The parcel of land in Jalan Bukit Bintang could fetch more than RM3,000 per sq ft, possibly a record price for a land deal in Malaysia’s history.
Singapore’s property tycoon Kwek Leng Beng is in talks to sell a parcel of land in Jalan Bukit Bintang, Kuala Lumpur, which could possibly fetch a record price for a land deal in this country’s history.
It is understood that the selling price for the land, owned by Kwek’s City Developments Ltd (CDL), is being negotiated for more than RM3,000 per sq ft.
To date, the most expensive land deal reported has been Sunrise Bhd’s acquisition of Wisma Angkasa Raya in Jalan Ampang, Kuala Lumpur, for RM2,588 per sq ft. In May this year, FFM Bhd and Kuok Brothers Sdn Bhd sold a piece of land in Jalan Perak, Kuala Lumpur, for RM2,200 per sq ft.
CDL’s land in Jalan Bukit Bintang is about 32,000 sq ft. At RM3,000 per sq ft, the deal could fetch RM96 million.
The land sits between the Grand Millennium Kuala Lumpur hotel and the Pavilion Kuala Lumpur shopping centre. CDL, which is part of Singapore’s Hong Leong Group, also owns the Grand Millennium hotel.
Contenders for the land are believed to be the owner of Pavilion Kuala Lumpur and the YTL group, both of which have sizeable assets along Jalan Bukit Bintang.
Sources told Business Times that the RM500 million Millennium Residences project originally planned for the site and launched in 2007 had been aborted and that the land was being negotiated for sale.
A quick check at the site revealed that the project signage and hoarding had been removed. Some work on the 42-storey high-end condominium with an additional 15-storey crown started in 2008, but has since stalled.
In late March, a spokesperson for Singapore’s Hong Leong said that the Millennium Residences would be launched later this year.
However, replying to a follow-up question from Business Times last week, the spokesperson said: “There are no details on the Millennium Residences available at this point.”
When asked if the project had been scrapped and the land was being negotiated for sale, the spokesperson said: “We have no comment at this stage.”
Pavilion Kuala Lumpur is wholly owned by Urusharta Cemerlang Sdn Bhd, which in turn is 51 per cent owned by Urusharta Cemerlang Development Sdn Bhd and 49 per cent by the Qatar Investment Authority (QIA).
Pavilion Kuala Lumpur will be managing the new Fahrenheit 88 shopping centre, previously known as KL Plaza. It belongs to Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd, of which the principal is the QIA.
YTL owns the Starhill Gallery and Lot 10 shopping centres and the JW Marriott hotel in the vicinity.
Read more: Singapore’s Kwek in talks to sell KL land http://www.btimes.com.my/Current_News/BTIMES/articles/imiloff/Article/#ixzz0vsL2vev3
My view….
It’s never a sleeping town anymore for metropolitan city like KL. You can’t imagine a rubber estate back in 1940’s especially place like Mont Kiara and KL will turn into world class property. If you read a book wrote by IGB Bhd, back in 1950’s land around all this prime land cost less than RM10psf @ RM0.4356M per acres comparing to current value which exceeded RM130M per acres or a total appreciation of 300 times.
Mark my words today to you…Land is always the biggest winner in growing economy even though this will be very boring games as you don’t have to do anything except to wait for the sleeping giant to grow. Will KK’s prime land reaching RM3000psf? It will one day. I have full confident on this since current pricing of KK has reach RM120psf for residential lot and some industrial land has reach RM100psf. Good location land at town centre especially along Jalan Pantai and Jalan Gaya moving towards Jesselton Point has been valued not less than RM450psf. Not only that bungalow lots either vacant land or old design house along Tanjung Aru has been transacted at all time high lately. This is due to the good location and possible potential of turning it into commercial usage. Furthermore there are another 3 master projects comprising residential and commercial development has been planned in Tg Aru and I believe it will start constructing and launching 12 month from now. One of it is belong to Malaysia biggest developer known as SP Setia Bhd. Their project situated at Railway station Kota Kinabalu. Find out more at..
