Changing lifestyles

Changing lifestyles

Stories By THEAN LEE CHENG

Moving from a bungalow to an upmarket condo.

WHEN Ben, a 30-something, invited his parents to live with him in his condominium, his parents winced. Having lived all their lives in a bungalow, they have come to relish the spaciousness offered by a landed property.

But things have a strange way of turning out. Concerned about security and having difficulties finding a gated and guarded environment with landed units in a locale they find acceptable, they finally settled on buying a condominium. Not just any, but a biggie, with a minimum of 3,000 sq ft and above.

Ben’s parents are among an elite group, says international property consultancy Rahim & Co.

Lai Voon Hon
Says KK Yap, manager of Rahim’s Prestige Homes: “People who buy into larger condo units are the very rich. Monthly maintenance may go up to about RM1,000. They are paying the price for a modern up-market prime neighbourhood. There are two categories of the rich being targeted here. The first is the shrinking family. From a family of five, there are only two senior citizens now and they do not want to run after the gardener, the pool cleaner or the contractor. The other category is the no-children, dual-income family. They lead a hectic lifestyle and have no time for anything else, unless the family grows.

“So there is a huge population who are switching from bungalows to condominiums, who wants the conveniences and lifestyle of an apartment.

“Secondly, when you enter the market with RM5mil to RM6mil, you are open to a huge market. For RM2.4mil, you cannot buy a bungalow anymore in a nice up-market area but you can buy a nice apartment. So there are people who are prepared to give up their bungalows at RM4mil to RM5mil – the price of a Damansara Heights bungalow – and move into a RM2mil apartment.”

Developers offering larger-sized units agree that such units are not a result of a trend, but because of changing lifestyle.

The actual Zehn living room design.
Says Ireka Land Sdn Bhd president and CEO Lai Voon Hon: “Malaysians have accepted the condominium as an alternative dwelling proposal. Before, parents would never consider moving into one. It was viewed as something for the younger set and a 1,600sq ft was considered large. Only starter homes and bachelors lived up there. But today, we have those aged 55 and above buying to stay,” says Lai.

His project Tiffani by i-Zen has 80 out of 400 units, with sizes ranging from 2,700 to 3,700sq ft.

Chan Chew Boon
If one were to talk about bigger and more luxurious units, BRDB’s (Bandar Raya Developments Bhd) One Menerung behind Bangsar Shopping Centre is a gem among the biggies.

Located on an 8-acre plot, there are only 229 units. This means density is very low, a plus factor. It is freehold. The smallest unit is 3,200 sq ft while landed triplexes are 8,000 sq ft, priced from RM2.1mil to RM5.4mil respectively. Duplex townhouses are RM5mil.

On a per square foot basis, it averages out to about RM750 per sq ft, comparable with some KLCC developments. The unit comes without any built-in cabinets. Despite that price, One Menerung is about 60% sold, mostly to repeat buyers.

Does that mean big units will work anywhere? The answer is “No”. It all boils down to location.

Singapore-based CapitaLand Ltd, one of South East Asia’s largest property developers, says it will only work in certain locations.

“You can’t do that for a new area. It has to be an established area like Bangsar, KLCC, KL city,” says CapitaLand Commercial Project Management Pte Ltd manager (business development) Chan Chew Boon. Other areas include Ukay Heights, Mont’Kiara and Penang because other than the rich local market, the expatriate market is also going for larger built-ups.

CapitaLand is jointly developing Zehn Bukit Pantai with Juta Asia Properties Sdn Bhd (formerly Dataran Kiara Sdn Bhd).

At Zehn, the smallest is about 1,900sq ft and the largest 3,500sq ft, with most of the units in the 2,700 sq ft region. Prices range from just under RM1mil to RM4mil for the penthouse. Average per sq foot is about RM500. The leasehold project comes completely fitted out with kitchen cabinets, wardrobes and a designer kitchen by celebrity chef Cheong Liew, who has been bestowed the Medal of the Order of Australia by the Queen of England. A Malaysian, he is now residing in Australia.

CapitaLand has several projects in the Klang Valley. Other than Zehn Bukit Pantai, its projects include the Marc in the KLCC vicinity, Hampshire Residences in Persiaran Hampshire along Jalan Ampang, Kiaraville and Tiffani by i-Zen, both of which are in Mont’Kiara.

The issue is more than just one of space. Developers also noticed that unlike the past, the higher-level expatriate market is opting for larger units because they want the security and the conveniences that come with such developments.

Chan says that the fact that Zehn will be next door to Pantai Hospital is not an issue.

“People want conveniences. This includes both the local and the foreign market. In a way, we are very fortunate. If you look at the residential market on a regional basis, KL is among the more affordable cities compared with Shanghai and Jakarta (see chart),” says Chan.

Block A, which has 94 units, is about 60 % sold. The total development has 187 units on 1.93 acres.