"Is A Bird In The Bush Worth 6 In The Hand?”
YOO8 (Branded Residences) v Kirana Residence (a luxury condominium @KLCC)
In my opinion KSK's social media postings ranks as one of the best examples of how to do effective project marketing for high end KL properties, like for example, Knight Frank's social media marketing on LinkedIn. But of course KL Branded Serviced Residences that sell for RM2000-3000+ PSF are in a different price category from the KL luxury condominium market (RM800 PSF to RM1000 PSF). Last Friday, I was at KSK's 8 Conlay showroom to learn at first hand more about marketing KL Branded Serviced Residences.
8 Conlay is the maiden mixed use property development project by KSK group (which has its roots in insurance). “With three skyline-altering towers ranging from 56 to 68 storeys in height, 8 Conlay is a development in a class of its own. Designed by RSP, a leading Malaysian architecture firm, this one-of-a-kind development in the centre of Kuala Lumpur features spectacular (twisting twin towers) branded YOO8 residences serviced by Kempinski, and lifestyle retail quarters that embody bespoke living at its best.” source : KSK Land's website.
Tower A of YOO8 is currently 80% sold, while Tower B is about 40% sold. 60% of 8 Conlay's YOO8 buyers are reportedly foreigners. Tower A with interiors by Steve Leung is scheduled for completion in early 2023, Tower B (interiors by Kelly Hoppen) in end 2023. The 5* hotel by Kempinski is slated to open later in the first half of 2024. But a marketing person at KSK said a soft opening for the hotel might be as early as late 2023.
Completion of the 8 Conlay project was originally targeted for 2020 but was pushed back because of the start of MCO. KSK Land replaced it's main contractor with Grand Dynamic Builders Sdn Bhd, a subsidiary of a KLSE listed company in October 2020.
At prices ( after rebates and discounts are applied) that range from RM3200-3400 PSF and up, YOO8 is priced nearly 6 times the price of a freehold 3842sf four bedroom unit at Kirana Residence that is up for its 4th auction at RM569 psf on 8 July. Kirana Residence is a luxury condominium that Malaysia's #1 property search portal says is the epitome of a KLCC Luxury Condominium : “…..precise definition of a luxury condominium. Everything you need for a modern lifestyle is a hop, skip and a jump from your doorstep”
YOO8 USPs & X Factor
According to a AVP in marketing at KSK, what makes the two YOO8 residential towers unique and iconic are their:
Branding ( with 5* hotel services provided by Kempinski, tagged as “Serviced By Kempinski" and fully furnished interiors by world famous designers, Steve Leung and Kelly Hoppen)
Nice views of the KL skyline (mostly at Tower B, some units of Tower A face Tower B because of the twisting design),
Close association with the Kempinski KL 5* hotel and
Proximity to a luxe retail podium block. KL's biggest premium shopping centre, Pavilion mall , is just a 3 minutes walk away (via the pedestrian link bridge from Banyan Tree Hotel )
Connectivity - a direct link to Conlay MRT is pencilled in. When completed 8 Conlay residents will be able to get to most KL's retail and commercial buildings easily.
8 Conlay's e-marketing brochure says the YOO8 Branded Serviced Residences are “in the centre of Kuala Lumpur”. But in my opinion, they are actually much further away from the epicenter of the Kuala Lumpur City Centre (KLCC), represented by KLCC Park than my 5* KLCC luxury condominium at 7 Jalan Pinang, Kirana Residence.
Kirana Residence in fact is just 100 metres away from KL's best inner city park - separated only by a hotel car park- compared to 1 km for 8 Conlay. A marketing spokesperson said KSK is thinking of opening up a shorter route for residents to KLCC Park.
Across the road from 8 Conlay is a construction site where I spotted preliminary piling works have commenced. So when YOO8 owners get their VP notices sometime in 2023, construction work at the site opposite is likely to generate noise for the next two years or more (assuming of course the project goes ahead and is not deferred) . See Post Script & Disclaimer below.
