Presentation on Mont Kiara

by Sonia Hartono Head of Sales - International Properties

CBRE WTWWTW Real Estate Sdn Bhd

012 239 7760

Sonia.Hartono@cbre-wtw.com.my

What is Mont Kiara ?

• Mont Kiara is an affluent township northwest of Kuala Lumpur. It is located in the heart of Klang Valley nearby Sri Hartamas. It’s a 15 min drive to either PJ, Subang Jaya or KL. TTDI is a 5-10 min drive via the Penchala Link tunnel on the Sprint Expressway.

• Consist mainly of residential condos, office complexes and shopping malls.

• Mont Kiara is under the authority of the Kuala Lumpur City Council (for Dewan Bandaraya Kuala Lumpur).

* Mont Kiara is inhabited with about 18,000 residents and consists of more than 60 nationalities.

* 3 International Schools* 80% of the residents are Expatriates.

• Commercial developments: Plaza MK, Solaris MK,

Publika, 1MK, Verve Shops, Arcoris and Kiara 163 coming soon.

• Schools In Mont Kiara– Mont Kiara International School– Garden International School– French International School

• Accessibility & Connectivity in the Mont Kiara vicinity has been boosted with the development of numerous highways and trunk roads. Mont Kiara is accessible via the Penchala Link as well as the Sprint Expressway, DUKE and NKVE.

Jalan Kiara is a major road linking Mont Kiara to the city center.

Shuttle bus around Mont Kiara, Garden Mid Valley & KL Sentral

Food & Beverage• One of the biggest plus points of Mont Kiara is the

choices of a vast variety of expat-themed restaurants in the vicinity. You can find multiple eateries which serve middle and upper range customers (this is similar to Bangsar and KLCC). Notable restaurants which are found here include Michael’s Angelo, Sushi Zanmai, Rakuzen, Souled Out, Ben’s, Plan B, and many other franchises and chain restaurants. Also for Beverage like Starbucks, Coffee Beans, etc.

Main developers in Mont Kiara:* Sunrise – UEM• Bukit Kiara Properties• Ireka- Capitaland• Kiaramas• Sunway• YNH• Mitrajaya• Mayland

Why Mont Kiara ?

• Still considered good price for subsale from 680 onwards…

• While other areas may be higher price psfMont Kiara developments are freehold.• good investment• expat tenants• secure condominiums• capital appreciation• Very good location in between KL and PJ

Recent Real Estate Projects In Mont Kiara• Arcoris, Residency 22 & Sefina built by Sunrise

• Pavilion Hilltop built by Pavilion Group

• Also, Kiara 163 & Arcoris have been one of the most highly anticipated developments, with retail, SOHO and service apartments all under one roof.

• To summarize, Mont Kiara is a major highlight on the property investment calendar this coming year, and with new commercial and residential projects already lined up, the outlook is bright.

Existing Future Supply

EXISTING UNITS : TOTAL

• Mont Kiara surprisingly remains rather ‘suburban’ with the numerous new commercial real estate projects. There is numerous property options for those who are looking for properties for sale in this area (in particular condominiums and high end apartments).

• Most of the younger generation of Malaysians prefer to live in Mont Kiara because of lifestyle and the strategic location.

• 6 years ago, price psf was around 450 psf, now is around 680 – 1100 psf onwards

• Future, Arcoris, Pavilion Hilltop, Residensi 22 will be ready this year in 2017 which they sold at 900psf onwards a few years ago.

* Looking at the above scenario, prices of properties have increased by a whopping 50% (from RM 450 psf to above RM 680 psf).

A case study on Solaris Dutamas condos [Publika] with a massive ROI returns.

* For a 1 bedroom (672 sf bulit-up), bought from developer in 2007/ 2008 for RM 240,000 and now the subsale price is RM 680,000 to 700,000 which is 292% increased.

* The shopping mall and commercial and nearby offices certainly assisted to boost up the prices here.

* Mostly apartments which are linked to shopping malls, have high demand and very easy to rent out, because mostly tenants are singles or couples, for them its very convenience to have restaurants and supermarket at their door steps, as they don’t need to drive and find carpark anymore.

Present Mont Kiara • Mont’Kiara, the high-end non-landed residential

suburb in Kuala Lumpur, is seeing some consolidation in property prices.

• 2016 was not a great year for the Malaysian property market.

• Despite the slow sale market, Mont’Kiara is clearly

holding on to its status as one of the most expensive addresses in the Klang Valley, maybe even in the country.

• Owning a property in Mont Kiara is a desirable location and is considered a status symbol, which explains why Mont Kiara’s million-ringgit homes are well-received.