http://www.spsetia.com.my/aeropod/index.htm
Just to share with you, I also bought one pieces of land with old design bungalow along Tg Aru Petronas together with my associates last march for RM118 psf, we excepted this land to rise above RM200psf when SP Setia started their project which only situated less than 500M away from our land. I think it won’t take any longer than 3 years to reach RM200psf as lately one of my close friends just bought one prices of land together with an old design bungalow facing main road side next to Casarina Hotel at Tg Aru for RM1.6M @ RM185psf. This deal has creates record for KK residential land which a lot of people never dream of. It’s a 999 years leasehold land which he will turn it into commercial use. And another deal done last week, residential land near to Shangri la Tg Aru expected to be sold at RM130psf (vacant land) with 99 years leasehold. It was sold above RM4M per lot. It’s coming…either you like it or not, prime location land will continue to rise.. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
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{ 73 comments… read them below or add one }
good luck
Hi,
I believe some of us have watched the cartoon movie called ‘King Fu Panda’. It has a very catchy saying which go like this,… ‘ yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the “present.”‘
If tomorrow is a mistery. How did these guys be able to forsee into the future that the land price going to increased so many folds? I don’t think Dato Tan Chin Nam expect the land that he bought back then going to increase up to today’s value that exceeded 300 times. That’s why it’s called a ‘present’, a present to his organisation !!!
I beleive all those people you have mentioned above have wisdom. And wisdome are everywhere. It’s up to us to pick it up.
I believe CK you and your mates who bought that piece property along Petronas station is a 999 leasehold. You guys has got wisdom. Can you imagine 100 years from now your grandkids friends will tell them that Ah kung CK and his mates had got wisdom and forsight ! Lets not only today be a present but even the future be a present to our future generation .
HI,
Future is for us to find out. Nothing come free at all time. Sometimes we been laugh because what we buy is not up to the current market trend..but its ok..Time will proof how good is our decision. I remember when I bought my Api Api Apartment for RM166K (3bedroom) my colleague asking me..why I bought “chicken” house?? Today the value has exceeded RM300K in less than 5 years..a paper gain of RM136K@70%..:) So let those who don’t understand laugh at us as the future will proof our foresight today. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
I’ve heard about this Aeropod early last year and they are launching the Phase 1 (commercial shops) while Phase 2 should be apartments, office and hotels. The first phase for sale was stated on their website at July 2010. Now they have shifted the launch to the end of 2010. I really have some doubt as would this project be build in the end or just get abandoned and forgotten like Pacific Parade. What do you think CK?
HI,
Perhaps you dont know who is the developer…SP Setia is biggest Malaysia Property listed company with RM4.29B market capitalisation. So I dont foresee any problem with their project. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
oh yeah ive heard of aeropod since lastyear but when they soft launch in july, i didnt get their notification. can u tell me where to get info about the aeropod, has them been sold out or how many percent sold?
mjuch appreciated.
HI,
Nothing confirm so far from SP Setia. The location is at rail way station all the way up to Airport View Hotel. I heard they are trying to market for their commercial shoplot first with expected price of more than RM6 for 6 storey. Wait and see…Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
How much is the going rate for a land in Penampang, KK? Lot is near Jalan Kota Kinabalu – Papar, Penampang. Facing South China Sea.
Hi,
Its all depend..Ask the valuer on the value. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
I smile when I read this article because we just bought a two bedroom condo at Tg Aru; for investment purpose. Whatever new project launch at this area will sure help to increase value of our unit. We are not speculators, just small time, new investors who make our first move this year. We keeping the condo for rental & perhaps later on, as our retirement beach house. Sound good?
Hi redyoyo,
That,s sounds like waikiki. Good investment. Many expat bought or rent it there.
Yup Azlan, it is Waikiki. We don’t have enough resources/networking to buy vacant land or bungalow like CK & his friends. So the simplest form suffice for new investor.
