Sunday, July 1, 2012

TRIBECA @ Jalan Imbi


The Low Yat Group has embarked on this rare project on an equally rare plot of land on Jalan Imbi. There aren't many plots of land on Jalan Imbi actually, so they are actually going to demolish a block of shops for this. The crux of this investment is the Kuala Lumpur International Financial District (KLIFD) which is planned to be built in the South of the Tribeca project. This KLIFD plan has already generated much development of luxury housing along Jalan Tun Razak. 

Tribeca is a zone in Southern Manhattan. The acronym stands for Triangle Below Canal Street which is  basically a web of streets with buildings and business of character that also includes one of New York's Chinatown. 

The Jalan Imbi Tribeca however, will be a 318 unit development comprising studio units mainly and some 2 bedroom and loft units. It will be completed by 2016 but they are already selling at a price of RM1600psf and up. So, the smallest studio unit at 510sf will start from RM950k as the smaller units are priced higher psf... They are now teasing the market by releasing the 1st 20 units, which by noon last week were already almost 50% subscribed. For this pre-launch, they claimed that the selling price is at least RM100psf lower than the eventual launch later this year and expected to be at least RM500psf lower than the price at completion - such open speculation... 

One of the 2 major selling points that the sales people were pushing were the 5 PODS, or common areas which unlike most condos which have them concentrated in a facilities deck, these are spread out over the various floors, like a sky lounge. There are 5 themes which are Jungle, Social, Chi, Biz and Club - for you to choose according to your fetish of the moment.



The other main point is this Green Building concept (GBi) which I see a lot of developers are starting to implement in their projects. GBi involves heavy investments on building management systems and also materials to enable the building to mainly conserve energy. The obvious advantage of course is to reduce electrical consumption which for most buildings of this calibre, is the highest part of the maintenance costs. However, they have set maintenance fees at RM0.55psf which hardly potrays any benefit of having an energy saving building. This can be attributed to the commercial title which means much higher utility bills and also pay-back on the GBi investments. The worry of course is, by the time the cost is paid back, that's the time you need to spend on re-investing or heavier maintenance of the building systems. This concept is hardly tested at the moment.


The floor is arranged like a clothes iron, similar to the Flatiron Building in New York. 

   
The corridors are built inside the building like some hotels I've been to such as the Mandarin Oriental in Singapore. 



So, of the 2 floors released in this pre-launch, I find the corner 2 bedroom units particularly attractive - because they are the minority units as well as the  natural light friendly layout but the price starts from RM1.5million for these.


This seems kinda steep for just 900sf. For the "lower budget", there are the 510sf studios... nothing particularly exciting or different here except that you pay almost a million for each.


The 660sf offers 1 big room and a smaller room which might seem more attractive to be used as a SOHO.


So, at the end of the day, is this project viable? At this entry price, I am a bit nervous. With all the corruption endemic in Malaysia and the bad governance of the Federal regime, Malaysia might find it steep to reach the status to promote a KLIFD, let alone become one. So, we are not quite Singapore but in 5 years time, I am not sure...



16 comments:

Anonymous said...

when property market is hot, greedy developers will price in the future into current sales px. 1 million for a 500sf studio unbelievable. furthermore they dare say it is going to be 500/sf cheaper than the price when completed. talk is cheap unless they guarantee it lah....

Anonymous said...

hi sinleong
u think pavillion by banyan has potential?
zorop

YatYuen Eddie lim said...

Hi Sin Leong,

Would u pay a unit of ~680sqf Casa Subang unit for RM290k? it's said to be easy to get students to rent due to its close proximity to collegesa around. If possible, can you reply to my email at yat_yuen@hotmail.com, as i might miss your reply. Thanks

Eddie

sinleong said...

hi,
i am not able to reply to private emails all the time. apologies...

i've got a post somewhere in this blog about casa subang. it is pretty much a pig sty. RM290k for 680sf is a lot to pay for a lower medium cost apartment. just because it has a pool and security does not make it a condo. i think the answer to your question is mostly found in my blog posting about casa subang...

