With the development of Greater Kuala Lumpur (Greater KL), eight colossal projects have been proposed with each expected to create individual integrated enclaves with substantial residential components.
Real estate services firms expect the projects to bring new excitement to the property scene with a few of them similar to what had happened around the KL City Centre area in the past decade.
The proposed projects are envisaged to introduce a fresh generation of commercial buildings and luxury high-rise residences and may see prices and rentals catapulted to new levels.
Of the eight projects, 1Malaysia Development Bhd’s KL International Financial District (KLIFD) and redevelopment of the Sungai Besi Airport are scheduled to take off this year. The company’s main partner is the Qatar Investment Authority.
KLIFD, spanning 75 acres, will be transformed into a state-of-the-art city development featuring buildings with rooftop gardens. According to one concept, there will be up to 20 buildings surrounding a highrise tower.
The Sungai Besi Airport redevelopment, referred to as Bandar Malaysia, covers 495 acres and will include residential, commercial and recreational components as well as a library, public park and public square.
Both projects would be used as a catalyst as well as a benchmark to change the rest of KL and the way development would take place.
Also envisaged to spur economic activities, including property development along the Sungai Buloh-Shah Alam corridor, is the estimated RM10 billion Sungai Buloh township including a transport hub to be built on land belonging to the Malaysian Rubber Board. It is a joint venture between the federal government and the Employees Provident Fund.
To put it in perspective, this mega township is almost three times the size of Petaling Jaya, created from a 1,200acre rubber estate in the 1950s due to overcrowding in KL.
Then there is the Kampong Baru redevelopment plan covering 233 acres on which over 60 million square feet of residential and commercial elements can be built.
Another massive project is the proposed Tamansari to be built on the site of the former Pekeliling one-room flats that were first-generation low-cost homes erected in 1967.
Tamansari’s developer Asie Sdn Bhd intends to create a lifestyle district similar to a village-style resort. It will be strong in residential components with office and hotel facilities integrated via pedestrian-friendly features such as Citywalk, Riverwalk and Tititransit.
Comprising 24 land parcels on 57 acres located at the Jalan Pahang-Jalan Tun Razak intersection, the entire Tamansari is expected to be fully developed in seven to 10 years.
Warisan Merdeka Development
Another proposal is Permodalan Nasional Bhd’s 18-acre Warisan Merdeka Development situated at the existing stadium complex on Jalan Hang Tuah.
The plan includes a 100-storey office tower that is expected to change the KL skyline. Meanwhile, UDA Holdings Bhd has begun redevelopment of the former 19-acre Pudu Prison site into the RM5 billion Bukit Bintang Commercial Centre, a mixed-use commercial hub with residential elements.
The eighth mega project proposed under the Greater KL plan is a mixed development on Jalan Duta, tentatively known as Naza KL Metropolis, which will be constructed over 15 to 20 years.
The 62-acre site is located beside Malaysia External Trade Development Corporation’s MATRADE Centre which is expected to be the country’s largest exhibition and convention centre when completed in 2014.
In terms of connectivity, the proposed mass rapid transit (MRT) system to facilitate faster, more convenient and greater traffic flow will be one of the ways to achieve greater integration of KL.
It is 156km long covering a radius of 20km around the city centre and has the capacity to move two million passengers daily. Sungai Buloh, Kota Damansara, Mutiara Damansara, Bandar Utama, Taman Tun Dr Ismail, Phileo Damansara, Pusat Bandar Damansara, Warisan Merdeka, KLIFD, Cheras and Kajang will be connected KL-wide with the MRT network.
On the current residential market, real estate consultants said demand is becoming more selective amid rising prices for landed properties.
Prices of high-end condominiums rose marginally to an average of RM615psf with properties in KLCC fetching around RM907psf.
Although monthly rental rates for high-end condos remain stable at RM3.55psf, new completions are expected to keep pressure on the rates amid no major growth in leasing demand.
For Q2 2011, the real estate consultants said the residential market is relatively quiet with selective new launches while the government responded with various initiatives to address the affordability issue, especially affordable housing for first-time buyers who are mostly young working adults.
Source: The Expat October 2011
This article has been edited for ExpatGomalaysia.com
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