Redyoyo, I believe Waikiki is a good investment. Though the building may be old, but the location is great, can walk to prince philips park, beach and restaurant. And a new park and restaurant is coming up just down the road.
Thanks Azlan for your input. I believe you are a very seasoned & aggresive property investor based on your other comments in this blog. We have almost exhausted our ‘bank credit capacity’ after acquiring Waikiki & owning a terrace hse we currently reside in. Need to recuperate for a few more years when the rental come in regulary & we ‘naik gaji’.
Hi Ck,
What do you think about Colonnades Condo?
HI,
Its all depend…
1. Floor size
2. Purchase price
3. Which floor
4. View
and condition of the unit..At the end of the day..due to the large size of the each unit size..you need to pay high maintainance fees. Even professional like doctors will feel the pain. Happy Investing.
YOu cannot Grow Land..CK Wong & MY DAD
Hi CK,
1. 1829sf
2. RM480k (still nego)
3. 5th floor
4. From balcony can see Mt KK
Brand new unit condition is still new.
Appreciate your comments
HI,
Psf is about RM262 which is cheap. But I still prefer to avoid due to the size of the property. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK,
Why are you concern with the size?
So far have you heard any problems regarding this condo.
I am just curious how come they have not sold out their units.
HI,
What do u all think of investing in Papar shoplot ? the rental in Papar old town can serve up to RM4000 for ground floor and the Kimanis oil project might give a boom in Papar.
HI,
Its a another risk that you might need to take. Of course the potential is there..Understand more on the total of population and potential grow of the people of Papar first. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi,
The Kimanis oil project wil bring in 3000 ppl as estimated by the town ppl and few housing development is proposed to be build in Papar area next year. wil this mean there is potential grow of the ppl in Papar as most of the developers have futuristic view than ‘layman’. What do u think ?
HI,
I havent studies Papar market. If you are comfortable pls proceed. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Dear Ck and Lissa,
I had a chance to fly a sabah air heli early this year to Limbang. I saw Petronas is laying the overland pipelines from kimanis all the way to Bintulu. Our natural gas is being send to sarawak as per reported . So you can forget the down stream oil and gas industry in in kimanis and papar. Even as recent as last month , The MD/CEO of petronas said that petronas WILL ONLY let sabah have some of the gas for down stream industry IF we have the infrastructure and human capital. In other words , he is asking us to fly kite !
And early this year Sun Bear Solar S/B suppose to sign an agreement to set a manufacturing facility for Solar Cell and in need of 42 millions Cubic ft of natural gas daily in KKIP. Really not sure if this can be fulfilled. To me , i really don,t think the down stream oil and gas industry will happened in kimanis and papar so soon . So forget about what can happened in papar. What we all see in Kimanis is just the terminal for loading the oil and gas.
Don.t worry about being ISA. All these are reported in our daily express !
Azlan
Hi CK,
So far, i didnt see anyone enquiry about KK Times Square,.. what do you think about the condo there..
Hi,
The project expected to be launched next 3 month. What you wanna know? Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
As property prices in metropolitan Kota Kinabalu continue to climb upward, savvy investors are looking into smaller towns with growth potential. Among the main areas now are Keningau (interior hub / Agropolitan centre), Papar & Kimanis (oil-depot), Lahad Datu (POIC), Kudat (tourism potential). More and more housing projects are coming up in these towns. It is good to look out for commercial properties, especially double-storey shoplots in these towns as it is more affordable. Can buy 2 for the price of one in KK. More easy to rent out too as the usage is more versatile.
Hi Azlan,
Yes, exactly, it is only a terminal for loading oil & gas in Kimanis, but it wil stil give some momentum to the Papar town rite ?
Lissa
Did anyone see much activity at the petronas Gas Depot at gayang near mengkabong bridge ? Most of us don,t even know where and what it’s except some sort of Bulking facility. It’s for gas. But do you see lots of people there and lots of activities and a housing boom ?
If you are sure and convinced that they are going to employ 3000 employees, go ahead and invest in papar.
