E&O unveils its latest luxury condo project

EARLIER this week, lifestyle property developer Eastern & Oriental Bhd (E&O) launched its latest downtown condominium project The Mews. When completed in 2017, it will be one of three high-rise residential developments on Jalan Yap Kwan Seng in Kuala Lumpur.

There will be three residential projects along that stretch of about 500m. The Mews starts at RM1,700-RM1,800 per sq ft (psf). It will be among the highest in terms of price point among the three on-going projects there currently.

The first project to be launched close to the Jalan Yap Kwan Seng-Jalan Tun Razak intersection is Mirage Residences. The Mirage was launched a couple of years ago at RM1,000 per sq ft with prices trending up to between RM1,300 and RM1,400 psf last year. According to a member of the marketing team, some of the units were sold at RM1,600 psf last year. The Mirage is 100% sold and is expected to be completed by May 2015.

It is a 25-storey block comprising 102 units developed by OSK Properties Holdings Bhd. Most of the units have built-up areas of between 1,000 sq ft and 1,200 sq ft with two bedrooms.

The second project to be launched closer to the Petronas Twin Towers at the Jalan Yap Kwan Seng-Jalan Ampang intersection is Star Development. This was launched late last year by joint-venture partners Symphony Life Bhd (previously known as Bolton Bhd) and United Malayan Land Bhd.

It comprises three residential high-rise blocks of which the first will be 57 storeys. Its next two blocks are expected to have 61 storeys. Besides the residential portion, there will also be a retail portion.

When completed, Star Development will have a total of 1,500 serviced apartment units, comprising mainly one-bedders with sizes ranging from 650 sq ft and 750 sq ft.

Each of these three projects have their pluses.

The Mirage, at RM1,000 psf seems like a steal considering today’s prices and when matched against The Mews. It is also not as dense as The Mews, which will have 256 units on 1.29 acres compared with Mirage’s 102 units on just under one acre. Both are on residential titles, which is a plus point.

The Mews will be more private than Mirage, located about 100m on one of the inner roads, and does not directly front Jalan Yap Kwan Seng.

Sizes range between 900 sq ft and 2000 sq ft for the one- and 3+1 bedroom units. There are four penthouses with built-up areas of about 2,500 sq ft each. Two of the penthouses have been sold. E&O is a lifestyle brand. It built St Mary Residences in Jalan Tengah, parallel to Jalan Raja Chulan in the main commercial district of Kuala Lumpur and Dua Residency along Jalan Tun Razak.

While St Mary Residences is both urbane and stylish, The Mews will have an understated elegance in earthy tones and colours. This will be E&O’s first joint-venture development with Japan’s largest developer Mitsui Fudosan Residential Co Ltd with E & O having a 51% stake.

When E&O’s deputy managing director Eric Chan first unveiled the company’s plans for this project a couple of years ago, they mulled over what would appeal to females. Hence, the large shoe cabinets and storage area. Units come with bedroom and kitchen built-ins.

There will be one parking bay for one-bedroom units, two for two-bedders and three for the larger units. The penthouses will have four parking bays.

The development will come with pool, gym and squash courts and concierge services. According to Chan, about 70%, or 180 units have been sold, of which about 20 units have been purchased by Japanese. About half the buyers are Malaysians. Shuttle services will also be provided to Twin Towers and the vicinity. With the traffic situation in the Klang Valley today, that will be a huge plus.

From what is seen of St Mary Residences and Dua, The Mews is expected to be another oasis in the busy and bustling city centre.

On how the various cooling measures will affect sales, Chan says the long term prospects for the sector are still good.

“We are still in the first three months of the year. We are focusing on the long term,” says Chan.

Mitsui Fudosan (Asia) Pte Ltd executive director (head of residential team) Tomoo Nakamura says it has been a good experience working with Chan and his team and this partnership will pave the way for further cooperation.

Dense development

The largest project along that Yap Kwan Seng stretch is Star Development with prices beginning from RM1,500. It will be built on commercial land and there will be 1,500 units on four acres, or 375 units of residences per acre compared with Mirage’s 100 units, and Mews’ 198 units. There will also be a retail portion. While there is convenience, it may not be that private.

It will be the most dense among the three projects but in terms of proximity, it will be the closest to the Twin Towers. Located behind Avenue K mall, it will be within walking distance to the KLCC LRT station via Avenue K. Because Star Development is built on commercial land, upkeep and maintenance will be a consideration. Also, the price of the unit does not include a car parking bay. Residents will have to rent it at RM150 to RM200 a month. Moving forward, having a unit that comes with a car park will be a luxury.

A point to note is this: If one is buying for investment, there are literally thousands of smallish one-bedders in the Klang Valley today and there will be more entering the market as projects come to completion. Getting it tenanted may not be that easy. Most of the buyers at Star Development may be foreigners as small units tend to attract investors.

Another thing to note is the price, which has moved up considerably from RM1,000 to RM1,700 psf in a matter of two to three years – a jump of 70%. All three projects are not comparable because they are not homogeneous, both in terms of location and finished product.

The steep rise in price is something to be considered, especially in today’s volatile times. There is a lack of clarity for now and with inflation at a 25-month high of 3.2%, those who have the means may well consider a branded unit. But there will be many others who will settle for bread-and-butter housing, without the frills.

Either way, with the various cooling measures in place and maybe more to come, a property investment is for the long term and for those who have the holding power. - The Star