STARBIZWEEK, SATURDAY 7 OCTOBER 2017

By EUGENE MAHALINGAMeugenicz@thestar.com.my

DAMANSARA Heights or BukitDamansara, an exclusive and afflu-ent neighbourhood in KualaLumpur, looks set to level up itsappeal as being “the place” to workand live in Malaysia with theupcoming Pavilion DamansaraHeights development.At a time when developers are

scaling back their projects andoffering more affordable rangehomes, the Pavilion Group, in col-laboration with the Canada PensionPlan Investment Board (CPPIB), isbucking the trend with the mixedintegrated development – whichhas been wooing affluent buyersand investors alike.Slowdown or not, the key to suc-

cess in the property market is to beable to offer customers what theywant, says 1Pavilion PropertyConsultancy Sdn Bhd sales andmarketing director Datuk TraceyLai.“The vision for Pavilion

Damansara Heights was thatDamansara Heights is ‘the address’and there have not been manydevelopments in this location. Thisis because there’s very limited land-bank in the area,” she tellsStarBizWeek.Lai says a unique selling point of

the project is that it faces the Sprinthighway and sits between two MRTstations.“So we have a very strong basic

foundation for the project. Wealready have the connectivity – it’stwo stops from KL Sentral. It’sunique and I don’t think there willbe another similar kind of develop-ment coming up anywhere near itwith this kind of size.”The 16-acre Pavilion Damansara

Heights project, which will have agross development value of RM9bil,will have a total of 10 office blocks,of which eight are en bloc sales,and two on strata basis. Seven ofthe en bloc sales have already beenformally acquired.“These are boutique blocks. The

planning is that offices are part ofthe support element. For en blocbuyers, they get full visibility.Because of its unique position, it isadvertising itself as they can beseen and they are also accessible.So these have been key sellingpoints for the corporate towers.”In recent years, the local office

property market, especially withinthe Klang Valley, has been experi-encing a glut.According to the National

Property Information Centre’sproperty market report last year,Kuala Lumpur office building com-pletions stood at 320,643 sq m, butthe take-up rate was only 24,646 sqm.Pavilion Damansara Heights will

have about 1.5 million sq ft ofoffice space, a third of which willbe in the last and highest block. Alleight blocks will be acquired bycorporate companies or corporatefigures. The smallest is an 11-storeyblock with a net lettable area of75,000 sq ft.The development is part of the

larger Pusat Bandar Damansara,which has a 46-acre foot printwhich the Pavilion Group shareswith a couple of other developers.Lai says an added appeal to the

corporate towers within PavilionDamansara Heights is that thebuildings are designed for BCAGreen Mark accreditation. This is agreen building rating system thatevaluates a building for its envi-ronmental impact and perfor-mance.The rating provides a compre-

hensive framework to promotesustainable design, constructionand operations practices in build-ings, says Lai,“The buildings are also designed

for MSC status. With this (BCA andMSC) dual compliance, rental yieldand appreciation is generally high-er. This is however only achievablefor newer built projects,” she says.Lai says the integrated develop-

ment, which would also feature aretail component, will be comple-mented by the offices.The Pavilion Damansara

Heights development will alsohave about 1,300 residential units,

with sizes ranging from 600 sq ftto 2,800 sq ft.Lai says the interest so far for its

residential blocks has been in thelarger units, which again bucks thetrend because other developershave reported interest in smallerunits of about 1,000 sq ft andbelow.“By the end of 2017, we will be

launching two of the residentialtowers consisting of 746 units. Weanticipate at least 85% take-up rateby the end of the year. We projectthe first to sell will be the biggerunits as we see many people mov-ing out from their bungalows.”

Prices average RM1,800 per sq ftand close to 2,500 have registeredtheir interest, says Lai.“The best thing to invest in cur-

rently is property. With the depre-ciation of the ringgit, it’s expensiveto purchase overseas. So buyinglocally is the best option right now.“And Pusat Bandar Damansara is

the perfect fit. I don’t think you’llfind anything quite like it now.”But don’t just take Lai’s word for

it. The trendy Damansara Heightssuburb was recently named byLonely Planet as one of the “10world’s coolest neighbourhoods tovisit” alongside suburbs in great

world cities like London and NewYork City.“One of the richest addresses in

Kuala Lumpur, this neighbourhoodhas retained its personality despiteits recent revitalisation,” LonelyPlanet writer KongWai Yeng wrotein the description of DamansaraHeights.She continued to name several

popular eateries in Jalan Batai thathas developed the neighbourhoodinto a “community-focused streetreplete with eateries and cosmopol-itan conveniences”.In addition to the commercial

offerings, she says Bukit

Pavilion DamansaraHeights is ‘the address’Pavilion Group surprised by better-than-expected response from buyers

Unique advantage: Lai says a unique selling point of the project is that it faces the Sprint highway and sits between two MRT stations.

* NLA = Net lettable area Source: Pavilion Group

Pavilion Damansara Heights snapshot

■ Parcel 1(5-storeys)

■ Parcel 2:(7-storeys)

■ Total *NLA: 1.17million sq ft

Bespoke retail

Nine towers comprising:■ Seven corporatetowers for en-bloc sale

■One corporate tower(strata suites)

■One corporate tower(strata floors)

Corporate towersLuxury residences (parcel 1)

Three residential towerscomprising:■ Service Suites 1 (568 units)■ Service Suites 2 (581 units)■ Private Residences (165 units)

Comfy: A bedroom view at the luxury residences show unit.