Dear Aziz, I believe you are right as I have a piece of land around there . Land agent told me how good is it ,but asked an expert on these. He said the same as you. There will not be many people working there,too. It is automation.
Land is quite fertile for agriculture crop.
I want to know if it’s worth keep a unit of condo there for investment purpose, as they have mall downstairs and shops and offices nearby too. Please advice.
HI,
I heard they are selling RM700-RM800psf. The rental yield going to be very low looking at Kk market. Remember Marina Court rental as at todate can’t stable at RM3000 per month!! With so matured residential area somemore..if you are fully loaded why not..but if you are not..pls think carefully…Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK, what is your opinion of a new development called ’8 Avenue’ Commercial Mall & Designer Suites along Jalan Tuaran Bypass? I heard that the selling prices are very expensive. Do you think it is worth buying for investment? Thanks
Hi.
Ambitious developer..idea that suppose to be use at matured area but…I’m avoiding. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
i tink they r selling the condos there about 400psf n commercial ‘lifestyle’ mall ie health, fitness, etc
I think is much higher than 400psf. The designer suite with 703 sq ft costs 500K+ to 600K+, in other word, it costs >700psf++. Probably because it is fully furnished.
HI,
Just refer to my “High risk, Low return property” articles I wrote last few week..Its all about asset class which I totally avoid. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi ck, i hv a few years ago bought a small piece of vacant land along jalan tuaran bypass in kk. how long do you think i need to keep the land until the sorrounding area is matured enough to enjoy the fruit of it?
HI,
Its depend…currently alot of development happen..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK,
Do you know the latest Master Plan for KK town? Can i buy from KK land office.
Hi,
Good question. I dont think there is masterplan in KK. The land office change everyday depending on situation and who heading the state. So its all on shortterm planning rather than a “policy”. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi ck, if there is no masterplan, how sure are we that any vacant land that we purchase may fall under the government acquisition? it may be too late if we found it at a later stage after the purchase by luck. by the way what are the things that usually we need to take of to avoid this thing happening?
HI,
Within town area normally there is zoning for the land. You can check but the validity is depend on the surrounding of the land usage. In normal situation govt will compensate within the market value so I dont feel worry on this matter. Like example, I heard the previous warehouse along Tanjung Lipat now is in the mid of acquisition by govt. The price is hitting RM350-RM450psf. My good friend got 1 acres there @ 43560sf / RM 19M which he only bought it less than 10M not long ago…Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
I heard from my friend that Gov will only pay to the original land owner, and not the subsequent purchaser once it has made known of its intention to acquire the land. The new owner will not be compensated due to the fact he suppose to be aware of the compulsory acquisition at time of making the purchase. Is it true?
Hi,
You can get the proposed Master Plan or town planning information from the following :
own and Regional Planning Department Sabah
3rd, 4th & 5th Floors, Block B, Wisma Tun Fuad Stephens
It may come in pieces and you can photocopy them with cost. You can also check if the government going to acquire the area that you intend to purchase. You never know ! You may get valueble infor here !!
Azlan
What do think about investing in kampung land with NT title? Good road access, surrounded by mature residential neighbourhood. Area kepayan/ kobusak area. Does it still fetch 40-50 psft?
HI,
If you got NT cert pls consider. Happy Investing.
You cannot Grow Land.. CK Wong & MY DAD
Hi,
How about investing in Angkasa Apartment develope by SPNB near Tuaran Bypass Road or Aprtment Condo 2 develope by W group, is it profitable? what is the rental yield for this area and?
HI,
Do more research on the subject property. Your entry prices will be your main concern. Never buy above market value as this will reflected into your high monthly repayment. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK,
How much do you think is the market price (per acre or psf) for a piece of land at Jalan Pulutan? Thanks.
HI,
Its all depend. Last year some ppl are asking as high as RM200K per acres..Now not many ppl selling as alot development already happen nearby. So I dont know where is your land and condition of the land.Some are hilly. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi…
some asking rm12-15/ sqft…this year…partial hill…
very speculative market…i would say..
hi ck, is it worth investing in beach land in Papar area? what is the market rate now? thanks.
