Land values have risen more
than 100% from 2010
Three property projects with an estimated gross development value (GDV) totalling more than RM2.5bil are being proposed for Section 13, a neighbourhood that is better known as a light industrial zone until recently.
Sources told StarBiz that two projects had received conditional approvals from the local authority while another was under consideration.
They said the projects that had received conditional approval pending their land-conversion applications from industrial to commercial titles were projects by Fraser & Neave Holdings Bhd (F&N) and a Sime Darby Bhd-IOI Corp Bhd joint venture.
The conversion process may take from six months to a year. Should these two projects be approved, they would bring the total number of on-going and approved projects to more than 10 in the 105ha leasehold neighbourhood.
According to a source, F&N’s two parcels of land totalling 5.14ha on the former Premier Milk and F&N Dairies plants on the corner of Jalan Universiti and Jalan Kemajuan, “could bring about one of the most significant and notable changes in land use in that area because of its location, combined land area and its varying components.”
The RM1.5bil F&N project, a joint venture with Singapore-based FCL Centrepoint Pte Ltd, would comprise 900 service apartments in three 32-storey blocks, 425 small office home office units, a 16-storey 250-room hotel, two office blocks of 19 and 23 storeys and a four-storey shopping mall podium.
The Sime Darby-IOI joint venture, located on a 2.2ha parcel along Jalan Kemajuan, would comprise a nine-storey podium with shop-offices at the bottom and two blocks of service apartments on top of the podium totalling 758 units with a GDV of RM557mil.
The third project, with an estimated GDV of RM600mil, would be developed by property-and-education firm Paramount Corp Bhd. This project would be located on a 2.1ha where KDU College is located along Jalan Universiti.
This project would comprise a four-storey podium together with a 29-storey office block and three blocks of serviced apartments of 10, 14 and 31 storeys on top of the podium totalling 454 service apartments and 64 small office home office units.
Real estate valuers have noted that land values in Section 13 have risen from about RM200 per sq ft in 2010 to more than RM400 per sq ft today.
A valuer said because of the potential for land-conversion in the neighbourhood (spurred by a 10-year special area plan mooted by the Petaling Jaya City Council), it would not be possible to compare land values there with another industrial zone.
He said the last transaction in Section 13 was for the DKSH land beside KDU College, which was sold for RM480 per sq ft to PJ Development Holdings Bhd.
A property consultant said the portion of Section 13 facing Jalan Universiti commanded a higher value although this might be debatable since there might be plans to have access to the Sprint Highway via Jalan Harapan-Jalan Semangat. Currently, access to the Sprint is via Section 17 and SS2.
Three property projects with an estimated gross development value (GDV) totalling more than RM2.5bil are being proposed for Section 13, a neighbourhood that is better known as a light industrial zone until recently.
Sources told StarBiz that two projects had received conditional approvals from the local authority while another was under consideration.
They said the projects that had received conditional approval pending their land-conversion applications from industrial to commercial titles were projects by Fraser & Neave Holdings Bhd (F&N) and a Sime Darby Bhd-IOI Corp Bhd joint venture.
The conversion process may take from six months to a year. Should these two projects be approved, they would bring the total number of on-going and approved projects to more than 10 in the 105ha leasehold neighbourhood.
According to a source, F&N’s two parcels of land totalling 5.14ha on the former Premier Milk and F&N Dairies plants on the corner of Jalan Universiti and Jalan Kemajuan, “could bring about one of the most significant and notable changes in land use in that area because of its location, combined land area and its varying components.”
The RM1.5bil F&N project, a joint venture with Singapore-based FCL Centrepoint Pte Ltd, would comprise 900 service apartments in three 32-storey blocks, 425 small office home office units, a 16-storey 250-room hotel, two office blocks of 19 and 23 storeys and a four-storey shopping mall podium.
The Sime Darby-IOI joint venture, located on a 2.2ha parcel along Jalan Kemajuan, would comprise a nine-storey podium with shop-offices at the bottom and two blocks of service apartments on top of the podium totalling 758 units with a GDV of RM557mil.
The third project, with an estimated GDV of RM600mil, would be developed by property-and-education firm Paramount Corp Bhd. This project would be located on a 2.1ha where KDU College is located along Jalan Universiti.
This project would comprise a four-storey podium together with a 29-storey office block and three blocks of serviced apartments of 10, 14 and 31 storeys on top of the podium totalling 454 service apartments and 64 small office home office units.
Real estate valuers have noted that land values in Section 13 have risen from about RM200 per sq ft in 2010 to more than RM400 per sq ft today.
A valuer said because of the potential for land-conversion in the neighbourhood (spurred by a 10-year special area plan mooted by the Petaling Jaya City Council), it would not be possible to compare land values there with another industrial zone.
He said the last transaction in Section 13 was for the DKSH land beside KDU College, which was sold for RM480 per sq ft to PJ Development Holdings Bhd.
A property consultant said the portion of Section 13 facing Jalan Universiti commanded a higher value although this might be debatable since there might be plans to have access to the Sprint Highway via Jalan Harapan-Jalan Semangat. Currently, access to the Sprint is via Section 17 and SS2.
The star, October
16, 2013
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