Group 2 - BIE3008 Development Proposal Task 1

FACULTY OF BUILT ENVIRONMENT
BACHELOR OF REAL ESTATE

SESSION 2020/2021 SPECIAL SEMESTER
BIE 3008 Integrated Project
Redevelopment Study Report (Group 2)
Date of Submission: 2 September 2021
No. Name Matrics Number
1 AHMAD NADZRI BIN ABDULLAH ZAWAWI 17137723/1
2 CHONG HUI MING 17183967/1
3 LAVINYA KALAI CHELVAN 17131227/1
4 LI WENYUE 17150585/1
5 NURUL SALIZA HIDAYA BINTI ABDULLAH 17099596/1
6 MUHAMMAD FAIQMAL BIN ZAINALABIDIN 17186055/1
7 YEOH KAI YUN 17174487/1
FACILITATOR:
Dr. Sr Zahiriah binti Yahya
LECTURERS:
Prof. Dr. Sr Anuar Bin Alias
Dr. Sr Zafirah Al Sadat Binti Zyed
Sr. Abdul Ghani Bin Sarip
TABLE OF CONTENTS
TABLE OF CONTENTS ..............................................................................................i
LIST OF FIGURES .....................................................................................................v
LIST OF TABLES .......................................................................................................x
1.0 INTRODUCTION ............................................................................................ 1
1.1 Executive Summary .................................................................................... 1
1.2 Terms of Reference .................................................................................... 1
1.3 Objectives ................................................................................................... 2
1.4 Methodology ............................................................................................... 2
1.4.1 Site Inspection ..................................................................................... 2
1.4.2 Data Collection..................................................................................... 3
1.4.3 Market Study ........................................................................................ 3
1.4.4 Feasibility Study ................................................................................... 3
1.5 Site Analysis and Inspection ....................................................................... 3
2.0 OVERVIEW .................................................................................................... 5
2.1 Background of Federal Territory of Kuala Lumpur ....................................... 5
2.2 Background of Kuala Lumpur ...................................................................... 5
2.3 Background of Site ...................................................................................... 6
2.3.1 Particulars of Title ................................................................................ 6
2.3.2 Analysis of Site .................................................................................... 6
3.0 DEVELOPMENT PROCESS AND REGULATION .......................................... 8
3.1 Property Development Process in Kuala Lumpur ........................................ 8
3.1.1 Pre-Development Stage ....................................................................... 9
3.1.2 Development Stage............................................................................ 11
3.1.3 Post-Development Stage ................................................................... 14
3.2 Planning Consideration and Requirements ............................................... 15
3.2.1 General Guidelines ............................................................................ 15
3.2.2 Planning Guidelines for SOHO ........................................................... 19
3.2.3 Planning Guidelines for Serviced Apartments .................................... 21
4.0 MARKET STUDY ......................................................................................... 23
4.1 Economic Overview .................................................................................. 23
4.1.1 Global Economy Overview ................................................................. 23
4.1.2 Malaysia Economy Overview ............................................................. 24
4.1.3 Kuala Lumpur Economic Overview .................................................... 32
4.2 Demographics ........................................................................................... 36
4.2.1 Population in Malaysia ....................................................................... 36
4.2.2 Population in Kuala Lumpur ............................................................... 45
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4.2.3 Population in Kuala Lumpur City ........................................................ 53
4.3 Property Market Analysis .......................................................................... 54
4.3.1 Overview of Malaysia Property Market ............................................... 54
4.3.2 Overview of Kuala Lumpur Property Market ....................................... 75
4.3.3 Overview of Kuala Lumpur City Property Market ................................ 87
4.3.4 Selling Price and Rental Value ......................................................... 102
4.4 Demand Analysis .................................................................................... 105
4.5 Supply Analysis ....................................................................................... 106
4.5.1 Supply Analysis in Malaysia ............................................................. 106
4.5.2 Supply Analysis in Kuala Lumpur ..................................................... 120
4.5.3 Supply Analysis in Kuala Lumpur City .............................................. 132
4.6 Competitor Analysis ................................................................................ 139
4.6.1 Existing Service Apartment and SOHO Competitors ........................ 139
4.6.2 Existing Serviced Apartment Competitors ........................................ 144
4.6.3 Upcoming Serviced Apartment Competitors ..................................... 148
4.6.4 Existing SOHO Competitors ............................................................. 151
4.6.5 Existing Retail Competitors .............................................................. 156
4.6.6 Existing Shopping Complex Competitors Rental .............................. 160
4.7 Product Analysis ..................................................................................... 163
4.8 Pricing Analysis ....................................................................................... 166
4.8.1 Service Apartment Competitors Price Analysis ................................ 166
4.8.2 Service Apartment Competitors Price Per Square feet Analysis ....... 167
4.8.3 SOHO Competitors Price Analysis ................................................... 168
4.8.4 SOHO Competitors Price Per Square Feet Analysis ........................ 168
4.8.5 Service Apartment & SoHo Competitors Price Analysis ................... 169
4.8.6 Service Apartment & SoHo Competitors Price Per Square Feet Analysis
....................................................................................................................... 170
4.8.7 Shopping Complex Competitors Price Rental Per Square Feet Analysis
......................................................................................................... 170
4.8.8 Summary ......................................................................................... 171
5.0 MODE OF DEVELOPMENT ....................................................................... 172
6.0 PROPOSED DEVELOPMENT ................................................................... 172
6.1 SWOT Analysis ....................................................................................... 172
6.1.1 Strengths ......................................................................................... 172
6.1.2 Weakness ........................................................................................ 174
6.1.3 Opportunity ...................................................................................... 174
6.1.4 Threats............................................................................................. 175
6.1.5 Strategies Formed from SWOT Analysis .......................................... 176
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6.2 Development Name ................................................................................ 177
6.3 Development Logo .................................................................................. 177
6.4 Development Slogan ............................................................................... 178
6.5 Development Concept ............................................................................. 178
6.5.1 Safety and Security .......................................................................... 178
6.5.2 Opulent and Open Spaces ............................................................... 179
6.5.3 Comfort and Style ............................................................................ 179
6.5.4 Connectivity within the Complex....................................................... 179
6.5.5 Art that Draws Fortune ..................................................................... 179
6.6 Proposed Development Model ................................................................ 180
6.7 Development Components and Justification............................................ 180
6.7.1 Layout Plan of Proposed Development ............................................ 181
6.7.2 Layout Plan of Service Apartment .................................................... 182
6.7.3 Floor Plan of Serviced Apartment Units............................................ 182
6.7.4 Layout Plan of SOHO....................................................................... 184
6.7.5 Floor Plan of SOHO ......................................................................... 185
6.7.6 Layout Plan of Retail Area................................................................ 185
6.7.7 Floor Plan of Retail Units.................................................................. 186
6.7.8 Carpark ............................................................................................ 187
6.7.9 Facilities ........................................................................................... 188
6.7.10 Infrastructure .................................................................................... 191
6.8 Distribution of Proposed Development Components ............................... 192
6.8.1 Distribution of the Main Building, Open Spaces and Infrastructure ... 192
6.9 Justification ............................................................................................. 196
7.0 FEASIBILITY STUDY ................................................................................. 199
7.1 Introduction ............................................................................................. 199
7.2 Cash Flow Analysis ................................................................................. 199
7.3 Net Present Value (NPV) ........................................................................ 199
7.4 Break Even Analysis ............................................................................... 199
7.5 Weighted Average Cost of Capital (WACC) ............................................ 200
7.6 Internal Rate of Return (IRR) .................................................................. 201
7.7 Return on Development Cost .................................................................. 201
7.8 Return on Capital .................................................................................... 201
7.9 Benefit Cost Ratio ................................................................................... 201
7.10 Sensitivity Analysis.................................................................................. 202
7.11 Conclusion .............................................................................................. 202
8.0 MARKETING STRATEGY .......................................................................... 203
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8.1 Marketing Position................................................................................... 203
8.2 Target Market.......................................................................................... 203
8.3 Marketing Mix.......................................................................................... 204
8.3.1 Product ............................................................................................ 205
8.3.2 Price ................................................................................................ 205
8.3.3 Place ................................................................................................ 205
8.3.4 Promotion ........................................................................................ 206
8.3.5 People.............................................................................................. 208
8.3.6 Process ............................................................................................ 208
8.3.7 Physical ........................................................................................... 209
8.4 Marketing Plan ........................................................................................ 209
8.4.1 Marketing Programme...................................................................... 209
8.4.2 Public Relation Programme.............................................................. 210
8.4.3 Digital Marketing .............................................................................. 211
8.4.4 Traditional Marketing........................................................................ 213
8.5 Disposal Strategy .................................................................................... 214
8.5.1 Project Timeline ............................................................................... 214
Appendices ........................................................................................................... 216
iv
LIST OF FIGURES
Figure 1: Stages of the Development Processes ....................................................... 8
Figure 2: Consideration of Development Proposal Plans Process ........................... 10
Figure 3: Plan Consideration Process ..................................................................... 11
Figure 4: Notifications Start Working Process.......................................................... 12
Figure 5: Notifications Interim Inspection Process ................................................... 13
Figure 6: The Final Inspection Process ................................................................... 14
Figure 7: Deposit CCC and Form G ........................................................................ 15
Figure 8: Malaysia's Gross Domestic Product (Q1 2019 - Q1 2021) ........................ 25
Figure 9: Malaysia's Consumer Price Index from Jul 2020 to Jun 2021 ................... 27
Figure 10: Percentage Change in CPI by Group for Malaysia, January 2021 & April
2021 ........................................................................................................................ 28
Figure 11: Malaysia’s Inflation Rate, July 2020 – June 2021 ................................... 29
Figure 12: Malaysia's Base Lending Rate ............................................................... 32
Figure 13: Value and Growth Rate of GDP in W.P Kuala Lumpur (2015 – 2019) .... 32
Figure 14: Value Added and Percent Contributions by Sector in W. P. Kuala Lumpur
(2019) ..................................................................................................................... 33
Figure 15: Growth rate by sector in W. P. Kuala Lumpur (2018-2019)..................... 33
Figure 16: Annual change of CPI in W.P. Kuala Lumpur (2011 – 2020) .................. 35
Figure 17: Population and Annual Population Growth Rate in Malaysia from 2010 to
2021 ........................................................................................................................ 36
Figure 18: Population by Sex and Sex Ratio in Malaysia (2020 and 2021) .............. 37
Figure 19: Sex Ratio by Citizenship in Malaysia (2020 and 2021) ........................... 37
Figure 20: Percentage of Population by Age Group and Median Age in Malaysia (2020
and 2021) ................................................................................................................ 38
Figure 21: Malaysia’s Population by Age Structure, 2010 & 2040............................ 39
Figure 22: Percentage of population citizens by ethnic group in Malaysia (2020 and
2021) ....................................................................................................................... 39
Figure 23: Malaysia’s Population Distribution in Malaysia, Q1 2021 ........................ 40
Figure 24: Malaysia's Level of Urbanisation (2010-2019) ........................................ 41
Figure 25: Overall Malaysia and States Household Income..................................... 42
Figure 26: Malaysia's Median & Mean Household Income (2019) ........................... 43
Figure 27: Malaysia's Median & Mean Household Income by Group (2019) ............ 43
Figure 28: Malaysia’s Income Structure by Household Group, 2016-2019 .............. 44
v
Figure 29: Population and Annual Population Growth Rate in Kuala Lumpur from 2010
to 2021 .................................................................................................................... 45
Figure 30: Population Age Profiles (2018 & 2040) ................................................... 45
Figure 31: Population by Sex and Sex Ratio in Kuala Lumpur (2020) ..................... 46
Figure 32: Number of Population by Age Group and Median Age in Kuala Lumpur
(2020) ..................................................................................................................... 47
Figure 33: Number of citizens’ population by ethnic group in Kuala Lumpur (2020) . 48
Figure 34: Percentage of Households by Size in W.P. Kuala Lumpur (2016 and 2019)
................................................................................................................................ 49
Figure 35: Monthly Mean Household Gross Income by Source of Income, Wilayah
Persekutuan, 2016 and 2019 .................................................................................. 50
Figure 36: Median and Mean of Household Gross Income in W.P. Kuala Lumpur (2016
and 2019) ................................................................................................................ 50
Figure 37: Percentage of Households by Income Class, in W.P. Kuala Lumpur (2016
and 2019) ................................................................................................................ 51
Figure 38: Income Structure by Household Group in W.P. Kuala Lumpur, 2016 and
2019 ........................................................................................................................ 51
Figure 39: Income Share, Median, Mean Household Income and Income Threshold by
Household Decile Group in W.P. Kuala Lumpur (2019) ........................................... 52
Figure 40: Overall Property Transactions by Volume in Malaysia from 2016 to 2020
................................................................................................................................ 55
Figure 41: Overall Property Transactions by Value in Malaysia from 2016 to 2020 . 56
Figure 42: Transaction Volume by Sub-Sector in Malaysia in 2020 ......................... 57
Figure 43: Transaction Value by Sub-Sector in Malaysia in 2020 ............................ 58
Figure 44: Residential Transactions Volume in Malaysia from 2016 to 2020 ........... 59
Figure 45: Residential Transactions Value in Malaysia from 2016 to 2020 .............. 60
Figure 46: Residential New Launches and Sales Performance in Malaysia from 2016
to 2020 .................................................................................................................... 61
Figure 47: Residential Market Status in Malaysia from 2016 to 2020 ...................... 62
Figure 48: Point and Annual Changes by Type (2010 - 2020) ................................. 63
Figure 49: Point and annual change in Major States 2010-2020p ........................... 64
Figure 50: Commercial Transactions Volume in Malaysia from 2016 to 2020 .......... 65
Figure 51: Commercial Transactions Value in Malaysia from 2016 to 2020............. 65
Figure 52: Serviced Apartment Market Status in Malaysia from 2016 to 2020 ......... 66
Figure 53: Number of Unsold Serviced Apartment Units in Malaysia (2019-2020)... 67
Figure 54: Value of Unsold Serviced Apartment Units in Malaysia (2019-2020) ...... 68
Figure 55: Number of Unsold SOHO Units in Malaysia from 2019 to 2020 .............. 68
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Figure 56: Value of Unsold SOHO Units in Malaysia from 2019 to 2020 ................. 69
Figure 57: Shop Market Status in Malaysia (2016 – 2020) ...................................... 71
Figure 58: Volume of Property Transactions in Kuala Lumpur from 2016 to 2020 ... 75
Figure 59: Value of Property Transactions in Kuala Lumpur from 2016 to 2020 ...... 76
Figure 60: Transaction Volume by Sub-Sector in Kuala Lumpur in 2020 ................. 76
Figure 61: Transaction Value by Sub-Sector in Kuala Lumpur in 2020 .................... 77
Figure 62: Residential Transactions Volume in Kuala Lumpur from 2016 to 2020 ... 78
Figure 63: Residential Transactions Value in Kuala Lumpur from 2016 to 2020 ...... 78
Figure 64: Residential New Launches and Sales Performance in Kuala Lumpur from
2016 to 2020 ........................................................................................................... 79
Figure 65: Residential Market Status in Kuala Lumpur from 2016 to 2020 .............. 80
Figure 66: Commercial Transactions Volume in Kuala Lumpur from 2016 to 2020 .. 81
Figure 67: Commercial Transactions Value in Kuala Lumpur from 2016 to 2020 ..... 81
Figure 68: Serviced Apartment Market Status in Kuala Lumpur from 2016 to 2020 . 82
Figure 69: Number of unsold Serviced Apartment Units in Kuala Lumpur from 2019 to
2020 ........................................................................................................................ 83
Figure 70: Value of unsold Serviced Apartment Units in Kuala Lumpur from 2019 to
2020 ........................................................................................................................ 84
Figure 71: Shop Market Status in Kuala Lumpur (2016 – 2020) .............................. 85
Figure 72: Transaction Volume by Sub-Sector in Q1 2021 ...................................... 87
Figure 73: Transaction Value by Sub-Sector in Q1 2021 ......................................... 88
Figure 74: Residential Transactions Volume in Kuala Lumpur City (2018 - 2020) ... 89
Figure 75: Residential Transactions Value in Kuala Lumpur City (2019 - 2020) ...... 89
Figure 76: Commercial Transactions Volume in Kuala Lumpur City (2018 - 2020) .. 95
Figure 77: Commercial Transactions Value in Kuala Lumpur City (2018 - 2020) ..... 95
Figure 78: Number of Service Apartment Transactions Volume (2019 - 2020) ........ 96
Figure 79: Service Apartment Transactions Value (2019 - 2020)............................. 97
Figure 80: Number of SOHO Transactions Volume in Kuala Lumpur City(2019 - 2020)
................................................................................................................................ 98
Figure 81: SOHO Transactions Value (2019 - 2020) ............................................... 99
Figure 82: Sales Performance of Upcoming Competitor ........................................ 105
Figure 83: Residential Construction Activity from 2016 to 2020 ............................. 106
Figure 84: Serviced Apartment Construction Activity in Malaysia .......................... 107
Figure 85: Supply & Occupancy of Shopping Complex (2016-2020) ..................... 108
vii
Figure 86: Shopping Complex Existing Stock, Incoming Supply and Planned Supply
by State 2020 ........................................................................................................ 110
Figure 87: Shops Construction Activity in Malaysia (2019 - 2020) ......................... 111
Figure 88: Trends of Completion, Starts and New Planned Supply for Shop (2016-2020)
.............................................................................................................................. 112
Figure 89: Supply & Occupancy of Purpose-Built Office (Private & Government) 2016
– 2020 ................................................................................................................... 113
Figure 90: Trends of Completion, Starts and New Planned Supply for Purpose-Built
Offices (2016 to 2020) ........................................................................................... 116
Figure 91: Trends of Completion, Starts and New Planned Supply for Hotels in
Malaysia (2016-2020)............................................................................................ 119
Figure 92: Residential Construction Activity in Kuala Lumpur from 2016 to 2020 .. 120
Figure 93: Supply of Residential Units in Kuala Lumpur (2018 - 2020) .................. 121
Figure 94: Supply of Flat in Kuala Lumpur (2018 - 2020) ...................................... 122
Figure 95: Supply of Condominium or Apartment in Kuala Lumpur (2018 - 2020) . 123
Figure 96: Serviced Apartment Construction Activity in Kuala Lumpur from 2016 to
2020 ...................................................................................................................... 124
Figure 97: Supply of SOHO in Kuala Lumpur (2019 - 2020) .................................. 125
Figure 98: Shop Construction Activity in Kuala Lumpur (2016 – 2020) .................. 126
Figure 99: Supply of Shop Units in Kuala Lumpur (2018 - 2020) ........................... 127
Figure 100: Supply & Occupancy of Shopping Complex in Kuala Lumpur (2016-2020)
.............................................................................................................................. 128
Figure 101: Occupancy and Space of Purpose-Built Office (2016-2020) ............... 130
Figure 102: Purpose-Built Office Construction Activity in Kuala Lumpur (2016 – 2020)
.............................................................................................................................. 131
Figure 103: Supply of Residential Units in Kuala Lumpur City (2018 - 2020) ......... 132
Figure 104: Supply of Flat in Kuala Lumpur City (2018 - 2020) ............................. 133
Figure 105: Supply of Condominium or Apartment in Kuala Lumpur City (2018 - 2020)
.............................................................................................................................. 134
Figure 106: Supply of Serviced Apartment in Kuala Lumpur City (2018 - 2020) .... 135
Figure 107: Supply of SOHO in Kuala Lumpur City (2018 - 2020) ......................... 136
Figure 108: Supply of Shop Units in Kuala Lumpur City (2018 - 2020) .................. 137
Figure 109: Service Apartment Competitors Price Analysis ................................... 166
Figure 110: Service Apartment Competitors Price Per Square feet Analysis ......... 167
Figure 111: SOHO Competitors Price Analysis ..................................................... 168
Figure 112: SOHO Competitors Price Per Square Feet Analysis........................... 168
viii
Figure 113: Service Apartment & SoHo Competitors Price Analysis ...................... 169
Figure 114: Service Apartment & SoHo Competitors Price Per Square Feet Analysis
.............................................................................................................................. 170
Figure 115: Shopping Complex Competitors Price Rental Per Square Feet Analysis
.............................................................................................................................. 170
Figure 116: Development Logo ............................................................................. 177
Figure 117: Proposed Development Model of Canyon Boulevard.......................... 180
Figure 118: Layout Plan of Proposed Development .............................................. 181
Figure 119: Layout Plan of Serviced Apartment .................................................... 182
Figure 120 : Type A Floor Plan .............................................................................. 183
Figure 121: Type B Floor Plan ............................................................................... 183
Figure 122: Type C Floor Plan .............................................................................. 184
Figure 123: Layout Plan of SOHO ......................................................................... 184
Figure 124: SOHO Floor Plan ............................................................................... 185
Figure 125: Layout Plan of Retail Area .................................................................. 185
Figure 126: Facilities Plan ..................................................................................... 188
Figure 127: Outdoor Swimming Pool ..................................................................... 189
Figure 128: Playground ......................................................................................... 189
Figure 129: Floating Gymnasium........................................................................... 190
Figure 130: Yoga Deck.......................................................................................... 190
Figure 131: Jogging Track ..................................................................................... 191
Figure 132: Dog Park ............................................................................................ 191
Figure 133: Sewage Treatment Plant .................................................................... 192
Figure 134: Breakeven Point ................................................................................. 200
Figure 135: Weighted Average Cost of Capital (WACC) ........................................ 200
Figure 136: Marketing Mix 7P's ............................................................................. 204
Figure 137: Marketing Strategy - 'Promotion' ......................................................... 206
Figure 138: Digital Marketing Solution ................................................................... 211
Figure 139: Social Media Marketing ...................................................................... 212
Figure 140: Search Engine Marketing ................................................................... 213
Figure 141: Traditional Marketing .......................................................................... 213
ix
LIST OF TABLES
Table 1: Particular of Title ......................................................................................... 6
Table 2: Classes of Use for land zoned under Main Commercial............................. 17
Table 3: Classes of Use for land zoned under Commercial ..................................... 19
Table 4: Planning Guidelines for SOHO .................................................................. 21
Table 5: Planning Guideline for Serviced Apartment ............................................... 22
Table 6: Malaysia's External Sector GDP Performance, 2019 - Q1 2021 ................ 26
Table 7: Overnight Policy Rate in Malaysia ............................................................. 30
Table 8: Base Rate, Bank Lending Rate, Indicative Effective Lending Rate of Local
Financial Institutions ................................................................................................ 31
Table 9: Salaries & Monthly Wages in W.P. Kuala Lumpur (2015-2020) ................. 53
Table 10: Total Population and Annual Growth Rate in Kuala Lumpur City ............. 53
Table 11: Summary of Shopping Complex Transactions in Malaysia (2019-2020) .. 70
Table 12: Transaction of Purpose-Built Office in Malaysia (2020)............................ 72
Table 13: Transaction of Leisure Property in Malaysia (2020) ................................. 74
Table 14: Malaysia Average Occupancy Rates January – September 2019/2020 ... 74
Table 15: Number of Overhang Residential Units by District (Q4 2020) .................. 91
Table 16: Number of Unsold under Construction Residential Units by District (Q4 2020)
................................................................................................................................ 92
Table 17: Number of Unsold Not Constructed Residential Units by District (Q4 2020)
................................................................................................................................ 93
Table 18: Number and Value of Overhang Commercial Units: Shops, SOHO and
Serviced Apartment by District (Q4 2020) ............................................................... 99
Table 19: Number of Unsold under Construction Commercial Units: Shops, SOHO and
Serviced Apartment by District (Q4, 2020) ............................................................ 100
Table 20: Number of Unsold Not Constructed Commercial Units: Shops, SOHO and
Serviced Apartment by District (Q4 2020) ............................................................. 101
Table 21: Prices of Service Apartment and SOHO ................................................ 103
Table 22: Rental of Service Apartment and SOHO ................................................ 105
Table 23: Shopping Complex by State in 2020 ...................................................... 109
Table 24: Shop Existing Stock, Incoming Supply and Planned Supply by State 2020
.............................................................................................................................. 112
Table 25: List of Office Buildings Completed in 2020............................................. 114
.............................................................................................................................. 116
Table 27: Construction Activity of Leisure Property in Malaysia ............................. 117
Table 28: Leisure Property Existing Stock, Incoming Supply and Planned Supply by
State 2020............................................................................................................. 118
Table 29: Pertinent Movements in Shopping Complex (2020) ............................... 128
Table 30: Pertinent Movements in Purpose-Built Office......................................... 129
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Table 31: Supply and Occupancy of Shopping Complex Kuala Lumpur City (2020)
.............................................................................................................................. 138
Table 32: Supply and Occupancy of Purpose-Built Office in Kuala Lumpur City (2020)
.............................................................................................................................. 138
Table 33: Existing Service Apartment and SOHO Competitors ............................. 141
Table 34: Existing Serviced Apartment Competitors .............................................. 146
Table 35: Upcoming Serviced Apartment Competitors .......................................... 149
Table 36: Existing SOHO Competitors .................................................................. 154
Table 37: Existing Retail Competitors .................................................................... 157
Table 38: Existing Shopping Complex Competitors Rental .................................... 161
Table 39: Product Analysis .................................................................................... 163
Table 40: SWOT Analysis ..................................................................................... 172
Table 41: Types and Details of Serviced Apartment Units ..................................... 182
Table 42: Floor Plan of Retail Units ....................................................................... 186
Table 43: Allocation of Open Space, Residential, Commercial, Infrastructure and
Facilities ................................................................................................................ 193
Table 44: Development Mix of Parkland Residence .............................................. 193
Table 45: Composition of Serviced Apartment by Type ......................................... 194
Table 46: Composition of SOHO Area Distribution ................................................ 194
Table 47: Composition of Retail Area by Type....................................................... 195
Table 48: Distribution of Infrastructure ................................................................... 195
Table 49: Distribution of Open Space .................................................................... 196
Table 50: Allocation for Each Development Component ........................................ 196
Table 51: Summary of Return Measurement ......................................................... 202
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bRIGHT PROPERTY CONSULTANTS SDN. BHD.
No. 160, Jalan Tun Razak, 43200 Kuala Lumpur.
No.Tel: 03-8736 0202 No.Fax: 03-4567893 E-mail: brightpc@gmail.com
1.0 INTRODUCTION
1.1 Executive Summary
This report is to propose a feasible redevelopment and prepare a redevelopment
proposal for a 3.08-acre land. The proposed site is identified as Lot 258, Section 89A,
located at Kuala Lumpur City, Kuala Lumpur District, Federal Territory of Kuala Lumpur.
The proposed development includes 3 components that is, serviced apartment, SoHo
and retail.
This report mainly contains eight sections which include an introduction to the
proposed development, an overview of proposed development site, the development
process and regulations, a comprehensive market study, the mode of development,
the proposed development analysis, a feasibility study and the marketing strategies.
The background of Kuala Lumpur is explained in the overview of proposed
development site while the site analysis is carried out to identify existing land use and
condition, surroundings and environment of the site. Next, the development process
and planning requirements and guidelines by the local and state authorities are
explained. After this, a market study is carried out to identify the economic condition,
property market overview, demand and supply in current market and the competitors.
Proposed development components, concept and justification are also described in
detail under the proposed development analysis. Besides these, the feasibility study
which consists of the financial appraisals is done to ensure that the project is viable.
Lastly, an appropriate disposal planning with the best marketing strategy is proposed
to ensure maximisation of profit.
The site valuation carried out using the comparison method arrived at a land value of
RM 335,412,000.
1.2 Terms of Reference

We, bRIGHT Property Consultants Sdn. Bhd were instructed by Fudosan Property Sdn.
Bhd. to identify and propose a development on a 3.08-acre land that is Lot 258, Section
89A, Kuala Lumpur City, Kuala Lumpur District, Federal Territory Kuala Lumpur.
Together with the redevelopment proposal, we carried out and prepared a market
study and feasibility study to support the project proposal.
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1.3 Objectives
This report is prepared referring to several objectives in order to develop the proposed
development idea as stated below:
a) To carry out the feasibility and viability study on the recommended proposed
development.
b) To study the current market condition in Kuala Lumpur in order to determine
the demand and supply that affects the proposed development.
c) To determine the sustainability and marketability of the proposed development.
d) To recommend several marketing strategies for selling the project.
e) To ensure that the proposed development meets the development process and
planning guidelines of Kuala Lumpur.
1.4 Methodology
The methodology for this report is divided into four parts which are the site inspection,
data collection, market study and feasibility study.
1.4.1 Site Inspection
During the site visit, a survey was conducted to identify the existing condition of the
proposed site and to gain information about the surroundings. In addition, a SWOT
analysis was also carried out during our site inspection. Based on the SWOT analysis,
one of the strengths of this proposed development is the location. It is located in Kuala
Lumpur City Centre, within the Central Business District (CBD). Hence, the site is
surrounded by the hustle and bustle of the city. The proposed development will offer
an eco-friendly and sustainable environment that improves the residents’ quality of
living.
During the site inspection, it was found that the proposed site is accessible by several
main highways or roads such as AKLEH Highway, Jalan Ampang and Jalan Tun Razak.
The surroundings are fully developed, and this might cause heavy congestion,
especially during peak hours. In terms of strength, the location is very strategic. This
is because the location is considered to be extremely desirable due to aspects like its
distance to modern infrastructure and conveniences, as well as job opportunities.
Public transportation is also easily accessible. For opportunities, the surrounding area
of the site is desirable as it is close to a few academic institutions such as UiTM. There
are also many known high density office buildings nearby, which would ensure a lasting
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supply of professionals looking for residences. Hence, there is a lot of potential for
investors who would like to purchase properties for renting out.
For threats, there is an uncertainty in the property market due to the COVID-19
pandemic, especially after the series of full and partial lockdowns implemented. As a
result, many property market players are taking a more conservative approach. They
would take a bit longer to carefully consider all angles before deciding on real estate
to purchase, invest or otherwise. This behaviour would likely affect the sale of this
proposed development.
1.4.2 Data Collection
In order to get relevant data for this report, enquiries were conducted with the state
authority regarding land matters, zoning as well as development guidelines. Besides
this, a set of comparison data was obtained from Department of Valuation and Property
Management. Extractions of information from the internet were also conducted with all
sources referenced.
1.4.3 Market Study
A market study has been carried out throughout the preparation of this report, which
includes the study of economic trends, housing market performance and
demographics ranging from the scale of national to district of the subject site. Besides,
competitors in the vicinity developing similar properties have been analysed. The data
collected are interpreted and analysed to ensure the proposed development project is
feasible.
1.4.4 Feasibility Study
A feasibility study has been undertaken to determine whether the proposed

development is viable. The feasibility study considers all development revenue and
cost from predevelopment stage to post-development stage. The techniques have
been adopted are cash flow analysis, break even, WACC and IRR.
1.5 Site Analysis and Inspection

Site inspection was conducted to gain information regarding the current condition of
the site and its surroundings. These include the location of the proposed site, physical
characteristics of the site and a network of accessibility. Local plan from Local Authority,
land matters from the State Authority, development guidelines and zoning plan is
obtained. Extractions of information from the internet were done as well with all sources
referenced. Information extracted in this report also includes the surrounding
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development and the existing and incoming competitors of the subject site. This
information helps to determine the Highest and Best Use of the redevelopment
proposal.
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2.0 OVERVIEW
2.1 Background of Federal Territory of Kuala Lumpur
Kuala Lumpur is one out of three Federal Territory in Malaysia which is known as
Federal Territory of Kuala Lumpur. The city authoritatively turned into the Federal
Territory of Kuala Lumpur when it was ceded by the Sultan of Selangor in 1974.
Besides, Kuala Lumpur was isolated into various regions; its primary centre point is
known as the Golden Triangle which contains Bukit Bintang, KLCC and Chinatown.
Moreover, Kuala Lumpur is generally perceived for various milestones, including
Petronas Twin Towers the world's tallest twin high rises, Petaling Street famous street
market, and Batu Caves, which is more than 400 million years of age.
2.2 Background of Kuala Lumpur

Kuala Lumpur is well known as capital of city of Malaysia and largest city in Malaysia.
The name of Kuala Lumpur actually signifies 'Muddy Confluence'. This nickname has
been gained since it was established close to where the streams Klang and Gombak
converged.
The history of Kuala Lumpur started in 1857 by an individual from the Selangor
illustrious family, Raja Abdullah, who was the delegate of the Yam Tuan who controlled
the Klang area. Together with Raja Jumaat of Lukut and 87 Chinese miners, he came
to investigate the area in search of tin metal. Subsequent to going up the Klang River
to achieve its conversion with the Gombak River, they cleared their path through
profound wilderness and discovered tin close Ampang. Therefore, that minute denoted
the start of KL's improvement. Throughout the years it developed from a tin excavator's
camp into a business centre that had the option to draw in vast quantities of
speculators from around different spots. The Federal Territory of Kuala Lumpur is
divided into several districts as shown in Table 1 and Figure 1. Moreover, the Federal
Territory of Kuala Lumpur has been under local authority on the Kuala Lumpur City
Hall (DBKL). Local authority in charge of general wellbeing and sanitation, squander
expulsion and the executives, town arranging, ecological assurance and building
control, social and monetary advancement, and general support elements of urban
framework.
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2.3 Background of Site
2.3.1 Particulars of Title
Particulars of title of the subject properties were extracted from Kuala Lumpur City Hall
(DBKL). The particulars of title are as follow:-
Title No. GRN 10567
Lot No. Lot 258
City / Pekan / Mukim Kuala Lumpur City
State Federal Territory of Kuala Lumpur
District Kuala Lumpur
Tenure Term in perpetuity
Category of Land Use Building
Land Area 3.08 acres
Registered Owner Fudosan Property Sdn. Bhd.
Table 1: Particular of Title
2.3.2 Analysis of Site
2.3.2.1 Land Area
The proposed site is identified as Lot 258, Kuala Lumpur City, Kuala Lumpur District,
Federal Territory of Kuala Lumpur. With a surveyed total land area of 1.25 hectares
which is equivalent to 3.08 acres land as shown by red edged on the attached site plan
Appendix C.
2.3.2.2 Shape, Terrain and Topography
Particularly, the proposed site is trapezium in shape and flat in terrain. There are British
High Commission buildings. Nonetheless, the building wall is made out of concrete.
The general view of the site is attached on Appendix D.
2.3.2.3 Surroundings and Development
The subject property as shown in the neighbourhood plan of subject property. Notable
landmarks neighbourhood of the proposed site includes the HSC Medical Centre which
is 140 meter southeast from the proposed site and the LINC KL, situated 250 meters
to the southwest of the proposed site. Intermark Mall can be found 130 meter in the
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direction of northwest from the proposed site in addition to The Castle Restaurant
which is 800 meter in the direction of northwest from the proposed site.
As we move along the southwest, Aquaria KLCC and Pavilion is 1.5 km and 2.5 km
away from the proposed site. Seasons Club which is 800 meter away southeast from
the proposed site. A neighbourhood plan of the proposed site is attached as Appendix
E for easy reference.
2.3.2.4 Current Land Use
According to the verbal enquiries at the Planning Department, Kuala Lumpur City Hall
(DBKL) revealed the the subject site is currently vacant. Based on our observation
during site inspection, there are British High Commission buildings on the proposed
development site.
2.3.2.5 Geology
We conducted a series of site surveys and verbal inquiries with the Mineral and
Geosciences Department of Malaysia and the Local Authority to ensure that there are
no unique geological features that need to be preserved. We can therefore conclude
that during the site clearance process the site is completely clear and flattened in order
to proceed with future development.
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3.0 DEVELOPMENT PROCESS AND REGULATION

