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Thursday, December 17, 2009

Agents: No impact on prices of properties in KLCC area

KUWAIT Finance House (Malaysia) Bhd's (KFHMB) move to not proceed with the purchase of the RM920 million Menara YNH in Kuala Lumpur will not have any impact on prices of properties in the area, say real estate agents.

They said prices of land and commercial buildings surrounding the Kuala Lumpur City Centre (KLCC) will stay firm in 2010.

YNH Property Bhd had on Tuesday said that it was notified by KFHMB of its intention not to proceed with plans to buy one wing of the office tower in Menara YNH on Jalan Sultan Ismail.

"KFHMB has been prudent in its investments and as an investor in Malaysia, it has been doing well," real estate agent Previndran Singhe of Zerin Properties said. He added that the local property market remains unaffected by KFHMB's move.

"It is realistic to say that people are cautiously optimistic. Land sales (in the KLCC area) have been in the RM1,900 to RM2,200 per sq ft range. For commercial properties, it is between RM800 and RM1,100 per sq ft. It is definitely holding and is likely to inch up next year," Previn told Business Times.

Recently Dijaya Corp Bhd said it was buying the land in Jalan Ampang, which houses the Bok House, for RM123 million or about RM2,200 per sq ft.

DTZ Nawawi Tie Leung Property Consultants deputy managing director Adzman Shah Mohd Ariffin said there has been no indications of distress sales in the KLCC area, due to limited land availability in the area.

"(Property) values there seem to be holding well for the time being," he added.

CB Re (Malaysia) Sdn Bhd (formerly Regroup Associates Sdn Bhd) managing director Allan Soo said the market remains unaffected by KFHMB's move not to buy Menara YNH, as indications were that there was never a deal between the two in the first place.

He expects prices of land in the KLCC area will continue to rise, but the same can't be said for commercial properties with the opening of GTower and The Icon on Jalan Tun Razak which could put pressure on rent.

"Sales of office blocks may be just below RM1,000 per square foot," Soo said.

He added that land prices will continue to rise due to scarcity of prime land in Kuala Lumpur.

By Business Times (by Vasantha Ganesan)

1 comment:

Houses For Rent By Owner said...

Interesting post, i am surprised by reading this post,property agents of Malaysia still saying that they have no impact on prices of properties in KLCC area,,, where as all over the world, inflation has create a tension.
thanks for sharing the post..
Houses For Rent By Owner