Kirana Residence's location at Jalan Pinang in contrast does not face any construction works.
I think YOO8's X Factor is its Water Lounge located on the 26F which has the following facilities :
Gymnasium
Landscape Garden
Changing Room
Toilet
Kids Area
Pond
Pool Deck
Reflection Pool
YOO8's 5* “Serviced By Kempenski” Services & Amenities
The 5* Kempinski Hotel Kuala Lumpur is only scheduled to open in 2024. If assuming the 2023 date for Vacant Possession (VP) is as promised, YOO8 buyers still won't be able to enjoy the full range of 5* hotel services until the Kempinski hotel and restaurants in the 4 storey retail podium open.
YOO8 amenities are mainly located on the 26F and 44F and comprise a gym, a Water Lounge (ripple pools), a Green Refuge (landscaped gardens), a Multi Purpose Room, a Chill Out Room, a Lounge Room and a Games Room.
For a list of amenities YOO8 residents will enjoy, see the picture gallery below or click here.
Kirana's USPs & X FACTOR
In my opinion, the epicentre of the Kuala Lumpur City Centre is the world class 50 acre KLCC Park. KLCC Park (across the road from Kirana Residence via a hotel car park) is the perfect antidote to the stress of city living. With its 1.3km jogging track, children’s playground and a 10,000 sqm water feature, the park is a handy green refuge for many KLCC residents. It is home to approximately 1900 indigenous trees and 66 species of palms.
At night, the park comes alive with the magical sights and sounds from a 18 meter high musical water fountain, directly in front of Suria KLCC mall and Petronas Twin Towers.
Kirana Residence while not literally at the doorsteps of KLCC Park, it's as near as possible -a short 100m away, separated by a car park driveway.
Kirana is also just 3 minutes walk to one of KL's top 10 malls, KLCC Suria. Many fine dining establishments are close by. And it's just a brisk 13 minutes walk for Kirana residents along an air-conditioned pedestrian walkway to another top 10 KL mall, Pavilion Shopping Centre.
In comparison, YOO8 residents will need to use an overhead pedestrian link bridge from the Banyan Tree hotel to reach the Pavilion mall and take a much longer route to KLCC Suria.
And while you can’t see KL’s iconic Petronas Twin Towers (PTT) from each unit, you can always take your guests up to the 22F pool deck and show them a 360 view of the gorgeous KL skyline and of course the PTT.
Kirana has an X Factor - graceful wrap around balconies that curve gently and serve a useful function as a tropical sun shade. Kirana’s relatively large balconies are uncommon in the KLCC. Most balconies in KLCC condos are tiny, barely able to squeeze in a sun lounger or a table and two chairs.
Without spacious balconies, heat from the afternoon sun means higher air-conditioning bills.
Kirana's 5* Amenities
“Exceptional Privacy” -Wth only 66 units and 9 full time staff, Kirana residents enjoy a level of service and privacy that is almost unrivalled amongst KLCC condominiums. Plus access to exceptional amenities residents of other KLCC condominiums can only dream of:
For example, a upmarket tapas restaurant (La Bodega is opening soon) literally at their doorsteps, a spa and sauna on the 22F, a choice of not one but two pools (a rooftop pool on the 22F shared with Ascott KL @9 Jalan Pinang and another pool on 2F exclusively for Kirana residents and their guests), access to a tennis court (fees payable) and 24 hour concierge service.
In comparison, the two twisting YOO8 towers are high density with a total of more than 1000 units. Typical floor areas of units at YOO8 are much smaller, 700 SF up (1 bedroom)-1300sf (3 bedrooms) versus typical floor areas of 2200sf (2 bedrooms) and 3200sf (3 bedrooms) at Kirana.
“Exceptional Entertaining Options” -Rounding up the list of resort-like amenities for Kirana Residents are a private outdoor dining area for 16 guests equipped with cooking facilities that can be reserved exclusively for residents and their guests (note separate charges apply and a deposit is required), a covered cabana with a bar counter and bar stools that offers the perfect venue for residents to meet and enjoy refreshing cocktails.
