KSK banks on branded residences
CEO believes demand for luxury homes will be resilient
KSK GROUP Bhd believes branded residences will continue to appeal to buyers and investors, be it local or foreign, despite the uncertain economic outlook.
Group chief executive officer Joanne Kua says buyers of branded residences are a discerning segment of property purchasers mostly within the “high net worth individuals” category globally.
“Malaysia is considered to be a safe haven at this point in time in comparison with other countries around the world facing the pandemic,” she tells Starbiz in an e-mail interview. “Capital appreciation in branded residences is also another factor, when the property is maintained and managed well. In the case of 8 Conlay (KSK’S maiden luxury mixed-use development in Kuala Lumpur), buyers buy into a 100 years of luxury hospitality, provided by the services of Kempinski, a brand that lasts for generations.”
Kua says Kuala Lumpur, especially, offers high quality residential products at lower entry costs, compared with other SouthEast Asian countries due to the exchange rate.
“A large majority of overseas investors focus on the KL City Centre as the developments within this area are often of worldclass standards.
“These include branded developments that have global recognition, promises high-quality services and living and are often limited in supply, giving them a good, stable long-term value.”
Kua adds that when choosing a prime property such as branded residences, there is this distinction of carrying a brand exclusivity where it becomes a valuable, unique selling point.
“Aside from the price premium advantage of branded residences over non-branded residences which was mentioned, having the right architecture, right location, superior interior designers and landscape design, are all real value drivers.”
Knight Frank in its 2020 wealth report says Asia is becoming an “unstoppable trend” for global, high net worth individuals.
“In terms of demographics, the region is best placed for economic and wealth growth and there is significant scope for expansion in investment markets. Asia’s capital markets are one-fifth of the size they need to be to support the growth.”
The report adds that the political power of the region, led by China, is expanding too.
“China is consolidating its power with a number of measures, including anti-corruption campaigns, the Belt and Road Initiative, AI 2030 and Made in China 2025. The transformation is extraordinary in China and globally in the reaction to China,” it says.
Kua says branded residences such as the group’s 8 Conlay development, are still very sellable in a crowded marketplace for luxury property.
“Globally mobile, brand conscious wealthy individuals are attracted by quality design, security and the level of service branded residences offer.
She notes that branded properties are perceived to be a “safer” purchase, positioned to stand out in more challenging market conditions as they yield a better premium than non-branded residences.
“Branded residences offer comfort, security and familiarity to investors and buyers alike. The global average premium for branded residences, over an equivalent non-branded product in the near vicinity, stands at 35%.”
Kua says there are many ways where the private and public sectors can leverage on each other’s strengths to promote Kuala Lumpur as an ideal city for foreign investment.
“One example is to create a smart city ecosystem for Kuala Lumpur, which will address urban sustainability, challenges and improve the quality of life for city dwellers, making the city more attractive as an investment destination.
“There are many opportunities to collaborate with the Ministry of Federal Territories, Kuala Lumpur City Hall, the Kuala Lumpur Tourism Bureau and the Tourism Ministry to put Kuala Lumpur on the international map as a global destination in terms of tourism, lifestyle and investment.” Kua says this would give Malaysia a chance to “re-introduce Kuala Lumpur in a new light.”
“Creating the ecosystem of a smart city involves development of partnerships with technology driven start-ups, established companies, universities and research institutes which offer skills and knowledge required in smart city projects.”
She says both the private and public sectors can also provide a medium to promote knowledge sharing, while encouraging entrepreneurs and local companies to invest in urban solutions and services.
“The public sector can offer incentives, define and monitor compliance with the objectives and focus on socioeconomic balance, while the private sector can offer technical or specialised skills, funding, readily available technology and innovation, among others.”
Once completed, KSK Group’s 8 Conlay development 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. Towers A and B are 80% and 40% sold, respectively, and have a cumulative gross development value of Rm1.7bil.
“Malaysia is considered to be a safe haven at this point in time in comparison with other countries around the world facing the pandemic.” Joanne Kua