BY ANGIE NG
angie@thestar.com.my
Tropicana City in Petaling Jaya is a notable example of a good integrated lifestyle development.
The property market is a dynamic place where new project concepts and plans are being regularly introduced to meet changing market conditions, needs and lifestyles of the people. The market is constantly evolving and undergoing changes to keep up with the trends of the times and also the environment in the market.
Over the years, many new development concepts and trends have emerged that have heralded new way of living and lifestyles for the people. One of the big changes must be the introduction of high-rise living in multi-storey apartments and with it a variety of new development concepts, including projects that have a mix of residential and commercial components under a single development.
One of the new industry fads that is fast catching up is the concept of integrated lifestyle projects that boasts of an arsenal of property products, facilities and conveniences. These projects have some common shared space for car parks and a variety of facilities and amenities for the residents. As such, these housing units come under strata titles instead of individual titles issued for landed houses.
These strata-titled integrated projects have mixed use elements that incorporate residences with offices, shopping, recreation, entertainment, F&B, and other lifestyle facilities within a single development.
More integrated developments are making their presence felt in the Klang Valley and in other parts of the country to meet expanding demand brought on by the growing population and a shortage of sizeable land parcels that are needed for more sprawling projects such as townships.
In places that have ample land, especially those in the suburban areas that are further away from the cities, mixed integrated projects are hardly seen as landed housing units, traditional shophouses and offices are still the common sight around these places.
As big parcels of land become scarce, more developers are resorting to take advantage of the higher plot ratio of mixed integrated projects that allow developers to build more units or have higher built-up space compared with the other traditional landed residential projects.
Mixed use integrated lifestyle projects have become like a fashion statement in the Klang Valley and in many cities around the country as more such projects are being launched to cater to the growing demand.
The concept of integrated projects is also gaining popularity among property buyers, especially the younger generation of buyers who like the convenience of having their needs within easy reach, preferably under the same roof as their residential address. This promotes walkability and more sustainable living for the residents, business operators and the other occupiers of these integrated projects, as they can just walk to their destination without having to drive, or take the bus, taxi or train.
Savills Malaysia deputy managing director Paul Khong.
Savills Malaysia deputy managing director Paul Khong says there is a growing trend towards mixed integrated developments on the demand side and coupled with surging land prices, especially in good locations, more developers are now forced to build higher strata developments.
As an example, he says a 10-acre site with a plot ratio of 10 will allow the developer to build 4,356,000 sq ft of gross area. Assuming a 70% efficiency usage on the built space, there will be about 3,000,000 sq ft of saleable space available, and based on average sized service apartment units of 1,000 sq ft, the project will have a total of 3,000 units available for sale.
Khong acknowledges that integrated projects will usually take a much longer time to sell due to the large number of units available and their high density factor, adding that the project concept works well when the land size is smaller and the number of units does not exceed 1,000.
However, in a sizeable plot, the developer will have to innovate and theme their products well in order to capture more sales. Lifestyle trends and project branding factors play vital roles in winning purchasers’ interests.
“With the bigger built-up space of these projects, the developers can create more interesting offerings in their developments ranging from malls, office towers (including SoVo and SoHo) to hotels, service apartments, and other property offerings, thus developing their project into a liveable and interesting entertainment, recreational and lifestyle hub.
“A lot of city dwellers, especially the crop of young people from the Gen Y, are keen to stay in good well-themed projects especially above a mall and do not mind paying a little premium to enjoy real convenience and lifestyle living.”
He says integrated lifestyle projects are getting very popular in the Klang Valley, especially among the working professionals and young families who are in the mid-high income segment. These developments provide good in-house facilities and a full range of amenities including offices, shopping, F&B, recreational and fitness, at the convenience of the occupiers. More of such projects are coming into existence due to strong demand for these products.
While in the landed property segment, gated and guarded township projects are gaining popularity, in the strata condo segment, he says integrated lifestyle concept now sells. And if the project lies next to a MRT/LRT line, it will be a major plus point and the ultimate for buyers or tenants, he points out.
