City & Country: Changing tack in Kiara View

For the past five years, Seni Nusantara Sdn Bhd has been building semi-detached homes in its maiden project, Kiara View. Now, the company is looking at including premium bungalow units in the fifth and final phase of the development in Mont’Kiara, Kuala Lumpur.

Phase 5 of the RM500 million freehold project is expected to be launched in this quarter once full approval has been obtained, marketing and sales manager Farah Lim Abdullah tells City & Country.

Sandwiched between Desa Sri Hartamas and Mont’Kiara, “the phase will offer only five bungalows and 12 semi-detached homes. The bungalows are from 6,000 sq ft, on land areas of 5,500 sq ft onwards, with indicative pricing starting at RM4.5 million. These units have already been reserved,” she adds.

Each semi-detached home and three of the bungalows come with a swimming pool. The indicative pricing is from RM3.4 million, or an average of RM600 psf. The semidees have built-ups of 5,500 sq ft and up, with land sizes from 4,400 sq ft.

This phase is located next to the Penchala Link. Farah says homeowners will not be disturbed by the noise from the highway as the four-acre site is on elevated land.

Touted as the single largest residential development on Malay Reserve land in Malaysia, this 38-acre project began in  2005, via joint ventures with landowners and on the developer’s own parcels, including Phase 4B and 5, which Seni Nusantara acquired recently.

“Buyers thought we kept the good plots for later but that is not the case. Over the years, when landowners saw the value in their land, some decided to sell and some decided to go for a joint venture,” Farah says.

The developer is currently launching Phase 4B — the only row of semidees facing the gazetted 188.93ha Bukit Kiara Public Park. Consisting of 28 three-storey units with built-ups of 4,900 sq ft to 5,400 sq ft on an average land area of 4,000 sq ft, this phase was launched end-November at prices starting at RM2.8 million or RM550 psf (based on built-up area). It is 60% sold and scheduled for completion by October 2012.

“Only this phase has the botanical view. The owners also have the KLCC view. The environment is very serene due to the park,” Farah says.
Homes launched in previous phases have seen impressive appreciation. The 2-storey homes in Phase 1 and 2, completed in 2007 and 2008, are currently transacting at RM2.5 million. They were launched in 2005 at RM1.4 million onwards, or RM395 psf. The 2-storey semi-detached homes in Phase 1 and 2, with average land areas of 4,000 sq ft and gross built-ups of 3,800 sq ft currently fetch rents of RM8,000 to RM14,000.

This translates into a gross rental yield (based on the passing rental and current market value) of 5% to 6% per year.

Phase 3A, offering 34 units of three-storey semi-detached houses, was launched at RM2.2 million to RM2.3 million in 2007. Phase 3B, comprising 32 units of three-storey units, was priced from RM2.6 million to RM2.7 million followed in 2009. Phase 4A was also launched in 2009, comprising 24 units of 3-storey semi-detached homes tagged from RM2.6 million to RM2.7 million. Some 12 units were completed in September and the balance is targeted for completion by next quarter. All these phases are fully sold.

“Properties on Malay reserve land are selling at a 30% discount, so the rental yield is higher on the relatively lower selling price. A few completed units in the earlier phases have been transacted with capital gains of 50% to 90% for the sellers,” Farah says.

The project is expected to be completed by end-2012, Seni Nusantara is looking at developing gated and guarded landed projects in high-end locations next, but there are no concrete plans yet.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 840, Jan 10-16, 2011