The “New Normal” v The “New Luxury”

Blogger Reacts To Property Expert

What Is The “New Normal”?

I recently overheard a prominent Property Expert on social media ask, “Is 1000+ units a High Density Project?’ “No,” in his opinion, “1,000+ units used to be considered high density. Now it's the New Normal - if the property project is in the right location.” The property expert goes on to say, just take a look at Mont Kiara and Bangsar South where property projects with more than 1,000 units are in demand.

Folks, I follow this prominent Property Expert on Tik Tok and YouTube. In fact I am a big fan of his “ Walk Through” Condominium Reviews on social media. But I disagree with him on this matter :

“Folks, I think any property project, no matter Rumahwip public housing or 5* Branded Serviced Residence, with more than 1,000 units is definitely a high density project. “ , A property blogger based in Penang

Why The “New Normal” Is A Mirage

Imagine getting the keys to one unit in a high density project- it is going to be difficult to find tenants because of the competition. Then if the units are not fully furnished, it is going to be a Double Whammy- it will be noisy as well. I mean landlords will have to renovate their units. But who is going to want to rent there when it's unlikely they are going any peace with all the construction din going around them?

I think but cannot be 100% sure high density high rise property projects will probably underperform in the long run, ie any rental and capital appreciation will be capped. Why? Say you want to raise the rent by 15% or sell your unit in a high density project with more than 1,000 competing units. Prospective buyers have plenty of choice of course. So they will either tell you to reduce your rent or cut your asking price or they will find another landlord willing to undercut your rental unit or accept less.

A high density property project somewhere

The “New Luxury” Equation

Post pandemic, I think many home buyers are not thinking of staying in small apartments without room for a study or home office. People with experience of being cooped up in the confines of small apartments with no or tiny balconies are looking to buy or rent bigger apartments with more space and bigger balconies and greater privacy, ie low density projects.

“Privacy + Space + Exclusivity = Luxury”

Post pandemic, anectodal evidence suggests high density luxury apartments without balconies or lanais (open air spaces) or access to rooftops will be less attractive to tenants or buyers compared to low density projects with large balconies, lanais and access to rooftops.

Affluent buyers and tenants are now prioritizing privacy compared to just the number of fancy facilities or interiors by famous designers. So what if your high end property has a in-house wine cellar, home theatre, snooker room, but would you share them with 1,000 other people in the next pandemic?

I think affluent people don't want the same cookie cutter designer style apartments (even if styled by world famous designers ) that look the same as the neighbors’. Affluent people, in short want exclusivity, ie bespoke interiors that are testament to their personal taste. It doesn't have to cost an arm and a leg to hire a good interior designer in KL. For example, the ID decor for a 4 bedroom apartment at Kirana Residence that was featured in an edition of Home Pride magazine by GT Associates cost I think less than RM300,000.

Affluent buyers are also looking to buy properties within walking distance to public parks or greenery or at least with views of greenery.

Problem is few KLCC luxury condominiums have all of the above. Except of course Kirana Residence which has all of them-

large wrap around balconies,
big floor plans,
indoor lanais and
rooftop access.

Plus a bonus, Kirana is less than 100 metres away from KLCC Park, the epicentre of the Kuala Lumpur City Centre.

The #1 property search portal in Malaysia calls Kirana Residence the “precise definition of a luxury (KL) condominium. Everything you need for a modern lifestyle is a hop, skip and a jump from your doorstep.” In my property blog 360 KLCC -“Analysis Insights & Perspective for the KL high end property market” I have completed several comparisons of KL high end condominiums and serviced residences with Kirana Residence. See below:

YOO8 @ 8 Conlay v Kirana Residence - YOO8 serviced by Kempinski branded residences at 8 Conlay are a high density New Projects property (Tower A has 564 units, Tower B has 498 units) that are priced from RM3,000 psf up.

Nobleton Crest v Kirana Residence - Nobleton Crest is a low density luxury project near a golf course.

The Binjai On The Park v Kirana Residence - When it was launched by KLCC Holdings in 2009, the Binjai was the most expensive KLCC condominium.

Post Script & Disclaimer

Since 2000, I have owned a unit at Kirana Residence. I was a member of the Kirana MC committee in 2010-2012. I am the creator of a blog on Kirana Residence.