“There is premium value attached to such projects and many new developments are now emulating this concept. From an investment point of view, it is a proven formula as rentability of these condominium units is much higher, and this translates to better capital values and higher yields. Tenants don’t mind paying a little more in rents in exchange for such convenience and lifestyle,” Khong observes.
Although all the components are designed to complement each other thus making it a one-stop centre for all, the residential towers are usually pre-planned to co-exist within the shopping mall and the other commercial components, but have their own accesses and facilities demarcated from the rest.
They are specifically designed with separate entrances, drop-off lobby, private residence entrance(s), exclusive car park levels, different set of guards and higher tier of security independent of the mall.
Khong says a good integration of the various components in an integrated development that comprises offices, hotel, retail, residential/service apartments, healthcare and recreational spaces will promote proper work-life balance and a full and healthy balance for the residents and occupiers of the other components.
“The projects promote live, work and play in a single location, allowing for high density living and reviving night life within these areas, reducing traffic and pollution with lower usage of cars, better quality of living with less time wasted commuting to and from the city daily, creating pedestrian-friendly environments within the vicinity and close proximity to all the destinations.
"People learn to live together as a community and this promotes greater tolerance and interaction among the residents.
“The main characteristics of these projects are that they are located in the city or have good suburban locations with high concentration of population, have well-themed architecture design and good lifestyle concept, promote community living with entertainment, F&B, health and recreational facilities at the doorstep. They are usually sizeable developments of at least 10 acres or more for a meaningful integrated project, good balance of the various components of residential, retail, offices and the others, and the target groups are the mid or high-end segments of the markets. Proximity to MRT/LRT stations would be a major plus point,” he points out.
Khong says one good example of an integrated project is Publika Mall@Solaris Dutamas within the neighbouring developments of Duta Tropika, Duta Nusantara and Hartamas Heights.
Due to its close proximity, Duta Tropika is very popular with the expatriate tenants, which has benefited its tenancy market and moved its capital values.
The other notable projects that have been completed or are underway are KL Pavilion/Pavilion Suites/Banyan Tree/Harrods, Pavilion Damansara Heights/Damansara City, Tropicana Mall, Residence & Office Tower, Mid Valley Megamall and The Gardens Precincts, KL Sentral, Solaris Dutamas (Publika), Atria Mall and SoFos, and The Paradigm Office and Residences.
Trendy lifestyle
According to Trinity Group Sdn Bhd chief executive officer Datuk Andy Khoo, the purpose of buying a property has evolved from merely for basic accommodation to having additional recreational facilities, conveniences and latest trends that signify status and lifestyle.
To the discerning purchasers, location, lifestyle stature, real estate investment and capital appreciation are some of the key considerations when they decide to buy properties. As for the developers, it boils down to location and land size to determine which development concept to pursue.
Within city centres, where land is expensive, Khoo says developers seldom have the luxury of large tracts of land (of more than 10 acres), and the developers would want to optimise the gross development value to compensate for the more expensive land cost.
Trinity Group Sdn Bhd chief executive officer Datuk Andy Khoo.
“Mixed integrated boutique developments will continue and eventually become a norm, especially for projects within the city as in Singapore, Hong Kong and Tokyo.
“We are likely to see two common types of integrated developments that are within the city that have become a signature of prestige in terms of design, amenities and brand (premium residences). Those in the fringes of Kuala Lumpur, such as Sungei Besi, Old Klang Road, Seri Kembangan, Bukit Jalil and Puchong, have transport-oriented themes that offer mostly affordable and smaller residences of less than 1,000 sq ft with commercial, mid-range retail and F&B outlets.
“Value enhancement is the other key objective for the developers to pursue such project concept. The developers are very much into this trend of lifestyle integrated developments to meet current market demand of urban city living,” Khoo says.
Sunrise’s Solaris Dutamas@Publika, Kuala Lumpur, has the concept of three-in-one comprising residential, retail and office suites that complement the whole development in line with the concept of live, work and leisure within easy reach and convenience. Such concept also enhances the potential of securing tenants and at higher yields or rental income.
Currently, projects like Solaris Dutamas has become more of a lifestyle accommodation offering niche lifestyle living and conveniences.
