The Berjaya project at the corner of Jalan Ampang and Jalan Sultan Ismail will consist of 2 blocks - a Serviced Apartment which is going to be managed by Ritz-Carlton and Grade A corporate offices. The Serviced Apartment which is the block nearer to KLCC is going to be launched next year. Unfortunately, there is no information about the price or layout but Berjaya has announced in the press conference that it will start from RM2000psf.
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The other block, which consists of 32 floors of Grade A offices has recently been launched for sale, starting from just over RM1000psf. The lower psf prices are applicable for the bigger units only. The smallest units at 755sf are going for about RM1300psf. There are 3 types of floors, each served by 10 lifts. Most floors have 7 units ranging from 755sf and 1012sf up to 2831sf. Some floors only have 4 units and the penthouses more exclusive, 2 units. Although each unit is equipped with a private toilet and shower, they also share common toilet facilities on every floor.
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Most units will not enjoy the famed KLCC view as they will be blocked by the Serviced apartment block. However, those facing the Serviced Apartments will enjoy the pool and tennis courts view and also view into any of the rooms who forget to close their curtains. There are only 2 units, both corner with these privileges. All the others face Bukit Nanas. Not bad since it is really green and the higher floors will enjoy the KL Tower view if it is not going to blocked by YNH's own corporate office project beside the Shangri-La. Unfortunately, this is also facing the afternoon sun and with 3 of the smallest units on this side, my own experience tells me it can get pretty hot. That means higher cooling bills but to most companies paying 5 figure rent for Grade A offices in this part of town, that is going to be quite negligible.
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The facade is nothing exciting for the building of this stature. The 2 blocks over an in-between podium design is similar to the Berjaya Times Square which despite all the fan-fare, ended up as just an over-rated version of Sungai Wang Plaza. It seems Berjaya have a lack of architect talent and they need to borrow the blue print of their Times Square for this project.
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As with most Offices, the units will be delivered bare with no fittings. Only air-conds will be provided. This is one of the advantages of investing in offices, in that they are normally rented out bare as well so that tenants can furnish and fit them as they please according to their own corporate image. Hence, the price you pay for the unit is the final investment figure unlike residential units which you will need to decorate and furnish nicely to get premium rental.
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It is indeed rare to get any Corporate offices for sale to investors, especially Grade A offices. There is only one other project in the KLCC area which is UOA's Binjai8 behind Nikko hotel. Even so, Binjai is peddled more as a SOHO concept rather than Corporate offices. The typical price tag for 1012sf unit in Ritz is RM1.3million which is not too bad considering a 1800sf office in Menara IMC close by is renting at RM14,000/month. However, the maintenance fee at RM1.50psf/month may become an additional holding cost if you are unable to rent it out. It is generally easier to rent a smaller office in KL city center, compared with larger units. That is the experience with UOA's Grade A office project in Bangsar. The result has been quite mixed with some owners fetching higher rental than others. But that's Bangsar area...
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Nevertheless, take up has been quite slow. At a week after launching, there is barely 10% sold. I think like many potential investors, I am tempted to pick up one of the smaller units facing Bukit Nanas but I am concerned about Berjaya's reputation with many of their projects, especially Times Square. That project took unusually long to build apparently due to Berjaya's cash flow problems.
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To be updated with pics
2 comments:
I can see current economic uncertainty in the world (Euro)and Malaysia (subsidies) would impact the disposal incomes of the rakyaat, and their ability to borrow to invest in property. Furthermore any increase in the cost of living here and a strong ringgit may not attract more foreign investors (>500K band)under the MM2H.
What would you think is the outlook on property investments and prices in the near future?
it's like looking into a crystal ball. nobody can predict the future besides luck. my opinion, some properties are over-valued. some under-valued. the way i look at it from an invstors perspective is, the tenancy and the market for it. no point buying super duper cheap and can't rent, the holding cost becomes a burden. i am willing to pay a premium for properties that are easy to rent, with high yield and low maintenance, even if it means the valuation on it is low
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