News: Property Valuers, Agencies Divided On Impact Of Bangsar South To Kerinchi Name Change

Jul 5, 2018

 
Property valuers and real estate agencies are divided on whether a name change from Bangsar South to Kerinchi will affect property values within the area, reported The Sun Daily.

VPC Alliance (Malaysia) Sdn Bhd Managing Director James Wong, for instance, believes it is not advisable to have the name change considering that foreign buyers are not familiar with ‘Kerinchi’.

He noted that UOA Development Bhd – the developer of the integrated property development in Kuala Lumpur – used the name Bangsar South to differentiate the new development from Kerinchi, which is mostly comprised of medium- and low-cost flats.

“Hence, the name ‘Bangsar South’, although it is not adjoining Bangsar. The word ‘Bangsar’ connotes an upper class and desirable residential and commercial development. It was clever that UOA Development managed to get DBKL to approve the name ‘Bangsar South’.”

To highlight the importance of a name to the success of a property development, Wong cited the Bandar Baru Sungai Buloh township as an example. He revealed that the township witnessed noticeable increase in property values after its name was changed from ‘Bandar Baru Sungai Buloh’ to ‘Kota Damansara’.

“The new branding definitely improved the selling prices, rentals and take-up rates in Kota Damansara compared to the previous name, Bandar Baru Sungai Buloh.”

Malaysian Institute of Estate Agents past president Siva Shanker agrees that branding can affect the purchasing decisions of buyers.

“Nowadays, branded developments and developers sell, which is why a branded developer can sell 75 percent of his project within two months, while a not-so-branded developer can only sell 20 percent in the same area.”

And while he believes the name change mooted by Lembah Pantai MP Fahmi Fadzil is a step in the wrong direction, Siva stopped short of saying that a name change will affect property prices within the area.

This comes as the area is a well-established location.

Nonetheless, he expects developers to use the Bangsar South branding for their future project there. “Real estate agents will also continue selling their properties there as Bangsar South projects. The area has grown too strong for a name change to make a difference.”

CBRE-WTW Managing Director Foo Gee Jen, however, believes available infrastructure and facilities will trump branding.

“The name change is irrelevant. New buyers going in will see on the ground the facilities and infrastructure available,” he said. Despite a name change, Foo still expects developers to continue selling upmarket products there.
 

Image sourced from World of Buzz

 
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
 

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Shaiful Safar
Real Estate Negotiator
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True Vest Property Consultants Sdn. Bhd.
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