• Mont Kiara has been perceived as one of the most expensive, high-end areas to live in. Staying in this prime area is a way to show that you are among the well heeled.

Sales market• Secondary market has been very slow since 2016, main reason is the bank

is very strict in giving mortgage to new home buyers. This period is buyer’s market, good time for motivated buyers to get the best deals.

• For new homes, buyers will get good deals from developers, they give high % of rebates, incentives like free legal fees, and some furniture packs.

* For secondary markets, there are many fire sales are in the market. Even though market is slow, but many fire sale units are going pretty quickly, buyers should use this time period to get the best deal in buying properties in Mont Kiara as many motivated sellers are willing to let go their properties below market price.

• For this 2017, we still see the property market remains slow, mostly the HOT / FIRE sales only are moving quickly. We hope 2018 onwards, the market will be much better and hope the banks are more flexible in giving the loans to home buyers.

For secondary markets, there are many fire sales are in the market. Even though market is slow, but many fire sale units are going pretty quickly, buyers should use this time period to get the best deal in buying properties in Mont Kiara as many motivated sellers are willing to let go their properties below market price.

For this 2017, we still see the property market remain slow, mostly only HOT / FIRE sales are moving quickly. We hope 2018 onwards, the market will be much better and hope the banks are more flexible in giving the loans to home buyers.

Rental Market• Rental market in Mont Kiara remains strong, despite in 2015-2016 we got

effected by Oil and Gas expats when many of them went back home.

• However, new expats are coming back to KualaLumpur, especially to Mont Kiara and KLCC.

• Generally rental price is range from RM3,000 to RM15,000 per month, or RM while gross rental yield is about 3.5% - 6%. Even some big units are rented out at RM 20,000 to RM 28,500 per month.

• Despite the pressure from new supply, the current rental rates and rental yields are sustainable as demand continues to be strong.

• This is because of the quality projects and facilities provided by established developers in Mont Kiara, which will remain good investments and have strong demand from expats and young professionals.

• We anticipate the rental market to be better from 2018 onwards, driven by

potential rise in expat population and overall improvement to the property market.

FUTURE of MONT KIARA• Mont Kiara and surroundings will have incoming supply of high rise

properties such as condominiums, serviced apartments and SOHO units, particularly near jalan Duta area , such as Arte Mont Kiara and Met 1 Residences, which are part of the 75.5-acre KL Metropolis integrated development in Jalan Duta by Naza TTDI.

* Arte Mont Kiara is expected to be completed end of 2019. The serviced residence project is 3 towers with a total of 1,706 units. It is a joint-venture project between Naza TTDI and Nusmetro.

• Met 1 Residences, s expected to be completed in 2020. This serviced apartment tower consists of 55-storey and 616 units.

• Total High Rise properties in Mont Kiara and surroundings area like Hartamas, Dutamas and North Kiara is about 18,000 units.

• With additional estimated 3,434 units of new high rise apartments coming into the market in Mont Kiara.

* Arcoris Residences @ Arcoris Mont Kiara (331 units) * Residensi 22 (534 units) by UEM Sunrise Bhd * Tower A of One Kiara (118 units) by Monday-Off

Development * Pavilion Hilltop (621 units) by a joint-venture between

Pavilion Group and Kuwait Finance House.

• New MRT3 is still in the discussion to come into Mont Kiara / Hartamas area, which planning the station will be around Met 1 area.

• As many developments are still coming in, many investors and owners of Mont Kiara properties have high hope in their investments to have good rental yields and capital growth.

Incoming High Rise Properties in Mont KiaraProject Developer Total Units CompletionArcoris Mont Kiara UEM Sunrise 331 2017One Mont Kiara Tower A Monday Off 118 2017Pavilion Hilltop Pavilion Group 621 2017Residency 22 UEM Sunrise 534 2017Sefina UEM Sunrise 245 2019Agile Mont Kiara OSK Holdings 813 2019 TWY Symphony Life 484 2019Sunway Mont Sunway 288 2020 Total : 3,434 units

Overall, I believe the property market in Mont Kiara and in KualaLumpur will be better next year in 2018.

Actually the property price in KualaLumpur is considered very reasonable, comparing to other Capital Cities in Asian countries like Singapore, Bangkok, Jakarta, and Manila.

Some Properties for sale in Mont Kiara

Meridin @ RM 1.49 million

Meridin @ RM 1.8 million

MK 28 @ RM 2.3 million

THANK YOU

Appointments

Sonia Hartono Head of Sales – International Properties

CBRE WTW Real Estate Sdh Bhd

012 239 7760sonia.hartono@cbre-wtw.com.my