KUCHING: The property sector is seeing a hive of activities in the post-Chinese New Year period as SP Setia Bhd’s (SP Setia) launch of its RM6 billion KL Eco-City project marked the start of a wave of properties that would be marketed as a potential transportation hub with a mass rapid transit (MRT) stop.
MRT-INDUCED PROPERTY: Photo shows an artist’s impression of the KL Eco-City project by SP Setia. The launch of the project will trigger a wave of launches linked to the MRT theme. – Photo by kualalumpurprimeproperties.com
In its research report, HwangDBS Vickers Research Sdn Bhd (HwangDBS Research) said the KL Eco-City project launch commanded approximately a 30 per cent premium over neighbouring properties.
The strata offices launched at the end of January chalked up an 80 per cent take-up rate despite premium average selling prices (ASPs) of RM1,100 per square feet (psf). On the other hand, its boutique offices sold en-bloc at RM60 million per quadrant was already 75 per cent booked.
Furthermore, indicative response to the first condominium tower comprising 711 units to be launched in March or April was overwhelming even with ASP raised by 20 per cent to RM1,200 psf.
The research house also highlighted other upcoming launches to watch out for such as YTL Land & Development Bhd’s (YTL Land) Capers condominium at Sentul East after Chinese New year with 460 units priced at RM700 psf.
In addition, Selangor Properties Bhd’s (Selangor Properties) Batai condominium in Damansara Heights due to be launched in the first half of this year priced at RM1,000 psf and Guocoland (Malaysia) Bhd’s (Guocoland) RM2 billion Damansara City development also priced at RM1,000 psf were other launches on the horizon.
On the MRT developments, the research firm said that public display to gain feedback on the approved Blue Line (Sungai Buloh – Kajang) should be kick-started soon. The government’s decision on the proposed Circle Line (around KL city) and Orange Line (Ampang-Klang) might be announced in the middle of this year once the appointed consultant reverted its study findings in April or May.
The Circle Line would likely be approved given its significance in integrating all existing railway networks in KL. Although there could be alignment changes, HwangDBS Research believed the MRT would need to pass through high-density commercial value areas to be viable.
It said the first construction tender could be called by April with the ground-breaking exercise in July. However, the research house noted that property prices would start moving ahead as developers priced in improved accessibility and higher traffic from the MRT. Policies would likely remain accommodative to attract foreign/private investments to support the government’s initiatives.
Where land banking activities were concerned, SP Setia had started the ball rolling by buying two plots of land in January. This consisted of a prime 40-acre Jalan Bangsar land swap and 266-acre township land in Tebrau, Johor.
There could be more land banking activities on the cards as SP Setia beefed up its balance sheet with RM1.1 billion in placement proceeds in March. The master plan for the 2,680 acre RRIM@Sungai Buloh (MRT Blue Line terminal station) might be unveiled as early as mid-2011, which could see tenders called in the second half of 2011.
HwangDBS Research pegged YTL Land, Bolton Bhd and SP Setia’s target prices at RM2.80 per share, RM1.90 per share and RM7.90 per share respectively.