THE integrated mixed project known as Sunway Velocity that Sunway Bhd has embarked on along Jalan Cheras, Kuala Lumpur, will emerge as a bright spot in that vicinity.
In the neighbourhood of Jalan Cochrane, redevelopment efforts have given a new lease of life to the area.
Sunway central region property development division executive director Ong Ghee Bin says in an interview with StarBizWeek that the Velocity project where people can live, work and play under one roof will further enhance the area.
He concedes that the selling prices of the properties, both residential and office, are at record high in that area, which was once considered “run down”.
“With this regeneration, we are able to transform the whole area,” he adds.
CH Williams Talhar and Wong Sdn Bhd managing director Foo Gee Jensays: “With the Sunway brand name, selling prices are at a premium, taking into account Sunway’s reputation for reliable quality of design, materials used and workmanship.”
He also says that expectations have always been high that redevelopment of the Jalan Peel and Jalan Cochrane area will offer investors the opportunity to own a property with high rate of capital appreciation, based on the track record at nearby Taman Maluri.
“Jalan Peel/Cochrane was originally a government housing area. Jabatan Kerja Raya (Public Works Department) workshops and the government printer were established in this area. This was followed by other private light and medium-scale industries surrounding the residential area,” Foo elaborates.
Among others, Malton Bhd has introduced Amaya at Maluri, a mixed development which sits on a 2.7-acre leasehold land with a gross development value (GDV) of RM215mil, which was launched at RM450 per sq ft (psf).
“In comparison, the current average asking price at Amaya Maluri is about RM700 psf … but it will not have the convenience of being integrated with 1 million sq ft retail space and office suites,” says Foo.
He points out that older developments like Pertama Residency and Plaza 393 cannot be compared with Velocity because they were built much earlier.
It is also worth noting that the 23-acre freehold land neighbouring some of Cheras’ mature townships like Taman Maluri, Taman Shamelin Perkasa and Taman Pertama is a rare find.
Sunway Velocity
Sunway can increase the attractiveness of integrated mixed development by improving traffic flow.
Besides having the two future mass rapid transit (MRT) stations Cochrane and Maluri that are 100 meters and 220 meters away respectively from the project, the developer has planned a tunnel with direct link from Jalan Cheras to the shopping mall basement carparks and an underpass from Jalan Cheras to Jalan Peel.
The builder has also proposed an elevated and covered walkway to link the upcoming MRT stations.
“We want to do things properly and we don’t mind paying extra for the infrastructure for people’s convenience,” says Ong.
On top of the connectivity of the project via various roads and through the MRT stations which are expected to be completed by 2017, the idea of a self-sustained development becomes even more seamless with all the planned covered walkway for people to go from one place to another within that locality, he adds.
The project is a joint venture with landowner Fawanis Sdn Bhd and has a GDV of RM3.8bil. It comprises three phases. Phase one and three consist of serviced apartments, retail shops and office suites.
There are several types of offices to cater to different business needs. For instance, its designer suites are popular among start-ups while its signature office blocks target small and medium enterprises, Ong says.
The designer offices, with a built-up area of 600 sq ft, are 85% sold and boasts of facilities like swimming pool and gym.
Serviced apartments known as V Residence, meanwhile, come in varying sizes. There are 564 units, of which 411 are studios and 204 small office home office (SoHo) units.
When launched last year, prices of the residential units started from RM750 psf.
Ong says subsequent launches of serviced apartments were priced at RM900 to RM1,000 psf. There was overwhelming demand.
“We have studio units to cater to the young adults or couples, apartment sizes ranging from 800 to 1,000 sq ft for smaller families and 1,000 to 1,500 sq ft for medium-sized families,” he says, adding that 334 units will be launched in August.
Phase two of Velocity, which includes a 1.4 million sq ft shopping mall, a 284-room four-star hotel, office tower and corporate office collectively worth RM1.5bil, will be owned and operated by Sunway.
The mall, slated for opening at the end of 2015, is going to be an exciting lifestyle mall, he says, adding that the management will time its opening for the year-end festivities.
After the shopping mall, it will launch its hotel, and subsequently the office tower, Ong adds.
“Many of our existing tenants (from Sunway’s other malls) are interested to come over as it will have an interesting concept,” he enthuses.
He also says the group’s expertise to run and manage shopping malls, hotels and offices would bolster investors’ confidence.
“Owners of the retail shops can capitalise on visitors coming to the shopping mall as they will have to go pass the shops before arriving at the mall,” he explains.
There is also a two-acre recreational park.
Two property analysts tells StarBizWeek that selling prices for the project are rather high considering that it is not a “high end” area.
“The location does not warrant this kind of high prices,” quips one.
Foo says the rate of capital appreciation of the serviced residences will depend on the success of the retail mall.
“The challenge faced by Sunway is to establish a megamall in that locality similar to the success it achieved with the Sunway Pyramid in Bandar Sunway.”
However, real estate investment consultant Gavin Tee Swee Heng says the prices are reasonable, given the amenities and connectivity. Both these features will boost the rental market.
“The live, play and work concept will have a premium. It is a concept that is popular in large cities like Beijing and Jakarta. In Kuala Lumpur, the trend has just started,” he says.
He also notes that the place is good for owner occupiers whereas investors may have to hold the property for three to five years to see meaningful gains.
“Investors might not see immediate returns in terms of price appreciation but they do not have to worry about renting out the units as there will be demand,” he adds.
In terms of progress, phase one is 50% to 60% completed whereas phase two is 20% completed. Meanwhile, work for basement structure of phase three has begun.
The entire project is expected to be completed in 2018.
Source : Star, June 22, 2013
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