News: Sentral Suites: A Worthwhile Investment

Apr 17, 2018

 

Sentral Suites is an upcoming residential property in KL Sentral. It offers functional spaces and interactive zones, staying true to KL Sentral’s aim as the perfect place for living, working and playing. Sentral Suites is expected to be a solid investment worth your time and money.

Financial Prosperity Meets Luxury Living

KL’s median household income is the highest since 2014. It had increased by 19% in 2016 despite the drop in oil prices. The gross national income (GNI) for Malaysia is to double from US$6,700 to US$15,000 through the Economic Transformation Programme by year 2020. The GNI in Greater KL (GKL) is to increase per capita, US$12,900 to US$22,600 per year. Malaysia is also planning to attract 100 multinational corporations into GKL and increase the foreign talents from 9% to 20% of the population, increasing the overall from 6 to 10 million.

With the completion of MRT, the workforce is anticipated to skyrocket from 2.5 to 4.2 million. The Malaysian population’s compound annual growth rate (CAGR) is 2nd highest among the SEA countries, at 2.4%. More than 73% of KL’s population are aged between 15 to 64 years old with a median age of 28.7 years. Malaysia’s population will be primarily workforce who usually prefers property conveniently located for travel and work.

The True Meaning Of Worth

 

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GKL had 2.03 million supplies for residential properties at 2017’s first half (H1 2017). This was a significant growth of 8% over 1 year. High-rise format had been gaining popularity in KL, 39.1% shares and 54% growth rate between H1 2016 to 2017. 9,571 new condominium units were added to the residential stock in H1 2017; 65% are to be relatively affordable, RM500 to RM799 psf. About 116,459 units are expected, a total of 286,751 units overall by 2021.

After the 752-units addition from Sentral Residence in 2017, the residential stock became stagnant at 1,912 units. Luckily, the completion of Sentral Suites will multiply it by 75%. Sentral Suites is to be ready in 2020 with 43-storeys and 1,434 units, a gross floor area of 1.76 million. Sentral Residences were sold out fully in mid-2015 with an average price of RM1,277 psf. Its completion raised the average price in KL Sentral and Sentral Suites is likely to follow suit.

 

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KL had a 12.6% price growth rate from 2009 to 2014 but slowed down since. The third quarter of 2017 showed an increase at a 2.4% rate. But, KLCC were heavily affected by the downtrend with a CAGR of 2.2% from 2007 to 2017, while KL Sentral stayed strong at 7.6%. The average transacted price in 2017 for KL Sentral had increased over the last 3 years, hitting RM1,024 psf. Thus, the average capital value is expected to further appreciate as the average gross rent grows for the next 5 years. In contrast, KLCC’s is expected to decline in 2018, 2020 and 2022.

This does not indicate that KL Sentral’s properties would not be affordable. In 2016, the total residential loan approved dropped from RM103.4 to RM87.5 billion. In 2017, the total increased to RM93.4 billion. The total loan applications in H1 2017 increased by 16% at RM116 billion with an approval rate of 42% at RM48 billion, showing a great sign of recovery.

Superior Amenities

KL Sentral consists of comprehensive mix of amenities including:

  • Hotels
  • Hospital
  • Clinics
  • Retail Mall
  • Post Office
  • Local Food Outlets
  • Dining

Unmatched Transit Oriented Development

Bandar Malaysia, located about 5km from KL Sentral is to be better in terms of being the largest transportation hub in Malaysia. However, there has yet to be any proper update regarding this project. Setia Federal Hill is a mixed-use development (residential and commercial) by SP Setia, to be completed within 20 years. The project will be conducted on a 52 acres land with a gross development value (GDV) of RM15 billion. But, there is no update on this project.

Riveria City is a mixed-use property (residential and office) by a joint development of Prasana Integrated Development Sdn Bhd, Titijaya Land Berhad and Bina Puri Sdn Bhd. This project will be set on a 52 acres land with a GDV of RM1.4 billion to be completed by 2023 in 3 phases. Warisan Merdeka is a mixed-use development (residential and commercial) by Permodalan Nasional Berhad. This project will be developed on a 19 acres land with a GDV of RM7 billion. Warisan Merdeka is set to be completed in 3 phases; the first is expected to be ready by 2024.

Overall, Sentral Suites is built within a very well-balanced integrated development. The demand, growth of KL Sentral properties provides Sentral Suites with a recipe for success. The outlook for Sentral Suites looks promising, making it a worthwhile investment.

 

Click here to check out the newly launched Sentral Suites project by MRCB. Last few units left, don’t miss out on this great deal!

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Shaiful Safar
Real Estate Negotiator
REN: 17520
True Vest Property Consultants Sdn. Bhd.
shaiful.tvpc@gmail.com
(+60) 11-32302211