Business

Tuesday August 21, 2012

Demand for houses and real estate in Klang Valley continues despite high prices

By THEAN LEE CHENG
leecheng@thestar.com.my


PETALING JAYA: Despite high land prices, interest in real estate in and around the Klang Valley is expected to continue from foreign and local buyers, according to property consultants.

Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng said he had been receiving enquiries from developers from China seeking out land for development. Local interest was also very strong.

“The demand for land for development continues to be buoyant,” he said, adding that the recent sale by tender of a 28,000 sq ft piece of property in Jalan Ampang was a good indication.

On the recent tender of Wisma Char Yong and adjacent plots, he said there had been enquiries from developers, companies and individuals. Wisma Char Yong, which was formerly occupied by Citibank, is for sale together with three pieces of vacant land and three pieces of land currently occupied by pre-war shophouses near the Jalan Ampang-Jalan Munshi Abdullah junction.

<B>Drawing interest:</B> There are enquiries from dev elopers, companies and in divi duals for Wisma Char Yong and adjacent plots in Jalan Ampang. The indicative price is between RM40mil and RM50mil. Drawing interest: There are enquiries from dev elopers, companies and in divi duals for Wisma Char Yong and adjacent plots in Jalan Ampang. The indicative price is between RM40mil and RM50mil.

Wisma Char Yong has a 60-year lease which will expire in October 2071 while the three pieces of vacant plots and pre-war shophouses are on freehold land.

The 16-storey building sits on a 16,000 sq ft site and has a net lettable area of 150,000 sq ft and a three-level car park and a basement, while the other six plots sit on 12,000 sq ft. The indicative price is between RM40mil and RM50mil for the entire entity. Tang said land prices in that vicinity are between RM800 and RM1,000 per sq ft.

Although the property was not located in an upmarket part of town, Tang said the development of Cap Square had given the place a lift.

“That part of Jalan Ampang used to be Kuala Lumpur's banking district. As the city grew, attention moved to the other end of Jalan Ampang.”

The other recent sale by tender was the British High Commission land, also in Jalan Ampang.

At three acres, with a reserved price of about RM200mil, the land is considered by property professionals to be located in a more vibrant part of Jalan Ampang.

SavillsRahim & Co in a statement said: “There has been significant interest from developers as this is a high-profile, landmark property. It is also more than three acres a good size for a comprehensive urban development. It is rare for a piece of land this size in the city.”

“Its encouraging to note that mid-size developers that are less well known but who nonetheless have ambitions for a flagship project in the city have also shown keen interest in the property. ,” the statement said.

The statement said some form of mixed development for the land would be most likely, with commercial, retail/F&B, residential and maybe even some hotel/service apartment elements.

“The site borders the exclusive U-Thant residential enclaveenjoying excellent frontage and accessibility along bustling Jalan Ampang. The Ampang park LRT station is nearby. One of the best things about this property is its size, which allows it to accommodate nicely a well-planned project.”

On its pricing at RM1,525 per sq ft, the statement said the guide price for the property was “in excess of RM200mil”, and this was arrived at after several valuation exercises.

“It is only a guide price', and one of the main reasons the property is being sold by way of open tender is that this is the fairest way of determining and achieving the property's true and optimum value.”

On land around the Klang Valley, the statement said “development land in prime urban and suburban locations will always be in demand as developers have to adopt a strategic, long-term view in expanding their land banks.

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