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Friday, January 25, 2008

Metro Kajang expects good yields for Wang Commerz

Metro Kajang Holdings Bhd (Metro Kajang) launched Wang Commerz@Pelangi Semenyih recently and the developer expects rental yields to be as high as 9%. The project is the commercial parcel of Metro Kajang’s 294.66-acre township, Pelangi Semenyih, Selangor. “So far, we have opened six blocks of shop offices and 70% have been sold,” said Johnny Lam, marketing manager of Metro Kajang.

An artist's impression of Wang Commerz@Pelangi Semenyih

The 2- and 3-storey shop offices, sized at 22ft by 75ft are priced from RM329,000 onwards. The freehold project takes up 6.89 acres and comprises a total of 169 units spread over 14 blocks with a gross development value (GDV) of RM33 million.

Lam attributes the good response at Wang Commerz to its location, which surrounds a hypermarket. "The supply of shop offices in Semenyih is low and the existing commercial areas are pretty scattered, with no strong attraction," he said.

"The potential rental yield of this project is 9%," said Lam, adding that the average rental yield for commercial projects in Semenyih is 5%. "Commercial projects in the town centre of Semenyih are doing well with yields between 5% and 8%," he said.

Another two blocks of Wang Commerz will be launched in February, after Chinese New Year, Lam added. Construction is due to begin in approximately three months’ time and would take two years to complete.

Meanwhile, the first six phases of Pelangi Semenyih’s RM300 million residential parcel — comprising 1- and 2-storey linked homes — have been completed with Phase 6 launched early January.

Developed under the build-then-sell (BTS) scheme, Phase 6 is divided into four parcels with Phases 6A and 6B sold out.

“Twenty-two out of 88 units have been sold at Phase 6C; Phase 6D is yet to be opened,” said Lam. The 1-storey linked homes are sized at 20ft by 65ft and priced at RM132,800.

“We’re now at Phase 7, which is divided into 7A and 7B,” said Lam. The 2-storey 20ft by 70ft linked homes are priced from RM197,800 onwards.

“Out of 200 units, there are only eight corner units left in 7A. As for 7B, out of 86 units opened for sale, 36 units have been sold,” he said, adding that 7B will have a total of 256 units.

Completion of the residential parcel is expected in Dec 2009.

Metro Kajang’s other commercial development, Metro Avenue, has been more than 50% sold, said Lam. Located in Kajang, the 30 units of 3-storey shop offices are sized at 22ft by 80ft and prices range between RM838,000 and RM968,000.

To be launched in February, is Phase 1B of Sentosa Villas, located adjacent to Metro Avenue. The 2- and 3-storey terraced homes are sized between 20ft by 65ft and 20ft by 80ft with an average price of RM340,000. Out of a total 73 units, four have been sold prior to the launch.

Meanwhile, Phase 1A will comprise 46 units of semidees and 16 units of bungalows priced at RM778,000 onwards and RM1.09 million onwards respectively. The semidees will be sized at 40ft by 90ft, 45ft by 90ft and 50ft by 90ft while the bungalows will be sized at 50ft by 90ft and 60ft by 90ft. Phase 1A will be launched in 2H 2008, said Lam.

Metro Kajang also recently held a promotional event for its Pelangi Damansara Sentral residence suites. Located close to Mutiara Damansara, the RM60 million project comprises residential suites, shops and offices housed in a tower with 16 floors.

“All our 11 shops have been sold; there are only six of the 22 office units and 17 units of residences left,” said Lam. The project was launched in June last year and takes up 1.7 leasehold acres.

The 193 units of residential suites come in three designs with built-ups of 674 sq ft, 856 sq ft and 1,027 sq ft. Priced between RM168,000 and RM239,000, these suites have a maintenance fee of 20 sen psf.

According to Lam, units with the largest built-up are sold out.

The shop units have a built-up of 26ft by 70ft and priced at RM999,000. The 22 office units are sized at 26ft by 80ft and are priced from RM366,000 onwards. Lam revealed that most of the purchasers bought for investment purposes. “It is a mature area, and the potential rental yield is more than 8%,” he said. Construction will begin next month and completion is expected in 2010.

“The majority of our buyers are from Petaling Jaya but we also have buyers from other states such as Ipoh and Penang. Our other buyers are from Kuala Lumpur, Seremban, Bangi, Ampang, Bukit Antarabangsa and Subang Jaya,” he said.

By theSun (by Yeong Ee-Wah)

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