HK-based tycoon bullish on property market

UPWARD PROJECTION: Chiu (second from left) being briefed on Mayland's latest luxury serviced apartment project The Regalia in Kuala Lumpur yesterday

Hong Kong-based hotelier and property tycoon Tan Sri David Chiu is bullish on Malaysia's property market, saying there is plenty of room for residential property prices to move upwards.

"People are now talking about how expensive some service apartments are in the (Kuala Lumpur) city centre, at RM2,000 per sq ft. But if you look at Shanghai, the property prices there are between RM3,000 and RM4,000 per sq ft, and I don't think the salary scale of workers in Shanghai is higher than their counterparts in Malaysia," Chiu said.

He was speaking after the launch of The Regalia, a three-block 38-storey luxury serviced apartment located off Jalan Kuching, behind The Mall in Kuala Lumpur.

Chiu expects the salary scale in Malaysia to rise further as more foreign companies set up office in the country.

"What you (Malaysia) need to do is to fully open up the local market to these foreign companies (to operate their business). There is nothing to fear, as their presence will only be good for the economy," he said.

The Regalia is one of Malaysia Land Properties Sdn Bhd's (Mayland) most luxury serviced apartments, offering not only fee-based chauffeur-driven cars for use by its residents, but also super penthouses with private pools and jacuzzi.

The average price per sq ft for the units is RM600.

A development which Mayland claims to be one of its kind, it is expected to cost RM300 million to develop, with a gross sales value of RM600 million.

Chiu said he is cautiously optimistic that the prices of The Regalia serviced apartments will appreciate by as much as 67 per cent to RM1,000 per sq ft, considering the property's location.

Prices for The Regalia units range from as low as RM200,000 for a 500-square-foot unit to as much as RM11 million for a 10,000-square-foot unit.

By New Straits Times (by Presenna Nambiar)