KSK eyes more ‘branded’ developments locally and abroad

PETALING JAYA: KSK Group Bhd, best known for its 8 Conlay branded residential development in Kuala Lumpur, is eyeing new projects both domestically and internationally.

Group chief executive officer Joanne Kua said even during an economic downturn, the buyers within this segment are more discerning when it comes to investing, adding that branded residences provide a “lasting value” for investors.

“We always have plans to develop new projects and Kuala Lumpur is an interesting city for us still. We like prime locations and matured areas and are constantly keeping our eyes open for new opportunities around the world as the world is shifting as we speak,” she told Starbiz in an e-mail interview.

Kua noted that over the years, branded residences have remained a niche segment of the luxury real estate market.

“There are 400 branded residence schemes globally, with 65,000 units combined. In economic downturns, real estate has historically offered a stable shelter for wealth.

“Real estate prices drop in general but residential real estate prices in good locations hold prices typically.

“In a pandemic, investors want to make sure their money is protected in long term assets where values are protected. In terms of the luxury property segment, luxury property buyers will now be more discerning to look at properties which will provide them a better price premium in the future,” she said.

Looking ahead, Kua said she is cautiously optimistic with the outlook of the luxury property sector for the second half of 2020.

She noted that branded residences are still considered a high valued assets to own, adding that Malaysia is still an attractive, smart investment destination for foreign property buyers.

“Currently, interest rates in Malaysia are very low and the ringgit is also undervalued against the dollar.

“The ringgit fair value is RM3.80 to the dollar versus the current market value of RM4.35 to the dollar.

“It is indeed the best time for investors to buy properties such as branded residences, as they would want to protect their wealth whilst cautiously increasing their wealth.”

8 Conlay is KSK Group’s maiden luxury mixed-use development in the heart of Kuala Lumpur. Once completed, it will consist of a five-star Kempinski luxury hotel – the first from Europe’s oldest luxury hotelier to open in Malaysia – retail space and two towers of residences serviced by the Kempinski Hotels group known as YOO8.

The group’s property arm, KSK Land, collaborated with design powerhouse YOO for the design of its two residential towers – Steve Leung & YOO for Tower A and Kelly Hoppen For YOO for Tower B.

The 62-floor Tower A will feature 564 units, ranging from 700 sq ft to 1,308 sq ft, while the 57-floor Tower B will comprise 498 units that range from 705 sq ft to 1,328 sq ft.

Due to the Covid-19 pandemic, Kua said construction works had to be stopped following the government’s ruling of the movement control order (MCO), adding however that the group will resume work soon, following compliance with the government’s standard operating procedures.

“KSK Land continues to place the health and safety of the workers on-site as our highest priority. Sales for both residential towers of YOO8 at 8 Conlay has grown steadily over the last few quarters locally and internationally.

“Tower A is now 80% sold, while tower B is 40% sold, with a cumulative gross development value of Rm1.7bil.”

Kua said prices of the units have increased since the towers were launched.

“When YOO8 Tower A was launched in end-2015, it was marketed at RM2,700 per sq ft but now the price has increased to RM3,283 per sq ft. When we launched Tower B in the third quarter of 2018, it was priced at RM3,250 per sq ft. Today, it has increased to RM3,370 per sq ft.

“Even in these challenging times of a pandemic, we have managed to sustain the sales of the 8 Conlay branded residences during Covid-19 pandemic and MCO with Rm75mil secured in terms of sales bookings and units sold.

“Nevertheless, sales performance has been slower than what was projected pre-covid-19.”