3.1 Property Development Process in Kuala Lumpur
Malaysia Town and Country Planning Act 1976 (Act 172) states that development is
“the carrying out of any building, engineering, mining, industrial or other similar
operations in on, over or under land or the making of any material change in the use
of any land or building or any part thereof, or the subdivision or amalgamation of lands”.
In other words, land development is defined as a process of transforming raw land to
a more appropriate productive use.
There are 3 stages of the development processes, namely, pre-development,

development, and post-development stage. In the pre-development stage, land
acquisition and all required approvals must be obtained before entering the second
stage which is the construction stage. This includes sub-stages of idea initiation or
decisions to develop, the selection of a site, feasibility, financing, and the planning
permission. The second stage which is the construction or development stage is where
the construction of the building takes place. The third stage is the post-development
stage in which the completed building is occupied or disposed of as an investment item.
It also includes maintenance, management, leasing, and sale. During the post-
development stage, a certificate of completion of compliance (CCC) would also be
awarded to the developer who then would have completed the project. In essence, the
OSC 3.0 covers all the stages.
Figure 1: Stages of the Development Processes
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3.1.1 Pre-Development Stage
The pre-development stage comprises of the sub-stages in which it includes the idea
initiation or decision to develop, site selection, feasibility, financing and planning
consents. In the early stages of land development where the land chosen or acquired
for the purpose of development are still in an agriculture status, the application for the
conversion, sub-division, partition or amalgamation, wherever applicable, thus must be
obtained before any development could take place.
In the pre-development stage, first, that land must be obtained through land acquisition
in order to develop on it. Land acquisition upon which the development is to be carried
out does include some elements of uncertainty due to the physical features of the land,
restriction in interest in the land ownership and natural features and type of land use
allowed or approved by the local planning authority. In the case of the acquired land of
the site, the site is a vacant land and thus, the land acquisition could be done by the
developer on the proposed development and further follow up with a market and
feasibility study.
After all the approval had been obtained, then the site clearance and demolition will
be progressed. Since our proposed development site currently is used as an office
building which is British High Commission, site clearance and demolition has to be
carried out first. It is the most complex stage in the land development process. This is
to be done before the construction phase so that the construction process can be
carry out.
3.1.1.1 Pre-consideration
After the acquisition of land is done, the first process of OSC 3.0 is carried out in which
the gathering of all technical requirements from various technical departments such as
the water operator, TNB, MCMC and the land office, are made prior to formal
submission within 14 days. The process is as follows:
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Figure 2: Consideration of Development Proposal Plans Process

Source: Kuala Lumpur City Hall (DBKL)
3.1.1.2 Plan Approval
Before any developments could be commenced, one must get planning approvals by
applying for planning permission. Under the Town and Country Planning Act 1976 (Act
172), it states that “no person shall carry put any development without planning
permission”. Applicants are also required to submit all development plans to the
respective technical departments for approvals. Hence, the applicant needs to prepare
relevant documents such as the planning permission application, building plans,
engineering plans, and other documents to be submitted to the technical departments
through the OSC. The process is as follows:
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Figure 3: Plan Consideration Process

3.1.2 Development Stage
The second stage is the land development stage where the development of the
building takes place. In this stage, it involves the construction phase with the 3
processes under it where it will be handling by other professionals such as civil
engineering and others. After the acquisition of land is done, the construction of
building starts to take place. This stage involves 3 processes of the OSC 3.0 which are
notification to begin works, interim inspections and final inspections.
3.1.2.1 Notification to Start Work
A notification to start work must be received from the OSC before the construction
stage. A notification is required to be deposited to OSC to notify the technical
departments such as the Building Department and Engineering Department of DBKL.
OSC will compile the deposit notifications provided that are listed in the deposit
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checklist. After that, the OSC will distribute the notices to the technical departments to
notify them that the construction stage is going to commence.
Figure 4: Notifications Start Working Process

3.1.2.2 Interim Inspection
During the Construction Stage, developer can deposit notification to OSC for interim
inspection after 6 components of work such as TNB substation, water tanks and
sewers are ready. Then, OSC will distribute the notifications to Air Selangor, TNB,
Jabatan Kerja Raya (JKR), Department of Occupational Safety and Health (DOSH)
and Indah Water Konsortium (IWK) to carry out their interim inspection on development
site. Interim inspection aims to ensure that the public utilities provided to residents are
built in compliance with the technical requirements.
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Figure 5: Notifications Interim Inspection Process

3.1.2.3 Final Inspection
Developer is required to submit request for clearance of site and commissioning report
to OSC once the construction stage is complete. OSC will issue notices for final
inspection which consists of two stages by different technical departments. Final
Inspection I is carried out by National Facilities Provider (NFP), Air Selangor, TNB and
JKR. Final Inspection II involves Jabatan Bomba dan Penyelamat Malaysia (JBPM),
DOSH and IWK. After carrying out the final inspection and ensured that there were no
issues with the facilities and buildings, the respective technical departments will issue
clearance letter and Certificate of Completion and Compliances (CCC) to the
developer.
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Figure 6: The Final Inspection Process

3.1.3 Post-Development Stage
After all construction works are completed, the sixth process of OSC is the Deposit of
CCC and Form G where after all construction works are completed, the applicant must
obtain the Certificate of Completion and Compliance and deposits the CCC along with
the Form G to the OSC within 14 days after the CCC is issued. A total of 21 forms are
needed to be distributed to the building department and the IAM or IJM.
3.1.3.1 Deposit CCC and Form G
Property transfer is the final stage of the land development process. At this stage, the
building has been built. This is the stage where the developer has to get the Certificate
of Completion and Compliance (CCC) for the entire development. CCC can only be
issued by Registered Architects or Registered Engineers as well as Building
Draughtsman registered with the Board of Architects Malaysia (LAM). By-law 25 of
Uniform Building by Law 2007 stated that PSP can issue CCC only if the following
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criteria has been fulfilled. First is that when the developer had complied with all
conditions imposed by the Local Authority. Next is that Form G1 to Form G21 has been
certified. This is to ensure the completion, compliance and also safety of the
development. On top of that, all the essential services such as access road, landscape,
car park, drainage and others have to be provided. After the PSP has supervised and
satisfied with the erection and completion of the building, Form F will be certified and
CCC will be issued. Then, the development is said to be completed and vacant
possession is ready to be delivered. In this stage too, the transfer of the ownership of
the improved real estate is handled by sale or lease. Fee for estate agent need to be
taken into consideration as well. The process is as follows:
Figure 7: Deposit CCC and Form G

3.2 Planning Consideration and Requirements

According to the Town and Country Planning Department of Kuala Lumpur City Hall
(DBKL), all developments carried out within the jurisdiction must adhere to the
guidelines prepared by them. The Local Plan, Rancangan Tempatan Dewan
Bandaraya Kuala Lumpur Jilid II was referred to. In addition, the third edition of the
Kuala Lumpur Planning Guidelines and Standards Manual was used to derive the
requirements of constructing a serviced apartment and SoHo development within the
state of Selangor. There are several conditions that need to be fulfilled for the
development to take place.
3.2.1 General Guidelines
Our proposed development site is zoned Commercial, according to the DBKL City
Planning Department (C). Appendix B shows the zoning plan. Our proposed
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development land is located within the Transit Planning Zone (TPZ), notably illustrated
in the Kuala Lumpur City Plan 2020. The term TPZ refers to areas within 400 metres
of a Transit Station defined in KLCP 2020, in this case the Ampang Park LRT Station.
Following consultation with a City Planning Department officer, redevelopment of the
planned development site is allowed.
Since a permanent structure has been established on the proposed location, the
structure will be demolished and the land will be redeveloped. The redevelopment
areas, as specified in Land Use Zoning and Intensity Maps, are to be enhanced for
mixed use or higher intensity commercial or residential development, according to
KLCP 2020. These redevelopment sites will be required to provide a larger contribution
of spaces for community facilities and green spaces in the form of urban parks or local
play areas, as well as a much-improved infrastructure that is of international standing
and meets the green standard, due to the assigned plot ratio or density. When
redevelopment areas are designated as TPZs, transportation infrastructure must be
included, and developments must be fully integrated with transit and a pedestrian-
friendly environment.
Our proposed site has a plot ratio of 1 to 6 based on information obtained from the City
Planning System (CPS) and the City Planning Department of DBKL. In this situation,
we are allowed to build 6 acres of construction area for every 1 acre of land. Our
proposed site, however, has the potential to change to a plot ratio of 1 to 8 due to the
fact that it is surrounded by land zoned as main commercial.
Allowable activities and developments for the main commercial zone and commercial
zone are listed below, according to the Federal Territory (Planning) (Classes of Use of
Land and Buildings) (Federal Territory of Kuala Lumpur) Rules 2018:
Allowable Allowed with Condition Not Allowed
B1 General Retail A1 Residential Unit A2 Quarters
Home-based
B2 Business A3 Hostel A5
business
B3 Office A4 Care Home B16 Funeral Services
Financial
B4 B6 Entertainment C3 Recycling
Institution
B5 Food and Drink B8 Gambling C5 Engineering Work
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Manufacturing
B7 Wellness B9 Theme Park C7
and Processing
Tourist Publishing and

B10 B13 Supermarket C8
Accommodation Printing
Serviced
B11 B14 Department Store C10 Batching Plant
Apartment
B12 SOHO B15 Hypermarket D7 Golf Facility
Technology,
Shelter Home or
C9 Research and C1 Showroom D9
Institution
Development
Packaging,
Solid Waste
D4 Civic Use C2 Storage and E5
Facility
Distribution
Community Slaughtering
D5 C4 Petrol Station E6
Facility Centre
Institution and Vehicles repair

D8 C6
Organization and Services
D1 Health Facility
D2 Religious Facility
D3 Education Facility
Sports and
D6
Recreation Facility
Emergency and
D10
Security
E1 Transport Facility
E2 Park and Ride
E3 Parking
E4 Public Utility
Table 2: Classes of Use for land zoned under Main Commercial

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Allowable Allowed with Condition Not Allowed
B1 General Retail A1 Residential Unit A2 Quarters
B2 Business A3 Hostel A4 Care Home
B3 Office B6 Entertainment C3 Recycling
Financial
B4 B8 Gambling C5 Engineering Work
Institution
Manufacturing
B5 Food and Drink B9 Theme Park C7
and Processing
Serviced Publishing and

B7 Wellness B11 C8
Apartment Printing
Tourist
B10 B13 Supermarket C10 Batching Plant
Accommodation
B12 SOHO B14 Department Store D7 Golf Facility
Solid Waste
C1 Showroom B15 Hypermarket E5
Facility
Technology,
Slaughtering
C9 Research and B16 Funeral Services E6
Centre
Development
Packaging,
D4 Civic Use C2 Storage and
Distribution
Community
D5 C4 Petrol Station
Facility
Institution and Vehicles repair

D8 C6
Organization and Services
Emergency and
D10 D1 Health Facility
Security
D2 Religious Facility
D3 Education Facility
Sports and
D6
Recreation Facility
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Shelter Home or
D9
Institution
E1 Transport Facility
E2 Park and Ride
E3 Parking
E4 Public Utility
Table 3: Classes of Use for land zoned under Commercial

3.2.2 Planning Guidelines for SOHO
The planning guideline for SOHO is based on publication by the City Planning
Department as shown in the table below.
No. Planning Criteria Guidelines
 Commercial city centre zone

Allowable land use  Main commercial zone
1
zone  Commercial zone
 Mix development zone
Structure of SOHO  SOHO as free-standing building

2
development  SOHO as a part of mix development component
3 SOHO unit size  400 sq. ft.
SOHO’s interior  No wall restriction for SOHO’s unit

4
design  Only for toilet only
 Carpark (based on floor area calculation)

 City centre area is 1 parking lot: 1,000 sq. ft.
 Transit planning zone (TPZ) area in outside of the
city centre is 1 parking lot: 800 sq. ft.
5 Carpark  Rural area (not in the TPZ area) is 1 parking lot:
500 sq. ft.
 Carpark for motorcycle (based on floor area
calculation):
 1 parking lot: 2,000 sq. ft.
 Based on the intensity as stated in Pelan

6 Plot ratio
Bandaraya Kuala Lumpur 2020
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7 Plinth area  60% of the base/site area
 2 meter around the development site

8 Planting perimeter  Imposed to development proposal that involved
10,000 sq. ft. area
 10% of the site area

9 Open space  8% on the base and 16% on podium level if could
not do the 10% of the site area
 Maximum 20% of the building physical height,

10 Height of podium
which is 8 levels
Minimum
11 displacement of the  20 feet (subject to fire department necessity)
building
 No need a building displacement in the front part

Guard house  900mm displacement including eave on the side
12 displacement (more part
than 70 sq. ft.)  However, for a guard house that have toilet, no
need to do a displacement 3 meters in every side
Guard house
 Need 3 meters displacement in the front part
13 displacement (less
 3 metres displacement in every side
than 70 sq. ft.)
 Recommended to be combine in the building

 For separated structure, it is allowable to do 10
Solid Waste
feet displacement
14 Disposal or
 It is allowable to do displacement for waste
Domestic Centre
chamber to the front border and 900 mm from side
border
Basement and
storm water  7 feet 6 inch (2.3 meter) of the development site
15
management border
displacement
16 Porch displacement  10 feet of the front border
 Ancillary structure for utility purposes only such as

garbage house, TNB, water meter if integrated
17 Ancillary structure with the perimeter wall, does not require
displacement but if it requires a separate roof then
it needs a displacement of 900 millimetres
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 50 – 100 units = 100 sq. ft.

 101 – 200 units = 200 sq. ft.
18 Prayer area
 201 – 400 units = 300 sq. ft.
 More than 400 units = 400 sq. ft.
 100 – 200 units = 400 sq. ft.

19 Meeting room/hall
 100 – 200 units = 200 sq. ft.

20 Management office
21 Other facilities  Kindergarten
Table 4: Planning Guidelines for SOHO

Source: Local Plans of DBKL
3.2.3 Planning Guidelines for Serviced Apartments
The planning guideline for service apartments is based on publication by the City
Planning Department as shown in the table below.
No. Planning Criteria Explanation
1 Allowable Zoning  Mixed Development (MX)
 10% of the net area of development site or 8% on

the ground level + 16% at podium or approved
2 Plinth Area
development that involved net area of
development site for more than 20,000 sq.ft.
 2 meters around the development site approved

3 Perimeter Planting development that involved net area of
development site for more than 10,000 sq.ft.
 Maximum of 20% from the physical height of the

4 Height of Podium building, equivalent to maximum of 8 podium
level
 Vehicle Parking Lot

 City Center Area = 1 lot: 1,000 sq.ft.
 Transit Planning Zone = 1 lot: 800 sq.ft.
Carpark  Other than City Center and TPZ = 1 lot: 500 sq.ft.
5
Requirement  1 unit: 1 lot + 10% visitors parking (based on total
amount of unit that the area are more than 800
sq.ft.)
 Motorcycle Parking Lot 1 lot: 2,000 sq.ft.
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 City Centre, Transit Planning Zone,

Transportation Hub
 Small Unit (450 sq.ft. - 649 sq.ft.) - max 50% from
the total units
 Normal Unit (650 sq.ft. above) - the remaining
from the approved total units
6 Unit Size
 Other area Small Unit 1 (450 sq.ft. - 649 sq.ft.) -
max 30% from the total units 33
 Small Unit 2 (650 sq.ft. - 799 sq.ft.) - 20% or
remaining percentage from the
 Small Unit 1 Normal Unit (800 sq.ft. above) - min
50% from the total units
 Prayer Room
 Mortuary Management Room Management Office
 Child Care Centre
7 Facilities  Kindergarten
 Community Hall / Meeting Room
 Laundry Shop
 Shop Unit
Minimum Building
8  20 feet
Displacement
Table 5: Planning Guideline for Serviced Apartment

Source: Local Plans of DBKL
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4.0 MARKET STUDY

4.1 Economic Overview
4.1.1 Global Economy Overview
A year after the COVID-19 pandemic, the global economy remains gloomy. New virus
mutations and the increase in numbers of patients are of concern despite rising vaccine
coverage. Economic recovery varies by country and industry, owing to differences in
pandemic-related disruptions and initiatives taken aimed at mitigating the impact of
COVID-19. The future depends not only on the success of the virus-vaccine struggle
but also on how well economic measures are implemented in the face of significant
uncertainty, as it can limit the long-term consequences of this unprecedented disaster.
Besides, it will most likely stay unequal on the efficacy of vaccination programs and
public health policies by certain countries recovering far more quickly than others. For
example, after 18 months, South Korea and the United States have reached a pre-
pandemic per capita level income. It may take over three years for Europe to recover
and between three and five years for both Mexico and South Africa.
Following a steep loss of 3.6 % in 2020, the global economy is now expected to expand
by 5.4 % in 2021, according to the World Economic Situation and Prospects (WESP)
mid-2021 report, reflecting an upward adjustment from the United Nations (UN)
predictions given in January. China and the United States' two largest economies are
driven by rapid economic growth and continued fiscal and monetary stimulus. However,
several countries in South Asia, Sub-Saharan Africa, Latin America, and the Caribbean,
on the other hand, have unstable growth. As a result, economic outputs in many
countries are expected to only recover to pre-pandemic levels in 2022 or 2023.
In the first quarter of 2021, Canada’s Gross Domestic Product (GDP) increased by
1.4 %, following rises of 9.1 % in the third quarter and 2.2 % in the fourth quarter of
2020. These gains more than compensated for the vast fall in the second quarter of
2020 (-11.3%). In comparison to the first quarter of 2020, GDP increased by 0.3 %.
The enduring economic growth, impacted by favorable mortgage rates, continued
government transfers to households and businesses, and improving labour market has
contributed to the increase in GDP in the first quarter of 2021. This enhanced home
investment demand, whereas growing input costs increased construction expenses.
However, the United Kingdom’s GDP decreased by 1.6 % in the first quarter of 2021
(January to March) due to the COVID-19 lockdown executed across the country.
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4.1.2 Malaysia Economy Overview
The prolonged outbreak of the COVID-19 in Malaysia since early March 2020 had
triggered economic uncertainty and impacted economic growth. In this regard, the
government had introduced the National Recovery Plan to ensure that the government
can implement a more structured plan to fight the COVID-19 pandemic and at the same
time, drive economic recovery by allowing more economic sectors to resume.
Malaysia’s economic growth is anticipated to follow an expansion on fiscal and
monetary strategies in the second quarter of this year.
Looking at the upward performance in several key indicators, the economic situation
has improved in May 2021. The production of Natural Rubber in May 2021 increased
by 22.4 % to 28,164 tonnes (April 2021: 23,013 tonnes). Meanwhile, the production of
Crude Palm Oil in April 2021 recorded an increase of 7.0 % to 1,522,865 tonnes as
compared to 1,423,483 tonnes in the previous month.
Furthermore, the Industrial Production Index (IPI) recorded an increase of 26.0 % in

May 2021 as compared to the same month of the previous year, driven by increases
in all indices especially the Manufacturing index (29.8%), Mining index (20.7%) and
Electricity index (7.9%). The Mining sector's output recorded a positive growth of 20.7 %
in this month compared to the same period of the previous year. The increase was
attributed to the Natural Gas index (30.9%) and the Crude Oil & Condensate index
(8.6%).
During the same period, the Manufacturing sector's output on a year-on-year basis
rose by 29.8 % after registering a growth of 68.0 % in April 2021. The sales value of
the Manufacturing sector grew by 37.2 % as compared to the previous year, with the
amount of RM122.7 billion. This growth was driven by an increase in Transport
Equipment & Other Manufacturing Products (59.5%), Petroleum Products, Chemicals,
Rubber & Plastics (48.7%) and Electrical & Electronic Products (31.0%). However, on
a month-on-month basis, sales value declined by 6.1 %.
Malaysia’s Wholesale & Retail Trade recorded a positive growth of 28.3 % year-on-
year in May 2021, with a sales value of RM108.3 billion. As for the volume index,
Wholesale & Retail Trade recorded a growth of 27.2 % year-on-year, supported by
Motor Vehicles which increased 66.0 %. This was followed by Wholesale Trade and
Retail Trade, which rose 27.9 % and 20.1 %, respectively. In addition, Malaysia’s trade-
in May 2021 recorded an increase of 48.7 %, reaching RM170.9 billion from RM114.9
billion in May 2020. The exports recorded a growth of 47.3 % to RM92.3 billion in May
2021 compared to the previous year. Meanwhile, imports increased by 50.3 % while
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the trade balance remained surplus with a value of RM13.7 billion, an increase of
32.3 %.
4.1.2.1 Gross Domestic Product
Figure 8: Malaysia's Gross Domestic Product (Q1 2019 - Q1 2021)

Source: Department of Statistic Malaysia
Malaysia’s Gross Domestic Products (GDP) contracted 3.4% in Q4 2020, a decline of

2.6% and 17.1% respectively in Q3 2020 and Q2 2020 took place due to the Movement
Control Order (PKP) that was implemented in the nation since 18th March 2020 and
the re-implementation of the Conditional Movement Control Order (PKPB) in the red
zone of several states since mid-October following the surge in the number of Covid-
19 cases in these areas. For 2020, the economy contracted by 5.6% compared to the
growth of 4.3% in 2019. The performance in 2020 was the lowest recorded since 1998
(-7.4%).
Malaysia’s economy in Q1 2021 gradually recovered as more economic activities were

allowed to operate following the Movement Control Order (MCO) 2.0 compared to a
stringent implementation of MCO that was imposed in the preceding year and
benefited from various stimulus packages to steer the economic recovery. In Q1 2021,
Malaysia’s economy increased to -0.5% from -3.4% in Q4 2020. All economic sectors
recorded better performance as compared to the last two quarters. Figure 9 shows the
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Malaysian GDP trend for all quarters in 2019, 2020 and Q1 2021. On the GDP by
production approach, the performance was supported by the expansion in
manufacturing and the rebound of agriculture sectors.
4.1.2.2 Gross Domestic Product by Production
2020 2021
Kind of Economic Activity 2019 2020
Q1 Q2 Q3 Q4 Q1
GDP 4.4 -5.6 0.7 -17.2 -2.7 -3.4 -0.5
Manufacturing 3.8 -2.6 1.4 -18.3 3.3 3.0 6.6
Services 6.2 -5.5 3.1 -16.2 -4.0 -4.8 -2.3
Agriculture 2.0 -2.2 -8.6 0.9 -0.3 -1.0 0.4
Mining & Quarrying -0.6 -10.6 -2.9 -20.8 -7.8 -10.4 -5.0
Construction 0.4 -19.4 -7.9 -44.5 -12.4 -13.9 -10.4
Table 6: Malaysia's External Sector GDP Performance, 2019 - Q1 2021

Source: Department of Statistic Malaysia 2021
The manufacturing sector grew stronger to 6.6% in the first quarter of 2021 than 3.0%
in the fourth quarter of 2020 driven by the robust growth of electrical, electronics &
optical products due to the higher demand for microchips in electronic devices.
Furthermore, transport equipment, other manufacturing & repair expanded further to
8.1% compared to 6.9% in the preceding quarter. The growth was contributed by the
export-oriented industries which grew by 7.2% (Q4 2020: 3.4%) coupled with better
performance of the domestic-oriented industries increased by 5.3% (Q4 2020: 2.4%)
for the quarter.
Services sector, which was a major contributor to Malaysia's GDP, improved in this
quarter to -2.3% from -4.8% in the previous quarter. The slower decrease was due to
the improvement in private services and further expansion in government services.
This quarter's private services improved in line with the rebound in the wholesale and
retail trade sub-sector, which recovered modestly at 1.2% (Q4 2020: -1.4%).
Nonetheless, private services remained in negative growth partly due to the food &
beverages and accommodations sub-sector which fell 29.8% (Q4 2020: -35.3%). The
slight improvement of food & beverages and accommodations sub- sectors was due
to the easing of MCO 2.0 whereby restaurants’ operating hours were extended, dining-
in was allowed, and interstate travel was permitted for states under RMCO to
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encourage domestic tourism activities. Moreover, the transportation and storage sub-
sector decreased 16.2% (Q4 2020: -23.0%), influenced by the decline in all segments
(land, water, air, and warehousing & storage) except for postal & courier.
The agriculture sector grew marginally to 0.4% in Q1 2021, a turnaround from -1.0%
in Q4 2020. The growth was supported by a better performance in other agriculture
consisting of paddy, fruits, and crops, which grew to 5.7% (Q4 2020: 3.6%) and
livestock which increased to 3.5% (Q4 2020: 2.9%). The mining and quarrying sector
improved to a -5.0% as compared to -10.4% in the Q4 2020. The rebound in natural
gas largely supported the performance of this sector at 0.3% (Q4 2020: -9.9%) and
crude oil & condensate at – 11.5 % (Q4 2020: -12.9%). The construction sector
increased to -10.4% in Q1 2021 (Q4 2020: -13.9%), attributed to a slower decrease in
residential buildings, non-residential buildings, and civil engineering. The specialised
construction activities expanded to 16.9% (Q4 2020: 9.4%).
4.1.2.3 Consumer Price Index (CPI)
Malaysia's Consumer Price Index from Jul 2020

to Jun 2021
124
123
123.1 123.1 123.2
122.9
122 122.5
122.1
121
120 120.6
120.1 120.1 120.2 120
119.9
119
118
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Figure 9: Malaysia's Consumer Price Index from Jul 2020 to Jun 2021
Sources: Department of Statistics Malaysia
CPI is an index of the variation in prices for retail goods and other items. The purpose
of understanding the CPI is to know the basket of consumer goods and services as it
shows a weighted average of prices. It is calculated by taking price changes for each
item in the predetermined total number of goods and averaging them. In Malaysia, the
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CPI measures the changes in price paid by consumers for a basket of goods and
services such as transportation, food and medical care. Malaysia’s CPI increased by
4.7% in April 2021 with 123.1 against 117.6 in the same month of the preceding year.
Figure 10: Percentage Change in CPI by Group for Malaysia, January 2021 & April 2021
Source: Department of Statistic Malaysia, 2021
The increase in the overall index was driven mainly by Transport (27.0%); Housing,
Water, Electricity, Gas & Other Fuels (3.1%); Food & Non-Alcoholic Beverages (1.9%);
Furnishings, Household Equipment & Routine Household Maintenance (1.6%) and
Miscellaneous Goods & Services (1.2%). Meanwhile, the CPI for January to April 2021
increased 1.6% compared to the same period last year. On a monthly basis, CPI
increased 0.2% as compared to March 2021. The increase was attributed by Food &
Non-Alcoholic Beverages (0.3%); Furnishings, Household Equipment & Routine
Household Maintenance (0.3%); Recreation Services & Culture (0.2%); Restaurants &
Hotels (0.2%); Education (0.2%); Transport (0.1%) and Miscellaneous Goods &
Services (0.1%).
The CPI without fuel increased 1.7% in April 2021 to 113.8 as compared to 111.9 in
the same month of the preceding year. CPI without fuel covers all goods and services
except Unleaded Petrol RON95, Unleaded Petrol RON97 and Diesel. Core index rose
0.7% in April 2021 as compared to the same month of the previous year. Among the
major groups which influenced the increase were Furnishings, Household Equipment
& Routine Household Maintenance (1.6%); Miscellaneous Goods & Services (1.2%);
Recreation Services & Culture (0.7%); Transport (0.6%); Health (0.5%); Housing,
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Water, Electricity, Gas & Other Fuels (0.4%); Restaurant & Hotel (0.2%) and Education
(0.2%). Core index excludes most volatile items of fresh food as well as administered
prices of goods and services.
4.1.2.4 Inflation Rate
Figure 11: Malaysia’s Inflation Rate, July 2020 – June 2021

Source: TradingEconomics.com | Department of Statistic Malaysia 2021
As shown in Figure 12, Malaysia’s annual inflation rate declined to 3.4 % in April of
2021 from 4.4 % which might be due to a softer rise in prices of both transport and
food. Plus, this was the lowest inflation rate since March which was 1.7%. Meanwhile,
a year before 2021 which is 2020 shows that all the inflation rate from July to December
was negative.
4.1.2.5 Overnight Policy Rate
The overnight policy rate (OPR) is the minimum interest rate charged amongst banks
in the interbank market, where they borrow funds from each other. When a bank has
a fund deficit to meet the withdrawal demand from depositors, the bank will borrow
from another bank with an excess fund.
The overnight policy rate (OPR) is determined by the Monetary Policy Committee
(MPC) of Bank Negara Malaysia that meets six times annually. The OPR level will
influence interest rates in other markets, including credit market as OPR is the primary
reference rate. When OPR is lowered, other interest rates will be guided accordingly,
and vice-versa.
The Overnight Policy Rate (OPR) cut with a cumulative 125 basis points in 2020 would
help lower the borrowing cost; thus, lower the monthly repayment amount.
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Date Change in OPR (%) New OPR Level (%)
8 July 2021 0 1.75
6 May 2021 0 1.75
4 March 2021 0 1.75
20 Jan 2021 0 1.75
3 November 2020 0 1.75
10 September 2020 0 1.75
7 July 2020 -0.25 1.75
5 May 2020 -0.5 2
3 May 2020 -0.25 2.5
22 January 2020 -0.25 2.75
5 November 2020 0 3
12 September 2019 0 3
9 July 2019 0 3
7 May 2019 -0.25 3
5 May 2019 0 3.25
24 January 2019 0 3.25
Table 7: Overnight Policy Rate in Malaysia

Source: Bank Negara Malaysia
4.1.2.6 Base Rate and Base Lending Rate
Since January 2015, Base Rate (BR) had replaced the previous Base Lending Rate
(BLR) for residential property loans but not commercial property loans. The BR can be
reviewed at any time without the need to refer to Bank Negara Malaysia’s Overnight
Policy Rate (OPR) and it is dependent on banks’ benchmark cost of funds and liquidity.
With the BR, interest rates are determined by banks’ benchmark cost of funds and
Statutory Reserve Requirement (SRR), the minimum level of reserves required for
each bank to retain before lending out. Normally, if the SRR of the Central Bank
increases, BR will follow its footsteps too. BR are different for every bank as it is
dependent on lending efficiencies respectively.
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The “Spread Rate” above the BR will be determined by the borrower’s credit risk, profit
margin, operating cost and liquidity. As the BR are a floating rate, if the bank’s profit
were to increase, would be reduced. Effective Lending Rate (ELR) are the combination
for BR and Spread. However, the lowest BR does not necessarily mean the lowest
interest rate as it is also dependent on the spread.
Base Base Indicative

No. Financial Institutions Rate Lending Effective
(%) Rate (%) Lending Rate (%)
1. Affin Bank Berhad 2.70 5.56 3.30
2. Alliance Bank Malaysia Berhad 2.57 5.42 3.11
3. AmBank (M) Berhad 2.60 5.45 3.25
4. Bangkok Bank Berhad 3.22 5.87 4.42
Bank of China (Malaysia)

5. 2.55 5.35 3.55
Berhad
6. CIMB Bank Berhad 2.75 5.60 3.50
7. Citibank Berhad 2.40 5.55 3.20
Hong Leong Bank Malaysia

8. 2.63 5.64 3.50
Berhad
9. HSBC Bank Malaysia Berhad 2.39 5.49 3.50
Industrial and Commercial

10. Bank of China (Malaysia) 2.52 5.45 3.47
Berhad
11. Malaysian Banking Berhad 1.75 5.40 3.25
12. OCBC Bank (Malaysia) Berhad 2.58 5.51 3.45
13. Public Bank Berhad 2.27 5.47 3.10
14. RHB Bank Berhad 2.50 5.45 3.50
Standard Chartered Bank

15. 2.27 5.45 3.50
Malaysia Berhad
United Overseas Bank

16. 2.61 5.57 3.36
(Malaysia) Berhad
Table 8: Base Rate, Bank Lending Rate, Indicative Effective Lending Rate of Local Financial Institutions
Source: Bank Negara Malaysia
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The indicative effective lending rate refers to the indicative annual effective lending
rate for a standard 30-year housing loan/home financing product with a financing
amount of RM350k and has no lock-in period.
Figure 12: Malaysia's Base Lending Rate

Source: CEIC.com
The bank lending rate is the average rate of interest that is charged on loans by banks
to individuals and firms. The figure above shows that it has generally been decreasing
from 4.263% in April 2020 to 3.443% in January 2021 with a few minor ups along the
way as shown in Figure 12.
4.1.3 Kuala Lumpur Economic Overview
4.1.3.1 Gross Domestic Product
Figure 13: Value and Growth Rate of GDP in W.P Kuala Lumpur (2015 – 2019)
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Figure 14: Value Added and Percent Contributions by Sector in W. P. Kuala Lumpur (2019)
In 2019, W. P. Kuala Lumpur recorded a value GDP of RM233.3 billion and record
growth of 6.0 per cent (2018: 6.8%) as per the figure below. This recorded growth is
surpassing the national level which grew at 4.3 percent. The economic performance of
W. P. Kuala Lumpur continues to be led by the services sector with a contribution of
87.9 per cent as shown in figure 14. The Construction sector contributed 7.9 per cent
while the contribution of the Manufacturing sector is 2.6 percent.
Figure 15: Growth rate by sector in W. P. Kuala Lumpur (2018-2019)
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In terms of growth rate by sector in W. P. Kuala Lumpur, the Services sector recorded
a growth of 6.0 percent compared to 7.3 per cent in 2018 with a value added of
RM205.0 billion (2018: 193.3 billion) as on figure 15. This growth was driven mainly by
wholesale & retail trade and finance sub sectors & insurance.
Meanwhile, growth in the Manufacturing sector recovered to 4.3 percent in 2019 (2018:
-0.1%). Sector this recorded a value added of RM6.1 billion. Increased growth
especially in groups electrical, electronic & optical products and groups transport
equipment, other manufacturing & repair has affected the overall performance of the
sector. Shares promote sustainable and resilient growth competitive as well as
strengthening the Manufacturing industry cluster W. P. Kuala Lumpur, Kuala Lumpur
City Hall (DBKL) has implemented an industrial transition project labour-intensive to
high-tech below National Conurbation Area Plan 2040 (WKN 2040).
The Construction sector grew by 5.5 percent (2018: 6.4%) with value added of RM18.4
billion in 2019. Moderate growth is influenced mainly by sub sectors residential
buildings and special carpentry. Project Bandar Malaysia which involves cooperation
between Malaysia and China is seen to drive the development of W. P. Kuala Lumpur
in the long run, especially in the Construction sector. This high impact will form a
transportation hub which will change the medium of travel, improve commercial centres
for the purpose of trade and innovation development that is a model of urban life of
quality. In addition, the project is also expected to be able to drive Small and Medium
Enterprises (SMEs) especially in the supply of necessities, construction and
technology.
Favourable growth was recorded by the sector Mining and quarrying in 2019 namely
by 5.2 per cent compared to 0.8 per cent on the year before. This sector records value
added of RM154.4 million contributed by other quarrying sub sectors mainly for
activities such as stone crushing and granite quarrying.
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4.1.3.2 Consumer Price Index (CPI)
Figure 16: Annual change of CPI in W.P. Kuala Lumpur (2011 – 2020)
Source: Department of Statistic Malaysia, 2021
For the first time, the Consumer Price Index (CPI) in W.P. Kuala Lumpur recorded
numbers below the blank level, which is negative 0.6 percent versus 1.2 percent which
was once recorded during 2019 (figure 16). Decrease to negative numbers this is due
to falling prices of fuel and discounts on electricity bills. In addition, the implementation
of control movement has caused a shortage of demand due to households not being
able to spend on certain social activities such as hospitality. Indirectly, the decline that
lowers inflationary pressures to 2020. In these 10 years, inflation has increased at an
average annual rate of 2.0 percent.
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4.2 Demographics
Demographic overview consists of data related to the characteristics of the population
which include total population and growth rate, population by sex and age structure,
population distribution and level of urbanisation. Demographic overview also includes
the household income data which consists of median household income and mean
household income. The demographic overview is required to determine the directions
of the property market, such as estimating housing needs and the condition of the
supply and demand of the property. In addition, it will assess the affordability level of
the prospective users towards the property prices offered from the data of household
income.
4.2.1 Population in Malaysia
4.2.1.1 Total Population and Annual Growth Rate
Figure 17: Population and Annual Population Growth Rate in Malaysia from 2010 to 2021
Source: Department of Statistics Malaysia
Malaysia's total population increased slower from 2010 until 2021 with 32.6 million
people in 2021 compared to 29 million people in 2011. Hence, the population has
increased about 3.6 million people for 10 years at a growth rate of 12.36%.
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4.2.1.2 Population by Sex
Figure 18: Population by Sex and Sex Ratio in Malaysia (2020 and 2021)
Malaysia’s population continues to be dominated by males. Through 2020 and 2021,

the male population hovered around 16,800,000. However, with an already lower
number of 15,900,000 in 2020, the female population experienced a decline to
15,800,000 in 2021. This makes the current male to female sex ratio 106:100.
Figure 19: Sex Ratio by Citizenship in Malaysia (2020 and 2021)

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As shown in figure 19, Malaysia’s sex ratio by citizenships is dominated by non-citizens.

Through 2020 and 2021, citizens have a lower sex ratio of 102, while non-citizens have
a generally higher sex ratio which is around 156.
4.2.1.3 Population by Age
Figure 20: Percentage of Population by Age Group and Median Age in Malaysia (2020 and 2021)
Figure 20 shows the percentage of population by age group and median age in
Malaysia. The population age 0-14 years old increased by 0.30% to 23.30% compared
to 23.00% in 2020. Besides, Malaysia's population was dominated by the 15-65 years
old age group. In 2020, 69.70% of the population was in the median age and it slightly
decreased to 69.60% in 2021. In addition, the age group of 65 years and above slightly
rose from the year 2020 to 2021, the percentage increased from 7.00% to 7.40%.
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Figure 21: Malaysia’s Population by Age Structure, 2010 & 2040

Source: Department of Statistics of Malaysia 2016
There are changes in population age structure as projected in 2040 compared to 2010
whereby the percentage of old age (65 and above) would increase significantly, while
the percentage of the young age group which is 0-14 years would decrease sharply
from 27.4% in 2010 compared to 18.6% in 2040. The changes in age structure will
result in an increase in median age, dependency ratio and ageing population. Figure
21 shows the percentage comparison of Malaysia’s population by age structure
between 2010 and 2040.
4.2.1.4 Population by Ethnic Group
Figure 22: Percentage of population citizens by ethnic group in Malaysia (2020 and 2021)
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Based on Figure 22, the percentage of Bumiputera citizens rose slightly from 2020 to
2021 with an increase of 0.20% to 69.80%. In 2020, there were 22.6% Chinese citizens,
but it slightly decreased to 22.40% in 2021. Through 2020 and 2021, the percentage
of Indian and other citizens remains unchanged with 6.8% and 1%, respectively.
4.2.1.5 Population Distribution
Figure 23: Malaysia’s Population Distribution in Malaysia, Q1 2021

Source: Department of Statistics of Malaysia 2021
In Q1 2021, Selangor had the largest population with 6.56 million people, followed by
Sabah with 3.91 million people and Johor with 3.79 million people. Putrajaya and
Labuan are the least populated states or territories with 114,900 people and 99,800
people respectively. Figure 23 shows the population distribution for all states or
territories in Malaysia for Q1 2021.
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4.2.1.6 Level of Urbanisation
Figure 24: Malaysia's Level of Urbanisation (2010-2019)

Source: Malaysia’s Socioeconomics Report 2019
Level of urbanisation is a process that can be measured by the percentage of

population residing in the urban and rural areas against the total population. In 2019,
the level of urbanisation increased to around 77%. Figure 24 shows the level of
urbanisation in Malaysia from 2010 to 2019.
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4.2.1.7 Household Income
Figure 25: Overall Malaysia and States Household Income

Household income is one of the key elements to form the target market of the future
development as it determines the prospective users or homebuyers. It is analysed to
assess the affordability level of the prospective users towards the house price offered.
Consequently, the analysis will contribute to the feasibility of the future development if
the population may have access to their demand. Based on Figure 25, the Federal
Territory of Kuala Lumpur has the highest household income median which is
RM10,549, followed by Federal Territory of Putrajaya and Selangor, with household
income medians at RM12,840 and RM10,827, respectively. Federal Territory of
Labuan is in fourth place with a household income median of RM8,319 followed by
Johor, Pulau Pinang, Melaka, Terengganu and Negeri Sembilan. The household
income median for Sabah, Sarawak, Pahang, Kelantan, Perlis, Perak and Kedah is
between RM4,874 to RM5,959.
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Figure 26: Malaysia's Median & Mean Household Income (2019)

Figure 26 shows Malaysia's median and mean household income in 2019. Malaysia’s
median income is RM5,873 and the mean income is at RM7,901. The median income
in urban areas is at RM6,561 which is higher than the rural areas which is RM3,828.
The mean income of RM8,635 in urban areas is also higher than RM5,004 in rural
areas.
Figure 27: Malaysia's Median & Mean Household Income by Group (2019)
Figure 27 shows the household group income share in Malaysia for 2019. The T20
household group contribute the largest household income share with 47%. They
constitute income of RM14,440 and above. 37% of the household income share in
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Malaysia for 2019 was the M40 group with a RM6,969 to RM14,439 income. 16% of
the household income share in Malaysia for 2019 was the B40 group with less than a
RM6,960 income.
Figure 28: Malaysia’s Income Structure by Household Group, 2016-2019

Source: Malaysia’s Household Income and Basic Amenities Report 2019
Generally, the number of households for the B40, M40 and T20 group in Malaysia
increased from 2016 to 2019. For the B40 group, the number of households increased
from 2.78 million to 2.91 million. Plus, the mean and median income increased 3.4%
and 1.8% respectively. The number of households for M40 group increased from 2.78
million to 2.91 million with the mean and median percentages both increased 4.1%.
The mean and median for the T20 group has increased 4.7% and 4.5%. Moreover, the
number of households within the T20 group has increased from 1.39 million to 1.46
million.
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4.2.2 Population in Kuala Lumpur
4.2.2.1 Total Population and Annual Growth Rate
Figure 29: Population and Annual Population Growth Rate in Kuala Lumpur from 2010 to 2021
Based on figure 29, the population in Kuala Lumpur from 2010 to 2017 has been
increasing consistently through the years. It grew from 1.6 million in 2010 to 1.8 million
in 2017. However, it fell to 1.7 million in 2021. Meanwhile, the annual population growth
rate in Kuala Lumpur fluctuated. In 2011, the annual population growth was 1.09% and
it decreased in 2012 to 0.54%. Then, it rose to 1.25% in 2013. However, the annual
population growth rate fell to 0.81% in 2014. It rose sharply in 2015 with 2.47%.
However, it kept falling until 2021 with -1.1%.
Figure 30: Population Age Profiles (2018 & 2040)

Source: Draft Kuala Lumpur Structure Plan 2040
Page | 45
The population of Kuala Lumpur increased from 1,674,800 in 2010 to 1,795,200 in

2018 and is estimated to reach 2,254,000 by 2040 with a compound annual growth
rate (CAGR) of 1.05% from 2018 to 2040.
From a demographic point of view, residents aged 65 and older are expected to reach
17.3% by 2040 from 6.7% by 2018. This makes Kuala Lumpur a city with a high ageing
population density. Besides, the average household size also dropped to 3.4% in 2018
compared to 4.1% in 2010. The average household size is expected to continue to
decrease to 3.0% by 2040.
Slow population growth, ageing population structure and decreasing household size
are challenges that Kuala Lumpur must address in order to review future development
planning policies, strategies and initiatives.
4.2.2.2 Population by Sex
Figure 31: Population by Sex and Sex Ratio in Kuala Lumpur (2020)
Based on Figure 31, the population by sex of Kuala Lumpur in 2020 shows that the
male is slightly more than the female. The number of males are 0.9 million which is 51%
and the females are 0.8 million which is 49%.
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4.2.2.3 Population by Age
Figure 32: Number of Population by Age Group and Median Age in Kuala Lumpur (2020)
Figure 32 shows the population number by age group and median age of Kuala
Lumpur in 2020. Generally, the age group of 20 to 64 years is the largest age group of
Kuala Lumpur in 2020 with a total population of about 1.1 million and followed by the
age group of 0 to 19 years with a population 0.4 million. Furthermore, the age group of
65 years and above states the least population in Kuala Lumpur at only 0.2 million
people.
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4.2.2.4 Population by Ethnic Group
Figure 33: Number of citizens’ population by ethnic group in Kuala Lumpur (2020)
The citizens of Malaysia are very diverse. Sometimes, even ethnicity can affect buying
behaviours and property preferences, especially for older generations. In Kuala
Lumpur, a higher concentration of non-Bumiputera can be found. Based on the figure
above, the Bumiputera make up a number of 3.5 million which is 55% of the population.
Next, the Chinese population amounts to 1.5 million or 24% of the total. Indians come
next with 733,800 people or 11%. There are also many foreigners in the state,
presumably due to the various job opportunities available. The number comes up to
581,100 people, making up 9% of Kuala Lumpur’s inhabitants. Plus, the rest make up
1% of the population with 52,100 people.
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4.2.2.5 Number and Size of Household
Figure 34: Percentage of Households by Size in W.P. Kuala Lumpur (2016 and 2019)
Source: Federal Territory’s Household Income and Basic Amenities Survey Report 2019
In general, more than 90% of households are those who are related to each other: i.e.,
family membership. Examples of households who are unrelated to each other are a
group of students or those who are working and not married and live together in a
rented house. A household is categorised as a Malaysian household when the
household head is a Malaysian citizen. In 2019, the number of households in W.P.
Kuala Lumpur was 552.7 thousand where 484.3 thousand of them are Malaysians.
Each household has its own household size which refers to the number of members
in the household. On average, household size in W.P. Kuala Lumpur had 3.3 persons
as compared to 3.6 persons in 2016. In terms of percentage, most households have
four members and over 44.9%. Meanwhile, single households made up 7.3% of total
households. Households with two and three members each occupied 22.2% and
25.6%.
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4.2.2.6 Source of Income
Figure 35: Monthly Mean Household Gross Income by Source of Income, Wilayah Persekutuan, 2016 and 2019
Income from paid employment in W.P. Kuala Lumpur is the main source of income
with 64.2 % of total household income, followed by income from self-employment
(19.5%), income from property & investment (12.9%) and current transfer received
(3.4%).
4.2.2.7 Household Income
Figure 36: Median and Mean of Household Gross Income in W.P. Kuala Lumpur (2016 and 2019)
Figure 36 showed that 8.9% of households in W.P. Kuala Lumpur earned below
RM4,000 in 2016. Meanwhile the household who earn RM4,000 and above was 91.1%.
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Besides, 3.8% of households W.P. Kuala Lumpur will earn below RM4,000 in 2019.
Meanwhile the household that earned RM4,000 and above was 96.2%.
Figure 37: Percentage of Households by Income Class, in W.P. Kuala Lumpur (2016 and 2019)
Figure 37 showed that 3.8 % of households in W.P. Kuala Lumpur earn below
RM4,000 with 3.6 % in the RM2,000 until RM3,999 income class in 2019. Most
households in W.P. Kuala Lumpur earn RM 8,000 – RM 9,999 with 15.8% in 2019.
Figure 38: Income Structure by Household Group in W.P. Kuala Lumpur, 2016 and 2019
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Since the 10th Malaysia Plan (10MP), the government has established inclusive
aspects and principles of social justice to reinforce the concept of distribution. The
inclusive aspect refers to ensuring that no one is left behind or misses the opportunities
to benefit from the country’s development. The principles of social justice are described
as assistance provided to all people after considering their level of achievement. Hence,
the government has also extended its target to distribute assistance to household
groups by considering the lowest 40 % of households, not just the poor.
Figure 38 showed the income threshold in W.P. Kuala Lumpur for 193.7 thousand B40
households in 2019 was below RM 9,150. The B40 group’s income threshold involving
193.7 thousand households was between RM9,150 and RM16,639. In addition, there
were 193.7 thousand households in the B40 group with median income of RM 6,623
in W.P Kuala Lumpur. In terms of income distribution, the T20 constituted 43.2 % of
total household income as compared to 45.0 % in 2016. Moreover, the M40 group had
37.3 %, while the B40 only covered 19.5 % of total income.
Figure 39: Income Share, Median, Mean Household Income and Income Threshold by Household Decile Group in
W.P. Kuala Lumpur (2019)
The mean and median income of a B40 household in W.P. Kuala Lumpur were
RM6,480 and RM6,623. The M40 group had a mean income of RM12,356, while
median income amounted to RM12,068. The T20 group stated its mean and median
income of RM28,622 and RM22,610 respectively.
The household groups of B40, M40 and T20 can be further subdivided into ten clusters
based on ten percentile households. The B40 is further classified to B1, B2, B3 and
B4; M40 to M1, M2, M3 and M4; and T20 to T1 and T2. This classification enables
Page | 52
more targeted planning, monitoring and programmes to narrow down the income
discrepancy between households. Based on the clusters of these households by
percentiles, income distribution can also be seen in more detail. For example, the B40
in W.P. Kuala Lumpur which contributed 19.5 % of total household income is detailed
from B1 who held 3.1 % of total income, B2 (4.5%), B3 (5.5%) and B4 (6.4%). Similarly,
in the M40, to which from a 37.3 % of income distribution, M1 only accounted for 7.4 %,
while M4 owned 11.6 % of total income as shown in Figure 40.
4.2.2.8 Kuala Lumpur’s Salaries and Wages
Item 2015 2016 2017 2018 2019 2020
Number of Recipients (‘000) 583.5 575.3 579.8 557.2 564.8 576.1
Median (RM) 2,500 2.500 2,650 2,946 3,106 3,037
Mean (RM) 3,162 3,482 3,969 4,336 4,359 3,823
Table 9: Salaries & Monthly Wages in W.P. Kuala Lumpur (2015-2020)

Source: Kuala Lumpur’s Socioeconomic Report 2020
Based on table 9, the median salaries and wages in W.P. Kuala Lumpur in 2015 was
RM2,500 and it increased each year until 2019 with RM3,106. However, it decreased
to RM3,037 in 2020. Meanwhile, the mean salaries and wages was RM3,162 in 2015
and it increased each year until RM3,823 in 2020.
4.2.3 Population in Kuala Lumpur City
4.2.3.1 Total Population and Annual Growth Rate in Kuala Lumpur City
Year 2000 2010
Population 231,458 253,817
Annual Growth Rate - 0.93%
Table 10: Total Population and Annual Growth Rate in Kuala Lumpur City
The total population in Kuala Lumpur in 2000 was 231,458 and it was increased to
253,817 in 2010. The annual growth rate was 0.93%.
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4.3 Property Market Analysis
4.3.1 Overview of Malaysia Property Market
The Malaysian economy’s contraction by 3.4% in Q4 2020 as compared to the 2.6%

and 17.1% contraction in Q3 2020 and Q2 2020 respectively, attributed to the
implementation of Movement Control Order (MCO) in the country since 18 March 2020
and the imposition of Conditional Movement Control Order (CMCO) on several states
with red zones since mid-October following a spike in the number of Covid-19 cases
in these areas. For 2020 as a whole, the economy contracted by 5.6% as compared
to a positive growth of 4.3% in 2019. The economic performance for 2020 was the
lowest recorded after 1998 (-7.4%).
According to Department of Statistics Malaysia (DOSM), Malaysia’s Industrial

Production Index (IPI) for 2020 recorded a decline of 4.2 % compared to the previous
year. The drop was influenced by all indices; Mining index (-9.7%), Electricity index (-
3.7%) and Manufacturing index (-2.6%).
Foreign Direct Investment (FDI) in Malaysia switched to an outflow of RM0.8 billion in

Q3 2020 after recording continuous inflow since 2010, due to trade credits and loan
extensions provided by multinational manufacturing companies. In terms of position,
FDI decreased to RM689.1 billion as at the end of September 2020.
The impact of the COVID-19 pandemic was detrimental to the country’s tourism sector
in 2020. Based on the records released by Tourism Malaysia, the country recorded
about 4.3 million tourists between January and September 2020, marking a decline of
78.6% compared to 2019. Correspondingly, the country received a total of RM12.63
billion in tourism receipts, a decrease of 80.9% compared to RM66.14 billion received
last year. Similarly, the per capita expenditure declined 10.7% from RM3,289.30 in
2019 to RM2,938.40 this year.
Not only has the COVID-19 pandemic taken its toll on various sectors of the economy,
but also on the property market activity, which saw volume and value of transactions
contracting sharply in Q2 2020. However, the property market showed signs of
recovery in Q3 2020 following the implementation of Recovery Movement Control
Order (RMCO) by 10 June 2020 and various stimulus provided by the government,
namely Prihatin Rakyat Economic Stimulus Package (PRIHATIN) and Short-term
Economic Recovery Plan (PENJANA).
On the demand side, the number of loan applications for residential property purchases
increased by 2.2% in 2020 while the total loan approval decreased by 17.3%. For the
Page | 54
non-residential properties, the number of loan applications and total loan approval
decreased by 30.0% and 37.3% respectively. The ratio of loan approvals against loan
applications for the purchase of residential property and non-residential property stood
at 35.0% and 33.6% in 2020 versus 43.2% and 37.5% in 2019.
4.3.1.1 Property Activity in Malaysia
The property market performance recorded a significant decline in 2020 compared to

2019. A total of 295,968 transactions worth RM119.08 billion were recorded, showing
a decrease of 9.9% in volume and 15.8% in value compared to 2019, which recorded
328,647 transactions worth RM141.40 billion.
The volume of transactions across the sub-sectors contracted sharply in 2020. The
residential, commercial, industrial, agriculture and development land sub-sectors
recorded contractions of 8.6%, 21.0%, 24.0%, 10.7% and 2.6% respectively.
In terms of value of transactions, residential, commercial, industrial and development

land sub-sectors recorded sharp declines of 9.0%, 32.6%, 14.0% and 34.0%
respectively, whereas agriculture recorded an increase of 0.6%.
Figure 40: Overall Property Transactions by Volume in Malaysia from 2016 to 2020
Source: National Property Information Centre
Based on figure 40, the volume of Malaysia’s overall property transaction fluctuated
throughout 2016 until 2020. It shows that the overall property transaction in 2016 was
320,425 transactions and it decreased by -2.7% to 311,824 transactions in 2017. In
2018, it slightly increased to 313,710 transactions with a total change of 0.6% and kept
Page | 55
on increasing in 2019 to 328,647 transactions. However, it fell in 2020 to 295,968

transactions with a total change of -9.9%.
Figure 41: Overall Property Transactions by Value in Malaysia from 2016 to 2020
Generally, the overall property transaction by value in Malaysia fluctuated in 2016 until
2020. Based on figure 41, the property transaction in Malaysia was RM145,408.09
million in 2016 and it decreased to RM139,839.72 million in 2017 with a -3.8%
decrement. In 2018, it increased to RM140,326.70 million with a 0.3% increment and
kept on increasing to RM141,403.22 million in 2019 with a 0.8% increment. However,
it fell to RM119,057.12 million in 2020 with a -15.8% decrease.
Page | 56
Figure 42: Transaction Volume by Sub-Sector in Malaysia in 2020

The transaction volume by sub-sector in Malaysia in 2020 shows that the residential
sector was the largest sector when compared to the others with 191,354 transactions
or 64.7%. The agriculture and commercial sector then follow it. The development land
and other sectors were at fourth place with 18,275 transactions which is 6.2%, followed
by the industrial sector with 4,758 transactions which is 1.6%.
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Figure 43: Transaction Value by Sub-Sector in Malaysia in 2020

The transaction value by sub-sector in Malaysia in 2020 shows that the residential
sector has the largest transaction value among the others with RM 65.8 billion, which
is 55.3%, followed by the commercial sector with RM 19.5 billion, which is 16.4%. In
third place was the industrial sector with RM 12.7 billion which is 10.7%. The
agriculture sector was in fourth place with RM 12.5 billion which is 10.5%. The least
transaction value was development land and other sectors with RM 8.4 billion which is
7.1%.
4.3.1.2 Residential Property Transaction in Malaysia
There were 191,354 transactions worth RM65.87 billion recorded in 2020, which
decreased by 8.6% in volume and 9.0% in value compared with 2019 (209,295
transactions worth RM72.41 billion). Performance across the states was not
encouraging as all states except Perak and Terengganu recorded declines in market
activity. Selangor contributed the highest volume and value to the national market
share by state, with 23.0% in volume (44,034 transactions) and 33.0% in value
(RM21.72 billion). As for WP Kuala Lumpur, though only recorded 10,606 transactions,
the transaction value was the second highest at RM 8.24 billion, contributing 12.5%
market share.
Page | 58
The downward trend in major states namely WP Kuala Lumpur (-4.5%), Selangor (-
15.3%), Johor (-19.9%) and Pulau Pinang (-7.7%) led to the overall decline in the sub-
sector. These four major states formed 46.8% of the total national residential volume.
By types, demand focus on terraced houses, formed around 41.0% of the total
residential transactions, followed by vacant plots (16.2%), high-rise units (14.4%) and
low-cost houses/flats (11.6%).
By price range, demand continued to focus on RM300,000 and below, accounting for
61.7% of the total residential transactions, followed by RM300,001 - RM500,000
(21.9%), RM501,000 – RM1,000,000 (12.7%) and more than RM1,000,000 (3.7%).
Figure 44: Residential Transactions Volume in Malaysia from 2016 to 2020

Generally, the residential transactions volume in Malaysia in 2016 until 2020 fluctuated.
In 2016, the transaction volume was 203,064 units and it decreased to 194,684 units
in 2017 with -4.1% decrement. In 2018, it rose slightly to 197,358 units with a 1.4%
increment and kept rising to 209,295 units in 2019 with a 6% increment. However, it
fell in 2020 with 191,354 units which was -8.6% decrement.
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Figure 45: Residential Transactions Value in Malaysia from 2016 to 2020

Based on figure 45, the value of the residential transaction in Malaysia in 2016 was
RM65,574 million and it rose to RM68,463 million in 2017 with a 4.4% increment. In
2018, it increased to RM68,784 million which is 0.4% of increment and kept on
increasing to RM72,407 million in 2019 with 5.3% of increment. However, it dropped
to RM65,874 million in 2020 which is -9% of decrement.
4.3.1.3 Residential New Launches in Malaysia
As most developers had deferred the new launches to focus on selling remaining
unsold inventories, the primary market saw a lesser release of new launches. There
were 47,178 units launched in 2020, against nearly 60,000 units in 2019. Sales
performance was modest at 28.7% in 2020, lower than 2019 at 40.4%.
The low sales performance was partly due to the sluggish property market and
cautious buyers’ sentiment. Nevertheless, many developers had adopted new
marketing strategies by using website and mobile apps to market their products.
By state, WP Kuala Lumpur recorded the highest number of new launches in the
country, capturing nearly 21.8% (10,295 units) of the national total with sales
performance at 18.6%. Selangor recorded the second-highest number (7,330 units,
15.5% share) with sales performance at 39.1%. Johor came third (5,913 units, 12.5%
share) with sales performance at 29.3%.
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By property type, terraced houses dominated the new launches. Single storey (9,409
units) and 2-3 storey (10,944 units) together contributed 43.1% of the total units,
followed by condominium/apartment units at 39.7% share (18,717 units).
Figure 46: Residential New Launches and Sales Performance in Malaysia from 2016 to 2020
The performance of residential new launches and sales in 2016 was 52,713 units with
31.4% of sales performance and it increased to 77,570 units with 32.60% of sales
performance. However, it decreased to 66,040 units in 2018 but the sales performance
was higher than 2017 which is 34.6%. Then, it kept on decreasing to 59,968 units with
a sales performance of 40.4%. In 2020, the units launched were 47,178 units with a
sales performance of 28.7%.
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4.3.1.4 Residential Market Status in Malaysia
Figure 47: Residential Market Status in Malaysia from 2016 to 2020

In 2016, the unsold not constructed residential unit was 11,622 units and it rose to
12,626 units in 2017. In 2018, it drastically increased to 19,865 units. However, it
decreased to 16,774 units in 2019 and 12,975 units in 2020.
For the unsold under construction residential unit, it was 64,077 units in 2016 and it
decreased to 61,882 units in 2017. In 2018, it rose to 80,894 units but then decreased
back to 72,692 units in 2019 and 71,735 units in 2020.
Meanwhile, the overhang residential unit in 2016 was 14,792 units and it increased to
24,738 units in 2017. In 2018, it still increased to 32,313 units but then slowly
decreased to 30,664 units in 2019 and 29,565 units in 2020.
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4.3.1.5 Residential Price Movements in Malaysia
Figure 48: Point and Annual Changes by Type (2010 - 2020)

The Malaysian House Price Index (MHPI) stood at 199.3 points in 2020 with a low
annual growth of 0.6%, the lowest recorded since year 2010. All states recorded
annual growth in 2020 except for WP Kuala Lumpur (-1.0%), Selangor (-0.7%), Pulau
Pinang (-0.1%) and Sabah (-1.3%). Johor saw a moderate annual growth of 2.5%.
Terraced House Price Index recorded an annual growth of 2.0% but it was the lowest
in the decade. However, high-rise, semi-detached and detached houses dropped by
0.8%, 0.6% and 1.1% respectively.
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Figure 49: Point and annual change in Major States 2010-2020p

In WP Kuala Lumpur, the residential rental was generally stable with marginal growth
for terraced houses in selective locations. In Selangor, the rental market portrayed
mixed movements. The average gross yields for terraced houses and apartments or
condominiums in Klang Valley area were in the range of 2.9% to 3.1% and 4.0% to
4.4% respectively. In Johor, the rental market was generally stable with average gross
yields at 3.6% for terraced houses and 4.6% for apartments or condominiums. Up north,
Pulau Pinang rental market was generally stable for terraced houses whilst
apartments/condominium charted downward trend.
4.3.1.6 Commercial Property Transaction in Malaysia
The sub-sector recorded a sharp decline in 2020 compared to 2019. There were
20,255 transactions worth RM19.53 billion recorded in 2020, decreased by 21.0% in
volume and 32.6% in value as compared with 2019 (25,654 transactions worth
RM28.985 billion). Performance across the states was not encouraging as all states
except WP Putrajaya recorded significant declines in market activity. By state,
Selangor contributed the highest volume and value to the national market share, with
23.6% in volume (4,779 transactions) and 27.8% in value (RM5.42 billion), followed by
WP Kuala Lumpur, with 15.2% in volume and 24.5% in value (3,072 transactions worth
RM4.79 billion) and Johor with 14.9% in volume and 14.6% in value (3,025
transactions worth RM2.86 billion).
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Figure 50: Commercial Transactions Volume in Malaysia from 2016 to 2020

Generally, commercial transactions volume in Malaysia in 2016 until 2020 fluctuated.

In 2016, the transaction volume was 23,745 units and it decreased to 22,162 units in
2017 with -6.7% decrement. In 2018, it rose to 23,936 units with an 8% increment and
kept rising to 25,654 units in 2019 with a 7.2% increment. However, it fell in 2020 to
20,255 units which was -21% decrement.
Figure 51: Commercial Transactions Value in Malaysia from 2016 to 2020

Based on figure 51, the commercial transactions value in Malaysia in 2016 was
RM35,943 million and it decreased to RM25,439 million in 2017 with -29.2% decrement.
Page | 65
In 2018, it increased to RM29,514 million which is 16% of increment and decreased

back to RM28,985 million in 2019 with a -1.8% decrement. Then, it then decreased
about 32.6% to RM19,530 million in 2020.
4.3.1.7 Serviced Apartment Market Status in Malaysia
Serviced apartment segment recorded 3,869 transactions worth RM2.54 billion,

formed 19.1% of the commercial property transactions volume and 13.0% of the value.
Market performance recorded a decrease of 7.6% in volume and 11.7% in value of
transactions (2019: 4,189 transactions worth RM2.88 billion). By state, WP Kuala
Lumpur and Selangor contributed higher national market volume to the national total,
each with 42.0% (1,625 transactions) and 30.7% (1,189 transactions) market share.
Figure 52: Serviced Apartment Market Status in Malaysia from 2016 to 2020
In 2016, the overhang unit of service apartment was 3,912 units and drastically
decreased to 6,364 units in 2017. In 2018, it increased to 11,371 units. Besides, it
keeps on increasing to 17,142 units in 2019 and 23,606 units in 2020.
The unsold unit of service apartment under construction was 31,278 units in 2016 and
increased to 45,955 units in 2017. In 2018, it decreased to 37,285 units and kept on
falling to 33,827 units in 2019 and increased to 35,528 units in 2020.
Meanwhile, the unsold not constructed service apartment unit in 2016 was 13,373 units
and it decreased to 5,185 units in 2017. In 2018, it increased to 12,864 units and then
fell to 7,659 units in 2019 and increased back to 8,153 units in 2020.
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4.3.1.8 Number of Unsold Serviced Apartment Units in Malaysia
In the service apartment segment, the overhang and unsold under construction
situation will remain an issue of concern in the property market in 2021. The numbers
continued to increase in 2020 and are not likely to be absorbed in the near future.
Figure 53: Number of Unsold Serviced Apartment Units in Malaysia (2019-2020)

In 2019, the completed unit of service apartment in Malaysia was 17,142 units and
increased to 23,606 units in 2020. For the under-construction unit of service apartment,
it was 33,827 units in 2019 and it increased to 35,258 units in 2020. Meanwhile, not
constructed unit of service apartment in 2019 was 7,659 units and it increased to 8,153
units in 2020.
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4.3.1.9 Value of Unsold Serviced Apartment Units in Malaysia
Figure 54: Value of Unsold Serviced Apartment Units in Malaysia (2019-2020)

Based on figure 54, the value of unsold serviced apartment units in Malaysia for the
completed unit in 2019 was RM15,039.15 million. In 2020, the value increased to
RM20,759.31 million. However, the under construction and not constructed service
apartment unit value for both years were unavailable.
4.3.1.10 Number of Unsold SOHO Units in Malaysia
Figure 55: Number of Unsold SOHO Units in Malaysia from 2019 to 2020
Page | 68
In 2019, the unsold completed unit of SOHO in Malaysia was 1,878 units and it
increased to 2,129 units in 2020. For the unsold under-construction unit of SOHO, it
was 4,469 units in 2019 and it increased to 4,811 units in 2020. Meanwhile, the unsold
not constructed unit of SOHO in 2019 was unavailable. However, in 2020, there were
only 122 units of the not constructed of unsold SOHO unit.
4.3.1.11 Value of Unsold SOHO Units in Malaysia
Figure 56: Value of Unsold SOHO Units in Malaysia from 2019 to 2020
Based on figure 56, it shows an increasing number of unsold SOHO units in Malaysia
from 2019 to 2020, which increased from RM 899 million to RM 1,115 million.
4.3.1.12 Transaction of Shopping Complex in Malaysia
The year recorded five shopping complex transactions with an accumulative worth of
RM272 million. One each in Johor, Pulau Pinang, Negeri Sembilan, Sabah and
Selangor. Two had its sale and purchase agreements dated in 2019 but concluded in
2020.) The summary of transaction is as listed below:-
Name of Transaction Consideration

No State Location
Property Year (RM)
Pulau Jalan
1 1st Avenue Mall 2019 153,000,000
Pinang Magazine
Taman
2 Johor Mydin Mall Rinting, 2019 60,000,000
Johor Bahru
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Bandar
Negeri Giant Dataran
3 2020 12,000,000
Sembilan Hypermarket Segar, Port
Dickson
Jalan
Servay Penampang
4 Sabah 2020 17,000,000
Hypermarket ,
Penampang
Taman Sri
Giant
5 Selangor Manja, 2020 30,000,000
Hypermarket
Petaling
Table 11: Summary of Shopping Complex Transactions in Malaysia (2019-2020)

4.3.1.13 Rental of Shopping Complex in Malaysia
Rentals of retail spaces were generally stable in Klang Valley with mixed movements
in selected complexes. Suria KLCC fetched the highest rental range per month from
RM458 p.s.m. to as high as RM2,400 p.s.m. at concourse level, charting marginal
increase of 2.5% to 5.0% whilst rental at The Garden Mall was generally stable except
retail spaces at levels 1 and 3, which obtained rental between RM183 p.s.m. and
RM323 p.s.m., down by 2.3% and 3.6% respectively. In Selangor, The Curve Mutiara
Damansara enjoyed average growth of 5.0% with rental ranging from RM21.5 p.s.m.
to RM422 p.s.m. whilst Puchong IOI Mall recorded negative growth of 2.2% to 5.7%
with rental ranging from RM65 p.s.m. to RM313 p.s.m.
4.3.1.14 Transaction of Shop in Malaysia
The shop segment recorded 10,477 transactions worth RM8.5 billion, dominating 51.7%
of the commercial property transactions volume and 43.5% of the total value. Market
performance recorded a significant decrease of 21.1% in volume and 24.7% in value
(2019: 13,281 transactions worth RM11.29 billion).
By state, Johor contributed the highest volume to the market share, with 17.7% (1,855
transactions), followed by Selangor with 17.0% (1,777 transactions). In term of value,
Selangor led the market with 25.9% of the total value (RM2.2 billion), followed by Johor
with 17.8% (RM1.5 billion).
By type, two to two and a-half storey shops were the most active, capturing 52.3%
(5,481 transactions) of the shops’ market share, followed by three to three and a-half
storey shops, registering 27.7% share (2,905 transactions).
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4.3.1.15 Market Status of Shop in Malaysia
The shop segment’s overhang situation was not encouraging. The numbers continued
to increase to 6,904 units with a value of RM5.65 billion, up by 14.6% in volume and
15.9% in value against 2019. However, the unsold under construction and not
constructed scenario improved with volume declined to 5,383 units and 203 units,
down by 13.6% and 39.6%, respectively.
By state, Johor was the highest shop overhang state with 23.9% share in volume and
29.1% in value (1,652 units worth RM1.64 billion) and the unsold under construction
with 37.1% share (1,997 units).
Figure 57: Shop Market Status in Malaysia (2016 – 2020)

Based on Figure 57, the overhang in 2020 is the highest among other years which is
6,904 units presumably of COVID-19 pandemic. However, the unit unsold under
construction in 2020 with 5,383 units is slightly lower than in 2018 and 2019 with 7,233
units and 6,232 units respectively. For the shop unit unsold not under constructed,
2015 has recorded the highest number of units with 715 units compared to other years.
The subsequence years drop from 2017 (332 units) to 2020 (203 units).
4.3.1.16 Price and Rental of Shop in Malaysia
Prices of shops were generally stable with mixed movements across the board. In
Johor, two storey shops in Bandar Indahpura, Kulai saw prices softening, dropped by
8.8% at a price range of RM 1.2 million to RM 1.5 million. Similar shops in Taman
Senai Utama recorded single-digit growth at a price range of RM 300,000 to RM
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370,000. In WP Kuala Lumpur, three storey shops in Taman Tun Dr Ismail, transacted
at RM 4.0 million to RM 4.5 million, dropped by 7.0%. Similar shops in Bandar Baru
Sri Petaling which were transacted at RM 3.5 million to RM 4.4 million, increased by
6.2%. In Selangor, two storey and three storey shops in SS2 Petaling Jaya were
transacted at RM 2.2 million and RM 2.5 million respectively. This number dropped by
9.8% for two storey shops. In Kuala Lumpur, ground floor shops in prime locations saw
rental softening. Shops at Jalan Imbi and Jalan Raja Laut that were tenanted at RM
6,800 to RM 9,500 per month and RM 11,000 to RM 12,000 per month, declined by
6.3% and 4.2% respectively.
4.3.1.17 Transaction of Purpose-Built Office in Malaysia
Eight office building transactions with an accumulated worth RM1.16 billion were
recorded in 2020. The summary of transactions is as listed below:
Name of Transaction Consideratio

No State Location
Property Year n (RM)
WP Kuala Tower 7,
1 Bangsar South 2018 67,000,000
Lumpur Avenue 3
WP Kuala Menara Damansara

2 2020 242,100,000
Lumpur Goucoland Heights
WP Kuala Menara Quill Leboh

3 2020 200,000,000
Lumpur 6 Ampang
WP Kuala Menara Jalan Raja

4 2019 141,000,000
Lumpur MIDF Chulan
Bandar
5 Selangor Intan Square 2019 27,500,000
Petaling Jaya
Pinnacle Bandar
6 Selangor 2020 450,000,000
Sunway Sunway
7 Melaka Wisma UTC Bandar Melaka 2019 21,494,922
8 Melaka Wisma Dixon Kota Kinabalu 2020 10,500,000
Table 12: Transaction of Purpose-Built Office in Malaysia (2020)

4.3.1.18 Price and Rental of Purpose-Built Office in Malaysia
Prices of stratified office lots were generally stable across the states with several
exceptions. In WP Kuala Lumpur, prices of secondary market stratified office lots were
generally on a downward trend as more newly completed units came onto the market.
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Prices of stratified office lots in Menara Centara, Pusat Kepong Baru, Solaris Dutamas,
Kiara 163, Phoenix Business Park, Menara Sunway Velocity, Menara MBMR and
Wisma Rampai were down by 2.3% to 10.2%.
Overall, the office rental market was stable with minimal mixed movements in selected
buildings. Office spaces in the Intermark, Kuala Lumpur recorded monthly rental
ranges of RM 86.11 p.s.m. to RM 118.40 p.s.m, that declined by 6.5%. Meanwhile,
office spaces in 1 Sentral, KL Sentral were tenanted at RM54.90 p.s.m. to RM57.90
p.s.m., down by 10.3%. In Selangor, the office rental was generally stable with a
monthly rental range of RM40 to RM50 p.s.m. except for office spaces on the ground
floor/level 1 in Damansara Uptown 1 & 2, ranging from RM96.90 p.s.m. to RM127.00
p.s.m. whilst office spaces at level 3 to 11, Damansara Uptown 1 were tenanted at a
monthly rental range of RM51.67 p.s.m. to RM63.51 p.s.m., up by 9.4%.
4.3.1.19 Transaction of Leisure Property in Malaysia
Six hotels and three resorts’ transactions were recorded in the review period with an
accumulated worth of slightly more than RM351 million. The summary of transactions
is as listed below:
Transaction Consideration
No State Name of Property Location
Year (RM)
WP Jalan
1 Kuala City Comfort Hotel Pudu 2020 30,000,000
Lumpur Lama
Jln
WP
Tuanku
2 Kuala Tune Hotel 2019 45,590,000
Abdul
Lumpur
Rahman
Danga
3 Johor Tune Hotel Bay, Johor 2019 16,450,000
Bahru
TH Hotel cum
Pulau Bayan
4 Kompleks Tabung 2020 89,664,230
Pinang Lepas
Haji
Bukit
5 Pahang Hotel Shahzan Inn 2019 8,000,000
Fraser
Genting Permai
6 Pahang Bentong 2019 8,000,000
Resort
7 Pahang Sempurna Resort Kuantan 2020 6,000,000
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Terengg Kuala
8 TH Hotel 2020 133,736,477
anu Nerus
Pasir
Pangkor Holiday
9 Perak Bogak, 2020 13,000,000
Resort
Manjung
Table 13: Transaction of Leisure Property in Malaysia (2020)

4.3.1.20 Average Occupancy Rates of Leisure Property in Malaysia
The table below shows the average occupancy rates of leisure properties according to
the state from 2019 to 2020 in Malaysia.
Locality 2019 2020 DIFF
Kuala Lumpur 60.6 26.7 -33.9
Putrajaya 63.2 46 -17.2
Selangor 54.9 30.7 -24.2
Penang 56.1 24.9 -31.2
Perak 41.9 26.4 -15.5
Kedah 56.4 27.6 -28.8
Perlis 32.9 22.6 -10.3
Negeri Sembilan 50.7 27.5 -23.2
Melaka 51.9 21.6 -30.3
Johor 56.5 32.9 -23.6
Pahang 79 41.8 -37.2
Terengganu 40.2 32.7 -7.5
Kelantan 44.1 34.4 -9.7
Sabah 67.7 28.2 -39.5
Labuan 40.6 44.9 4.3
Sarawak 44.6 26.3 -18.3
Malaysia 58.5 31.6 -26.9
Table 14: Malaysia Average Occupancy Rates January – September 2019/2020

Page | 74
4.3.2 Overview of Kuala Lumpur Property Market
4.3.2.1 Property Activity in Kuala Lumpur
Figure 58: Volume of Property Transactions in Kuala Lumpur from 2016 to 2020
Based on Figure 58, in 2020, the volume of property transactions is 13,887 units which
is higher than 15,427 units in 2019. In 2020, it showed a declination of -10.00%
compared to 2019. Overall, there is an increasing trend from 2016 to 2018 however
the volume of transaction drop started from 2018 onwards.
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Figure 59: Value of Property Transactions in Kuala Lumpur from 2016 to 2020
As we can see from Figure 59, it shows a consistently decreasing value from 2016 to
2020, which reached 13,887 transactions worth RM13,720 million in 2020. The value
change is positive in 2016 with 46.30% however it reached -25.30% when it comes to
2020.
Figure 60: Transaction Volume by Sub-Sector in Kuala Lumpur in 2020

Page | 76
Most of the transacted volume in 2020 are residential comprised of 76.4%, followed by
commercial (22%), development land and others (0.9%) and industrial (0.6%).
However, there is no transaction volume for agriculture.
Figure 61: Transaction Value by Sub-Sector in Kuala Lumpur in 2020

Figure above shows the value by sub-sector in Kuala Lumpur in 2020. The residential
sector led the overall property market, with 60% contribution in value. This was
followed by commercial (34.90%), development land and others (3.6%), industrial
(1.5%) and agriculture (0%).
Page | 77
4.3.2.2 Residential Property Transaction in Kuala Lumpur
Figure 62: Residential Transactions Volume in Kuala Lumpur from 2016 to 2020
Figure 63: Residential Transactions Value in Kuala Lumpur from 2016 to 2020
In 2016, the residential transactions volume in Kuala Lumpur was 11,252 units worth
RM 8,968 million and declined to 10,856 units in 2017 with increasing of value worth
RM 9,693 million. The following years is increasing starting from 2017 in term of
volume however it drop to -4.5% in 2020 with 10,606 transactions. The value of the
Page | 78
residential transactions has dropped drastically from 2017 to 2019 with declination of
-9.90% in 2019 worth RM 8,339 million. However, the transaction value in 2020
increased to -1.2% with RM 8,238 million.
4.3.2.3 Residential New Launches in Kuala Lumpur
Figure 64: Residential New Launches and Sales Performance in Kuala Lumpur from 2016 to 2020
The overall property market saw a lesser units sold compared to the units launched.
There was a significant deline of units sold from 3,293 units in 2019 to 1,916 units in
2020. However for the units launched, it rose from 8,865 units in 2019 to 10,295 units
in 2020. In 2019, it shows the highest sales performance with 37.10% while 19.50% in
2017 as the least sales performance.
Page | 79
4.3.2.4 Residential Market Status in Kuala Lumpur
Figure 65: Residential Market Status in Kuala Lumpur from 2016 to 2020
The residential overhang situation was worse from 717 units in 2016 to 3,023 units in
2020, which increased 16.00% from 2019. The unsold unit under construction was
4,317 units in 2019 and it increased to 7,593 units in 2020 which increased by 75.90% .
In addition, the unsold units which are not constructed show a significant decline from
8,645 units in 2019 to 6,249 units in 2020 which decreased by 27.70%.
Page | 80
4.3.2.5 Commercial Property Transactions in Kuala Lumpur
Figure 66: Commercial Transactions Volume in Kuala Lumpur from 2016 to 2020
As can be seen from the figure above, in the 3-year spanning from 2016 through 2018,
the number sharply went up to 4,079 transactions. In 2020, the transaction volume
reached the bottom at transactions, which decreased by 22.70% with 3,072 units.
Figure 67: Commercial Transactions Value in Kuala Lumpur from 2016 to 2020
Page | 81
There was a fluctuated from 2016 to 2019, the transaction value peaked at 3,186
transactions worth RM 19,986 million in 2016. However, in 2020, there was a sharp
decline to RM 4,785 million, which decreased by 44.10%.
4.3.2.6 Serviced Apartment Market Status in Kuala Lumpur
Figure 68: Serviced Apartment Market Status in Kuala Lumpur from 2016 to 2020
From 2016 to 2020, the overhang unit of serviced apartments in Kuala Lumpur
gradually increased from 1,637 units to 2,336 units. For the unsold under-construction
unit of serviced apartments, it reached a high point at 14,573 units in 2020 with 41.50%
increment from 2019. Meanwhile, the not constructed unit of serviced apartments in
2020 was 5,700 units which is less than 7,457 units in 2019. Therefore, from 2019 to
2020, the overhang units have changed from 23.30% to 89.30%. For service apartment
unsold under construction, the percentage has changed from 23.40% in 2019 to 41.50%
in 2020. In addition, the service apartment unsold not constructed is decreasing from
-27.60% in 2019 to -23.60% in 2020.
Page | 82
4.3.2.7 Number of unsold Serviced Apartment Units in Kuala Lumpur
Figure 69: Number of unsold Serviced Apartment Units in Kuala Lumpur from 2019 to 2020
The figure above depicts the number of unsold serviced apartment units in Kuala
Lumpur from 2019 to 2020. Most unsold units are from those that are under
construction. In fact, the number of units increased from 10,298 units in 2019 to 14,573
units in 2020. The number of unsold completed units rose from 2,336 units in 2019 to
4,421 units in 2020. However, for those not constructed, the number of unsold units
dropped slightly from 7,457 units in 2019 to 5,700 units in 2020.
Page | 83
4.3.2.8 Value of unsold Serviced Apartment Units in Kuala Lumpur
Figure 70: Value of unsold Serviced Apartment Units in Kuala Lumpur from 2019 to 2020
Figure 70 above shows the value of unsold service apartment units in Kuala Lumpur
from 2019 to 2020. In 2019, the value of unsold completed serviced apartment units
was RM 2,022 million. In 2020, this number rose to RM 4,126 million. For both years,
the value of the unsold under construction and unsold not constructed units were not
available.
4.3.2.9 Transaction of Shop in Kuala Lumpur
Shop segment recorded 475 transactions worth RM1.06 billion in 2020, accounting for
15.5% and 22.1% of the total commercial property transactions volume and value.
Market activity showed a downturn as the volume and value of transactions contracted
by 10.2% and 21.0% respectively (2019: 529 transactions worth RM1.34 billion).
4.3.2.10 Market Status of Shop in Kuala Lumpur
The shop overhang situation was less promising in the review period. However, unsold
under construction improved. The state was unencumbered with unsold not
constructed shop units in 2020.
Page | 84
Figure 71: Shop Market Status in Kuala Lumpur (2016 – 2020)

The shop market status in Kuala Lumpur for overhang and unsold under construction
units from 2016 until 2020 fluctuated. Besides, the unsold not construction unit was 12
units in 2016 and the data for the upcoming year was not available. .
4.3.2.11 Rental of Shopping Complex in Kuala Lumpur
Prices of shops were generally stable with mixed movements across the board. In
Johor, two storey shops in Bandar Indahpura, Kulai saw prices softening, dropped by
8.8% at a price range of RM1.2 million to RM1.5 million. Similar shops in Taman Senai
Utama recorded single-digit growth at a price range of RM300,000 to RM370,000. In
WP Kuala Lumpur, three storey shops in Taman Tun Dr Ismail were transacted at
RM4.0 million to RM4.5 million, dropped by 7.0%. Similar shops in Bandar Baru Sri
Petaling were transacted at RM3.5 million to RM4.4 million, increased by 6.2%. In
Selangor, two storey and three storey shops in SS2 Petaling Jaya was transacted at
RM2.2 million and RM2.5 million respectively, dropped by 9.8% for two storey shop. In
Kuala Lumpur, ground floor shops in prime location saw rental softening. Shops at
Jalan Imbi and Jalan Raja Laut were tenanted at RM6,800 to RM9,500 per month and
RM11,000 to RM12,000 per month, declined by 6.3% and 4.2% respectively.
Page | 85
4.3.2.12 Transaction of Purpose-Built Office in Kuala Lumpur
The purpose-built office segment saw two prominent transactions in 2020. These
included The Menara Goucoland at Jalan Damanlela, Damansara Height and Menara
Quill 6 at Leboh Ampang.
4.3.2.13 Rental of Purpose-Built Office in Kuala Lumpur
Prices range for office space portrayed mixed performance across the board. In the
central town prime area, a marginal decline between 2.3% and 5.8% was recorded in
Menara Centara (level 9-17), Sunway Velocity (level 3-13) and Menara MBMR (level
13). On a positive note, Wisma Central (level 5-6) recorded notable increase of 15.7%.
In the central town secondary area, a marginal decrease of 2.9% showed at Phoenix
Business Park (level 1-4). The highest price was recorded at Kuchai Avenue (level 1)
at RM14,953 p.s.m.
The office rental market remained stable in 2020. Several office buildings witnessed
double digit growth namely Menara Chulan, Jalan Conlay, Menara Darussalam and
Wisma Nusantara. Highest rental in the sub-sector was recorded at Menara Maxis with
ranging between RM80.73 p.s.m. to 129.17 p.s.m.
As at 2020P, the Purpose-Built Office Rental Index for the state stood at 138.7 points,
up by 0.9% from 137.8 points in 2019. The Purpose-Built Office Average Rental as
2020P stood at RM53.56 p.s.m., increased from RM53.20 p.s.m., recorded in 2019.
Page | 86
4.3.3 Overview of Kuala Lumpur City Property Market
4.3.3.1 Property Activity in Kuala Lumpur City
Figure 72: Transaction Volume by Sub-Sector in Q1 2021

Based on the figure above, the residential sector was the largest sector that did a
transaction in Q1 2021 with 2,613 units which was 77%. The second place was the
commercial sector with 206 units (21%) and followed by industrial and development
land and other sectors. The least sector that did transactions in Q1 2021 was
agriculture.
Page | 87
Figure 73: Transaction Value by Sub-Sector in Q1 2021

Based on the figure above, the residential sector had the highest transaction value of
transaction in Q1 2021 with RM 1.2 billion which was 57.24%. The second place was
the commercial sector with RM 0.5 billion (25.04%) and followed by industrial and
development land and other sectors. The least sector’s transaction value in Q1 2021
was agriculture.
Page | 88
4.3.3.2 Residential Property Transaction in Kuala Lumpur City
Figure 74: Residential Transactions Volume in Kuala Lumpur City (2018 - 2020)
In 2018, the residential transactions volume in Kuala Lumpur was 1,331 units and
increased to 1,403 units in 2019. The following year it dropped drastically to 1,284
units.
Figure 75: Residential Transactions Value in Kuala Lumpur City (2019 - 2020)
Page | 89
In 2018, the residential transaction value in Kuala Lumpur City was RM1.4 billion and
decreased to RM1.2 billion in 2019. The following year it dropped to around RM1.1
billion.
Page | 90
4.3.3.3 Number of unsold Residential Units in Kuala Lumpur City
Condomi
Single 2-3
Single 2-3 nium
Storey Storey Town- Low-Cost Low-Cost
Types Storey Storey Detached Cluster Flat /
Semi- Semi- house House Flat
Terraced Terraced Apartmen
Detached Detached
t
Ampang 0 0 0 0 0 0 0 0 0 0 181
Batu 0 0 0 0 0 0 0 0 0 0 620
Cheras 0 0 0 0 0 0 0 0 0 0 0
Hulu
0 0 0 0 0 0 0 0 0 0 0
Kelang
Kuala
0 0 0 0 6 0 0 0 0 0 534
Lumpur
Petaling 0 6 0 37 0 0 0 0 0 0 481
Seksyen
0 0 0 0 0 0 0 0 0 0 815
1-100
Setapak 0 0 0 0 0 0 0 0 0 0 343
Table 15: Number of Overhang Residential Units by District (Q4 2020)

Page | 91
The table above shows the number of unsold overhang residential units in Kuala Lumpur City. Generally, Petaling had 6 2-3 storey terraced
unsold units, 37 2-3 storey semi-detached overhang units and 481 unsold condominium/apartment units. The most overhang condominium /
apartment unit was Seksyen 1-100 with 815 units and followed accordingly by Batu, Kuala Lumpur, Petaling, Setapak and Ampang.
Condomi
Single 2-3
Single 2-3 nium
Detached Detached
t
Ampang 0 0 0 0 0 0 0 0 0 0 0
Batu 0 35 0 8 10 15 0 0 0 0 1969
Cheras 0 0 0 0 0 0 0 0 0 0 0
Hulu
0 0 0 0 0 0 0 0 0 0 0
Kelang
Kuala
0 24 0 6 0 0 0 0 0 0 1127
Lumpur
Petaling 0 0 0 21 0 0 0 0 0 0 1815
Seksyen
0 0 0 0 0 0 0 0 0 0 1758
1-100
Setapak 0 0 0 0 0 0 0 0 0 0 805
Table 16: Number of Unsold under Construction Residential Units by District (Q4 2020)
Page | 92
The table above shows the number of unsold under construction residential units in Kuala Lumpur City. Generally, the district of Batu had the
most unsold under construction residential unit which was 2,037 units. The second one was Petaling with 1,836 units and followed accordingly
by Seksyen 1-100 and Kuala Lumpur.
Condomi
Single 2-3
Single 2-3 nium
Detached Detached
t
Ampang 0 0 0 0 0 0 0 0 0 0 0
Batu 0 0 0 0 0 0 0 0 0 0 2302
Cheras 0 0 0 0 0 0 0 0 0 0 0
Hulu
0 0 0 0 0 0 0 0 0 0 708
Kelang
Kuala
0 0 0 12 6 0 0 0 0 0 662
Lumpur
Petaling 0 0 0 0 0 0 0 0 0 0 1185
Seksyen
0 0 0 0 0 0 0 0 0 0 651
1-100
Setapak 0 0 0 0 0 0 0 0 0 0 723
Table 17: Number of Unsold Not Constructed Residential Units by District (Q4 2020)
Page | 93
The number of unsold not constructed residential units in Kuala Lumpur shows that the district of Batu had the highest number of unsold units
which was 2,302 units and followed by Petaling with 1,185 units. The third place was Setapak with 723 unsold units and followed accordingly by
Hulu Kelang, Kuala Lumpur and Seksyen 1-100.
Page | 94
4.3.3.4 Commercial Property Transactions in Kuala Lumpur City
Figure 76: Commercial Transactions Volume in Kuala Lumpur City (2018 - 2020)
The commercial transaction volume in Kuala Lumpur in 2018 was 1,530 units and it
decreased to 1,440 units in 2019 with -5.88% of change. Then, it decreased sharply to
918 units in 2020 with -36.25% of decrement.
Figure 77: Commercial Transactions Value in Kuala Lumpur City (2018 - 2020)
Page | 95
The commercial transaction value in Kuala Lumpur City in 2018 was RM7.4 billion and
it was decreased to RM4.0 million in 2019 with -45.23% of decrement. Then, it kept fell
until 2020 with RM2.1 million which was -47.33% of decrement.
4.3.3.5 Serviced Apartment Transactions Volume and Value in Kuala Lumpur City
Figure 78: Number of Service Apartment Transactions Volume (2019 - 2020)

Based on Figure 78, the number of service apartment transactions volume in Kuala
Lumpur city for RM 1,000,001 and above has the highest volume of transactions for
both year which is 404 units while in 2020 is 263 units.
Page | 96
Figure 79: Service Apartment Transactions Value (2019 - 2020)

In 2019 and 2020, the RM1,000,001 and above price range of service apartment
transaction value was RM787.57 million and RM548.12 million. It was the highest value
among other price range. The least was RM0 to RM100,000 price range with only
RM160,000 in 2019. Next, in 2020, the least was RM100,001 to RM200,000 price
range of service apartment transaction value was RM780,000 only.
Page | 97
4.3.3.5 SOHO Transactions Volume and Value in Kuala Lumpur City
Figure 80: Number of SOHO Transactions Volume in Kuala Lumpur City(2019 - 2020)
Based on Figure 80, the number of SOHO transactions volume in Kuala Lumpur City
have only 1 in 2020 which is price range from RM400,001 to RM500,000. There is no
SOHO transaction in 2019.
Page | 98
Figure 81: SOHO Transactions Value (2019 - 2020)

Based on Figure 81, the value of SOHO transactions in Kuala Lumpur City in 2020
was RM410,000. There is no SOHO transaction value in 2019.
4.3.3.6 Number of unsold Commercial Units in Kuala Lumpur City
Types Shop SoHo Serviced Apartment
Ampang 0 0 0
Batu 55 51 257
Cheras 0 0 0
Hulu Kelang 0 0 0
Kuala Lumpur 94 12 1739
Petaling 0 24 238
Seksyen 1-100 0 148 1983
Setapak 9 21 204
Table 18: Number and Value of Overhang Commercial Units: Shops, SOHO and Serviced Apartment by District (Q4
2020)
Page | 99
Based on Table 18, Kuala Lumpur district has the highest number of overhang
commercial units for shops which is 94 units. Meanwhile, the highest number of
overhang for SOHO and Service Apartment is in Seksyen 1-100 which is 148 units and
1,983 units. Kuala Lumpur district is the second highest of Service Apartment overhang
in Kuala Lumpur.
Types Shop SOHO Serviced Apartment
Ampang 0 270 0
Batu 0 107 1,948
Cheras 0 0 0
Hulu Kelang 0 0 0
Kuala Lumpur 0 0 1,694
Petaling 0 62 1,607
Seksyen 1-100 70 1,312 8,419
Setapak 0 0 905
Table 19: Number of Unsold under Construction Commercial Units: Shops, SOHO and Serviced Apartment by
District (Q4, 2020)
According to the table above, Seksyen 1-100 has the highest number of unsold under
construction commercial units of Shop, SOHO and Serviced Apartment which is 70,
1,312 units and 8,419 units respectively. For Kuala Lumpur district, the Service
Apartment units was the third highest number of unsold which is 1,694 units compared
to other districts. Cheras and Hulu Kelang has 0 units of unsold under construction
commercial units for shops, SOHO and Serviced Apartment.
Types Shop SOHO Serviced Apartment
Ampang 0 0 0
Batu 0 0 705
Cheras 0 0 0
Hulu Kelang 0 0 0
Page | 100
Kuala Lumpur 0 0 938
Petaling 0 0 640
Seksyen 1-100 0 0 1,965
Setapak 0 0 1,452
Table 20: Number of Unsold Not Constructed Commercial Units: Shops, SOHO and Serviced Apartment by District
(Q4 2020)
Based on Table 20, Seksyen 1-100 has the highest number of unsold not constructed
commercial units of 1,965 units for serviced apartments. However, unsold not
constructed for Shop and SOHO are 0 units. The second highest unsold not
constructed commercial unit for a Service Apartment is in Setapak with 1,452 units.
Ampang, Cheras and Hulu Kelang shows a zero number of unit unsold not constructed
commercial units.
Page | 101
4.3.4 Selling Price and Rental Value
The selling price and rentals of relative development are attached together for better
insight into the secondary property market in Kuala Lumpur City.
4.3.4.1 Prices of Service Apartment and SOHO
District/Mukim Samp Average Price Range (RM) Average

and Location le Floor Area Price
Size (sq. m.) Change
Mukim Kuala 2019 2020
(%)
Lumpur
Avantas 1 83 700,000 - 700,000 -3.4

Residences 750,000
Camelia Service 2 59 510,000 - 500,000 Stable

Apt 560,000 -
585,000
Centrio Pantai Hill 1 81 630,000 600,000 -4.8

Park (SoHo)
Desa Green 2 54 400,000 - 408,000 Stable

440,000 -
419,000
Eko Residence 8 71 488,000 - 447,000 -5.1

540,000 -
530,000
Ekocheras Office 3 71 470,000 520,000 12.1

Suites -
530,000
Ken Bangsar 1 74 NA 715,000 ND
KL Gateway 1 48 480,000 - 510,000 3.0

510,000
Pertama 1 56 300,000 - 350,000 6.0

Residency 400,000
Designer Suites
Plaza Damas 2 39 277,000 - 295,000 7.6

310,000 -
323,000
Page | 102
Plaza Damas 3 1 46 370,000 - 365,000 -3.3

395,000
Residensi Dc 1 87 NA 1,150,00 ND
(Damansara City) 0
Southbank 2 73 550,000 - 528,000 Stable

Residence 590,000 -
590,000
The Greens 1 225 2,750,000 2,840,00 Stable

- 0
2,850,000
The Scott Garden 3 71 550,000 - 600,000 Stable

650,000 -
650,000
The Signature 1 41 495,000 - 490,000 -3.4

Desa Sri 520,000
Hartamas
Twins@ 1 111 1,100,000 1,080,00 Stable

Damansara 0
Heights
Table 21: Prices of Service Apartment and SOHO

The table above shows the service apartment price range and SOHO in Mukim Kuala
Lumpur, Kuala Lumpur and the changes between 2019 and 2020. In 2020, the price
range for serviced apartments in the area is between RM 295,000 and RM 2,840,000
per unit.
4.3.4.2 Rental of Service Apartment and SOHO
Rental of Service Apartment and SOHO
District/Mukim Average Rental Range Average Average

and Location Floor Area Per Month Rental Gross
(sq. m.) (RM/Unit) Change Yield (%)
(%)
Mukim Kuala 2019 2020
Lumpur
Arcoris Mont 90 3,000 - 3,200 3.2 3.8

Kiara 3,200
Page | 103
Avantas 94 1,800 1,800 Stable 3.2

Residences
Camelia Service 59 1,800 - 1,800 - Stable 4.4

Apt 2,200 2,200
Casa Mutiara 92 1,700 1,700 Stable 3.4

Service
Apartment
DC Residensi 170 NA 6,300 - ND 3.2

Damansara 7,200
Heights
Desa Green 66 1,550 - 1,550 - Stable 3.3

2,100 2,100
Gaya Bangsar 70 2,500 2,500 Stable 4.1
147 2,700 - 2,700 - Stable 3.8

4,200 4,200
Glomac 102 2,500 2,500 Stable 3.8

Damansara
Service
Apartment
KL Gateway 60 2,100 - 2,100 - Stable 4.7

2,400 2,400
Petalz Residence 87 2,200 2,200 Stable 4.1
Plaza Damas 3 70 1,400 - 1,400 - Stable 3.5

1,500 1,500
Scott Sentral 93 1,550 1,550 Stable 2.5

Service
Apartment
Page | 104
Sinaran TTDI 143 3,300 3,300 Stable 3.1

Condo
SoHo Tower B, 72 1,500 1,500 Stable 4.0

Scott Garden
Southbank 89 1,600 - 1,600 - Stable 3.5

Residence 2,400 2,400
Southview 76 1,800 - 1,800 - Stable 4.4

Residence 3,000 3,000
TTDI Ascendia 82 2,800 2,800 Stable 4.3
Waldorf Service 65 1,900 1,900 Stable 4.2

Apartment
Table 22: Rental of Service Apartment and SOHO

The table above show the rental range per month of service apartment and SOHO in
Mukim Kuala Lumpur, Kuala Lumpur and the changes between 2019 and 2020. In
2020, the rental price range for serviced apartment in the area is between RM1,400 –
RM7,200 per month.
4.4 Demand Analysis
Figure 82: Sales Performance of Upcoming Competitor
The sales performances of the upcoming competitors are shown above. All were
launched in the year 2018, 2019 & 2020 only. The take-up rate of Chambers Kuala
Lumpur, a serviced residence complex is 70% of the overall units. This means that 356
Page | 105
units from 509 units were sold, a reasonably good sales performance by the
development. In fact, Chambers Kuala Lumpur achieved a 60% take-up rate within
three months of the project’s soft launch in 2018 with the 7% and 3% attained in 2019
and 2020 respectively.
Scarletz Suites comprises a single tower of 49 storeys of serviced apartment units at

Kuala Lumpur City Centre that will carry leasehold commercial titles. This development
attained a remarkable feat as all 604 units of Scarletz Suites have been taken up and
will be delivered to their owners in the third quarter of 2021.
Core Residence is developed at the Tun Razak Exchange, to become the country’s
first international financial district. The take-up rate for this lavish development is 76%.
Based on the table above, the average sales per annum is 467 units while the average
sales per project per annum is 184 units.
4.5 Supply Analysis
4.5.1 Supply Analysis in Malaysia
4.5.1.1 Residential Construction Activity in Malaysia
Figure 83: Residential Construction Activity from 2016 to 2020

In 2016, the completed residential unit was 102,326 units and decreased to 94,198
units in 2017. In 2018, it decreased to 93,547 units. Besides, it keeps on decreasing
to 87,731 units in 2019 and 77,009 units in 2020.
Page | 106
For the starting residential unit, it was 116,763 units in 2016 and it increased to 133,592
units in 2017. In 2018, it decreased to 132,731 units and fell to 100,908 units in 2019
and 82,188 units in 2020.
Meanwhile, the new planned supply unit in 2016, was 106,633 units and it increased
to 132,731 units in 2017. In 2018, it decreased to 106,345 units and then slowly falling
to 90,277 units in 2019 and 71,725 units in 2020.
4.4.1.2 Serviced Apartment Construction Activity in Malaysia
Serviced apartment segment recorded 3,869 transactions worth RM2.54 billion,

formed 19.1% of the commercial property transactions volume and 13.0% of the value.
Market performance recorded a decrease of 7.6% in volume and 11.7% in value of
transactions (2019: 4,189 transactions worth RM2.88 billion). By state, WP Kuala
Lumpur and Selangor contributed a higher national market volume to the national total,
each with 42.0% (1,625 transactions) and 30.7% (1,189 transactions) market share.
Figure 84: Serviced Apartment Construction Activity in Malaysia

Based on Figure 84, the units of completion of service apartment in 2018 was 31,162
units and increased to 41,452 units in 2019. However, it reduced to 17,114 units in
2020 possibility due to COVID-19 pandemic. For starts of construction activity, there
are lesser in 2020 which is 29,761 units compared to 2019 which indicated 33,853
units. For new planned supply, only 21,420 units in 2020 compared to 38,362 units
and 54,506 units for 2019 and 2018 respectively. Overall, the service apartment
construction activity in Malaysia for 2020 is lower than in 2019.
Page | 107
4.5.1.3 Supply and Occupancy of Shopping Complex in Malaysia
Figure 85: Supply & Occupancy of Shopping Complex (2016-2020)

According to Figure 85, the figure shows the increasing trends of total space of
shopping complexes from 2016 (14.72 million s.m.) to 2020 (16.85 million s.m.). It is
same goes to occupied space which fluctuated from 2016 (11.98 million s.m.) to 2020
(13.06 million s.m.). However, the occupancy rate dropped year by year starting from
2016 (81.4%) to 2020 (77.5%).
In 2020, the overall performance of shopping complex continued to soften, recording

an occupancy rate of 77.5%, down from 79.2% in 2019. WP Kuala Lumpur and
Selangor recorded 82.0% and 80.0% occupancy rate respectively, whereas Johor and
Pulau Pinang managed to secure an average occupancy of 74.9% and 72.8%
respectively. Melaka and Negeri Sembilan recorded an occupancy rate of 63.3% and
66.6% respectively, the first and second lowest occupancy in the country.
4.5.1.4 Construction Activity of Shopping Complex in Malaysia
There were 13 complexes completed with Certificate of Completion and Compliance

(CCC) on the development front, adding nearly 0.35 million s.m. of retail space into the
market in 2020. As at year-end, there were around 16.85 million s.m. existing retail
space from 1,050 shopping complexes; majority of which were shopping centres (556
buildings; 12.61 million s.m.).
Page | 108
Selangor dominated the existing retail space with 153 shopping complexes offering
3.7 million s.m. There were another 42 complexes with 1.81 million s.m. in the incoming
supply and 13 complexes with 0.51 million s.m. in the planned supply. The following
shopping complexes were completed in 2020:
NLA
State Name of Complex Location
(s.m)
WP
KL East Mall Setapak 35,694
Putrajaya
Tropicana Garden Mall Damansara 92,903
Selangor KIP Mall Desa Coafields Kuala Selangor 13,180
Quayside Mall Kuala Selangor 27,871
B5 Johor Street Market Johor Bahru 14,040
Johor Paragon Market Place Johor Bahru 37,161
Econsave Taman Teratai Johor Bahru 8,698
Pulau Bandar Baru Air Putih /

TF Mart @ Botanica 7,432
Pinang Balik Pulau
Perak Econsave Aulong Taiping 5,589
Pahang Mydin Mall Jengka Bandar Tun Razak, Maran 26,864
Terenggan
KTCC Mall Kuala Terengganu 42,369
u
La Peomenade Mall @ HSL

Samarahan 8,241
Tower
Sarawak
Boulevard Shopping Mall Bintulu 24,817
TOTAL 13 complexes 344,859
Table 23: Shopping Complex by State in 2020

Page | 109
4.5.1.5 Shopping Complex Existing Stock, Incoming Supply and Planned Supply by
State 2020
Figure 86: Shopping Complex Existing Stock, Incoming Supply and Planned Supply by State 2020
The existing shopping complex recorded 1,050 buildings offering a total retail space of
16,853,682 square meters at the end of 2020. The stock comprised 556 shopping
centers (12,608,705 square meters), 223 hypermarkets (2,908,733 square meters)
and 271 arcades (1,336,244 square meters). Selangor led the market in terms of space
with 22.0% share (3,704,593 square meters) followed by Kuala Lumpur with 18.6%
(3,131,431 square meters).
Thirteen new buildings were completed in the review period offering 344,859 square
meters into the market. This was a decrease of 64.2% against 2019 (566,161 square
meters). Starts recorded six buildings with a floor space amounting to 53,648 square
meters (2019: 198,645 square meters) while two new planned supply were recorded
amounting 32,242 square meters (2019: 15,618 square meters).
4.5.1.6 Construction Activity of Shop in Malaysia
On the supply front, construction activity was slow as indicated by the contraction in
completion and starts, each down by 22.8% (5,421 units) and 35.2% (3,294 units)
respectively. On the contrary, the new planned supply increased by 5.1% to 4,053 units.
Thus, as at year-end, there were more than 540,000 existing shops with more than
32,000 units in the incoming supply and nearly 33,000 units in the planned supply.
Page | 110
Figure 87: Shops Construction Activity in Malaysia (2019 - 2020)

Based on figure 87, the completed shops unit in 2019 was 7,023 units. However, it
decreased in 2020 with 5,421 unit. Besides, the starting shops unit in 2019 was 5,080
unit but decreased to 3,294 unit in 2020. Meanwhile, for the new planned supply shops
unit, it was 3,856 unit in 2019 and increased to 4,053 in 2020 with increment of 5.10%.
4.5.1.7 Shop Existing Stock, Incoming Supply and Planned Supply by State 2020
The existing number of shops totaled 540,699 units as at the end of 2020. The
incoming supply recorded a figure of 32,033 units while the planned supply of 33,034
units. Selangor and Johor again contributed the highest number of shops in all three
stages of development. Two to two and a-half storey shops dominated inventory.
On the development front, construction activity moderated. Completion recorded a

22.8% reduction (5,421 units) compared to 2019, starts recorded a 35.2% drop (3,294
units), whereas new planned supply recorded a 5.1% increase (4,053 unit).
State Existing Incoming Supply Planned Supply
WP Kuala Lumpur 32,105 1,481 1,441
WP Putrajaya 538 0 64
WP Labuan 1,003 64 0
Selangor 109,499 6,149 3,436
Johor 91,287 8,734 8,516
Page | 111
Pulau Pinang 38,545 1,373 2,535
Perak 62,920 3,039 3,163
Negeri Sembilan 27,161 947 2,129
Melaka 23,037 1,324 1,286
Kedah 32,188 927 1,114
Pahang 25,553 1,484 3,143
Terengganu 8,388 1,123 803
Kelantan 14,050 1,289 819
Perlis 5,656 403 808
Sabah 32,135 2,142 2,323
Sarawak 36,634 1,554 1,454
Figure 88: Trends of Completion, Starts and New Planned Supply for Shop (2016-2020)
The trends on completed and starting for shop unit from 2016 was decreasing until
2020. For example, in 2016 the completed unit was 15,661 units and it decreased to
Page | 112
5,421 units in 2020. For the starting unit, it was 9,039 units and it decreased to 3,294
units in 2020. Meanwhile, the trends of new planned supply for shop fluctuated from
2016 until 2020.
4.5.1.8 Supply and Occupancy of Purpose-Built Office in Malaysia
From 2016 to 2020, the overall performance of office segment was less promising as
the overall occupancy rate shrank to 80.2% in 2020, down from 80.6% in 2019. The
private office buildings recorded average occupancy rate at 73.9%; WP Kuala Lumpur
and Pulau Pinang recorded an occupancy rate of 76.2% and 79.8% respectively,
whereas Selangor and Johor saw lower than national level at 67.5% and 62.8%
respectively. Private office buildings in Putrajaya recorded the lowest occupancy rate
in the country at 39.1%.
Figure 89: Supply & Occupancy of Purpose-Built Office (Private & Government) 2016 – 2020
The supply and occupancy of purpose-built office (private and government) space in
2016 (20.81 million s.m.) was increasing until 2020 (23.18 million s.m.). Besides, the
occupied space for purpose-built office was rising in 2016 (17.13 s.m.) until 2020
(18.59 million s.m.). Meanwhile, the occupancy rate for purpose-built office also
fluctuated in 2016 (82.3%) until 2020 (80.2%).
4.5.1.9 Construction Activity of Purpose-Built Office in Malaysia
There were 11 new completions offering a total office space of 448,152 s.m., lower
compared to 2019 (21 new completions; 576,179 s.m.). As at end-2020, there was a
Page | 113
total of 23.18 million s.m. existing office space from 2,560 buildings, while another 2.51
million s.m. (50 buildings) in the incoming supply and nearly 0.32 million s.m. (13
buildings) in the planned supply. WP Kuala Lumpur dominated all three categories of
supplies, contributing 40.0% of the total existing office spaces and 59.2% of the total
incoming supply spaces. The following office buildings were completed in 2020:
State Name of Building Location Category NLA(s.m)
WP Kuala Private
Menara Hap Seng 3 Jalan P Ramlee 22,296
Lumpur Building
Kompleks Pejabat Government

Presint 1 122,603
Kerajaan (Fasa 1) Building
WP
Putrajaya
Kompleks Pejabat Government
Presint 1 126,827
Kerajaan (Fasa 2) Building
Sumurwang Tower @ i- Private

Shah Alam 26,587
City Shah Alam Building
Persiaran
Tropicana Gardens Private
Tropicana, 18,443
Selangor Corporate Office Building
Petaling Jaya
PJ Central
MyIPO Tower /Menara Government
Garden, Petaling 56,917
6 Building
Jaya
Private
Johor Carnelian Tower Forest City 48,540
Building
Private
Perak Menara Taiko Ipoh 6,850
Building
HSL Tower (Office Private

Samarahan 9,403
Suite) Building
Ibraco Corporation Private

Sarawak Kuching 6,411
Building Building
Private
LHS Building Kuching 3,275
Building
Total 11 buildings 448,152
Table 25: List of Office Buildings Completed in 2020

Page | 114
4.5.1.10 Purpose-Built Office Existing Stock, Incoming Supply and Planned Supply by
State 2020
The office sub-sector recorded 2,560 buildings offering a total space of 23,179,914
square meters, predominantly private-owned buildings (74.7%). Kuala Lumpur and
Selangor were the two main contributors of office space, forming 40.0% (9,275,474
square meters) and 18.0% (4,177,519 square meters) respectively of the national
existing stock. There were 50 buildings (2,510,145 square meters) in the incoming
supply and 13 buildings (317,891 square meters) in the planned supply. Kuala Lumpur
held the most incoming supply and planned supply.
Eleven new buildings - nine private-owned buildings and two public-owned buildings
were completed in the review period, with a combined space of 448,152 square meters
(2019: 576,179 square meters.). In addition, six buildings commenced construction -
five private and one public-owned with a total floor space of 506,184 square meters in
2020 (2019: 226,276 square meters) while new planned supply comprised two private-
owned building (385,965 square meters). Details of purpose-built office supply are in
table 26.
State Existing Stock Incoming Supply Planned Supply
WP Kuala Lumpur 9,275,474 1,485,502 168,084
WP Putrajaya 2,525,253 75,540 31,545
WP Labuan 67,051 0 0
Selangor 4,177,519 458,746 10,276
Johor 1,343,334 244,290 33,817
Pulau Pinang 1,103,533 4,590 0
Perak 633,568 36,847 0
Negeri Sembilan 339,649 11,617 0
Melaka 411,050 0 0
Kedah 428,672 0 0
Pahang 420,570 36,375 4,911
Terengganu 360,738 63,767 31,760
Page | 115
Kelantan 391,525 0 0
Perlis 131,038 25,085 0
Sabah 806,852 18,850 37,498
Sarawak 764,088 48,936 0
Figure 90: Trends of Completion, Starts and New Planned Supply for Purpose-Built Offices (2016 to 2020)
Basically, the trends on completion, starts and new planned supply for purpose-built
office fluctuated in 2016 until 2020.
4.5.1.11 Construction Activity of Leisure Property in Malaysia
Construction activities was on a low tone as completion, starts and new planned supply
declined significantly. There were 19 new hotels/resorts completed in 2020 offering
1,363 rooms, down by 65.4% against 2019 in terms of rooms (2019: 24 hotels/ resorts;
3,934 rooms). Starts and new planned supply contracted by 62.2% (2,030 rooms) and
19.2% (1,956 rooms) respectively. As of end-2020, there were 3,445 hotels/resorts
across the country offering 260,097 rooms, another 128 hotels/ resorts (27,543 rooms)
were in the incoming supply, and 95 hotels/resorts (18,737 rooms) at the planned
supply stage; all led by WP Kuala Lumpur.
The newly completed hotels or resorts in 2020 are as follows:
Page | 116
State Name of Hotels/ Resorts Number of Rooms
Holiday Inn City Centre @JBCC 335
Johor Hotel @ Southkey City 268
Maple Lodge Hotel, Batu Pahat 60
Lintang Square - Hotel, Kuala Kangsar 48

Perak
Royale Hotel @ Batu Gajah 32
Angsana Teluk Bahang Hotel 103
Pulau Pinang Bahang Bay Hotel 160
Ozo George Town 132
Ce Wer Chalet 35
Chalet Singgah Sana 17
Chalet Su 10
Chalet Yunie 17
Impiana Marang Chalet 11
Terengganu Maa Hari Hotel 25
Marang Sunrise Guest House 15
Qimi Chalet 12
Raz Hotel 20
Saudagar Beach Resort 40
Semarak Bayu Resort 23
TOTAL 19 Hotels/Resorts 1,363
Table 27: Construction Activity of Leisure Property in Malaysia

4.5.1.12 Leisure Property Existing Stock, Incoming Supply and Planned Supply by
State 2020
The country’s leisure stock stood at 260,097 rooms with another 27,543 rooms in the
incoming supply and 18,737 rooms in the planned supply as at end 2020. Kuala
Page | 117
Lumpur contributed the highest number of existing hotel rooms in the country, as well
as those in the incoming supply and planned supply.
Completion, starts and new planned supply reduced across the board compared to
2019, each down by 62.3% to 1,363 rooms, 62.2% to 2,030 rooms and 19.2% to 1,956
rooms.
Details of Leisure supply are in Table 28.
Existing Stock Incoming Supply Planned Supply

State
Hotel Room Hotel Room Hotel Room
WP Kuala Lumpur 224 40,897 32 8,288 23 4,525
WP Putrajaya 7 1,769 0 0 0 0
WP Labuan 41 1,697 2 264 0 0
Selangor 200 22,702 6 2,143 3 611
Johor 482 31,066 13 3,628 11 3,134
Pulau Pinang 230 22,088 22 4,759 16 2,243
Perak 327 16,198 10 865 8 909
Negeri Sembilan 141 9,396 6 1,588 3 358
Melaka 172 16,929 5 1,456 5 1,558
Pahang 300 25,375 2 222 5 583
Terengganu 241 10,718 10 767 4 752
Kelantan 91 4,360 1 144 0 0
Perlis 32 1,245 2 120 1 120
Sabah 408 22,549 10 2,225 13 3,692
Sarawak 374 19,954 1 318 0 0
MALAYSIA 3,445 260,097 128 27,543 95 18,737
Table 28: Leisure Property Existing Stock, Incoming Supply and Planned Supply by State 2020
Page | 118
Figure 91: Trends of Completion, Starts and New Planned Supply for Hotels in Malaysia (2016-2020)
The completed hotel unit in Malaysia basically increased from 2016 which was 3,713
units to 5,994 rooms in 2018. However, it fell to 1,363 rooms in 2020. Besides, the
started hotel rooms in 2016 fluctuated until 2020. Meanwhile, the new planned supply
hotel units slightly increased from 2016 (2,465 rooms) to 2018 (3,330 rooms). However,
it fell from 2019 onwards.
Page | 119
4.5.2 Supply Analysis in Kuala Lumpur
4.5.2.1 Residential Construction Activity in Kuala Lumpur
Figure 92: Residential Construction Activity in Kuala Lumpur from 2016 to 2020
Generally, the residential construction activity for the completed, starting and new
planned supply unit in Kuala Lumpur fluctuated in 2016 until 2020.
Page | 120
Figure 93: Supply of Residential Units in Kuala Lumpur (2018 - 2020)

Based on Figure 93 above, the existing supply of residential units experienced a steady
increase from 478,258 units in 2018 to 495,996 units in 2020 while incoming supply
increase from 37,339 units in 2018 to 53,274 units in 2020. Meanwhile, the number of
units under starts and planned supply decreased from 2018 to 2020. The new planned
saw a decreased from 2018 to 2019 and increase back in 2020.
Page | 121
4.5.2.2 Construction Activity of Flat in Kuala Lumpur
Figure 94: Supply of Flat in Kuala Lumpur (2018 - 2020)

The supply of flats in Kuala Lumpur from 2018 to 2020 can be observed in the figure
above. The number of units for existing supply is remain same for 3 years from 2018
to 2020 which is 35,330 units without any growth.
Page | 122
4.5.2.3 Construction Activity of Condominium or Apartment in Kuala Lumpur
Figure 95: Supply of Condominium or Apartment in Kuala Lumpur (2018 - 2020)

The figure above depicts the supply of condominiums and apartments in Kuala Lumpur.
As seen above, the existing supply increased from 231,570 units in 2018 to 249,798
units in 2020. However, the number of condominiums and apartments in completion,
those in the starts stage and the planned supply experienced a decreased trend. On
the other hand, the new planned supply fluctuated from 13,948 units in 2018 to 9,810
in 2019 but increased back to 11,072 units in 2020 while the incoming supply increased
from 37,132 units in 2018 and 52,975 units in 2020.
Page | 123
4.5.2.4 Serviced Apartment Construction Activity in Kuala Lumpur
Figure 96: Serviced Apartment Construction Activity in Kuala Lumpur from 2016 to 2020
Figure 96 above illustrates the serviced apartment construction activity in Kuala

Lumpur from 2016 to 2020. The construction of serviced apartments reached its peak
completion in 2018 with 12,435 units. The lowest was seen in 2017 where it was only
4,949 units. For serviced apartments that have started construction, 2019 had the
highest number with 19,646 units, a 92.70% increase from the previous year. The
highest number of new planned supply of serviced apartments occurred in 2017, where
23,996 units were planned. This was a 43.40% increase from 2016 which had a new
planned supply of only 16,734 units. Generally, the construction activity of serviced
apartments in 2020 slowed down when compared with 2019.
Page | 124
4.5.2.5 SOHO Construction Activity in Kuala Lumpur
Figure 97: Supply of SOHO in Kuala Lumpur (2019 - 2020)

The figure above illustrates the supply of SOHO in Kuala Lumpur from 2019 to 2020.
The existing stock experienced steady rises from 3,688 units in 2019 to 5,667 units in
2020. The completed units of SOHO saw a decrease from 277 units in 2019 to 202
units in 2020 and planned supply also saw a decrease from 8,039 units in 2019 to
3,747 units in 2020. Meanwhile, the volume of SOHO incoming supply increased from
3,381 in 2019 to 8,224 in 2020.
4.5.2.6 Construction Activity of Shop in Kuala Lumpur
Shop segment showed mixed movements in construction activity. As at the end 2020,
the shop segment recorded 32,105 units existing shop with another 1,481 units in the
incoming supply and 1,441 units in the planned supply.
Page | 125
Figure 98: Shop Construction Activity in Kuala Lumpur (2016 – 2020)

Figure 98 above illustrates the shop construction activity in Kuala Lumpur from 2016
to 2020. The construction of shop reached its peak completion in 2017 with 444 units.
The lowest was seen in 2018 where it was only 156 units. For shop that have started
construction, 2016 had the highest number with 617 units. The highest number of new
planned supply of shop occurred in 2016, where 353 units were planned and no new
planned supply in 2020. Generally, the construction activity of shop in 2020 slowed
down when compared with 2019 but the started construction shows an increasing.
Page | 126
4.5.2.7 Shop Units Construction Activity in Kuala Lumpur
Figure 99: Supply of Shop Units in Kuala Lumpur (2018 - 2020)

Figure above shows the supply of shop units in Kuala Lumpur from 2018 to 2020. The
existing supply increased from 31,282 units in 2018 to 32,105 units in 2020. Meanwhile,
the completed shop unit was 156 units in 2018 and it increased to 313 units in 2019,
then decreased to 158 units in 2020. Besides, there was 140 incoming supply units in
2018 and it increased sharply to 1,570 units in 2019, then decreased to 1,481 units in
2020. The starting unit experienced declines through the three years and reached 0
units at 2020. The planned supply and new planned supply unit was decreased from
2018 to 2019. However, it rise back in 2020.
4.5.2.8 Supply & Occupancy of Shopping Complex in Kuala Lumpur
The performance of retail segment weakened as the average occupancy rate

decreased to 82.0% as compared with 83.4% recorded in 2019. The annual take-up
was negative at 12,451 s.m. Pertinent movements of tenants as shown in Table 29.
Table below shows the pertinent movements in Shopping Complex for Kuala Lumpur.
No. Shopping Complex Estimated Space (s.m.) Tenant Movement
1 Fahrenheit 88 (KL Plaza) 1,770 Move out
Page | 127
2 Pavilion KL 2,113 Move out
3 Suria KLCC 1,168 Move in
4 The Northpoint, Midvalley 2,454 Move out
Table 29: Pertinent Movements in Shopping Complex (2020)

Figure 100: Supply & Occupancy of Shopping Complex in Kuala Lumpur (2016-2020)
The total space for shopping complexes in Kuala Lumpur slightly increased from 2016
until 2018. Then it decreased from 3.1 million s.m in 2018 to 3.09 million s.m. in 2019.
However, it rose to 3.1 million back in 2020. Furthermore, the occupied space for
shopping complexes increased in 2016 until 2017 but decreased from 2018 until 2020.
Meanwhile, the occupancy rate slightly decreased from 86.8% in 2016 to 82.8% in
2018 and then increased to 83.4% in 2019. However, it fell to 82% in 2020.
4.5.2.9 Construction Activity of Shopping Complex in Kuala Lumpur
The retail segment saw one new complex in the review period namely KL East Mall in
Desa Melawati, with 35,694 s.m. As at end-2020, there were 112 existing shopping
complexes (3,131,431 s.m.) with another eight complexes (645,850 s.m.) in the
incoming supply and three in the planned supply (187,117 s.m.).
Page | 128
4.5.2.10 Supply and Occupancy of Purpose-Built Office in Kuala Lumpur
The average occupancy rate for the purpose-built office declined to 77.6% in 2020 as
compared to 78.3% in 2019. The annual take-up was at 31,880 s.m.. Pertinent
movements of tenants as shown in Table 30.
Table below shows pertinent movement in purpose-built office in Kuala Lumpur.
Purpose-Built Estimated Tenant

No. Tenant
Office Name Space (s.m) Movement
Maju Junction Agensi Kaunseling Dan

1 1,493 Move Out
Mall (podium) Pengurusan Kredit
Menara
OCBC Bank (Malaysia)
2 Capsquare 2,298 Move Out
Berhad
(Menara AIA)
Menara Hap
3 Hap Seng Star Sdn Bhd 1,621 Move Out
Seng 3
UP Space Solutions Sdn

4 Menara KLA 4,974 Move Out
Bhd
JTI Business Services

5 Menara Manulife 3,300 Move In
(Asia) Sdn Bhd
Menara
6 Yinson Holdings Berhad 3,497 Move In
Southpoint
Table 30: Pertinent Movements in Purpose-Built Office

Page | 129
Figure 101: Occupancy and Space of Purpose-Built Office (2016-2020)

The space for purpose-built office slightly increased in 2016 (8,657,577 s.m.) to 2020
(9,275,474 s.m.). Meanwhile, the occupancy rate decreased steadily from 2017
(80.0%) to 2020 (77.6%).
4.5.2.11 Construction Activity of Purpose-Built Office in Kuala Lumpur
There was only one completion in the review period, which is Menara Hap Seng 3 that
located at Jalan P. Ramlee. The building contributed additional space of 22,296 s.m.
to the market. As at end-2020, there were 451 existing purpose-built offices (9,275,474
s.m.) with another 20 buildings (1,485,502 s.m.) in the incoming supply and five
buildings (168,084 s.m.) in the planned supply.
Page | 130
Figure 102: Purpose-Built Office Construction Activity in Kuala Lumpur (2016 – 2020)
Figure 102 above illustrates the purpose-built office construction activity in Kuala
Lumpur from 2016 to 2020. The construction of purpose-built office reached its highest
completion in 2016 with 320,643 units. The lowest was seen in 2018 where it was only
12,297 units. For purpose-built office that have started construction, 2017 had the
highest number with 578,348 units. The highest number of new planned supply of
purpose-built office occurred in 2018, where 340,861 units were planned and no new
planned supply in 2019 and 2020. Generally, the construction activity of purpose-built
office in 2020 slowed down when compared with 2019.
4.5.2.12 Leisure Property in Kuala Lumpur
There was one hotel with 290 rooms starts in 2020. As at 2020, there were 224 hotels
(40,897 rooms) in the existing supply with another 32 hotels (8,288 rooms) in the
incoming supply and 23 hotels (4,525 rooms) in planned supply.
Page | 131
4.5.3 Supply Analysis in Kuala Lumpur City
4.5.3.1 Residential Construction Activity in Kuala Lumpur City
Figure 103: Supply of Residential Units in Kuala Lumpur City (2018 - 2020)
The existing supply of residential units in Kuala Lumpur City increases from 2018
(1,537,300 units) to 2020 (1,601,922 units). However, the number of completion,
incoming supply, and starts shows declined trend from 2018 to 2020. Meanwhile, for
planned supply, it increased from 79,698 units in 2018 to 84,531 units in 2020. For
new planned supply, it shows an up and down trend from 2018 to 2020.
Page | 132
4.5.3.2 Construction Activity of Flat in Kuala Lumpur City
Figure 104: Supply of Flat in Kuala Lumpur City (2018 - 2020)

The existing supply of flat in Kuala Lumpur City experienced an increment as the
number slightly increased from 2018 (106,149 units) to 2020 (107,617 units). However,
the number of units under completion decreased drastically from 2018 (1,641 units) to
2020 (323 units). The incoming supply and planned supply shows a mixed movement
from 2018 to 2020.
Page | 133
4.5.3.3 Construction Activity of Condominium and Apartment in Kuala Lumpur City
Figure 105: Supply of Condominium or Apartment in Kuala Lumpur City (2018 - 2020)
The existing supply of condominiums or apartments in Kuala Lumpur City increases

from 357,194 units in 2018 to 376,779 units in 2020. Meanwhile, completion units
decreased from 7,852 units in 2018 to 6,298 units in 2020. Starts, planned supply and
new planned supply in Kuala Lumpur City also saw a decreased movement from 2018
to 2020.
Page | 134
4.5.3.4 Serviced Apartment Construction Activity in Kuala Lumpur City
Figure 106: Supply of Serviced Apartment in Kuala Lumpur City (2018 - 2020)
The construction activity in Kuala Lumpur City shows a mixed movement for serviced
apartment. The existing supply of serviced apartments increased from 59,130 units in
2018 to 81,225 units in 2020. Incoming supply shows an increase from 36,999 units in
2018 to 44,221 units in 2020 and starts shows a significant increase from 4,462 units
in 2018 to 6,780 units in 2020. While the number of completion units, planned supply
and new planned supply shows mixed movement from 2018 to 2020.
Page | 135
4.5.3.5 SOHO Construction Activity in Kuala Lumpur City
Figure 107: Supply of SOHO in Kuala Lumpur City (2018 - 2020)

The existing supply of SOHO in Kuala Lumpur City increased from 24,829 units in
2018 to 35,639 units in 2020. However, the number of completion units and incoming
supply shows a mixed movement. The planned supply and new planned supply had
experienced a significant decrease from 2018 to 2020.
Page | 136
4.5.3.6 Construction Activity of Shop Units in Kuala Lumpur City
Figure 108: Supply of Shop Units in Kuala Lumpur City (2018 - 2020)
The existing supply of shop units in Kuala Lumpur City shows a slight increase from
106,400 units in 2018 to 109,499 units in 2020. The number of completion units also
decreased from 1,772 units in 2019 to 839 units in 2020. Meanwhile, the incoming
supply, planned supply and new planned supply showed a decline trend from 2018 to
2019. However, the starts is showed a mixed movement.
4.5.3.7 Supply of Shopping Complex in Kuala Lumpur City
The table below shows the details of existing supply of shopping complexes in Kuala
Lumpur City:
Incoming
Details Existing Supply Completion
Supply
Number of Buildings 153 3 7
Total Space (sq. m.) 3,704,593 133,954 499,460
Total Space Occupied (sq. m.) 2,964,756 41,980 0
Occupancy Rate (%) 80 31 0
Page | 137
Table 31: Supply and Occupancy of Shopping Complex Kuala Lumpur City (2020)
The retail segment shows an existing supply of 153 shopping complexes in Kuala
Lumpur City in 2020. The total space for the shopping complex is 3,704,593 sq.m. in
2020 and the total space occupied is 2,964,756 sq.m. in Kuala Lumpur City. The
average occupancy rate in Kuala Lumpur City shopping mall is 80% while the total
occupancy rate for retail shopping complex in Malaysia is 77.5%. This shows a good
performance for the retail sector in Kuala Lumpur City.
4.5.3.8 Supply of Purpose-Built Office in Kuala Lumpur City
Details Existing Supply
Number of Buildings 451
Total Space (sq. m.) 9,275,474
Table 32: Supply and Occupancy of Purpose-Built Office in Kuala Lumpur City (2020)
The Purpose-Built Office in Kuala Lumpur City in 2020 shows 451 existing buildings in
2020. The total space for a purpose-built office is 9,275,474 sq.m. in 2020 in Kuala
Lumpur City.
Page | 138
4.6 Competitor Analysis

Competitor analysis is part of the market study that identifies the surroundings of the proposed development site. This is one of the essential
studies as the competitors’ products need to be analysed properly and in detail so that better and quality products can be created. In this section,
the immediate competitors will be identified, followed by a product summary.
4.6.1 Existing Service Apartment and SOHO Competitors
Details 28 BOULEVARD THE TROIKA M CITY
Developer Beverly Group and Mapletree Investments Pte Ltd BRDB Development Sdn Bhd Oasis Garden Development Sdn Bhd
Location Pandan Perdana, Kuala Lumpur Jalan Binjai, Kuala Lumpur Jalan Ampang, Kuala Lumpur
Distance to
Subject 5.2 km 0.45 km 2.9 km
Property
Land Tenure Leasehold In Perpetuity In Perpetuity
Land Title Commercial Commercial Commercial
Total Units 1,920 units 229 units 1,601 units
No. of storey 45 storey 38, 44 & 55 storey 41 storey
Asking Asking Asking

Layout & Size Type Size (sf) RM (psf) Type Size (sf) RM (psf) Type Size (sf) RM (psf)
Price(RM) Price(RM) Price(RM)
Page | 139
1-
RM1,500,0
SoHo 450 RM330,000 RM733 bedroom(S 960 RM1,563 Studio 506 RM360,000 711.46
00
oHo)
1-
RM1,700,0
2-bedroom 678 RM530,000 RM782 bedroom(S 1349 RM1,260 Studio 533 RM380,000 712.95
00
oHo)
2-
RM2,470,0
2-bedroom 743 RM510,000 RM686 bedroom(S 1646 RM1,501 1-bedroom 781 RM590,000 755.44
00
oHo)
RM2,770,0
2-bedroom 775 RM530,000 RM684 3-bedroom 2345 RM1,181 1-bedroom 910 RM780,000 857.14
00
RM3,110,0
00
RM2,890,0
00
RM1,200,0
4-bedroom 1367 RM820,000 RM600 3-bedroom 1330 902.26
00
RM1,840,0
3-bedroom 1920 958.33
00
RM1,640,0
4-bedroom 1653 992.14
00
Page | 140
Build Up Area SoHo: 450 sq ft SoHo: 960 sq ft to 1,646 sq ft SoHo : 506 sq ft – 1,330 sq ft
Service
Apartment Serviced Apartment: 678 – 1,367 sq ft Service Apartment: 2,000 sq ft – 2,906 sq ft Serviced Apartment: 506 sq.ft -1,920 sq.ft
Completion
2019 2010 2016
Year
Selling Price SoHo: From RM330,000 SoHo: RM1,500,000 –RM2,470,000 SoHo: From RM360,000
Service
Apartment(RM
Serviced apartment: From RM530,000 Serviced Apartment:RM1,840,000 – RM3,110,000 Serviced Apartment: From RM720,000
)
Average Price
RM600 - RM782 RM1,020 - RM1,563 RM 637– RM992
Psf (RM)
Table 33: Existing Service Apartment and SOHO Competitors
4.6.1.1 28 Boulevard
28 Boulevard is a breath-taking new apartment located in Pandan Perdana. 28 Boulevard is a development built mainly for residential purposes,
with the main target being the family market. The apartment provides numerous facilities, amenities and there are always several highways and
roads connecting to the vicinity of the apartment thus making it an ideal apartment for many inhabitants. The architecture of the development is
designed to incorporate beauty, making it outstanding against Kuala Lumpur skylines. The apartment’s frontage will be sophisticated with its
floor-to-ceiling glass walls. The inhabitants will have great time experiencing the city’s splendor from their cottages. The breathtaking views of
the skyline of Kuala Lumpur will be an added advantage to the dwellers. In addition, the cityscape will provide the residents with seraphic sunrises
and sunsets and the astounding pristine lake. The sophisticated design layout of the architecture provides a quintessential equilibrium of brawn
and beauty of the building. Besides, the vicinity of the flat is well-maintained and clean proving a habitable environment. It is prohibited to keep
pets in the flat’s vicinity. Maximum security is provided to ensure 24-hour surveillance and protect residents and their properties. 28 Boulevard is
made up of three blocks and each block comprises of 45 storeys. It consists of a total of 1920 units(636 units serviced apartments &1,284 units
Page | 141
SOHOs). There are a total of 14 units on each floor. Despite the fact that each floor comprises of many units, dwellers privacy is still maintained
due to the sophisticated architecture design of the apartment. The units have varying sizes that range from 450 square feet to 2,174 square feet.
The starting price of the units in the development starts from RM330,000 for SOHO and from RM530,000 for serviced apartment.
4.6.1.2 The Troika
The Troika refers to a lavish and much sought after mixed development located at KLCC. It comprises of standard units, SOHO and penthouses.
Standing at the back side of Menara Citibank, the property is surrounded by a rich neighbourhood. It has RM650 mil gross development value
and features an alluring design, courtesy of Foster & Partners, a world’s prominent architectural company based in the UK. The project was
developed by BRDB. BRBD was incorporated in 1965 and has since then developed iconic properties in Malaysia, United Kingdom, and Australia,
among other countries. With unique, innovative design, features, and facilities, The Troika offers one of Malaysia's most luxurious condo lifestyles.
Almost everything in this project is epic from glass-encased” bridges connecting the property’s three towers to shear walls. Security is also a non-
issue to people who live in the property since all major entry points are equipped with card access control system, CCTV cameras as well as
automatic boom-gate. This property is easily accessible from various areas, including the city centre, through several major roads and highways.
It provides an array of facilities to its residents and its neighbourhood hosts a wide range of public amenities. The Troika offers various facilities
to its residents. They include a landscaped courtyard measuring 30,000 square feet, a swimming pool, wading pool, timber deck, gymnasium,
games room, recreational areas (both indoor and outdoor), multipurpose hall, Jacuzzi, sauna, barbecue area, laundry services as well as
housekeeping services. The property also has glass-encased” bridges which help the residents of The Troika to move from one tower to another
within the property hassle-free. The Troika is composed of three blocks housing 229 units in total. Each of the three blocks has 38 storeys, 44
storeys and 55 storeys, respectively. SoHo units’ built-up sizes range from 960 sq ft to 1,646 sq ft while built up size for serviced apartment range
from 2,000 sq ft to 2,906 sq ft. The price started from RM1,500,000 to RM2,470,000 for SOHO units and serviced apartment started from
RM1,840,000 to RM3,110,000.
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4.6.1.3 M City
M City is оnе оf the latest proud nеw Frееhоld dеvеlорmеntѕ оf Mаh Sing located in thе рrimе lосаtiоn оf Amраng, KL City, Kuala Lumpur. Bеing
a mixеd dеvеlорmеnt of ѕеrviсеd apartments, SOHO unitѕ аnd retail lots, it iѕ fortunate that M Citу enjoys high viѕibilitу frоm thе Middlе Ring
Road 2 (MRR2) аnd Jаlаn Amраng. M Citу iѕ a brainchild оf Mah Sing which wаѕ lаunсhеd in 2010. It iѕ a unique dеvеlорmеnt whiсh iѕ lосаtеd
аррrоximаtеlу 1.26 km аwау from M Suitеѕ, a successful ѕеrviсеd rеѕidеnсе рrоjесt bу Mаh Sing. The lосаtiоn of M Citу iѕ ѕеt tо саtсh thе vаѕt
саtсhmеnt оf Amраng residents. Unlikе The Elements аt Ampang whiсh itѕ current mаrkеt price iѕ affected due tо itѕ uncompleted rooftop fасilitiеѕ
аnd lousy ассеѕѕ rоаdѕ, M Citу рrоmiѕеѕ tо be a wеll completed development with ԛuаlitу tenants, surrounded with business сеntrе whiсh оffеrѕ
аmеnitiеѕ ѕuсh аѕ Cаntilеvеr Viеwing Dесk, Hanging Gаrdеnѕ,Swimming Pооl, Pооl Deck, Gym and Stеаm or Sаunа Room. This M City building
соvеring a tоtаl of 10 асrеѕ оf lаnd соmрriѕеѕ of 41 floors. Stаnding аt 36 storeys, оnе might bе аblе tо gеt ѕоmе рrеttу ѕоlid viеwѕ with the аid
of Cаntilеvеr Viewing Dесk. M Citу саrriеѕ a tоtаl unit оf 1,601 rеѕidеntiаl unitѕ аnd it hоuѕеѕ ѕеvеrаl commercial ѕhорѕ bеlоw thе condo. The
entirety of Blосk A оf M Citу соnѕiѕtѕ оf SOHO unitѕ, аll оf whiсh are ѕоld out. It iѕ tо bе nоtеd thаt the fаmеd multilеvеl hanging gardens оf M
Citу can only be enjoyed bу the rеѕidеntѕ оf the ѕеrviсеd араrtmеnt, аѕ the rеѕidеntѕ оf the SoHo unitѕ have nо ассеѕѕ tо thе ѕеrviсеd араrtmеntѕ,
nоr thе facilities of thе serviced араrtmеntѕ. The built up size for SOHO is from 506 sq. ft. to 1,330 sq. ft. while for serviced apartment is from 506
sq. ft to 1,920 sq. ft. The price for SoHo starting from RM360,000 and for Serviced Apartment starting from RM720,000.
Page | 143
4.6.2 Existing Serviced Apartment Competitors
Details FRASER RESIDENCE STONOR 3 NOVO Ampang
Developer YNH Property Berhad Tan & Tan Developments Berhad Alfranko Development Sdn Bhd
Location Jalan Cendana, KL City Centre Lorong Stonor, Kuala Lumpur Jalan Ampang, Kuala Lumpur
Distance to
Subject 2.0km 1 km 2 km
Property
Land Tenure Leasehold In Perpetuity In Perpetuity
Total Units 446 units 400 units 421 units
No. of storey 26 41 storey 38 storey
Asking Asking
Asking
Type Size (sf) Price RM (psf) Type Unit Size (sf) Price RM (psf) Type Size (sf) RM (psf)
Price (RM)
(RM) (RM)
RM680,00 RM1,114. RM1,341 RM2,066 Type A ( 1 RM1,438,3 RM2,096.6

Studio 610 Type A 10 649 686
0.00 75 ,000.00 .26 Bedroom) 00.00 5
Layout & Size RM1,170, RM1,060. RM1,370 RM1,988 Type A1 ( 1 RM1,463,3 RM2,133.0
1-bedroom 1103 Type B 10 689 686
000.00 74 ,000.00 .39 Bedroom) 00.00 9
RM1,190, RM1,059. RM1,676 RM1,924 Type B(2 RM1,806,3 RM2,130.0

1-bedroom 1123 Type C 191 871 848
000.00 66 ,000.00 .23 Bedroom) 00.00 7
RM970,00 RM1,986 RM1,926 Type C (2 RM1,835,8 RM1,930.3

1-bedroom 1228 RM789.90 Type D 71 1031 951
0.00 ,000.00 .29 Bedroom) 00.00 9
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RM880,00 RM2,212 RM1,795 Type C1 (2 RM1,905,8 RM1,911.5

1-bedroom 1238 RM710.82 Type E 118 1232 997
0.00 ,000.00 .45 Bedroom) 00.00 3
RM900,00
1-bedroom 1263 RM712.59
0.00
RM1,150, RM1,042.
2-bedroom 1103
000.00 61
RM790,00
2-bedroom 1238 RM638.13
0.00
RM1,090,
3-bedroom 1238 RM880.45
000.00
RM1,170,
2-bedroom 1718 RM681.02
000.00
RM2,000,
2-bedroom 2060 RM970.87
000.00
RM1,170,
3-bedroom 1718 RM681.02
000.00
RM1,170,
4-bedroom 1718 RM681.02
000.00
Build Up Area
Service 610 – 2,060 sq.ft 649 - 1,232 sq ft 686 - 997 sq. ft
Apartment
Completion
2013 2019 2021
Year
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Selling Price
Service RM680,000 – RM2,000,000 From RM1,341,000 - RM2,212,000 From RM1,438,300 - RM 1,905,800
Apartment(RM)
Average Price
RM638 - RM1,115 RM1,795-RM2,066 RM1,911-RM2,133
Psf (RM)
Table 34: Existing Serviced Apartment Competitors
4.6.2.1 Fraser Residence
Fraser Residence is a luxury serviced apartment with a beautiful design located at Jalan Sultan Ismail in the heart of Kuala Lumpur. The
construction of this development is done by the famous Kar Sin development company, a subsidiary company of YNH. The construction of this
development was completed in the year 2013 and it contains all the facilities and features to make it a world-class development. Fraser Residence
contains many facilities and features that the residents of even modern developments only dream of having. There is a perimeter fencing around
the development to make everyone notice the territory of the development. The residents of the development can also enjoy Sauna facility and
relax in the development. Fraser Residence is indeed a great place to live in. It is surrounded by beautiful developments and a variety of amenities.
The residents of the development do not have to worry about anything because everything is easily available in the locality. The development
contains many other facilities and features such as a lap pool, a swimming pool, a wading pool and a great gymnasium equipped with the latest
exercising machines where the residents can work out while remaining in the development and enjoy a healthy lifestyle. The development also
provides a complete car parking facility for its residents. Most importantly, the development is equipped with the latest security gadgets and
provides 24 hour security to its residents to make sure that the residents are protected from any kind of external threats. Fraser Residence is a
beautiful development and consist of 2 blocks. There are 26 storeys in the development and the total number of units in the development are
446. The buyers of the units have the option to select from different designs of the units. The built-up area of the units in the development starts
from 610 sf and goes up until 2,060 sf depending on the selection of the unit's design. The starting price of the units in the development starts
from RM680,000.
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4.6.2.2 Stonor 3
A fine masterpiece will not do justice should one part of it be missing. Stonor 3 is the total embodiment of refinement in high segment high rise
living within the sphere of Suria KLCC and KLCC Park. Set to grace the skies in all its 41 storeys, it is only befitting that this custom-orientated
serviced apartment is setting a new benchmark for properties in this high profile area. The starting price of its custom-oriented luxury apartments
is RM1.1 mil. Stonor 3 is the result of a joint collaboration between Tan & Tan Developments Berhad (“Tan & Tan”), a wholly-owned subsidiary
of IGB Corporation Berhad (a main board-listed company on Bursa Malaysia Securities Berhad), and Mitsubishi Jisho Residence Co. Ltd (“MJR”)
of Japan. Home to a total of 400 units, the size of the smaller units are 649 sq ft (Type A) and 689 sq ft (Type B) respectively, which feature 1
bedroom with 1 bathroom, 2 bedroom and 2 bathroom units measuring at 871 sq ft (Type C), followed by 3 bedroom and 2 bathroom units at
1,031 sq ft (Type D) and the largest of them all – 3 bedroom and 3 bathroom units with a built up of 1,232 sq ft (Type E). The Selling price is
between From RM1,341,000 to RM2,212,000 where the price per sq. ft. is from RM1,795 to RM2,066
4.6.2.3 NOVO Ampang
NOVO Ampang is a freehold serviced apartment located along Jalan Ampang in Ampang Hilir, Kuala Lumpur. The name of this apartment is
named after a Latin word with the meaning of new, refresh and revive. This luxuriously stylish studio apartment is developed by Alfranko
Development, a subsidiary of the Sezar Group. Alfranko Development Sdn Bhd is a part of Alfranko Group of Companies, a European investment
and development conglomerate with diversified interest and investments in Russia. Now, the group is interested in Malaysia and this exclusive
lifestyle condominium is their first flagship in Malaysia. With that, Alfranko Development Sdn Bhd is awarded the Best Boutique Developer Award.
NOVO Ampang is targeted at the young professionals and property investors from all around the world. This modern building is flushed in ambient
LED lighting beaming towards the night sky like the dazzling jewel. According to the developer, NOVA Ampang is inspired with the idea of living
'Above the Eminence'. In addition, according to a marketing manager of the developer, this building is also inspired by the movie Tron Legacy.
This eye-catching building is designed by an internationally renowned and award-winning architectural firm, Veritas Designed Group. On top of
that, NOVA Ampang is equipped with a comprehensive plethora of state-of-the-art features and recreational facilities on the highest level for the
Page | 147
convenience and comfort of their residents. Residents will surely be amazed by the classy lifestyle provided whereby they can work up a sweat
in the fully-equipped gym or sun-bathing in the infinity pool above the city. This residential serviced apartment covering a total of 1.15 acres of
land. Standing at 38-storey tall, one might be able to get some pretty scenic views. Nova Ampang carries a total of 421 residential units and it is
serviced by 6 elevators per floor. The unit ranges between 686 sq. ft. and 997 sq. ft. The Selling price is between RM 1.438 million and RM 1.905
million where the price per sq. ft. is from RM 1,911 to RM2,133 psf.
4.6.3 Upcoming Serviced Apartment Competitors
Details CHAMBERS SCARLETZ SUITES CORE RESIDENCE
Developer Matrix Concepts Holdings Berhad Exsim Group Core Precious Development Sdn Bhd
Location Jalan Putra, Chow Kit Jalan Yap Kwan Seng, Kuala Lumpur City Jalan Barat, Pudu
Centre
Distance to Subject Property 3km 1km 3km
Land Tenure In Perpetuity Leasehold In Perpetuity
Total Units 509 units 604 units 580 units
No. of storey 33 49 storey 50 storey
Layout & Size Type Size (sf) Asking RM (psf) Type Size (sf) Asking RM (psf) Type Unit Size Asking RM
Price Price (sf) Price( (psf)
(RM) (RM) RM)
Type A1 454 RM380,00 RM837.00 Type A 450 RM670,0 RM1,488 Type 190 624 RM1,2 2073.7
(studio) 0 00 .89 A1 94,000 2
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Type 450 RM370,00 RM822.22 Type B 450 RM750,0 RM1,666 Type 688 RM1,4 2063.9
A2(studio) 0 00 .67 A2 20,000 5
Type B 653 RM560,00 RM857.58 Type C 450 RM780,0 RM1,733 Type 349 925 RM1,9 2097.3
0 00 .33 B3 40,000
Type C 908 RM690,00 RM759.91 Type D 550 RM940,0 RM1,709 Type 1,011 RM2,0 2060.3
0 00 .09 B4 83,000 4
Type E 575 RM998,0 RM1,735 Type 839 RM1,6 2002.3

00 .65 B2 80,000 8
Type 41 1,022 RM2,2 2199.6

C1 48,000 1
Build Up Area Service 450 sq ft – 908 sq ft 450 sq ft – 575 sq ft 624 sq ft to 1,022 sq ft

Apartment
Launched Year 2018 2018 2019
Completion Year 2022 2022 2023
Selling Price Service From RM370,000 – RM 690,000 From RM750,000 – RM941,000 From RM1,294,000-RM2,248,000
Apartment(RM)
Average Price Psf (RM) RM760-RM837 RM1,489 - RM1,736 RM2,002-RM2200
Table 35: Upcoming Serviced Apartment Competitors
4.6.3.1 Chamber
Coming up in the skylines of Kuala Lumpur is Chambers, an elite project of Matrix Concepts Holdings Berhad. A sole tower of the serviced
apartment stands 33 storeys tall, there will be 509 units for sale here. And making the development even more valuable is its freehold status.
Buyers will have choices of units sized between 450 sq ft and 908 sq ft, with launch prices starting from a seasonal RM370,000. The completion
Page | 149
date for Chambers is slated in the year 2022. Chambers is an excellent development in the heart of the Kuala Lumpur city centre. It is a serviced
apartment that carries a residential title. The development carries a freehold title, and will comprise only a single block of 33 storeys that will
house a total of 509 units. Buyers will have 3 choices of units to choose from. Type A is the smallest unit at 450 sq ft, which will be reasonably
spacious as it a studio unit. Type A units will come attached with parking lot. Type B units are sized at 653 sq ft with 2 bedrooms and 1 bathroom,
and will also come with only 1 parking lot, while Type C are the largest units at 908 sq ft. Similar to Type B, these units will have only 2 bedrooms,
but comes with 2 bathrooms instead; and depending on the selected unit, buyers will get either 1 or 2 parking lots with their unit.
4.6.3.2 Scarlet Suites
Scarletz Suites is a new and highly anticipated project of the Exsim Group in Kuala Lumpur. Scarletz Suites is a high end development that will
carry a leasehold commercial title. Located on Jalan Yap Kwan Seng in the Kuala Lumpur City Centre, the starting price of this project starts from
RM750,000, for units sized between 450 sq ft and 575 sq ft. Scarletz Suites is estimated to be completed by the year 2022. Scarletz Suites is
indeed a development that will cater to the city lifestyle — and definitely those who wish to live in the middle of the city. Elegantly designed to
stand out against the skyline and provide the best living comfort to its residence, the density of living at this commercial titled leasehold property
will be moderate. 604 units will be housed within a single tower of 49 storeys, translating to about 12 units to a floor. Each floor will be serviced
by 4 passenger lifts and 1 service lift, ensuring a smooth flow even during peak hours. While there are only units sized between 450 sq ft and
575 sq ft at Scarletz Suites, buyers will have 5 different layouts to choose from. Type A, B and C which are alternatively named as The Ateliar,
The Beau and The Chaud are all sized at 450 sq ft. The Ateliar will however have 2 bedrooms and 1 bathroom, while the latter two will have only
1 bedroom and 1 bathroom. Type D and Type E which are named The Duo and The Esprit, are sized at 550 sq ft and 575 sq ft respectively. Both
units will have 2 bedrooms and 2 bathrooms.
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4.6.3.3 Core Residence
Core Precious Development Sdn Bhd launched its residential project, Core Residence, at the Tun Razak Exchange (TRX) in Kuala Lumpur on
25 November 2019. The RM1.4 billion high-end project will be developed on a 1.65-acre land in the Kuala Lumpur International Financial District.
Core Residence @ TRX will feature naturally-lit and well-ventilated units that embrace the iconic views of the Kuala Lumpur cityscape,
complemented by top-notch amenities. The project is positioned to be the frontier of global living for professionals and financial practitioners who
will live and work in the business district of Kuala Lumpur. Core Residence @ TRX is the first residential offering in Malaysia’s international
financial district. The freehold project features 3 blocks of serviced residences with 700 residential units. Built-up sizes range from 624 sq ft
(Smart Suite Units) to 1,022 sq ft (Comfort Suite Units), and units are priced between RM1.294 million to RM2.248 million. The developer is
targeting buyers from Malaysia, China, Indonesia, and Singapore for this project. 2 blocks comprising 580 units were released for sale in
November, with an average price of RM2,200 per sq ft. Of the 580 units launched, 349 are 2-bedroom units. There are 190 units with 1 bedroom,
and 41 units with 3 bedrooms. The project is scheduled for completion at the end of 2023, and handover to buyers for the residences will begin
from early 2024. The 50-storey project features an infinity pool, air gym, indoor playroom, outdoor lounge, and a central park on level 7. With GBI
and LEED green building certification standards, the project is also more energy-efficient and sustainable.
4.6.4 Existing SOHO Competitors
Details SOHO SUITES BINJAI 8 CENTRIO SOHO
Scenic Point Development (a subsidiary

Developer Jadepot Development Sdn Bhd YTL Land & Development Bhd
of UOA Group)
Location Jalan P.Ramlee, KL City Centre Lorong Binjai, KL City Centre Pantai Hillpark, Kuala Lumpur
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Distance to
Subject 2.2km 0.6km 8.5km
Property
Land
In Perpetuity In Perpetuity Leasehold
Tenure
Total Units - 310 Units 238 units
No. of
45 40 7 storey
storey
Asking Asking Asking

Size RM Size RM Size RM
Type Price Type Price Type Price
(sf) (psf) (sf) (psf) (sf) (psf)
(RM) (RM) (RM)
1-
Layout & RM600, RM800, RM1,06 SOHO RM650,
bedroo 601 RM998 A1 753 927 RM701
Size 000 000 2 2 000
m
1-
RM620, RM1,01 RM1,20 RM1,16 SOHO RM590,
bedroo 610 A2 1,031 752 RM785
000 6 0,000 4 4 000
m
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1-
RM820, RM1,26 RM1,68 RM1,21 SOHO RM620,
bedroo 650 A3 1,387 883 RM702
000 2 0,000 1 5 000
m
1-
RM980, RM1,49 RM810, RM1,06 SOHO RM770,
bedroo 654 B1 761 1326 RM581
000 8 000 4 7.1 000
m
1-
RM990, RM1,49 RM1,27
bedroo 662 B2 1,347 RM943
000 5 0,000
m
2-
RM1,02 RM1,25
bedroo 813
0,000 5
m
2-
RM1,04 RM1,18
bedroo 877
0,000 6
m
3-
RM1,12 RM1,36
bedroo 818
0,000 9
m
Build Up
Area
601 – 877 sq.ft 753 – 1,785 sq.ft 752 - 1326 sq ft
Service
Apartment
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Completio
2013 2013 2010
n Year
Selling
Price
Service RM600,000 – RM1,120,000 RM800,000 – RM1,680,000 RM 590,000 - RM 770,000
Apartment(
RM)
Average
Price Psf RM998 – RM1,498 RM943 – RM1,211 RM581 - RM785
(RM)
Table 36: Existing SOHO Competitors
4.6.4.1 SOHO Suites
A very uniquely designed and beautiful development located in the middle of Wisma Hong Leong and Menara Bank Islam in Kuala Lumpur City
Centre is SoHo Suites. It was developed Jedepot Development company which is a subsidiary of Monoland Corporation. It is a beautiful
construction and contains everything to make the living great in the development. SoHo Suites contains very interesting and modern facilities
that can make the living experience great for the residents. It contains Sky Club Facilities containing a Podium Room, a health fitness center that
can help the residents to live a healthy life, sauna and steam room, café, bar, launderette, Alfresco lounge and a convenience store from where
the residents can buy almost everything they require. The development also contains other facilities such as a 25m lap swimming pool, a poolside
cabana with a sofa bed, and a Timber pool deck with sun loungers. There is also a unique feature of living in the development and working on
different units via the internal passage. The built-up area of the unit starts from 601 sf and goes up 877 sq. ft. The price started from RM600,000
while price per square feet starts from RM998 per sf and goes up to 1498 per sq.ft. depending on the selection of the design of the unit.
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4.6.4.2 Binjai 8
Binjai 8 development is a beautifully designed, high rise serviced residence situated in KLCC. It was developed by the Scenic Point Development
company which is a subsidiary company of the UOA Group. It is a very famous group in the construction business. The development of this
project was completed in 2013 and it contains all the facilities and features to make it a world-class development. Binjai 8 has everything inside
it. It includes a lot of facilities and features that the residents of many developments only dream of having. There is a beautiful Sky lounge where
the residents can enjoy the great view and environment. There are water features in the development. The development also contains meeting
rooms, business centers and function halls and the residents can use it to conduct many different functions. The development contains many
other facilities and features like a swimming pool and a full glass clad gymnasium equipped with latest exercising machines so that the residents
can work out while remaining in the development and enjoy a healthy lifestyle. The development also contains a visitor’s lounge where the guests
can sit and wait comfortably. Most importantly, the development is equipped with modern security gadgets and provides 24-hour 3 tier security
with guard house so that the residents are protected from any kind of external threats. Binjai 8 is a beautiful development and consists of a single
block. There are 40 storeys in this development and the total number of units in this development are 310. The owners have the choice to select
from different options. The covered area of the units starts from 753 sq.ft. and goes up till 1785 sq.ft. depending on the design of the unit. The
price started from RM800,00 to RM1,680,000 while the price per square feet starts from RM943 per sq.ft and goes up to 1,211 per sq.ft..
4.6.4.3 Centrio SOHO
A uniquely developed and a beautifully constructed development located in Off Jalan Bukit Angkasa, Pantai Hillpark, Kuala Lumpur is Centrio
SOHO @ Pantai Hillpark. The construction of this project was done by a famous development company known as the Syarikat Kemajuan
Perumahan Negara, and the development of this project was completed in the year 2010. It is considered to be a great addition to the Kaula
Lumpur property. Centrio SOHO @ Pantai Hillpark is indeed a great place to live in. If offers all the facilities to make a living enjoyable in the area.
There is a business centre, and a meeting room is present in the development where the residents can conduct meetings and businesses. There
are many other excellent facilities and features provided in the Centrio SOHO @ Pantai Hillpark provides as well, such as a swimming pool and
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a great gymnasium equipped with latest exercising machines where the residents can work out while remaining in the development and enjoy a
healthy lifestyle. The development also provides complete parking facility for its residents. Most importantly, the development is equipped with
modern security gadgets and provides 24-hour security to its residents to make sure that the residents are protected from any kind of external
threats while they are in the development. Centrio SOHO @ Pantai Hillpark has a great design and consists of 7 floors. There are a total of 238
units in the development, and it is considered to be a low density and peaceful development. The built-up area of the units in the development
ranges between 752 sq ft and 1326 sq ft. The buyers have the option to select from different designs as well. The buyers also have the option to
rent out the units, making the development attractive from an investment point of view as well. During the development of the Centrio SOHO @
Pantai Hillpark, it was made sure that there was no cost cutting done on the project. The starting selling price of the units in the development
varies between RM 590,000 and RM 770,000 accordingly to design of the unit.
4.6.5 Existing Retail Competitors
Details THE TROIKA M CITY M SUITES
Developer BRDB Development Sdn Bhd Oasis Garden Development Sdn Bhd Star Residence Sdn Bhd
Location Jalan Binjai Jalan Ampang Jalan Ampang
Distance to Subject
0.45 km 2.9 km 1.5 km
Property
Land Tenure In Perpetuity In Perpetuity In Perpetuity
Page | 156
Type of Use Retail Retail Retail
Build Up Area 3,875 sq ft 2,200 sq ft 2,034 sq ft
Completion Year 2010 2016 2013
Selling Price RM) RM4,650,000 RM3,080,000 RM3,100,000
Average Price Psf

RM1,200 per sq ft RM1,400.00 RM1,524.00
(RM)
Table 37: Existing Retail Competitors
4.6.5.1 The Troika
The Troika is the stuff of dreams. A dream that was BRDB's - to create the city's most beautiful and desirable condominium, right in the country's
most sought-after location. This vision required imagination and craft to be realised. And so, it was decided to engage Foster and Partners to
create a new residential landmark for Kuala Lumpur to complement Caesar Pelli's Petronas Twin Towers. Foster and Partners buildings can be
distinguished not only by their drama and beauty but also by their functionality and the ingenious use of space. Fosters' approach can be
summarised in one word-detail-born of a passion for architecture and design. And while aesthetics are, of course important, Foster and Partners
are equally concerned about the social dimensions of their creations. These are to preserve the quality of life and to create places that people
want to go. For The Troika, early plans incorporated three towers of varying height emerging from 'The Necklace' - a circular podium of
complementary office and retail space. The Necklace frames a landscaped courtyard of 30,000 sq. ft. to provide a calm retreat exclusively for
residents. The built up size for retail is 3,875 and price is RM4,650,000.
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4.6.5.2 M City
M City is one of the latest proud new developments of Mah Sing located in the prime location of Ampang. Being a mixed development of serviced
apartments, SoHo units and retail lots, it is fortunate that M City enjoys high visibility from the Middle Ring Road 2 (MRR2) and Jalan Ampang.
The location of M City is set to catch the vast catchment of Ampang residents. It is also the envy of many with its first of its kind in Malaysia
multilevel hanging gardens within the building which can only be enjoyed by residents of the serviced apartments. The developer of M City is one
of the leading developers in the country by the name of Mah Sing, who are proud owners of many ongoing projects all over Malaysia including
Sabah and Sarawak. With an impeccable track record, M City shows potential at becoming the next new landmark development of Mah Sing.
Featuring retail lots, SoHo units and serviced apartments, there are many unique selling points to the development of M City for every one of its
different components. All of the 48 units of retail lots sold out soon after its launch are still partially controlled by the developer, in the sense that
the developer will have a say in who the future tenants will be. This manoeuvre will ensure quality control over the shops which will open at M
City in the future. Of the 48 retail lots sold, 6 units are being held by the prominent supermarket chain Village Grocer, which promises to be a
crowd-puller upon its completion. The built-up size for the retail lot is 2,200 sq ft, and the price is RM3,080,000.
4.6.5.3 M Suites
Decorating the skylines of Ampang Hilir is the new M Suites, also known as M Suites @ Embassy Row, a luxury serviced apartment. Previously
known as Ampang Hilir 233 and owned by Fraser & Neaves (F&N), the project was taken over by Mah Sing and was hence renamed. It was
developed by the Star Residence Sdn Bhd, which is a subsidiary company of Mah Sing Group. M Suites consists of 2 blocks. There are 442 units
in the development, and the total area that the land covers is 1.44 acres. The construction of this development was completed in the year 2013
and it contains all the facilities and features to make it the full development of the country. Few of the famous medical clinics and hospitals near
the development are namely Gleneagles Intan Medical Center, Gleneagles Hospital Kuala Lumpur and Klinik Kesihatan Indera Mahkota. M Suites
was developed strategically keeping in mind the importance of accessibility of the location. The residents do not have to worry about moving to
and from the location because it is very easily accessible. Public transportation is also available in the locality, making the development even
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more attractive. The residents can use Putra KTM Station, Bank Negara KTM Station, Kuala Lumpur KTM Station and Putra KTM Station to
move to and from the development. The development is easily approachable and is connected via major roads and highways of the area. There
are only have 8 units of the retail lot in M Suites. This retail lot is suitable for all businesses especially restaurant or mini market. The built-up size
for the retail lot is 2,034 sq ft and the price is RM3,100,000.
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4.6.6 Existing Shopping Complex Competitors Rental
Details Avenue K Sunway Velocity Busana Mara
Picture
Developer City Associates Group Sunway Group MARA
Jalan Tuanku Abdul Rahman, Kuala

Location Jalan Ampang Jalan Cheras, Maluri
Lumpur
Distance to
Subject 1km 4.5km 3km
Property
Land tenure Leasehold In Perpetuity In Perpetuity
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Build Up Area
1,931 s.f 2,051 s.f -
Shop
Completion
2013 2016 2014
Year
Rental Price
Ground floor RM8.54 – RM12.50 From RM12.00– RM25.00 From RM9.00 – RM22.00
psf
Rental Price
RM8.00 - RM8.70 RM12.00 – RM30.00 RM14.33 – RM14.67
first floor psf
Rental Price
Second Floor RM9.00 –RM15.25 RM10.00 – RM25.52 RM6.16 – RM16.53
psf
Table 38: Existing Shopping Complex Competitors Rental
4.6.6.1 Avenue K
Avenue K is a leasehold shop development. The development is located at Jalan Ampang in KL City, Kuala Lumpur. The project was
developed by City Associates Group. Avenue K was completed in the year 2013 and till today is one of the most popular shopping centre
in Kuala Lumpur. Avenue K is close to Kuala Lumpur city centre as tenants can get there in 15 to 20 minutes via Jalan Raja Chulan and
Jalan Tuanku Abdul Rahman. Avenue K is easily accessible through several major highways. It is best to own personal vehicle as the
public transport is scarce in this area. The closest public transport to Avenue K is Putra KTM Station. The shop development has a number
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of facilities that tenants and customers can make use of. Among the facilities available are mini-marts, restaurants, cafes and salons.
There is also a gymnasium room and covered link ways to and from the shop development. There are basement car parks and multi-
storey car parks along with community plaza and utilities centre not far from Avenue K. The shop development is equipped with lift lobbies
and 24-hour security system that ensures the safety of tenants and customers at all times. The size for the units average at 1,931 square
feet.
4.6.6.2 Sunway Velocity Mall
Sunway Velocity is an integrated mixed development sited on 23 acres of freehold land. The development comprises residential,
commercial, office and retail components. Sunway Velocity is developed by Sunway Bhd, and it is designed to bridge the gap among the
growing population, which had more than 800,000 people in 2010 when the company began master-planning the development. Sunway
Velocity Mall is a 1.4 million sq ft mall that is visited by an average of 1.1 million visitors per month, and that can increase to up to 1.3
million during festive months. These shoppers are mainly from Cheras and the Klang Valley.
4.6.6.3 Busana Mara
The BUSANA@Menara MARA is located inside an integrated thirty-storey commercial building comprising a five-storey retail podium
annexe, fifteen-storey office, and nine-storey four star-rated hotel complete with MICE facilities, to cater to internal customers and to
attract a steady flow of walk-in customers to the building. The BUSANA is designed with mixed product range such as clothing, F&B,
beauty & health, and ICT products. Its concourse area is perfect for advertisement and promotional activities with ready to use stage and
LED screen. The experience at BUSANA is enhanced with friendly and well-trained customer service personnel and up-to-date facilities
and safety system within its boundary. The BUSANA@Menara MARA is linked to the adjoining Bangunan Medan MARA at the retail
podium on levels 1, 2 and 3, with an additional 119,000 square feet of shopping space, and at basement levels with a total of 712 parking
bays. The BUSANA is located in the heart of the bustling Jalan Tuanku Abdul Rahman shopping haven. Surrounded by major public
transportation facilities, it provides customers convenient access to bus, taxi and rail services such as Medan Tuanku Station for monorail
and Bandaraya Station for LRT.
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4.7 Product Analysis

Layout Studio 1B 1B+1 2B 2B+1 3B 3B+1 4B 4B+1 Dual-key
Development Size Range 450 - 450 - 818 - 1,367 -
450 - 883 688 925 - - -
(sq. ft.) 1,349 2,060 2,906 2,832
FRASER 1,103 - 1,103 -
RESIDENCE
Size Range 610 - - 1,718 - 1,718 - -
1,263 2,060
1,031 -
STONOR 3 Size Range - 649 - 689 - 871 - - - - -
1,232
NOVO
AMPANG
Size Range - 686 - 848 - 997 - - - - - -
CHAMBERS Size Range 450 - 455 450 - 908 - 653 - 908 - - - - -
SCARLETZ
SUITES
Size Range 450 - - 450 - 557 - - - - - -
CORE
RESIDENCE
Size Range - 624 688 839 -1,011 925 1,022 - - - -
SOHO
SUITES
Size Range - 601 - 662 - 813 - 877 - 818 - - - -
1,031 -
BINJAI 8 Size Range - 753 - 761 - - 1,387 - - - -
1,347
CENTRIO 927 -
SOHO
Size Range 752 - 883 - - - - - - - -
1,326
28 958 -
BOULEVARD
Size Range 450 - - 678 - 775 - - 1,367 - -
1,184
960 - 2,345 -
THE TROIKA Size Range - - 1,646 - - 2,832 - -
1,349 2,906
977 - 1,330 -
M CITY Size Range 506 - 533 781 - 910 - - - 1,653 - -
1,066 1,920
Table 39: Product Analysis
Fraser Residence is a luxury serviced apartment with a beautiful design located at Jalan Sultan Ismail in the heart of Kuala Lumpur. The
built-up area of the units in the development starts from 610 sq. ft. and goes up till 2,060 sq. ft. depending on the selection of the design
of the unit. Based on the table above, it offers studio, 1-bedroom, 2-bedroom, 3-bedroom and 4-bedroom units in the development.
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Stonor 3 has a total of 400 units, with the size of the smaller units being 649 sq. ft. (Type A) and 689 sq. ft. (Type B) respectively, which
feature 1-bedroom and 1-bathroom, 2-bedroom and 2-bathroom units measuring at 871 sq. ft. (Type C), followed by 3-bedroom and 2-
bathroom units at 1,031 sq. ft. (Type D) and the largest of them all, 3-bedroom and 3-bathroom units with a built-up area of 1,232 sq. ft.
(Type E).
Novo Ampang has a total of 421 units. There are 6 different types of units available for buyers to choose from and the size of each unit
ranges between 686 sq. ft. and 997 sq. ft. However, it has either 1-bedroom or 2-bedroom units for the buyers to choose from.
Chambers buyers will have 3 choices of units to choose from. Type A is the smallest unit at 450 sq. ft., which will be reasonably spacious
as a studio unit. Type A units will come together with a parking lot. Type B units are sized at 653 sq. ft. with 2 bedrooms and 1 bathroom,
and will also come with only 1 parking lot, while Type C is the largest with 908 sq. ft. Similar to Type B, these units will have only 2
bedrooms, but would come with 2 bathrooms instead; and depending on the selected unit, buyers will get either 1 or 2 parking lots with
their unit.
In Scarletz Suites, there are only units sized between 450 sq. ft. and 575 sq. ft. Buyers will have 5 different layouts to choose from. Type
A, B and C which are alternatively named as The Ateliar, The Beau and The Chaud are all sized at 450 sq. ft. The Ateliar will have 2
bedrooms and 1 bathroom, while the latter two will have only 1 bedroom and 1 bathroom. Type D and Type E which are named The Duo
and The Esprit, are sized at 550 sq. ft. and 575 sq. ft. respectively. Both units will have 2 bedrooms and 2 bathrooms.
In Core Residence, there are units sized between 624 sq. ft. and 1,022 sq. ft. Buyers will have 5 different layouts to choose from. 1-
bedroom, 1+1 bedroom, 2-bedroom, 2+1 bedroom and 3-bedroom. For SoHo Suites, the built-up area of the unit starts from 601 sq. ft.
and goes up to 877 sq. ft. The 1-bedroom option ranges from 601 sq. ft. to 662 sq. ft., the 2-bedroom units are from 813 sq. ft. to 877 sq.
ft. while the 3-bedroom option is 1,387 sq. ft.
For Binjai 8, the covered area of the units starts from 753 sq. ft. and goes up to 1785 sq. ft. depending on the design of the unit. Buyers
can choose 3 layout types which are 1-bedroom, 2-bedroom and 3-bedroom types. Meanwhile, Centrio SOHO offers 2 types of units
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which are the studio and 1-bedroom. The studio unit ranges between 752 sq. ft. to 883 sq. ft. and the 1-bedroom unit ranges between
927 sq. ft. to 1,326 sq. ft.
28 boulevard consists of a total of 1920 units (636 units serviced apartments and 1,284 units of SoHo). SoHo only has one layout type
with a size of 450 sq. ft. For the serviced apartment, it offers 2-bedroom, 3-bedroom and 4-bedroom layouts. The 2-bedroom type ranges
between 678 sq. ft. and 775 sq. ft. The 3-bedroom type ranges between 958 sq. ft. to 1,184 sq. ft. while the 4-bedroom type is sized 1,367
sq. ft.
The Troika is composed of three blocks, housing 229 units in total. Each of the three blocks has 38 storeys 44 storeys and 55 storeys
respectively. The SoHo units’ built-up sizes range from 960 sq. ft. to 1,646 sq. ft. while built-up area for the serviced apartment ranges
from 2,000 sq. ft. to 2,906 sq. ft. The 1-bedroom unit ranges between 960 sq. ft. and 1,349 sq. ft. while the 2-bedroom unit is 1,646 sq.ft.
and the 3-bedroom design ranges between 2,345 sq. ft. and 2,906 sq. ft. and the 4-bedroom unit has a size of 2,832 sq. ft.
The entirety of Blосk A оf M Citу соnѕiѕtѕ оf SоHо unitѕ, аll оf whiсh are ѕоld out. It iѕ tо bе nоtеd thаt the fаmеd multilеvеl hanging
gardens оf M Citу can only be enjoyed bу the rеѕidеntѕ оf the ѕеrviсеd араrtmеnt, аѕ the rеѕidеntѕ оf the SoHo unitѕ have nо ассеѕѕ tо
thе ѕеrviсеd араrtmеntѕ, nоr thе facilities of thе serviced араrtmеntѕ. The built-up area for the SoHo units is from 506 sq. ft. to 910 sq. ft.
while for serviced apartments, it is from 977 sq. ft. to 1,903 sq. ft. The 1-bedroom unit ranges between 781 sq. ft. and 910 sq. ft. while the
2-bedroom layout is between 977 sq. ft. and 1,066 sq. ft. Next, the 3-bedroom layout ranges between 1,330 sq. ft. and 1,920 sq. ft. while
for 4-bedroom unit is 1,653 sq. ft.
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4.8 Pricing Analysis
4.8.1 Service Apartment Competitors Price Analysis
Figure 109: Service Apartment Competitors Price Analysis
From the figure above, it showed the price analysis between serviced apartment
competitors in Kuala Lumpur. Stonor 3 has a higher price among existing service
apartment which the price is ranging between RM1, 341,000 to RM2, 212,000.
Meanwhile, Core Residence has a higher price among existing and upcoming
competitors with the price of RM1, 294,000 to RM2, 248,000. However, Chambers has
a lower price among existing and upcoming service apartment which the price is
ranging between RM370, 000 to RM690, 000 only. The second lower is Scarletz Suites
with the range of RM750,000 to RM941,000. The average price range for service
apartment is between RM978,883 and RM1,666,133 in Kuala Lumpur.
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4.8.2 Service Apartment Competitors Price Per Square feet Analysis
Figure 110: Service Apartment Competitors Price Per Square feet Analysis
From figure above, it showed the price per square feet analysis between serviced
apartment competitors in Kuala Lumpur. NOVO Ampang have a higher price per
square feet among existing service apartment which the price is range between
RM1,911 to RM2,133. Meanwhile, Core Residence have a higher price among existing
and upcoming competitors with the price per square feet range from RM2,002 to
RM2,200.However, Fraser Residence have a lower price per square feet among
existing and upcoming service apartment which the price is range between RM638 to
RM1,115 only. The second lower is Chamber with the range of RM760 to 837. The
average price range per square feet for service apartment is between RM1,433 until
RM1,681 in Kuala Lumpur.
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4.8.3 SOHO Competitors Price Analysis
Figure 111: SOHO Competitors Price Analysis
From figure above, it showed the price analysis between SoHo competitors in Kuala
Lumpur. Binjai 8 have a higher price among existing SoHo which the price is range
between RM600,000 to RM1,120,000. However, Centrio SoHo have a lower price
among existing SoHo which the price is range between RM590,000 to RM770,000 only.
The average price range for SoHo is between RM633,333 to RM1,190,000 in Kuala
Lumpur.
4.8.4 SOHO Competitors Price Per Square Feet Analysis
Figure 112: SOHO Competitors Price Per Square Feet Analysis
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From figure above, it showed the price per square feet analysis between SoHo
competitors in Kuala Lumpur. SoHo Suites have a higher price per square feet among
existing SoHo which the price is range between RM998 to RM1,498. Meanwhile,
Centrio SoHo have a lower price among existing competitors with the price per square
feet range from RM581 to RM785 only. The average price range per square feet for
SoHo is between RM841 to RM1,165 in Kuala Lumpur.
4.8.5 Service Apartment & SoHo Competitors Price Analysis
Figure 113: Service Apartment & SoHo Competitors Price Analysis
From figure above, The Troika is highest price among other competitors for SoHo and
Service Apartment which range between RM1,500,000 to RM2,470,000 and between
RM1,840,000 to RM3,110,000. The average price for SoHo range from RM730,000 to
RM1,193,333 and service apartment is range between RM1,030,000 to RM1,923,333.
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4.8.6 Service Apartment & SoHo Competitors Price Per Square Feet Analysis
Figure 114: Service Apartment & SoHo Competitors Price Per Square Feet Analysis
From figure above, it showed the price per square feet analysis between Service
Apartment & SoHo competitors in Kuala Lumpur. The Troika have a higher price per
square feet among existing Service Apartment & SoHo which the price is range
between RM1,020 to RM1,563. Meanwhile, 28 Boulevard have a lower price among
existing competitors with the price per square feet range from RM600 to RM782 only.
The average price range per square feet for SoHo is between RM752 to RM1,112 in
Kuala Lumpur.
4.8.7 Shopping Complex Competitors Price Rental Per Square Feet Analysis
Figure 115: Shopping Complex Competitors Price Rental Per Square Feet Analysis
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Figure above showed the shopping complex competitors price per square feet for
ground floor, first floor and second floor. The average price rental for ground floor is
range from RM9.85 to RM19.83. First floor average rental is between RM11.44 to
RM17.79 while second floor is between RM8.39 to RM19.10. Ground floor have the
highest rental per square feet because ground floor always superior and is where most
of the people are.
4.8.8 Summary
The existing competitor analysis is done to investigate the type of products in the
current market and how much the selling price of the products. The upcoming service
apartment competitor analysis is done to determine and have more understanding
about the future of service apartment competitors and their marketing strategies. From
the existing and upcoming service apartment competitor analysis, it shows the range
selling price per square feet of service apartment in Kuala Lumpur ranges from
RM1,433.00 to RM1,681.00 which is depending on the location and features of the
development whereas the selling price per square feet of SoHo in Kuala Lumpur
ranges from RM 841.00 to RM1,164.67. For development which is mix between
serviced apartment and SoHo in Kuala Lumpur shows the range selling price per
square feet ranges from RM753.00 to RM1,101.00.
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5.0 MODE OF DEVELOPMENT

Fudosan Property Sdn. Bhd. intends to develop the lands identified as Lot 258, section
89A, Kuala Lumpur city, Kuala Lumpur district, Federal Territory Kuala Lumpur. The
mode of development of the proposal is “Outright Purchase” where bRIGHT Property
Consultants Sdn. Bhd. will act as a consultant to advise Fudosan Property Sdn. Bhd.
on the proposed site. The terms and condition of the outright sale to negotiate with the
land owner where Fudosan Property Sdn. Bhd. as developers will purchase the lands
based on market value. After all, Fudosan Property Sdn. Bhd. will have full rights on
the land after the transfer of titles takes place. Sell then built concept is used in this
proposed development project. bRIGHT Property Consultants Sdn. Bhd. will ensure
that the proposed development will bring lucrative returns to the developer.
6.0 PROPOSED DEVELOPMENT

6.1 SWOT Analysis
Strengths Weakness
Strategic Location Congestion during Peak Hours

Work-Life Balance Higher Rates
Pet-friendly Development
Opportunity Threats
High Demand for Investment Purpose Presence of Existing and Upcoming

Competitors
Increasing Expat Population
Uncertainty of Housing market
Growing Trends of Serviced Apartment
Table 40: SWOT Analysis
6.1.1 Strengths
6.1.1.1 Strategic Location
Location is perhaps the most important factor in determining a property’s marketability.

The condition and price of any building can be changed. The one thing that is
immovable and unchangeable is the location. Typically, certain locations are
considered more desirable than others because of aspects like the distance to modern
infrastructure, job opportunities or even amazing views and landscapes. In this case,
the proposed site is located in the heart of Kuala Lumpur, right in Kuala Lumpur City
Centre. It is a city within a city, filled with landmarks like Petronas Twin Towers and
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Kuala Lumpur Tower, as well as notable shopping malls, office buildings and many job
opportunities. It is also filled with many public transportation options due to its prime
location, such as the Ampang Park LRT Station just 350 m away. This shows just how
well it is located in terms of closeness to important amenities and facilities. Residents
and visitors can commute very easily to work or other destinations. Moreover, there
are many restaurants and shops all around, making it easy for occupants to walk over
for a meal. A health centre, HSC Medical Center is also only about 140 m from the
proposed site.
6.1.1.2 Work-life Balance
While living at such a busy location does have its benefits, it also means that life can
get quite hectic. Canyon Boulevard is the place to come back to, to retreat after a long
and strenuous day at work. It is equipped with beautiful gardens, a pond with benches
around for relaxation and more on the ground floor. On the facilities podium, even more
will be provided to cater for the different needs of the occupants. For example, a
basketball court, badminton court, swimming pool, jogging track and gym area would
be suited for those wanting to work out and keep fit. For those simply needing a break,
a yoga deck and relaxation area is prepared near the pool. Residents can also make
use of the BBQ pit with friends and family for a fun night. There is no doubt that these
features will make Canyon Boulevard truly become an abode of peace.
6.1.1.3 Pet-friendly Development
It has been long-known that owning a pet comes with many benefits to a person or
household. Some researches show that these special bonds can increase fitness,
lower stress levels and bring happiness to the owners. As an inclusive development
that puts the needs of its occupants first, Canyon Boulevard is equipped to allow
residents to enjoy life with their pets. Under the ‘By-Law 14 in the Third Schedule of
the Strata Management (Maintenance & Management) Regulations 2015’, pets can be
kept in a high-rise residence unless they are a threat, or cause annoyance, nuisance
or is a health hazard to other residents. According to the Strata Management Act, the
local authority, in this case DBKL, has the authority to permit guidelines with regards
to pet ownership. In accordance with the Undang-Undang Kecil Pelesenan Anjing dan
Rumah Pembiakan Anjing (Wilayah Persekutuan) (Pindaan) 2011 UUK 8A, certain
breeds of small dogs can be kept, provided they are licensed.
A few unique features have been added to create a more pet-friendly environment.
Firstly, all units have balconies provided. This will allow both pets and owners to enjoy
fresh air. This would no doubt help with odour control as well as pets do get a bit stinky
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at times. Also, the development is very close to several veterinary clinics like Hayward
Animal Clinic and One Ampang Veterinary Clinic, making it convenient for check-ups
and emergencies. Finally, the development is equipped with a separate dog park. This
will definitely attract many pet lovers, especially dog owners, as dog parks are scarce
in the country, while dogs require a lot of exercise to stay happy and healthy. At the
same time, the sensitivities regarding dog ownership in the country are understood
and therefore a separate area is very appropriate.
6.1.2 Weakness
6.1.2.1 Congestion during Peak Hours
As a result of being located in the heart of Kuala Lumpur, peak hour congestion is quite
unavoidable. This is because the job opportunities are very densely concentrated in
this small area. Many large and populated office buildings are found around the site.
Therefore, many would rush back to their homes at the same time causing bad traffic
that will only exacerbate in unavoidable circumstances like heavy rain.
6.1.2.2 Higher Rates
The proposed site is zoned for commercial use by the local authority. This means that
the laws and taxes applied will be based on commercial rates. Therefore, higher rates
for utility services, property taxes such as quit rent and assessment taxes will have to
paid. This may not be a plus point for residents, especially when compared with
condominiums that are built on residential land. In this regard, it is very likely that
various fees such as for maintenance and management of the building will also be
slightly higher. This factor may cause lower popularity of the proposed development.
6.1.3 Opportunity
6.1.3.1 High Demand for Investment Purpose
The Airbnb trend has taken root all over the world, even taking away businesses from
certain hotels. Serviced apartments, complete with facilities with an addition of being
able to cook, has proven to be an excellent choice of boarding especially for families
or visitors staying for a slightly longer period. Due to its location, it is likely that many
would visit the area for short periods for business trips. Furthermore, units can be
purchased to be rented out to others. With the Ampang Park LRT Station nearby, many
would find Canyon Boulevard units a good choice to stay in as it is very conducive for
travel via public transport. This will likely save cost and travel time as they beat peak
hour traffic.
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6.1.3.2 Increasing Expat Population
Whether in Malaysia as a whole or Kuala Lumpur, the expat population has been
increasing year after year. Many skilled labour migrate to Malaysia with their families
to fill in positions. Many would stay in high-end residences near their jobs, international
schools for their kids and also pet-friendly areas if they plan to bring them along. As
Malaysia continues to develop, it is likely that more and more expats will migrate to the
country. In 2020, the number of non-Malaysia citizens in Kuala Lumpur amounted to
581,100 people or 9% of the population.
6.1.3.3 Growing Trends of Serviced Apartment
Mixed use developments seem to be popular in recent times due to the lifestyle and
culture of the younger generation. This is because it emphasises connectivity and
community within the complex, all while being as close as possible to amenities and
infrastructure. This development consists of SoHo and serviced apartment units. Both
get to enjoy the many amenities, including communal spaces like a basketball court,
gym area and swimming pool. This helps the residents interact with each other and
cultivate a sense of community. There are also retail outlets below, including a
convenience store and a café. This means that residents can easily purchase essential
items or grab a coffee without having to travel far and wide. Especially for SoHo
occupants, this truly is a live, work and play development.
6.1.4 Threats
6.1.4.1 Presence of Existing and Upcoming Competitors
Serviced apartments have become quite popular in recent years. This has resulted in
a huge increase of supply all over Kuala Lumpur and the Klang Valley in general. SoHo
units are also becoming popular as people start to create their own small businesses
or adopt a work-from-home lifestyle. In addition, other high-rise residences such as
flats, apartments and condominiums also continue to be constructed in an attempt to
meet the needs of the growing urban population. Therefore, Canyon Boulevard will
have to compete with many other developments.
6.1.4.2 Uncertainty of Housing market
Since the COVID-19 pandemic hit Malaysia in 2020, most economic sectors faced
downturns never seen before. The property market was not excused from this. The
loss or decrease of income for a huge part of the population rendered the purchase of
property impossible. Potential buyers are also more cautious of any expenses made.
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However, the government did introduce many initiatives which helped the residential
sector to pick up slightly. Also, newly found flexibility with work practices like the work-
from-home concept may be here to stay for some businesses. Therefore, SOHO units
will prove to be an ideal choice for some. Nevertheless, the times are uncertain and
new risks could appear at any time.
6.1.5 Strategies Formed from SWOT Analysis
6.1.5.1 Combine Strategy
This strategy merges the strengths and opportunities together to create a successful
proposed development. In this case, the strategic location of the proposed site, its
close distance to amenities as well as the high investment opportunity ensures that the
proposed site fulfils its Highest and Best Use (HBU). Since the site is located right in
Kuala Lumpur City Centre and is very near the Ampang Park LRT Station, it has great
accessibility to many areas within and outside the Klang Valley. It is also close to
various highways and roads such as AKLEH Highway, Jalan Ampang and Jalan Tun
Razak. All these factors would be able to attract potential homebuyers that seek living
spaces near or very accessible to their workplaces. Again, it will prove to be a very
profitable investment as many would want to rent a unit in such a prime location,
especially those with no vehicles. Furthermore, the development concepts that
encourage comfort, relaxation and inclusivity are sure to attract various types of buyers.
It really is a development that has all the perks of being in a high rise building like the
facilities and location, but also extends the living space to outside the four walls of the
unit to the amazing landscape, communal spaces and pet-friendly features. Therefore,
occupants will get to experience the best of both worlds.
6.1.5.2 Switch Strategy
The switch strategy is about combatting weaknesses and threats with the strengths
and opportunities of the proposed development. For instance, one of the weaknesses
is the bad traffic that would occur, especially during peak hours. However, the Ampang
Park LRT is walking distance from the site, allowing occupants to avoid peak hour
traffic in many circumstances. At the same time, many offices, shops and services are
also located very close to the proposed site. Therefore, the benefits of the location
outweigh the minor inconvenience of traffic by far. Next, higher rates must be paid.
However, the choice of facilities and amenities within the complex will serve as an
incentive to disregard the slightly higher prices. In terms of threats, despite the
uncertainty of the market due to the COVID-19 pandemic, the population will continue
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to grow and create demand for housing. To add further, the trend for mixed
developments are on the rise with more and more young people moving out to work in
the city. Therefore, it can be rest assured that the proposed development will be
successful.
From the SWOT analysis of the proposed site, a suggestion to be implemented is to

focus on the branding of the development as one that truly cares about life quality. The
pet-friendly aspect should also be stressed on as it is a unique feature that will surely
make Canyon Boulevard stand out amongst present and future competitors.
6.2 Development Name

The name of the proposed development is Canyon Boulevard. Canyons are deep
gorges. Typically, it is a meeting point of two valleys with a river or stream that flows
through. Although the cliffs are high and mighty, they are always connected to each
other, forming bonds that still hold strong millions of years later. This connectivity is a
major concept in Canyon Boulevard as the different towers are connected through the
common spaces and retail areas below, while also being bound in the air by the sky
bridge. The circle in the logo symbolises the river that connects all.
Boulevards are wide streets usually lined with trees. It is a very modern concept, one
that adds beauty to many parts of Europe. Even in the setting of a city, a good sense
of space and landscape can transform the atmosphere to one that is rejuvenating. The
whole development will feature a wide variety of trees and plants that will no doubt
bring tranquillity. At the same time, the interior design will feature creative designs and
open layouts to create spaces that are contemporary, comfortable and spacious.
6.3 Development Logo
Figure 116: Development Logo
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The proposed development logo embodied a pink pastel circle in the logo symbolises
the river that connects all. As per its meaning, we hope this development could bring
good fortune and happiness to the residents as well as promising the residents a sense
of calmness as per living in a garden surrounded by beautiful plants and modern
concepts following the development’s name; “Canyon Boulevard”.
6.4 Development Slogan

The slogan for this development is “An Abode of Peace”.
Potential residents will likely be of those who spend bulk of the day amidst the hustle
and bustle of city life. Working hours in the office also often extend beyond the official
timings as employees struggle to meet deadlines and the demands of clients and
customers. At the end of it all, what is needed is a much-deserved break, in a place
that one can call home. Therefore, Canyon Boulevard aims to be a development that
brings peace, comfort and relaxation to its inhabitants. This is achieved through the
many facilities and amenities provided as well as the design and layout choices
implemented.
6.5 Development Concept

The development is situated on Jalan Ampang, a prime area known as an international
and commercial hub. It also happens to be the location of the former British High
Commission building. The proposed development will contain two main blocks, one a
serviced apartment and the other a SoHo. Below, it will be interconnected with some
retail units.
6.5.1 Safety and Security
Security is a major concern for most city dwellers in Malaysia. As a serviced apartment
and SOHO, this aspect can be controlled significantly through current comprehensive
security systems. Firstly, there will be security personnel stationed in the complex for
added safety. Residents will have a 24-hour hotline in case of suspicious activities or
emergencies throughout the day. Moreover, closed-circuit television (CCTV) cameras
will be installed at all common areas to ensure that footages are available if the need
arises.
There is also a separate elevator and entry provided for the serviced apartment
residents. This is both a safety feature and a measure to maintain exclusivity as
residents get to dictate who is able to access the units. This is especially important as
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retail units are available below and it is important that non-residents are not given
automatic access to the residential units.
6.5.2 Opulent and Open Spaces
The layout of a living space impacts us more than we think. Thus, it is important that
our development capitalizes on the theories and concepts of space utilisation to
provide an open living space that is spacious and airy. Open plan living refers to the
elimination of barriers such as walls and doors that traditionally separated distinct
functional areas, such as combining the kitchen, living room, and dining room into a
single great room. This helps to remove any feelings of discomfort and stuffiness in
the unit. Moreover, it helps to facilitate good airflow in all spaces of the units, keeping
it cool even in the heat of the Malaysian sun.
6.5.3 Comfort and Style
Canyon Boulevard is equipped with all facilities as stated in the state’s planning
guidelines. The facilities are designed to suit the development for maximum enjoyment
of the residents. The development will have different facilities from indoor gym, terrace
with landscaping, yoga deck, swimming pool, dog park and multipurpose room. The
spaces are comfortable, charming and stylish. The vast open spaces available for the
residents were foster a sense of communal and sustainable living while remaining in
an urban area. The facilities are also OKU-friendly. Ample railings and ramps can be
found for ease of access and support for those who need it.
6.5.4 Connectivity within the Complex
An integrated community is the way of the future, where work, rest and play are
intertwined. Modern living is all about convenience. Therefore, access to work,
transport and amenities is crucial to a more coherent lifestyle. To bring this into life, a
sky bridge will connect the serviced apartment tower with the SOHO tower. It will also
be connected through the retail units found below. The retail spaces below are easily
accessible by all residents, making it conducive to purchase goods or spend quality
time with loved ones. Everything is at the doorstep in this development.
6.5.5 Art that Draws Fortune
This development boasts state-of-the-art facilities with a hint of creative flair. A lot has
been put into the interior design of the building to make sure that the buildings are
themselves, precious pieces of art. The latest and most beneficial innovations are
made to the facilities so that residents and visitors experience only the best. At the
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same time, life in its organic nature is expressed in various forms. Nature and the
environment influence all beings that choose to surround themselves in them. In
demonstrating this, all facilities and amenities are designed to suit their respective
spaces and environments. This ethos of design influences orientations, shapes and
even colour schemes throughout the development, ensuring that all facilities can be
enjoyed and appreciated to the fullest.
6.6 Proposed Development Model
Figure 117: Proposed Development Model of Canyon Boulevard
6.7 Development Components and Justification

Canyon Boulevard is a development with a land size of 3.08 acres. There will be two
blocks of residential units, divided into serviced apartments and SoHo. It will rest on a
multi-level podium with 3 storeys of parking space and then another 3 storeys of shop
lots below. Both towers will have 35 floors. The layout plan is shown below.
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6.7.1 Layout Plan of Proposed Development
Figure 118: Layout Plan of Proposed Development
The figure above the general layout plan of the proposed development. The main
building area will contain two blocks of serviced apartments and SoHo, retail lots,
parking and certain facilities and amenities like the swimming pool, indoor gym and
playground. This will take up 0.85 acres. It is surrounded by roads on all sides for ease
of traffic flow throughout the development that will take up 0.71 acres. There is plenty
of open space that will be provided around the development to allow for residents to
take walks and admire nature’s beauty. The big bulk of it will be in the front, with a
water body that will add to the beauty of the site. Another unique feature is the dog
park that will provided at the west side of the development. The utility area is located
at the south of the site with a sewage treatment plant and a TNB substation provided.
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6.7.2 Layout Plan of Serviced Apartment
Figure 119: Layout Plan of Serviced Apartment
The figure above shows the proposed layout for the two blocks of serviced apartments.
Each floor will contain one unit of type A, two units of type B and two units of type C.
The table below shows the details of the different unit types.
Built-up Area per

Type Features Total Units
unit (sq. ft.)
0 Bedrooms,
A 547 70
1 Bathrooms
2 Bedrooms,
B 969 140
2 Bathrooms
3 Bedrooms,
C 1328 140
2 Bathrooms
Table 41: Types and Details of Serviced Apartment Units
6.7.3 Floor Plan of Serviced Apartment Units
As mentioned previously, there are three types of serviced apartments, Type A, Type
B and Type C. Type A is the smallest unit with a built-up area of 547 sq. ft. available.
This layout is a studio unit and therefore has no bedrooms and will have one bathroom.
This unit targets single people, young couples and retired couples. It is compact and
is perfect for those who would like their own space. It is equipped with one bathroom
and also has a balcony like the other two types. It is therefore perfect for solo or
business travellers who may use it as an Airbnb and working single people. The floor
plan is available below.
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Figure 120 : Type A Floor Plan
Type B is the second smallest unit with a size of 969 sq. ft. It consists of two bedrooms
and two bathrooms. This makes it very practical for a smaller family or occupants that
often have visitors over and need a guest room. The figure below shows the floor plan
of Type B units.
Figure 121: Type B Floor Plan
Next is Type C, which is a three-bedroom two-bathroom apartment. This unit is mainly

targeted for families as it provides ample space for the average household size. It is a
popular layout that will most definitely do well as it will meet the needs of the people
and is spacious enough with an area of 1328 sq.ft. Many families would also rent the
unit, making it great for investment purposes as well. Below is the floor plan and
concept picture of a Type C unit.
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Figure 122: Type C Floor Plan
6.7.4 Layout Plan of SOHO
SoHo is an acronym for ‘Small office, Home office’. SoHo units can be used as either
offices or homes. The SoHo units provided adhere to the guidelines set out by DBKL.
They measure to 400 sq.ft. and do not have partition walls. The only amenity built in is
the toilet as shown in the floor plan below. This is to allow for occupants to plan the
layout according to their needs for work. It is also in line with the planning guidelines
by DBKL. There will be 350 units of SoHo available to choose from.
Figure 123: Layout Plan of SOHO
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6.7.5 Floor Plan of SOHO
Figure 124: SOHO Floor Plan
6.7.6 Layout Plan of Retail Area
The retail area consists of three floors, each with 47 units, making it 141 retail units in
total. There are four types of units, Type A, Type B, Type C and Type D. The prices
will vary according to the size. The retail layout is shown below.
Figure 125: Layout Plan of Retail Area
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6.7.7 Floor Plan of Retail Units
Types A B C D
Floor Plan
Number of Unit 13 x 3 = 39 10 x 3 = 30 20 x 3 = 60 4 x 3 = 12
Built-up Area (20 x 30) = 600 sf (20 x 25) = 500 sf (10 x 10) = 100 sf (25 x 35) = 875 sf
Built-up Area by Type 23,400 sf 15,000 sf 6000 sf 10,500 sf
Total Area 54,900 sf
Table 42: Floor Plan of Retail Units
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6.7.8 Carpark
There are a total of 923 parking lots in Canyon Boulevard, taking up 102,744 sq.ft. This includes 350 serviced apartment carparks bays, 70
serviced apartment motorcycle parking bays, 70 serviced apartment visitor carpark bays, 140 SoHo carpark bays, 70 SoHo motorcycle parking
bays and 223 retail carpark bays. These parking lots are located on the ground, 4th, 5th and 6th floors. There are a total of 32 parking bays on the
ground floor reserved for visitors.
Allocated Floor
No Types Units Size Total Size
Outdoor Indoor
1. Serviced Apartment Carpark 350 8ft x 16ft =128 sf 44,800 sf - 350
2. Serviced Apartment Motorcycle Parking 70 3ft x 6ft = 18sf 1,260 sf - 70
3. Visitor Carpark 70 8ft x 16ft =128 sf 8,960 sf 32 38
4. SoHo Carpark 140 8ft x 16ft = 128 sf 17,920 sf - 140
5. SoHo Motorcycle Parking 70 3ft x 6ft = 18sf 1,260 sf - 70
6. Retail Carpark 223 8ft x 16ft = 128 sf 28,544 sf - 223
Total 923 102,744 sf 32 891
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6.7.9 Facilities
Myriad facilities are provided for the residents to enjoy, making Parkland Residence
the ideal place of living.
Figure 126: Facilities Plan
1. Indoor Half Basketball Court

2. Indoor Badminton Court
3. Surau
4. Parkour Park
5. Gym Area
6. Swimming Pool
7. Wading Pool
8. BBQ Pit
9. Yoga Deck
10. Playground
11. Multipurpose Room
12. Kindergarten
13. Jogging Track
The figure above shows the different facilities available on the facilities podium. A
14. Management Office
swimming pool and wading pool is provided in Canyon Boulevard. It is rectangular and
15. Preschool
is situated in front of the two towers on the facilities floor. It comes with a sitting and
relaxation area on the side for residents to enjoy the view and breeze. The pool will be
lit in the night to allow for night-time swimming for busy residents. This pool is a great
communal space that encourages healthy and active living and interactions amongst
friendly neighbours. An indoor badminton and half basketball court will also be
available for residents to use to maintain a well-balanced life.
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Figure 127: Outdoor Swimming Pool
A playground is also available for the use of younger residents. This will help extend
their living space and make it more exciting. Many benches will also be provided
around the area to encourage families to visit more often swings and slides available.
Figure 128: Playground
Next an indoor gymnasium is provided next to the swimming pool. It will house all
necessary equipment like reinforced flat/inclined gym benches, weight training dips
station, press incline benches, treadmills and more. This will encourage users to stay
fit and strong.
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Figure 129: Floating Gymnasium
In line with the aim to create an abode of peace, this development is conducive to the
relaxation of the mind, body and soul. There is an outdoor yoga deck provided in
Canyon Boulevard which can help people take time off from all their busy schedules
and workplace stress to take care of their wellbeing. It will definitely help with their
mental and physical health. There is also a pond that residents can spend time at as
they admire and observe the different wildlife that would appear. A jogging track is also
provided around the development. This helps to cater for those preferring a simpler
form of exercise, or even those who would like to go out for a walk safely.
Figure 130: Yoga Deck
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Figure 131: Jogging Track
One very unique feature of this development is the designated dog park. As Canyon
Boulevard aims to be a pet-friendly residence, it is only right that a separate dog park
is created to cater to the needs of the different domestic pets commonly reared. This
concept takes advantage of the local authority’s by-laws on dog ownership that allows
certain breeds of smaller dogs to be raised in high-rise buildings. The dog park will
undoubtedly be a popular attraction amongst occupants and visitors as dogs require
fresh air and regular exercise, while dog-friendly parks are scarce in the country.
Figure 132: Dog Park
6.7.10 Infrastructure
All basic infrastructure is provided, such as a trash house, water tank, sewage
treatment plant, roads, outdoor parking and a TNB substation. The figure below depicts
the sewage treatment process adopted in the development.
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Figure 133: Sewage Treatment Plant
6.8 Distribution of Proposed Development Components

6.8.1 Distribution of the Main Building, Open Spaces and Infrastructure
The proposed site is a land with an area of 3.08 acres or 134,164.8 sq.ft. It has been
zoned for commercial use, making it suitable for the development of a serviced
apartment, SoHo and retail units. In summary, the development consists of the
apartment units, SoHo units, retail units, facilities, open space and infrastructure.
The main building area consists of the serviced apartment units, SoHo units, retail units,
indoor carpark and facilities podium. Open spaces refer to the green areas in the
development like the open space, perimeter planting and dog park. Infrastructure on
the other hand refers to the roads, water tank, trash house, outdoor parking, sewage
treatment plant and TNB substation.
The allocation of these different components is displayed below.
Allocation
Adherence to
Component Requirement Planning
Percentage
Acre Guidelines
(%)
Main Building (Serviced

Apartment, SoHo, Retail
Nil 0.85 27.6 Yes
Area, Facilities Podium,
Indoor Carpark)
Infrastructure (Sewage
Treatment Plant, TNB
Nil 0.98 31.82 Yes
Substation, Road, Trash
House, Outdoor Parking)
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Open Space (Open

Space, Perimeter 10% 1.25 40.58 Yes
Planting, Dog Park)
Total 3.08 acres / 100.00%
Table 43: Allocation of Open Space, Residential, Commercial, Infrastructure and Facilities
The development mix is important to determine the net buildable area. For the
proposed development, the net buildable area for the serviced apartment and SoHo
with the retail units, indoor parking and facilities podium is 0.85 acres or 27.6% of the
development site. The development mix is shown in the table below.
Details Acres Percentage (%)
A. Main Building
Main Building 0.85 27.6
Total (A) 0.85 27.6
B. Infrastructure
TNB Substation 0.01 0.32
Sewage Treatment Plant (STP) 0.14 4.55
Outdoor Parking Space 0.10 3.25
Trash House 0.02 0.65
Road 0.71 23.05
Total (B) 0.98 31.82
C. Open Space
Open Space 0.93 30.19
Perimeter Planting 0.18 5.84
Dog Park 0.14 4.55
Total (C) 1.25 40.58
Total (A+B+C) 3.08 100
Table 44: Development Mix of Parkland Residence
6.8.1.1 Serviced Apartment Area Distribution
The composition within the four serviced apartment blocks by unit type is shown below.
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Built-up Area per Total Total Built-Up

Type Features
unit (sq. ft.) Units Area (sq. ft.)
0 Bedroom,
A 547 70 38,290
1 Bathrooms
2 Bedrooms,
B 969 140 135,660
2 Bathrooms
3 Bedrooms,
C 1328 140 185,920
2 Bathrooms
Total 350 359,870
Table 45: Composition of Serviced Apartment by Type
The three unit types cater to three different needs. Type C for instance, is much better
suited to an average sized family. Type B would be great for smaller families and Type
A is best for single people and couples. There is double in the number of Type B and
Type C units compared to Type A. The plot ratio of 1:6 impacts the number of floors
planned out.
According to the planning guidelines, the number of small units sized 450 sq. ft. to 649
sq. ft. should not take up more than 50% of the total number of units. In this
development, only Type A is within the small unit category and only takes up 20% of
the 350 units available. Therefore, this requirement has been fulfilled.
6.8.1.2 SoHo Area Distribution
Allocation
Built-up Area per unit Total Total Area
Type
(sq.ft.) Units (sq.ft.) Tower Tower
A B
SoHo 400 350 140,000 175 175
Table 46: Composition of SOHO Area Distribution
There will be 350 units of SoHo provided, with 5 units per floor in each tower. According
to the guidelines set by DBKL, a SoHo unit must have an area of 400 sq. ft. It should
also not have wall partitions within the unit. The only amenity that should be provided
is a toilet. These requirements have been met.
6.8.1.3 Retail Area Distribution
The composition of the retail area in the development is shown below.
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Built-up Area per unit Total Built-Up Area

Type Total Units
(sq. ft.) (sq. ft.)
A 600 39 23,400
B 500 30 15,000
C 100 60 6,000
D 700 12 8,400
Total 141 52,800
Table 47: Composition of Retail Area by Type
There are four types of retail layouts available to allow for different types of businesses
to operate in the development. Type A, B and D are rectangular, while Type C is a
square.
6.8.1.4 Infrastructure Distribution
The allocation for infrastructures are 31.82% of the area of the proposed site or 0.98
acres. The infrastructures on this site consists a sewage treatment plant, a TNB
substation, a trash house, roads and the outdoor parking area.
Allocation
Component
Acre Percentage (%)
Sewage Treatment Plant 0.14 4.55
TNB Substation 0.01 0.32
Road 0.71 23.05
Trash House 0.02 0.65
Outdoor Parking 0.10 3.25
Total 0.98 31.82
Table 48: Distribution of Infrastructure
According to the carpark planning guidelines, 1 carpark bay must be provided for each
serviced apartment unit. There is also an additional 20% allocation for visitors and
another 20% for motorcycle parking bays. It is the requirement for SoHo developments
in city centres to prepare 1 carpark bay per 1,000 sq. ft. and a motorcycle parking bay
per 2,000 sq.ft. The required planning policies and guidelines have been adhered to.
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6.8.1.5 Open Space Distribution
The table below illustrates the distribution of the open space available in the
development.
Allocation
Component
Acre Percentage (%)
Open Space 0.93 30.19
Dog Park 0.14 4.55
Perimeter Planting 0.18 5.84
Total 1.25 40.58
Table 49: Distribution of Open Space
According to the planning guidelines, 10% of the proposed site must be allocated for
open space. As the open space of 1.25 acres takes up 40.58% of the site, this
requirement is fulfilled.
6.9 Justification
As a conclusion, the final layout plan allocation for each development component of
“Canyon Boulevard” are shown in Table 50. The total net buildable area, which is
basically total area of the serviced apartment, SoHo, retail area, facilities podium and
indoor carpark is 0.85 acres. Each development component has complied with all the
guidelines set by Jabatan Perancangan Dewan Bandaraya Kuala Lumpur.
Allocation
Component
Percentage
Acre
(%)
Main Building (Serviced Apartment, SoHo, Retail

0.85 40.05
Area, Facilities Podium, Indoor Carpark)
Infrastructure (Sewage Treatment Plant, TNB

0.98 31.83
Substation, Road, Outdoor Carpark)
Open Space (Open Space, Community Garden,

1.25 28.12
Perimeter Planting)
Total 3.08 100
Table 50: Allocation for Each Development Component
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The subject site is located in Kuala Lumpur with a land area of 3.08 acres. The
proposed development is suggested based on thorough analysis and research done
in order to ensure that the site can achieve its highest and best use (HBU), and that
the proposed development is a sustainable development. The justification of our
proposed development is shown below.
From enquiries made to DBKL, the subject site is zoned as a commercial area. This
shows that the site is encouraged to be developed as a commercial area. Both serviced
apartments and SoHo are allowed to be built on commercial zoned lands. Certain
infrastructure must be provided for residents such as a TNB substation, water tank and
sewerage treatment plant. In addition, communal spaces like a multipurpose room,
yoga deck, pond area, swimming pool and dog park will be provided in the site. This
helps the residents interact with each other and cultivate a sense of community. There
are also retail outlets below to allow for even greater convenience for the residents to
purchase goods and spend time. These spaces are also open to public. This means
that residents can easily purchase essential items or grab a coffee without having to
travel far and wide.
The development concept of “Canyon Boulevard” is focused on combining the

elements of safety and security, opulent and open spaces, comfort and style,
connectivity and art. With a variety of well-designed facilities provided, the residents
get to live a comfortable lifestyle while having a place to retreat to after a chaotic day.
Moreover, this development not only focuses on serviced apartment and SoHo
development, but also focuses on retail units. This would create an environment where
residents and tenants can live, work, and play, all in close proximity.
“Canyon Boulevard” is also built to give the residents a sense of tranquillity. Since
“Canyon Boulevard” has security personnel stationed in the complex, it will help the
residents feel safer as there will be a guardhouse and 24-hours CCTV surveillance.
Moreover, a separate elevator and entry is provided for the serviced apartment and
SoHo residents. The safety of residents and users are maximised with a carefully
planned layout and design. The safety of the residents is ensured with all these security
features.
Most facilities are provided on the facilities podium, while some are available on the
ground floor. These include a swimming and wading pool, a multipurpose room, a dog
park, a yoga deck, a basketball court, a badminton court and more. The spaces are
functional and stylish. This would to encourage all residents to stay fit and healthy. By
offering a pleasant environment, occupants would also use these spaces and interact
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with each other, creating a sense of community often missing in urban neighbourhoods.
Besides, a sky bridge will connect Tower A to Tower B. It will also be connected
through the retail units found below. The retail spaces below are easily accessible by
all residents, making it conducive to purchase goods or spend quality time with loved
ones.
In conclusion, our proposed development will bring tremendous local socio-economic

improvement. The redevelopment of the subject site as proposed will help it obtain its
highest and best use and minimise external threats at the same time.
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7.0 FEASIBILITY STUDY