Meanwhile, developments on larger tracts of land (of more than 100 acres) like Setia Eco Park@Meru would have the benefit of parks for leisure and recreation, besides the convenience of a retail mall and private school, for a wholesome family and community living within the development itself.
Khoo says the ambience and “feel” from features such as natural lighting, water features and natural cross ventilation are equally important in an integrated development.
“Space to unwind and enjoy a cup of coffee, place to mingle with guests such as a sky lounge are added features to incorporate the essence of a lifestyle living,” he says.
Purchasers are now more discerning and would prefer more lifestyle of health and sustainability living concepts also.
In the city centre, an integrated development such as Pavilion KL that comprises a shopping mall, F&B outlets, office and residential components, is acceptable as each has its own main entrance, lobby, and multi-tier security, including lift access card to specific floors and CCTV surveillance besides having security guards patrolling the area.
“Such integrated development is in line with the concept of city living,” he says.
Going forward, Khoo says connectivity via LRT or MRT (in the city) would be a prime development advantage and consideration by purchasers. Khoo points out that good central security control centre and concierge services for the residential blocks would be added steps that developers can take to enhance safety and privacy, besides separate entrance and CCTV surveillance.
“The key differentiation is delivering service and the brand promise, whereby the personnel handling the security or concierge service must be well trained, resourceful, able to communicate, and above all, is of service to the residents and for the residents’ convenience. Although this is easier said than done, that is the challenge for developers to overcome and continue to strive to differentiate from the rest to live up to their branding.”
Khoo says developers undertake projects after taking into consideration the location, accessibility and the traffic impact of their proposed development as it is a pre-requisite for a sustainable and marketable project. More importantly, these measures will ensure a project will command a premium value eventually upon its completion and the developer to deliver on its brand value.
For small developments of less than 10 acres, traffic flow enhancement is possible. Citing the case of Trinity Group’s project, Khoo says as part of its CSR initiative, the company put up additional ramps and slip roads for its Zest Point@Bandar Kinrara project and also connecting a “missing link” by doing up the road connection for its Z Residence project@Bkt Jalil. This is a win-win situation for the purchasers, developer and residents within the vicinity, through better traffic flow and property value appreciation.
Zest Point@Bandar Kinrara by Trinity Group comprising residential and commercial components, including two LRT stations within 500m radius, have appreciated in value by more than two folds since it was launched and when it was completed. The project won a real estate award for Value Creation in 2012.
Another project by Trinity Group, The Zest Residence showed a 243% capital appreciation (from launch price of RM276,888 in 2009 to sub-sale price of RM675,000 in 2014), while the Z Residence recorded a 168% capital appreciation (from launch price of RM452,888 in 2011 to sub-sale price of RM760,000 in 2014).
The ability to position the development as a landmark destination and location would enhance the project’s image and brand value. As such, the developer may choose to incorporate a branded or reputable hotel into its overall development to complement, if not enhance, the branding of the project that will translate to premium value and capital appreciation.
Khong concurs saying that as in all projects, there are always pros and cons. And with mixed integrated projects, if a project has approval for high density, it is bound to cause some degree of congestion.
Another issue is with regard to security if a project is not well planned and professionally managed. Khong points out that as long as the residential towers have good security with separate access for the residents and tenants, they will be willing to stay within the integrated development. Many would like to walk in their leisure to the mall to visit the supermarkets and shops or watch a movie without the hassle of parking.
He says many developers are already providing a seven-tier security for their high-end residential components where safety and privacy are both paramount. The security system include guarded residences and visitors access control and CCTV monitoring, carpark access control and CCTV monitoring, lift lobby and lift car access control and monitoring, residential quadrant access control, home alarm system, common area guard patrol and monitoring, and online CCTV access and monitoring.
On concerns of shortcoming of security and exclusivity in terms of main lobby and sharing of lift access, Khoo says: “Developers more often, would have separate entrance for each of this components. Ideally, where possible there should be a separate drop off, porte cochere for each of the components.”
Given the appetite for new lifestyle trends, it will be a win-win situation for both the property buyers and the developers if holistic project planning, designing and building initiatives are adopted to ensure more sustainable build environment for all to appreciate.
