Old Klang Road has indeed changed much over time. From an area that’s prone to flooding and traffic jams, it has transformed itself into a prominent neighbourhood, as property developers continued with its effort in developing Old Klang Road by adding six-lane carriageway in order to avoid flooding. Since then, investors and homebuyers have looked into Old Klang Road, seeing it as a suitable place to create business opportunities in and a place to call home. Its location is remarkable, being midway between Kuala Lumpur and Petaling Jaya.
Enter Bukit Kiara Properties
Long-time property developer Bukit Kiara Properties (BKP – the “successor” of sorts to Sunrise which has been acquired by UEM) was determined to turn Old Klang Road around. The plan was to acquire a then Singaporean-owned property that consisted of two towers, both comprised of 24 storeys. This redevelopment project became Verve Suites KL South. (Note that the “Old Klang Road” moniker has been rebranded into “KL South” – much alike Concerto on Jalan Dutamas Raya which is now known as “North Kiara”.)
Old Klang Road residential properties have experienced a steady rise in prices for the last ten years, and with the launch of Verve Suites we would expect the “halo effect” to spillover to the nearby areas in terms of capital appreciation. BKP definitely used this information to its advantage, as it became more focused on developing fully-furnished serviced apartments—a concept the developer has long been implementing, especially on its high end developments in Mont Kiara.
Verve Suites in Mont Kiara is currently being constructed and is another property developed by BKP. This residential condominium is made up of four blocks. The fourth and final block has already sold most of its units. Sales prices for the fourth block averaged at an estimated RM1,250 per square feet. Rental rates are increasing per year, as yields between 7% and 9% have been reported.
BKP then decided to employ this furnished concept to Jalan Klang Lama, and lo and behold—the plan worked and fell into place. Reception has been great so far, as Verve Suites KL South is set to lead the way. It is estimated to complete in mid 2016.
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A Closer Look
The original plan was to refurbish the building, which was then occupied and rented by Alamanda College. The building sits on a leasehold land. Restoring the building became the developer’s priority, and soon enough Verve Suites KL South became equipped with a sundeck area, a reflexology path. More additions were made to the property, including the inclusion of a multipurpose area, a basketball court on the fourth level, a recreational deck with garden canopy, and reading pods.
Verve Suites KL South is set to have two towers, standing tall on 1.36 acre land. The property will have a total of 321 serviced apartments/suites, as well as 45 SoHO units, and three retail spaces on its ground floor. Apartments/suites would come in one bedroom and three bedroom layouts. Pricing for these suites range from an estimated RM600,000 for one bedroom units. For two bedroom units are expected to sell at around RM750,000. The build up areas are as follows:-
- Type A: 555 sq ft
- Type B: 876 sq ft
- Type C: 704 sq ft
- Type D: 729 sq ft
The development will feature a picturesque sky bridge called Vercadiscos, which connects the property to all its exclusive facilities and amenities, including a sky gym, chill-out areas, private dining areas, a swimming pool, a garden, a podium, and theatrette. Proposed budget on this sky bridge is estimated to be RM5 mil to RM5.3 mil.
Also part of Bukit Kiara Properties’ main goals is to make the Verve Suites KL the first building to receive a Green Mark certification from Singapore. As expected, the Verve Suites pioneered the complete turnaround of Old Klang Road, and now, the location has become the main targets of premier developers who are looking for locations to build the next big property in.
As the Malaysia real estate market matures there will be more emphasis on developer reputation and property branding; for this reason Verve has got an edge given the success of its sibling development in Mont Kiara. BKP is perhaps the most established condominium developer around, having carved Mont Kiara out of the backwaters of Segambut Dalam and propelled it into the real estate stratosphere. The Old Klang Road area needs much rejuvenation; perhaps Verve will give it a shot in the arm that it deserves.
The smaller sizes of the units also seem to indicate that Verve is targeting the yuppies rather than growing families. The facilities and presence of SoHo units are also indicative of this target market – perhaps a learning from its previous experience in Mont Kiara?
At indicative price of RM1,100 PSF, this is the level that probably more suited for KLCC, the Embassy Row or Mont Kiara, but given the smaller sizes it means that the capital outlay is (relatively) lower. We are still unsure if it could sustain this pricing level, but the branding and the developer reputation itself would add a substantial premium to be base price. To figure out the fair market value for Verve Suites in KL South then use our handy little valuation guide which you can download below.