How about investing in CL land with remaining 40 years lease? They are selling at current market value.
HI,
Convince me why should I support for your purchase? Happy Investing.
You cannot Grow Land..CK Wong & MY DAd
well, its a bungalow plot land in kepayan, about 8000sft. NT previously but now changed to CL, and remain 40 yrs. Has a small brick house, selling at 400k.
Easy road access, though narrow, along a small stream. Cannot view the land along the main road, had to follow the stream for 3 minutes.
There are not many such plots of land in kepayan. The last time i saw was 260k (same size), 2′ below the road level.
My only concern is the short lease remain ie 40 yrs. Thus I may need to factor in the 100k, needed to renew the lease when the time comes. Is it all worth it, have i got myself a good deal?
Hi,
How much investment potential do you see in the D’banyan, Sutra units. Unit cost is around RM480 p.s.f, built up area around 4,600 on 6,500 leashold land.
They seem to have problem completing the units – around a year delay, claiming difficulties to get local workers. How much risk do you see?
HI,
Do you know who is the developer? WCT Bhd is one of the largest construction and developer in Malaysia. I dont think the completion risks is there. D’banyan is different from the rest of residential. I thought psf is less than RM400? My client just bought one lately for RM370 only. Please check again. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
hi ck, how do you calculate psf price for landed property? it is easy to understand psf cost for non-landed properties like apartment but i am somehow confused when people talk about psf price for a land property. Purchase price divided by land size or the gross or net built-up? thanks
Hi,
Valuation of landed property are abit different…ie landed divided into 2 part that is the land and building. The best example is Taman Kingfisher Phase 2:
Land – 2000sf x RM70 psf = RM140,000
Building – Built up – 1600sf x RM150 (building cost) = RM 240,000
Total value is : RM380,000
Hope this is the best example for your better understanding. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
thanks CK. In the case of D’banyan, how do you derive RM370 psf? Is this the cost based on the building or the land?
Thanks CK, I noted semi-detach at Nexus is quoted at around RM900+psf on the market. Assuming D’banyan is similar standard but right in the midel of KK town, is there a high potential for d’banyan price to grow from RM370-400 to double once it is completed? Ken
HI Ken,
I’m not predictor of the future value. I can’t predict also. D’banyan is located at the centre of city and surrounded by greeny and resort, thus the potential are tremendious yet to be release. The most critical are upon completion, what is the rental yield expected. My client bought it and expected rental of RM5K per month (fully furnished). So what is your expectation? Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
if given a choice, I would prefer the landed property in the middle of the city with only RM370psf over buying a highrise condo with RM500+psf. what do you think CK?
I also see the logic to Issac’s point on higher potential with landed property (lower psf price) vs high rise (higher psf price). But size of landed property is normally much bigger than high rise units and require significantly higher cash outlay, D’banyan units would cost RM1.5m to RM2m. Is this too high in terms affordability which may undermine price growth potential?
Ken
I agree with Ken, it is the absolute value that deter local people from buying. But, if the same kind of properties were to offer in KL or Penang, it may be a different scenario.
Hi, guys
I am newbie.
Nice to meet you all.
Is kimanis land have good potential for the future?
Regards
Hi,
What land you intend to buy? Where?Location?condition? Distance to road/town/public utilities..What is the purchase price? Zoning? Find out more..Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
Hi,
I am just asking, still not yet find.
Buy land is better than buy houses, right?
Regards
Hi,
Eric..how much money you havefor investment? You sound like just want to test the market and expected I do all the rest.!!! Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
HI,
Imaging ig you are buying 1829 sf units..that mean if management fees will be around RM400 per month..like it or not..rented or not..you are liable for the management fees of RM400 per month..and even if yuo rented for RM2000 per month…20% will be use to management acc..so you think its a good investment? Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
HI,
The psf derive from selling price/built up area ie. RM1.6/4400sf. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
HI,
Agreed. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD