The project site was once the Alfa Romeo car showroom, said Chia.
KUALA LUMPUR: The Covid-19 induced new normal will be a boon to mixed property developments, especially projects that combine all three components, namely hotel, commercial and residential, within a single address.
The new normal dictates the types of preferred properties home buyers may want to live in. One that takes into account the extra care taken to remain safe when doing business, the need to avoid travelling too far, the demand for stable internet connectivity for working from home, a sense of security and shopping convenience.
The Health Ministry’s standard operating procedure (SOP) to avert coronavirus infection has generally dampened market sentiment, but in this case, it did the reverse for SOP-conscious house buyers.
DSGT Consultancy Sdn Bhd property investment principal Datuk Seri Gavin Tee said once a neglected property segment, mixed development is trending and getting the attention it deserves as a good peg for property investment, and a perfect fit is when the property is in a prime location and freehold.
He said mixed developments fit the requirements of the new normal. People, he added, are dying to go out to travel, and because of border restrictions, domestic tourism will see a boom and there will be an uptake in demand for hotel rooms.
Tee said mixed developments fit the requirements of the new normal.
Given these positive factors, he said, mixed developments with all three components will command a premium, and it is wise to invest in such properties even now during the pandemic.
Almost all mixed development projects are commercial and residential property, but very few include the hotel component. One such upcoming mixed development with a hotel that real estate agents are hot after is the RM450mil Alfa Bangsar project at Jalan Maarof in Bangsar.
Online property portal kopiandproperty.com editor Charles Tan said there are always opportunities to explore when all seems dire, especially during a crisis such as the pandemic.
“Opportunity exists because many are pulling back. Whilst during good times, many are jumping in and are queuing up during new launches and many would decide on the spot. When the whole world knows about it, the opportunity ceases to exist,” he said.
Opportunity exists because many are pulling back, said Tan.
Tan said any investment in a mature and affluent neighbourhood in locations like Bangsar would continue to be favoured even after Covid-19 is under control.
“It won’t lose its lustre as you can’t be wrong choosing property in such a high-end matured neighbourhood,” he added.
Property investment speaker Chris Tan said property, especially in vibrant Bangsar, is sought-after and buying now makes sense as the pre-Covid price was never lower than RM1,000 per sq ft.
“Bangsar is a mature location and when a project is completed in a few years’ time, the post-Covid prices will rise driven by inflation, and the property there may double and hit RM2,000 per sq ft.
“There is no need to justify the attractions of any new projects in Bangsar which is a first-choice destination. The idea is to buy now as you won’t get it at the current price in a location full with landed properties that are expensive,” said Chris, who is also the principal owner of law firm Chur Associates.
Vibrant Bangsar remains as a sought-after location, said Chris.
Sri Seltra CEO Terence Chia said even before the sales launch of his company’s mixed development in Bangsar, it had already received over 500 early registrations of interest.
He said the project site was once the car showroom and workshop for Alfa Romeo cars that the company was selling for two decades.
“Our land is freehold and is the remaining few parcels left in Bangsar. The mixed development comprises an upscale hotel, commercial spaces and serviced apartments within a single site.
“It will be a landmark that will prosper all businesses in the vicinity here. Alfa Bangsar will take the concept of serviced apartments to the next level of work-life balance with a wellness theme,” said Chia.
He said Sri Seltra, under the parent City Motors Group, will also develop a similar mixed development project that is much larger in scale on a freehold plot in Bukit Bintang next year.
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