Bandar Kinrara has been one of Island & Peninsular Sdn Bhd's (I & P) star performers in terms of sales when compared with other developments by the group.
The freehold 1,904-acre township is now in its final phases with 526 acres yet to be developed. The township was first launched in 1991 and saw its first residents in 1992.
Despite the current economic slowdown and lacklustre performance of the property market in general, the developer is not slowing down. In fact, it recently launched Sinar and Butik 2, both of which are managed by Perumahan Kinrara Bhd (PKB), a subsidiary of I & P.
Bandar Kinrara has a wide array of products, from terraced homes to semi-detached homes (semidees) and bungalows. Sinar, the latest phase of 2-storey terraced houses in Phase 9A2 comprises 80 units with a gross development value (GDV) of RM33 million. With built-ups ranging from 1,800 to 2,235 sq ft and land ranging from 1,650 to 3,038 sq ft, these houses are priced between RM396,000 and RM621,000.
Datuk Jamaludin Osman, I & P group managing director, says Sinar is accessible via the Kesas Highway, Lebuhraya Damansara Puchong (LDP), Bukit Jalil Highway and the KL-Seremban Highway. "The take-up rate for these homes has reached 65%. They were launched on Dec 13, with most of the buyers being middle to high-income earners. Some 60% of them are owners while the other 40% are investors. Most of the buyers are from professional backgrounds," says Jamaludin.
The maturing township offers amenities such as schools, fields, parks, hypermarkets and even a public golf course. Sinar is slated for completion by December 2010.
The residences launched here in 1991 have seen an appreciation of between 133% and 324% over the years, according to the data compiled by the developer. The more recent launches like the 2-storey terraced houses (Cahaya) in Phase 9A3, which were launched in August 2007 at between RM345,000 and RM656,000, are now going for between RM420,000 and RM700,000.
Also launched in August 2007 were the 2-storey terraced houses (Permai) in Phase 5A1, which were selling at between RM380,000 and RM600,000. Now, these are going for between RM450,000 to RM700,000. They have built-ups of 2,100 to 2,300 sq ft.
An agent familiar with the area says the 2-storey terraced houses in Bandar Kinrara 4, which were selling at RM180,000 in 1997, are now going for RM360,000.
"These terraced homes might see a further 10% to 20% appreciation five years from now," he says.
In addition to Sinar, I & P launched twenty-two 2-storey bungalows (Butik 2) in Phase 9A9B. Butik 2 is the follow-up to the successful Butik 1, which was sold out. Butik 1, which comprises 14 units of 2-storey bungalows, was launched in November 2007 and priced from RM1.1 million to RM1.5 million.
Butik 2 bungalows are available in five designs with tropical themes. They boast land sizes of about 7,900 sq ft and built-ups of 2,718 sq ft. Prices start from RM1,261,888. These bungalows have also been fully taken up, with 60% owner-occupiers and 40% investors. Butik 2, which faces the Kinrara Golf Course, is slated for completion by December 2010.
So, why is Bandar Kinrara so popular? According to the developer, buyers like the township because it lies on the fringe of the Multimedia Super Corridor (MSC) area, is accessible via major highways — the LDP, MRR2, Sungai Besi Highway and Kesas Highway — and even has its own 18-hole public golf course with a driving range. The immediate surroundings of Bandar Kinrara include prominent housing schemes like Subang Jaya and Bukit Jalil.
"The lifestyle and living environment here combines lots of green areas with complete amenities in a well-laid-out development," says Jamaludin.
On Dec 13, the group launched 13 shopoffices at its Bayuemas development in Klang. Launched in 2006, Bayuemas was I & P's first venture in the Klang property market.
"The take-up rate is satisfactory as Klang investors often prefer to wait for the completion of projects before deciding. The mindset of people there is slightly different. Initially, the response will be slow but the momentum will pick up as the project progresses. The take-up rate is currently 20%," says Jamaludin.
The group has an undeveloped landbank of 12,000 acres. Jamaludin says the group is looking into the possibility of acquiring land within the Klang Valley at the right time.
"The market still wants terraced, semidee and bungalow homes. These are the homes that I believe will be in demand in the future," he says.
I & P is looking at launching more products this year, such as 2-storey terraced homes and semidees in Bandar Kinrara, depending on the economic situation, including the likelihood of further falls in interest rates, better support from financial institutions and the waiving of stamp duties by the government.
"It's just a slowdown, not a recession. This is the time to study the economy. We are assessing the market but we're not saying we're bullish to launch," says Jamaludin.
The group expects reasonable revenue and profit in 2009. Jamaludin says homes located in strategic locations, have affordable prices and are close to amenities will continue to be in demand.
"Our properties are all landed properties from medium to high-end developments as we believe in giving value to buyers. This can also avoid problems related to strata titles or the maintenance of high-rises. We emphasise more on the living environment by providing landscaping and public recreational areas. This is also a growing trend right now among new residential projects."
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