SL

YatYuen Eddie lim said...

Hi Sin Leong, thanks for your reply on Casa Subang, i read your post earlier, however, i wonder is does that pig sty. apply to the whole of casa subang? having seen your post on casa subang, i know it's not for own stay but would it be good for investment since it can fetch good rental price of Rm1.6-1.7k easily which would be decent enough to cover the repayment??

Secondly, is koi kinrara new phase, no balcony, facing swimming pool 1072sqf, empty selling at 360k a good bargain to invest in and potentially future own stay? what's your call? it looks like a pretty good location, though not in the immediate vicinity of student area, however, i'm surprised that the 1st phase are selling partly furnished at similiar price too. I was told that the new phase will be sold at a more expensive price too. Which would you go for if given a choice of the above?

Thanks. I'm still learning, therefore i hope i can gain some insights from the experienced one.

sinleong said...

i think there are many other projects that will give you that kind of returns without the hassle. u just have to find it. but if you think you can handle casa, why not?

i dont know much about kinrara but i've been there a few times. not to impressed with the access. for that price, i'd try to look for one of the smaller landed ones for a bit more.

Anonymous said...

While they are charging first world prices but lets face it, Msia still way behind in terms of the safety

Live Long MU Fan said...

Hi Sin Leong, I understand that there is a vacancy rate of about 30% in KLCC and Bukit Ceylon area....and places like 38 Bidara can face a few months vacant... What is your take on this?
Btw, did you read an article on the Malaysia Insider that property prices in Penang are unsustainable? What are your views on whether prices are sustainable?

Anonymous said...

Current property prices launched by developer is too high. They usually mark up by 30 % or more and there really isn't much buyer for those above rm 2 million segments. If u still need to buy better try those terrace houses not too far away I think it's better than condo

Anonymous said...

This TriBeCa is located near the gangsters alley .. Same row got an abandon project opposite time square and also front is empty old shop office .. Same row got budget hotel and what appears to be a massage or vice den.. At night many strange looking people roam around this place ..
So really u r paying for a dream meaning if u think a developer as tiny as low yat will develop this place further than what it is now surrounded by strange activities

Anonymous said...

instead of KLIFD it should be KLRLD-KL red light district, since a lot of prostitution and vice activity is concentrated around this area...like kowloon in hong kong

sinleong said...

Pat, u r right. I've also observed at least 30% vacancy rate in the city center. And yet more is coming up. Developers should concentrate on the RM2k rental market but by doing so, it means making units smaller and cheaper. What we are seeing are, units are getting smaller but prices are still going up beyond RM700k now for a studio.
I just got back from Penang and I was at the Star Property fair. I must say, I was in awe with the prices and wondering if there are takers for these. In fact it seems there is. It looks like Penang has been enjoying very good capital appreciation but rental is quite suppressed. Whether the bubble will burst or not will depend on how wealthy Penangites and those expats buying into it. It does look to me that the higher income bracket in Penang earn as much if not more than those in KL.

Anonymous said...

Hi, just came across your wonderful blog, at least u r not an agent with biased opinions :P

Do you have any opinions on MyHabitat2 and the capital appreciation and rental prospect of serviced apartments?

Thanks!

Eric

sinleong said...

Problem with MYHabitat 1 or 2 is the access and the competition from the Hampshires. Hard to describe here but try to drive there and you will see. Although they are quite close to Ampang Park LRT station, one has to cross a busy intersection to get there. Nothing wrong with the crossing but most expats who are your target market may find this less than elegant. What more with loads of other choices across the pedestrian bridge.

Anonymous said...

Yes there is a prostituition den aka spa at Seasons tower nearby opposite times square.
It's so popular that even Muslims go there and I wonder what the ppl who lives at seasons tower face as rooms are converted to dens
So this is good example if u r not lucky the anchor tenant could be engage in vice activity and the authorities not gonna care as they got their stakes also

Anonymous said...

The name of the spa is saboon .. Why no police go there catch the china dolls and pimps ?