7.1 Introduction
Extensive market study has been carried out to determine the most appropriate
proposed development components where in our layout plan, the proposed
development components comprised of serviced apartments as well as commercial
retail units.
7.2 Cash Flow Analysis

Cash flow analysis is the initial stage of the feasibility study. In this analysis, the most
important elements are the cash inflow and the cash outflow. Cash inflow mainly
consists of the sales of the serviced apartments as well as commercial retail units.
Besides, progressive payment is also applied in the cash inflow as according to the
Schedule G of the Housing Development Act. Cash outflow will be the cost of the
project which named as Gross Development Cost (GDC) in the calculations.
The future inflow and outflow are projected up to 6 years. The positive cash flow at the
end will means that the project is generating income from the cost incurred. In this
development, positive cash flow can be found from year 2 to year 3 as our project will
start selling in year 2022 H2, where the cash inflow is more than the cash outflow.
Refer to Appendix G.
7.3 Net Present Value (NPV)

NPV is the difference between the present value of cash inflows and the present value
of the cash outflow. NPV is used in capital budgeting to analyse the profitability of a
projected investment or projects. A positive net present value indicates that the earning
generated by the project exceeds the anticipated costs. Therefore, a positive net
present value definitely means that our project is feasible.
However, it should not just solely depends on net present value but also be
accompanied by others financial appraisal to support the viability and feasibility of the
projects. The total net present value for our project is RM 257,086,216.71. The
calculation of NPV of the proposed development can be found in Appendix G.
7.4 Break Even Analysis

For this analysis, we will calculate the years that required for the project to be break
even with our capital. In this analysis, all the final cash flow will be added up starting
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from the first year until the final year where the net cash flow will be accumulated. Then,
the accumulated net cash flow will be plotted into graph. The graph is shown below:-
Figure 134: Breakeven Point
The graph shows that the break-even is at the 3rd year (2023) of the project. As our
project expected to start from the second year (2022) and the break-even point occur
1
at year 2023 which means that our project would take 2 years to breakeven. From
2
3rd year to 6th year, the development will gain accumulated positive net cash flow.
Kindly refer to Appendix G for the detailed calculation.
7.5 Weighted Average Cost of Capital (WACC)

Weighted average cost of capital is the company cost of capital in which each category
of capital is given the proportionately weighted. In this project, Fudosan Property Sdn.
Bhd. has RM 68,193,534 as equity and has getting the debt of RM36,874,602 and
RM167,706,000 for the bridging loan and term respectively, where the total capital
value is RM272,774,136. In this development the WACC calculation is as below:-
WACC
Capital Percentage of Cost of Weight

Amount
Source Total Equity/ Debt After Tax
RM
Equity 25.00% 10.00% 2.50%
68,193,534.00
Bridging RM
13.52% 8.00% 1.08%
Loan Debt 36,874,602.00
Term Loan RM
61.48% 6.00% 3.69%
Debt 167,706,000.00
RM
Total 100.00% WACC: 7.27%
272,774,136.00
Figure 135: Weighted Average Cost of Capital (WACC)
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7.6 Internal Rate of Return (IRR)

Internal Rate of Return (IRR) is another metric used to calculate the profitability of a
project. IRR is a discount rate that makes the NPV of all cash flows from a particular
project equal to zero. The result of IRR will be taken as the higher the IRR, the more
desirable it is to undertake the project. The IRR for this proposed development is
calculated as 15.1%. If IRR is higher than WACC, which is the cost of capital, the
project is viable. Therefore, we can conclude that this project is viable and low risk as
IRR is 15.1% which is higher than the WACC at 7.27%. Kindly refer to Appendix G.
7.7 Return on Development Cost

Return on development cost calculated by using the below formula:
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 = × 100%
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡
𝑅𝑀 281,344,867.87
= × 100%
𝑅𝑀 423,920,176.53
= 66.37%
7.8 Return on Capital

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 = × 100%
𝐶𝑎𝑝𝑖𝑡𝑎𝑙
𝑅𝑀 281,344,867.87
= × 100%
𝑅𝑀 272,774,136.00
= 103.14%
7.9 Benefit Cost Ratio

Benefit cost ratio is to measure the viability of the proposed development project. A
benefit cost ratio greater than 1 indicates the project is viable.
𝑁𝑃𝑉 𝑜𝑓 𝐵𝑒𝑛𝑒𝑓𝑖𝑡
𝐵𝑒𝑛𝑒𝑓𝑖𝑡 𝐶𝑜𝑠𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝑁𝑃𝑉 𝑜𝑓 𝐶𝑜𝑠𝑡
𝑁𝑃𝑉 𝑜𝑓 𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑠ℎ 𝐼𝑛 𝐹𝑙𝑜𝑤

=
𝑁𝑃𝑉 𝑜𝑓 𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑠ℎ 𝑂𝑢𝑡 𝐹𝑙𝑜𝑤
𝑅𝑀 674,691,837.37
=
𝑅𝑀 417,605,620.65
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= 1.62
The benefit cost ratio for the proposed development project is 1.62 which is more than
1. It indicates that this project is viable.
7.10 Sensitivity Analysis

Sensitivity analysis is a technique to assess how the different values the variable will
impact the final results. In this analysis, the two variables that are used such as the
financial rate and the effective lending rate. This is because the financial rate is
adopted in the present value. Therefore, the increment or decrement of both rates will
definitely affect the cash flow and net present value of this development. Kindly refer
to Appendix G.
7.11 Conclusion
After all the feasibility analysis, the summary of the analysis is as below:-
Return Measurement
Total Net Present Value (NPV) RM 257,086,216.71
Weighted Average Cost of Capital

7.27%
(WACC)
Internal Rate of Return (IRR) 15.1%
Return on Development Cost (RDC) 66.37%
Return on Capital (ROC) 103.14%
Benefit Cost Ratio (BCR) 1.62
Table 51: Summary of Return Measurement
From the result above, all the measurement shows that the proposed development is
viable. The project has relatively high NPV which indicate that the project is profitable.
Besides, IRR which is 15.1% is higher than WACC at 7.27% also indicates that this
project is low risk and viable. Moreover, return on development cost, return on capital
also portrayed positive and high return. Benefit cost ratio which is 1.62 also indicate
that this project is viable.
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8.0 MARKETING STRATEGY

8.1 Marketing Position
Market positioning is very crucial in influencing potential purchasers. It refers to the
ability to influence consumer perception regarding the development. The objective of
market positioning is to establish the image or identity of the development so that
consumers perceive it in a certain way. This will leave a favourable impression on the
proposed development.
It is proposed that Canyon Boulevard is positioned to be a quality mixed development

complex that is ideal in all aspects. It is in the heart of Kuala Lumpur, the ideal location.
It aims to bring peace and serenity to one’s life, making it the perfect place for a retreat
from the chaotic world outside. This development should also be positioned as one
that values inclusivity and fun as it is completely pet-friendly, making it perfect for pet
parents who often find challenges in finding a high-rise residence that is suitable.
The development is considered luxurious, as it mainly caters to the high-income group,

although those in the higher range of the average income bracket can afford the SoHo
units. It is expected that many expats and high-income professionals would be
interested in the culture that would be potentially created in Canyon Boulevard,
especially with the many facilities offered such as a gymnasium, swimming pool and a
yoga deck amongst many others.
In short, Canyon Boulevard is positioned as a development that will fulfill an individual’s

needs and provide an optimal lifestyle.
8.2 Target Market

A target market is a group of people with certain shared characteristics that have been
identified as potential customers for a certain product. Identifying the target market
helps greatly in the decision-making process as a company designs and markets its
product. In this case, the target market for Canyon Boulevard must be identified so that
marketing strategies put in place will focus on the group that would likely have the
highest demand.
The proposed site of Canyon Boulevard is very strategic. This brings great opportunity
for a wider market catchment. FIrstly, existing residents of Kuala Lumpur may be
looking to upgrade homes. Next, there is an ever-growing pool of expatriates, most of
whom would be in the high-income bracket. They would likely seek a community in
which they feel comfortable, both in terms of the physical aspects as well as social
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aspects. The layout of Canyon Boulevard that prioritises vast green areas and ample
communal spaces is conducive in creating such an environment.
The secondary market catchment would be those from other parts of the Klang Valley.
This is because Klang Valley is very closely connected, through the ample roads and
public transport routes available. Therefore, it is likely that professionals from all over
would be interested in moving in or purchasing property from Canyon Boulevard.
Besides home owners, local and international investors are expected to purchase
either serviced apartments or SoHo units. Investors can rent out the service apartment
units to professionals in the city, whether single or with family. It is also suitable to be
used as an airbnb because of the centrality of the location of Canyon Boulevard. Many
tourists frequent the capital city to explore the many attractions found. In addition,
business dealings, conferences and important meetings often take place in the vicinity,
making it a hotspot for the international market.
In conclusion, the target market has been identified as follows:-
 Malaysians and non-Malaysian residents of Klang Valley

 Mixed buyers from different ethnicities
 High income group
 Owner occupiers and investors
8.3 Marketing Mix

The 'marketing mix' is the foundation in marketing. Marketing mix can be defined as
the set of marketing tools that the firm uses to pursue its marketing objectives in the
target market. Thus, the marketing mix refers to seven broad levels of marketing
decision, namely: product, price, promotion, place, people, process and physical.
Figure 136: Marketing Mix 7P's
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8.3.1 Product
Canyon Boulevard is a new proposed development which comprises serviced

apartment, and commercial shop units. In this proposed development, serviced
apartments made up the higher percentage and the rest are commercial units. There
will be two blocks of residential units, divided into serviced apartments and SoHo. It
will rest on a multi-level podium with 3 storeys of parking space and then another 3
storeys of shop lots below. Both towers will have 35 floors.
Certain facilities and amenities like the swimming pool, indoor gym, and playground. It
is surrounded by roads on all sides for ease of traffic flow throughout the development.
There is plenty of open space that will be provided around the development to allow
for residents to take walks and admire nature’s beauty. The big bulk of it will be in the
front, with a water body that will add to the beauty of the site. Another unique feature
is the dog park that will be provided at the west side of the development.
8.3.2 Price
Price is the major consideration for all property buyers as the financial capability varies
for different buyers. The target buyers for Canyon Boulevard are expat and high-
income earners with monthly household income between RM6,000 and above. The
selling price for residential is from RM 488,888 to RM 1,988,888 which is affordable for
each income group. The price list of the product is shown in Table xx.
Type Build-Up Area per unit (sq.ft) Price (RM)
Type A 547 788,888
Type B 969 1,488,888
Type C 1,328 1,988,888
SOHO 400 488,888
Retail (rental) 54,900 6,097,200
8.3.3 Place
Location of the property is one of the key factors that make each property unique from
each other, which normally people call it as heterogeneity nature of the property. The
location of proposed development is in Kuala Lumpur. Notable landmarks
neighbourhood of the proposed site includes the HSC Medical Centre which is 140
metre southeast from the proposed site and the LINC KL, situated 250 metres to the
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southwest of the proposed site. Intermark Mall can be found 130 metre in the direction
of northwest from the proposed site in addition to The Castle Restaurant which is 800
metre in the direction of northwest from the proposed site.
When the economy activities are robust in that particular local context, which would
increase the human traffic and attract the movement of both employee and employer.
Thus, there is a need of housing unit to provide accommodation for citizen. Considering
our housing unit which is affordable to resident siding in Kuala Lumpur and the area
around it, and high end for home buyer who seeks for modern facilities with premium
lifestyle, which is one of the selling points for our development.
8.3.4 Promotion
Any product that comes with promotion will produce a better sales result. For the
Canyon Boulevard development, the recommended promotion is as shown as below:
Figure 137: Marketing Strategy - 'Promotion'
8.3.4.1 Home Triple Insurance Protection Scheme (Hometips)
Triple insurance protection scheme aims to provide protection for home buyers. This
scheme also enables developers to make collaboration with insurance agency (Allianz
Malaysia Bhd) which is also a good way to promote the development. The 3 in 1
scheme would provide term life, personal accident, and involuntary unemployment
coverage for buyers of selected property. The insurance schemes are:
Unemployment Benefit: It covers cases of involuntarily termination of employment due

to economic reasons which fits the current pandemic situation in Malaysia.
Term Life Scheme & Personal Accident Scheme: It covers financial benefit paid out in
the unfortunate case of death or total permanent disability.
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Unemployment is an issue for potential house buyers as they are hesitated to purchase
property especially due to the unexpected situation like the Covid-19. This scheme will
ease their burden. HomeTIPS will be available for properties with price starting from
RM300,000 for 36 months from the date of sales and purchase agreements at no
additional cost.
8.3.4.2 10:90 Homeownership Scheme
The 10:90 scheme is a scheme that is not truly built then sell (BTS). It is a midway
between the present progressive payment (STB) and the complete BTS. It is a variant
of the STB or a variant of the BTS, or 'Deferred Payment' basis, it matters little. Under
this 10:90 scheme, buyers will make a 10% down payment when making house
bookings by signing a Sale and Purchase Agreement (SPA) and settle the remaining
90% when the house is completed with the relevant Certificate of Completion and
Compliance (CCC). The 10% booking amount is mostly offered by developers as
online booking options, which is convenient to the potential buyers. The benefits of the
10:90 Homeownership Scheme is that the rights and responsibilities of the buyers and
developers will be stated clearly, while banks and financial institutions are able to fund
projects, as there is proof of sales transactions. As for the buyers, a minimal amount
is needed to purchase the property under the 10:90 scheme. This scheme can help
customers to get their dream home with minimal fuss as there is minimal
documentation which reduces paperwork and they do not have to go through the
painful home loan application process.
8.3.4.3 Voluntary Exit Plan
Under this scheme, buyers will be given option to terminate their SPA in the event of
unemployment. bRIGHT Property Consultant Sdn Bhd caress for the welfare of
customers and their rising concern on job security along with uncertainties of current
pandemic situation. To be eligible, buyer must be a permanent full-time or contract
employee but not a shareholder or employer of company. The exit option can be
exercised from date of SPA or Vacant Possession, depending on which one is the
earlier. Another procedure of this scheme is that buyer must submit their termination
letter and write their intention of exit within 14 days from date of termination. Next,
monies paid by buyer will be refunded less all expenses incurred
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8.3.4.4 Bumiputera Allocation
According to requirements, 30% of all housing and commercial units must be allocated
for Bumiputera quotas. Among the houses reserved, 5% discount is given to
Bumiputera buyers in order to attract them.
8.3.4.5 Referral Cash Rewards
It is a Buyer Get Buyer (BGB) incentive program. Customers will receive cash referral
fee as rewards and efforts in promoting and spreading the words about bRIGHT
Property Consultants Sdn Bhd properties to their family or friends. Once the referred
person purchases a unit and mention the customer as he or her referral, the customer
will be entitled for the reward. This program will be open to all existing buyers of our
property and only applicable to potential non-member buyers. This cash incentive
program is a win-win situation for both developers and existing buyers.
8.3.5 People
This element in the marketing mix involves anyone which directly or indirectly involved
in the property market. It is important to have knowledgeable, skilful, and professional
people which represent the company as these people are the ‘face’ of the company
which will directly interact with customers. By having proper training, it helps to retain
the staffs and strengthen the company itself in the market such as regulatory expert,
market analyst, concept designer, site surveyor and marketing strategist. Team effort
is important to ensure the proposed development can achieve desired success as each
person has their own speciality. As for the customers, they can be identified through
the target customers in market study.
8.3.6 Process
‘Process’ describes a series of actions that are taken in delivering the service or
product to customers. Basic processes should ensure that every customer receives
the same level of service despite their different needs wants. A proper marketing
strategy will help developers on the right track as we bRIGHT Property Consultants
Sdn. Bhd. conducted a proper market study and feasibility study to ensure that the
development is viable, profitable and cater the needs of the customers. Also, not to
forget is marketing strategy to achieve its predetermined objectives and therefore it is
very important to outline ideas well to attract buyers.
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8.3.7 Physical
Physical evidence provides tangible cues of the quality of experience that a company
is offering. It can be evidence that a service or purchase took place or confirmation of
the existence of the company such as the company’s website, logo, business cards or
sign on the company’s building. Roadshows and property exhibition as mentioned in
“promotion” will be carried out to provide details and insights on the proposed
development to the potential customers so that they can have personal experience
with our property as well as ask questions or offers provided by us.
8.4 Marketing Plan
8.4.1 Marketing Programme
8.4.1.1 Priority Registration Exercise
We will carry out a priority registration exercise to build up a list of potential purchasers
as well as to test out the market acceptance of the design and the proposed pricing.
For this purpose, we proposed that a billboard with salient information on the project
be put near at the site as well as along high traffic flow road nearby such as Jalan
Ampang, Persiaran KLCC, Jalan Yun Razak, Jalan P. Ramlee, and Persiaran
Petronas to get higher engagement. We could also insert a registration advertisement
in leading newspaper and business magazines like Berita Harian, Harian Metro, The
Star and The Sun to generate initial interest in the project. Besides, we could post
advertisement and registration form by using google document in online social media
such in Instagram, Facebook, and Tiktok to publicize to Kuala Lumpur residents.
8.4.1.2 Pre-Launching Event
Firstly, we will start the sales campaign with a pre-launching event as well as the
priority registrations at the proposed site. For this pre-launching event which will carried
out after the Developer’s License and Sales and Advertising Permit have been issued.
Due to current pandemic, the government forbid a mass event that involved a lot of
people at one place. Hence, pre-launch event will be done online where the marketing
team will promote and market the product on Live at all available social media platform.
However, if circumstances enable us to make a physical event, a booth will be set up,
the scale model of the proposed development will be placed in the booth and some
decorations will be done to attract the nearby public. Besides, we will set up booth at
shopping mall to market our project. Thus, more people will be notified and attract
about this project.
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8.4.1.3 Official Launch Event
The project will be officially launched in Kuala Lumpur after the series of pre-launches
have generated the targeted sales take-up of 20-30% and after the sales gallery has
been completed. The sales gallery of the proposed development will be set in the NU
Sentral because the NU Sentral is multilevel shopping mall and main hub of
transportation KL Sentral. On the other hand, we also proposed to appoint
ambassadors from celebrities/ instafamous/ Youtuber because they have a bigger
platform and wider attention to promote our product. To support the official sales
launch, a series of press advertisements will be placed in the leading newspapers such
in The Star and Berita Harian. This extensive publicity in the newspapers is important
to generate public interest in the project. In official sales launch will be shown the show
unit for potential home buyer’s viewing via video. This show unit, which is usually used
by developers provide for viewing, it will be even more effective the potential
purchasers looking out and have a view on the show unit. Then, they will be able to
experience what it will be like if they purchase the product in the development. This
show unit will show furnishes provide to the highest standards so that it will be able to
impress the potential home buyer even the local and international investors.
8.4.1.4 Post Launch
The intensity of the post-launch campaign will depend on the level of sales achieved
during the pre and official sales launch. For the post-launch stage, we will hold regular
marketing event at the site. For example, during celebration day such Hari Raya opens
house and family day special promotions.
8.4.2 Public Relation Programme
Public relation program aims to build up the developer image as it can affect the
purchase intention of the house buyers. Press statement will be released regularly to
keep the public informed of any corporate milestones achieved by the group such as
securing a construction project and successfully completion of any major projects. This
will be done before the launching of the project so that there will be top of mind recall
for the company when the project is launched. Besides, media event such as loan
signing ceremony (once the bridging loan has been arranged), completion and opening
of show unit together with official launch ceremony and handling over ceremony can
be undertaken to raise the public awareness of the housing project. Moreover, well-
trained, and professional sale staffs play a very crucial role in public relation as the
word of mouth can affect many buyer purchase decisions. Word of mouth is an informal
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communication about the benefit of the product by satisfied customers and ordinary
individual. It can circulate on the internet and affect the reputation of the developers
either in a positive or negative way.
8.4.3 Digital Marketing
Digital marketing is the component of marketing that utilize internet and online based
digital technologies such as desktop computer, mobile phones, and other digital
platforms to promote products and services. Specific digital media marketing tools
include search engine optimization, social media marketing, mobile marketing and so
on. A key component of digital marketing tools is web analytics, which provide
information on an internet user's online activities, IP address and search keywords.
Online marketing is the most cost-effective mode of marketing as there is no
requirement to set up physical infrastructure for this kind of marketing, we are able to
reach maximum target audience at minimal cost.
Figure 138: Digital Marketing Solution
8.4.3.1 Social Media Marketing
It is a one of the digital media marketing to use social media platforms to promote
products and services. However, the goal of social media marketing tools is to develop
an interactive, online relationship with the customer rather than to mine covertly for
customer data. It includes activities like posting and updating text, images, video, and
other contents that drive audience engagement on social media such as Twitter,
Facebook, LinkedIn, Pinterest, Reddit, and YouTube. Social media marketing offers
low-cost tools with potentially high returns. Instagram and Tiktok are two of the best
and most widely used platform that homeowners and home sellers are actively on in
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Malaysia. The more you post, the more engagement and traffic the post will score as
it will jump to the top of your users’ feeds and likely to be viewed and interacted with
more often. Many real estate businesses nowadays already move to Tiktok because
30 seconds or 1 minute video are seen to be more effective.
Figure 139: Social Media Marketing
8.4.3.2 Search Engine Marketing
It is one of the most important types of digital marketing. It can increase the visibility of
a website to users of the search engine. The most popular search engine in the world
is Google undoubtedly. Hence, we should invest in Google Ads. Google Ads is an
online advertising service that apply search engine marketing in order to allow
businesses to have their ads run on Google’s search results page. The ads look almost
identical to the normal search results, we can recognize it by the “ad’’ word at the
beginning of the URL. Google ads will show at the top and bottom of a search results
page. When a consumer searches for a term or phrase, Google will show the consumer
relevant ads based on the keywords used in the search. With this search engine
marketing, we select the keywords and phrase that we want to trigger our ads and set
a maximum bid. Then if our bid is among the highest, our ad will appear at the top of
the search engine result pages. For example, if potential customer search on the
keyword “luxury and comfort residence” the Canyon Boulevard ad might show up in
the very top spot on the Google results page. Since Google uses a pay-per-click (PPC)
advertising model, you only pay if someone is searching for the keyword you have bid
on and is interested enough in your ad to click on it. Google AdWords has
revolutionized the way advertising works by only making you pay when the user has
taken an action to view your site.
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Figure 140: Search Engine Marketing
8.4.4 Traditional Marketing
In the age of digital marketing, traditional marketing is not dead and still have its own
place. It may involve high cost, but it is still hard to ignore as we may still encounter
this every day. One of the biggest limitations of traditional marketing is it will involve
more cost if we want to update or replace the old ads. The most effective traditional
marketing is undoubtedly television advertisement, but our company will not adopt it,
same as other developers as the cost is too high.
Figure 141: Traditional Marketing
8.4.4.1 Flyers and Brochures
The brochure and flyer are one of the tools to advertise our project. The brochure or
flyer made must be in a high quality designed so the brochure will attract people in
getting the information for this project. Brochure or flyer made must consist of full
information about the project such as the feature, facilities, illustration about the
property, location, and others. However, the information given must be clear and short.
It can highlight the investment purpose units, affordable luxury experience and so on.
The brochure will be distributed in the event such as property exhibitions and others to
meet the target people. Brochures work well in combination with a media kit or
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promotional giveaway. Media kits are packets of company or product information sent
to news media for use in developing reviews or feature stories on the business. The
brochure gives a good overview of the company. We can also include brochures in
giveaway packages, such as with a bag and T-shirt handed out at a trade show.
8.4.4.2 Signboard / Hoarding
Sign board and hording is another good way to pass the message of developers to all
the passers-by. It includes the brief details, artist impression of development and
information of the project as well as the anticipated dates for release of phases. Many
prospective buyers come across properties for sale simply by driving through
neighbourhoods or commercial districts they’re interested in. Having prominent
signage in front of a house or on a business building will help market the property. The
sign should be easy to read and should include a contact phone number and website
address to make it easy for prospective buyers to reach you. Billboards should be put
up at strategic locations such as high traffic flow or highways. Billboards and signage
should not just place in Kuala Lumpur but also put in other states to attract more buyers.
Alternatively, billboards can be put at the public transport such as LRT, MRT, and KTM
station to establish a sense of presence in the housing market.
8.4.4.3 Newspaper
For newspaper, it is easily reach directly toward the potential clients because most
readers getting old and might have stable financial income. Newspaper advertising can
be as simple as a line ad, or as elaborate as a half-page colour ad that features
photographs, a company logo and contact information. However, if the budget allow,
advertisement can still be made in full page and full of magnificent colours in major
newspaper to looks more attractive and catch client’s eyeballs. The proposed
newspapers can engage with are The Star, The Sun, Berita Harian and Harian Metro
etc.
8.5 Disposal Strategy
8.5.1 Project Timeline
The implementation of the proposed development program will adopt a construction

phasing plan. This phasing plan will ensure the construction activity will go smoothly
as well as to minimize any potential disruption.
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2021 2022 2023 2024 2025 2026 2027
H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1
Preliminary
Work
Construction Work
Delivery of vacant
possession
The first phase of preliminary works will be started in second half of 2021 which is July.
The second phase will be the commencement of the construction of the proposed
development at the early of July 2022. The development is estimated to take 3 years
for strata buildings and expected to be finished in first half of 2025. For this
development project, sell then build concept will be applied. So, the project will start
launching in second half of year 2022. The third phase will be delivery of vacant
possession upon completion of the unit.
We have not conducted any boundary surveys and for this report, we had assumed
that measurements on-site correspond with details as stated on the document of title.
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Appendices
Appendices
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APPENDIX A
Location Map
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APPENDIX B
Zoning Plan
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APPENDIX C
Site Plan
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APPENDIX D
General View of Subject Property
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APPENDIX E
Neighbourhood Plan
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APPENDIX F
Proposed Development Plan
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Appendix G – Cash Flow Analysis
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BREAKEVEN POINT
RM300,000,000 RM252,261,046 RM257,086,217
RM231,158,588
RM200,000,000
RM145,317,795
RM100,000,000
RM-
1 2 3 4 5 6
RM(100,000,000)
RM(192,671,297)
RM(200,000,000)
RM(300,000,000)
RM(365,083,449)
RM(400,000,000)
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EXPLANATORY NOTE
(Feasibility Study: Cash inflow Projection)
1. The cash inflow projection is based on the project timeline and cash inflow projection which attached in this explanatory note. The cash inflow
is mainly generated from the sales of the properties and the progressive payment received which according to the Schedule G of Housing
Development Act.
a) Sales rate and rental rate of the proposed development components is according to the project timeline that we estimated.
b) Based on market analysis, the selling price and rental will be suggested for service apartment and retail increased by 5% after 5 years.
c) In this project, the allocation for bumiputera is 30% with 5% discount given as it was stated as this condition in this feasibility study.
d) As most of the buyers will not pay the full amount, the developer will receive the deposit during the initial stage followed by progressive
payment according to stages of construction.
2. The calculation of gross development cost in the cash flow projection table can be refer to the Gross Development Cost.
3. The land expenses are the cost paid for site purchase, demolition and site clearance. It consists of expenditures related to the site such as
legal fees and stamp duty.
4. The contribution of Kuala Lumpur City Hall consists of building plan fees and planning approval fees.
a) Building plan fees are obtained from One Stop Centre (OSC) Secretariat DBKL and the calculation of building plan fees is shown on Table
1.
b) Planning approval fees are listed in Table 2 of Other Development Cost which is obtained from One Stop Centre (OSC) Secretariat DBKL.
5. The statutory contribution and compliance cost includes survey fee for building subdivision (strata), strata title application, TNB contribution,
contribution to SYABAS, contribution to Indah Water Konsortium and infrastructure service fund contribution which was all enquired from the
particular department to obtain all the fees.
a) The survey fees is obtained from the Licensed Land Surveyor Regulation 2011.
Page | 240
6. During the construction, the professional consultant fees including quantity surveyor fee, architect fee, engineer fee, project management
fees, traffic consultant, soil investigation and valuer fee is illustrated in Table 10 to Table 16.
7. The infrastructure fees include the road, drainage and road services, TNB sub-station, landscaping, trash house and water tank.
8. The facilities costs include the cost for swimming pool and wading pool, gymnasium, multipurpose room, playground, mini library, surau, yoga
deck, preschool, kindergarten, half basketball court and badminton court which is from the reliable source.
9. For Table 19 and Table 20, the cost include administrative and management and advertising, promotion and marketing.
10. The financial fees is about the bridging loan which is 30% of the total building cost and the interest rate is 8% with 2 years term while the term
loan which is 50% of the land expenses and the interest rate is 6% with 1 year term.
11. Contingencies Allowances fees is 5% of the Total Building Cost and Infrastructure Cost.
12. As for the legal fees, it was obtained from the Solicitors’ Remuneration Order 2017 which was illustrated in Table 23.
13. The capital of this proposed development will consist of equity from the Saitama Property Sdn. Bhd. which is RM 68,193,534. The bridging
loan for building construction which is RM 36,874,602 while the term loan for land expenses is RM167,706,000. The total capital will be at
RM272,774,136.
a) The equity and the debt that the Fudosan Property Sdn. Bhd. adopted will be calculated into WACC. Refer to calculation of WACC.
14. Capital of the developer will be utilized in Year 1 to Year 3 of the project.
15. All the cash inflow will deduct with the cash outflow to obtain the net cash flow. Net cash flow will be PV in order to arrive to NPV of net cash
flow to calculate the IRR. Then, the net cash flow is accumulated from year 1 to year 6 in order to calculate the breakeven point for this project.
Page | 241
Appendix H – Residual Valuation
Page | 242
Page | 243
Appendix I – Brochure
Page | 244
Page | 245
Page | 246
Page | 247
Page | 248
Page | 249
Page | 250
Appendix K- Meeting Minutes
Our group has conducted several meetings to discuss about the assignment
so that we can ensure that the assignment can be completed within the time
given. All the members have attended all of the meetings. Our group
members are:
1. AHMAD NADZRI BIN ABDULLAH NAWAWI 17137723/1
2. CHONG HUI MING 17183967/1
3. LAVINYA KALAI CHELVAN 17131227/1
4. LI WEN YUE 17150585/1
5. NURUL SALIZA HIDAYA BINTI ABDULLAH 17099596/1
6. MUHAMMAD FAIQMAL BIN ZAINALABIDIN 17186055/1
7. YEOH KAI YUN 17174487/1
The scheduled meetings are as follows: -
Date Venue Issue Discussed
Assignment briefing with Adjunct Prof.

Tan Sri (Dr.) Abdul Rahim Abdul
28 July 2021 Online Meeting (Zoom)
Rahman, Executive Chairman of
Rahim & Co International Sdn. Bhd.
Integrated Project Clinic with Sr

Sulaiman Akhmady Mohd Saheh,
29 July 2021 Online Meeting (Zoom)
Director of Research, Rahim & Co
International Sdn Bhd.
Online Meeting (Google Discussion with members about the

31 July 2021
Meet) topics given.
Discussion with all the members to

1 August Online Meeting (Google divide all the workload.
2021 Meet) Gather information of planning
guidelines.
Asked senior to purchase the site plan.

Virtual site inspection of subject
5 August Subject Property (Vacant
property.
2021 Land)
Get some photos of subject property
and surrounding.
Page | 251
7 August Online Meeting (Google Discuss on the assignment.

2021 Meet) Finalize the task given.
11 August Online Meeting (Google Do the presentation slide with group

2021 Meet) members for interim presentation.
14 August Online Meeting (Google Practice for interim presentation with

2021 Meet) group members.
16 August Interim Presentation Task 1 and Task

Online Meeting (Zoom)
2021 2.
22 August Online Meeting (Google Discussion on the progress and

2021 Meet) problems happen.
26 August Online Meeting (Google

Final compilation of reports.
2021 Meet)
31 August Online Meeting (Google

Check before submission.
2021 Meet)
2
Submission of assignment Task 1 and
September Submission
Task 2.
2021
3
Online Meeting (Google Do the presentation slide with group
September
Meet) members for final presentation.
2021
5
Online Meeting (Google Practice for final presentation with
September
Meet) group members.
2021
6
Final Presentation Part 1 Schedule of
September Online Meeting (Zoom)
Presentation TBA.
2021
8
Final Presentation Part 2 Schedule of
September Online Meeting (Zoom)
Presentation TBA.
2021
Page | 252
With the commitment given by every group member, we have successfully

completed our assignment before the dateline.
Thank you.
Reported by,
_______________
(Chong Hui Ming)
Page | 253

Group 2 - BIE3008 Development Proposal Task 1

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FACULTY OF BUILT ENVIRONMENT

BACHELOR OF REAL ESTATE

No. Name Matrics Number

1 AHMAD NADZRI BIN ABDULLAH ZAWAWI 17137723/1

2 CHONG HUI MING 17183967/1

3 LAVINYA KALAI CHELVAN 17131227/1

5 NURUL SALIZA HIDAYA BINTI ABDULLAH 17099596/1

6 MUHAMMAD FAIQMAL BIN ZAINALABIDIN 17186055/1

7 YEOH KAI YUN 17174487/1

1.2 Terms of Reference

1.4.1 Site Inspection

1.4.2 Data Collection

1.4.3 Market Study

1.4.4 Feasibility Study

A feasibility study has been undertaken to determine whether the proposed

1.5 Site Analysis and Inspection

2.2 Background of Kuala Lumpur

2.3 Background of Site

2.3.1 Particulars of Title

Title No. GRN 10567

Lot No. Lot 258

City / Pekan / Mukim Kuala Lumpur City

State Federal Territory of Kuala Lumpur

District Kuala Lumpur

Tenure Term in perpetuity

Category of Land Use Building

Land Area 3.08 acres

Registered Owner Fudosan Property Sdn. Bhd.

Table 1: Particular of Title

2.3.2 Analysis of Site

2.3.2.1 Land Area

2.3.2.2 Shape, Terrain and Topography

2.3.2.3 Surroundings and Development

2.3.2.4 Current Land Use

3.0 DEVELOPMENT PROCESS AND REGULATION

There are 3 stages of the development processes, namely, pre-development,

Figure 1: Stages of the Development Processes

3.1.1 Pre-Development Stage

Figure 2: Consideration of Development Proposal Plans Process

3.1.1.2 Plan Approval

Figure 3: Plan Consideration Process

3.1.2 Development Stage

3.1.2.1 Notification to Start Work

Figure 4: Notifications Start Working Process

3.1.2.2 Interim Inspection

Figure 5: Notifications Interim Inspection Process

3.1.2.3 Final Inspection

Figure 6: The Final Inspection Process

3.1.3 Post-Development Stage

3.1.3.1 Deposit CCC and Form G

Figure 7: Deposit CCC and Form G

3.2 Planning Consideration and Requirements

3.2.1 General Guidelines

Allowable Allowed with Condition Not Allowed

B1 General Retail A1 Residential Unit A2 Quarters

B3 Office A4 Care Home B16 Funeral Services

B5 Food and Drink B8 Gambling C5 Engineering Work

Tourist Publishing and

B12 SOHO B15 Hypermarket D7 Golf Facility

Institution and Vehicles repair

E2 Park and Ride

Table 2: Classes of Use for land zoned under Main Commercial

Allowable Allowed with Condition Not Allowed