Kirana's 2F pool deck has a wading pool and a main pool, surrounded by a sit out area equipped with sofas and tables big enough to accommodate 60 guests.
Recent Transactions
Tower A (564 units) of YOO8 was first marketed in 2015 at prices of around RM3000+ PSF. By November 2016, KSK Land reported 70% of Tower A had been sold. As at 2022, the 62 storey Tower A is 80% sold. With 60% of Tower B (468 units) still unsold as at June 2022, KSK Land has kept its pricing unchanged.
But it is worth noting prices of comparative size units at the Branded Serviced Residences at Ritz Carlton have actually fallen over the past 5 years. The one bedroom units at Ritz Carlton at around 1000sf are much bigger than the one bedroom units (about 700sf) at YOO8. See chart below. Over the past 5 years, prices of one bedroom units at Ritz Carlton reached a high of RM3000 PSF . But prices of one bedroom units at Ritz Carlton have since tumbled by around 25% to around RM2140 PSF as at 1H 2022 according to PropertyGuru's Pricing Insights charts- see chart below.
At Kirana there is only a single one bedroom unit. The standard units are two bedrooms (2,200 SF up), three bedrooms (3200 SF up) and four bedrooms (3650 SF up) and penthouse units of 5000+ SF up. Two bedroom unit prices have declined 20% in the past 5 years reaching a low of just under RM800 PSF but have recovered by 10% to RM880 PSF in 1H 2022 - see chart below.
Which property project do YOU think is the better buy? 8 Conlay's Branded Serviced Residences @ YOO8 priced from RM3200+ PSF up OR the auction unit of 3842 SF at Kirana Residence for RM569 PSF?
You might want to also check out my posts @ 360 KLCC. A selection below:
“The Green Effect Redux” discusses whether properties near parks and greenery are worth more
"Are Branded Serviced Residences Worth 5X Luxury Condos In Price PSF?”
“Marketing KL High End Properties” My take on KSK's LinkedIn social media inmail tagged "An exceptional investment for yourself and future generations with 30% capital gain protection".
"How To Avoid The Traps In Real Estate Investment Part 2"
"Is The KL High End Condo Market Heading For A Dead Cat Bounce?"
"Ranking 5* KLCC Condos By Walkability"
Post Script & Disclaimer
1 The sole penthouse on top of 8 Conlay’s hotel tower was recently sold for RM30m. This is not the most expensive penthouse sold in KL. That record is still held by a triplex unit at the Binjai that was sold for RM38m. But in RM per SF, 8 Conlay might, I think but cannot be 100% certain, be the most expensive in KL
2.I am an owner of a Kirana Residence unit since 2000. I previously served on the KiranaMC from 2010-2012. I am the creator of a blog on Kirana Residence, www.360KiranaResidence.com
3 I am not a real estate agent registered with the BOVEA. If you are considering buying a property in Malaysia you should consult a valuer or a real estate agent registered with the BOVEA.
4. According to a KSK marketing person, the air-conditioned walkway running from Jalan Pinang to Pavilion Shopping Centre will eventually be extended to 8 Conlay via the Conlay MRT station.
5. With interest rates on the rise, inflationary pressures pushing up building materials prices, and uncertainties in projecting demand, some developers are postponing project launches. I think but cannot be 100 % sure the construction site across the road from 8 Conlay is for a Pavilion extension. But there is no guarantee construction work might commence soon.
#kempinski #8Conlay #KiranaResidence #auctionproperty #BrandedResidences #klccforsale #propertyinvestment #kskland
Kirana Residence's amenities - actual pictures taken onsite in June - July 2022
YOO8's services by Kempinski (above) and amenities on 26F and 44F (below). 8 Conlay has licensed the YOO brand for a 20 years period with option to renew for a further 5 years. The YOO Brand is a collective of designers that amongst other products also designs branded residences.
Artists impressions, copy right by 8 Conlay
