developer will once again renegotiate the terms based on an agreement first entered into between them,” says a property director who is familiar with franchised condos.
The developer will have to construct and meet building, rooms and interior design specifications for both the hotel and residential units set by the franchiser. For franchised-type condos, residents cannot simply embark on their renovations plans.
They will first need to get the agreement of the franchisee. “Say, for instance, a resident of The Four Seasons Place wants to have a balcony feature, he would first need The Four Seasons’ permission. This is because there are certain standards that need to be upheld to maintain the branding and aesthetic quality of the building,” he says.
Once completed, the franchiser will manage the hotel section while the residential condos will be managed by a management committee set up by the residents. For the residential section, the management committee decides how it wants to manage the property. The developer basically does not have responsibility for this.
The fee and services can vary a great deal. Factors causing a fluctuation are the hotel’s star rating and operation level, and its physical location. Fees are generally costlier than for a primary residence. It is understood that The Four Seasons Place will charge below RM1 psf. Typical high-end condos charge in excess of 50 sen psf. Fees for such services typically include general unit utilities, common area utilities, grounds maintenance, exercise area and others.