BizProperty 17

NEW BRICKS AND MORTAR

©The Star Graphics

Akasa Cheras SouthSeri Kembangan, SelangorDeveloper: Hap Seng LandDevelopment (Balakong) Sdn BhdNo of units / lots: 998 unitsPrices: From RM 482,888 to RM1.21milBuilt-up area: 850 sq ft to 2,048sqSalient point: Service residencewith sandy beach, sky garden,gourmet kitchen, private dinningatrium

AmanAra ResidensiKayu Ara, Petaling Jaya,SelangorDeveloper: SweetharvestDevelopment Sdn BhdNo of units / lots: 22 duplex,two loftsPrices: From RM1.56milBuilt-up area: 2,000 sq ft(Duplex) and 1,000 sq ft (lofts)Salient point: Hybridtownhouses with suspendedgarden, gym, children’splayground, mulitpurposeseminar room

The Greens @ SubangWestShah Alam, SelangorDeveloper: CB Land Sdn BhdNo of units / lots: 646 unitsPrices: From RM568,800 to -RM749,000Built-up area: 915 sq ft to1,830 sq ftSalient point: Condominiumswith nursery, playground,sauna, jogging track

UrbanoGlenmarie, Shah Alam, SelangorDeveloper: Paramount Property(Glenmarie) Sdn BhdNo of units / lots: 389 units

Prices: From RM 495,200Built-up area: 688 sq ft to 999 sq ftSalient point: Serviced apartments withswimming pool, wading pool, gamesroom, gymnasium

Senada Residences @ Alya Kuala LumpurBukit Kiara, Damansara Heights, Kuala LumpurDeveloper: Sime Darby Brunsfield HoldingNo of units / lots: 429 unitsPrices: From RM978,800Built-up area: 700 sq ft to 958 sq ftSalient point: Serviced apartments with function room and outdoor dining area, chessgarden, gazebo

Ridgefield Residences,Tropicana HeightsTropicana Heights, KajangDeveloper: Tropicana KajangHill Sdn BhdNo of units / lots: 109 unitsPrices: From RM846,000Built-up area: 1,994 sq ft to3,931 sq ftSalient point: Townhouseswith multipurpose hall,community park, recreationalhub

Damansara has a slightly nostalgicedge attached to it and also a strongcommunity spirit that makes it aninteresting neighbourhood.Lonely Planet is the largest travel

guide book publisher in the world.Damansara Heights is the onlySouth-East Asian neighbourhood inthe list.The other neighbourhoods

named are Borgo San Frediano inFlorence, The Triangle in Lisbon,Vesterbro in Copenhagen, SunsetPark in New York City, Botafogo inRio de Janeiro, Frelard in Seattleand Tooting in London.The two other Asian neighbour-

hoods in the list are Seongsu-dongin Seoul and Business Bay in Dubai.

Brisk salesDuring the interview earlier this

week, Lai says the Pavilion Grouphad only opened its gallery doorsfor just four days – but take up forthe units had been overwhelming.“The potential customers have

been from the surrounding loca-tion. We’ve not targeted the foreignmarket at all – the take-up is alllocal.”So great has the response been

from local buyers that Lai says thegroup hasn’t even had time toadvertise its products overseas.“We do have a database of for-

eign buyers – it’s quite globalised.But the take-up rate was so fast wedidn’t have time to market it to for-eign buyers. We’re opening it up toour local database first becausethey’re familiar and trust thebrand.“We did a lot of research – many

hours went into the planning. Atthe end of the day, it’s also how wetarget our buyers as well. We needto know what they want,” she says,adding that the group will open upregistrations to more foreign buy-ers for the next phase of the pro-ject, which it intends to launchnext year.Lai says the group conducts

“post-mortems” on a daily basis toevaluate buyer feedback.“This is crucial to ensure buyers

can continue to have faith in thebrand,” she says.“Everyone knows the Pavilion

name and the strength of thebrand, but it’s not just for retail.When we started, the first projectthat we launched was PavilionBanyan Tree and the sales take-uprate was actually quite unexpectedbecause of the price range as well(around RM2,000 per sq ft).“It was one of the first

hotel-branded residences at the

time, we had 441 private residenc-es and we sold most of it over a six-month period. Initially we thoughtwe had to target overseas buyersbut there was a lot of local take-up.”Lai adds that the group then

moved on to launch PavilionHilltop in Mont Kiara.“Again, at that time, there was a

lot of talk that the market would bestagnant – and even the pricerange (between RM900 per sq ftand RM1,000 per sq ft) was abovethe market right at the time.Bankers were also asking “can yousell in this market?”“And I think at the time, we were

still in the depth of the financialcrisis.”In spite of the timing, Lai says

sales for Pavilion Hilltop werebrisk.“Effectively, the sales for our pro-

ject in Mont Kiara was equallygood – it was fast and strong. Afterthat we launched Pavilion Suites inKuala Lumpur, which was the mostexpensive condominium inMalaysia at the time.“We averaged at RM3,500 per sq

ft and peaked at RM4,000 per sq ft.All 383 units have been fully sold.Projects like Pavilion Suites – it wasvery exclusive, mostly by invitationonly or word of mouth.”Lai says a similar sales strategy

was done to attract buyers forPavilion Damansara Heights.“Everybody seems to be going

into integrated developments. It’s achanging lifestyle as well. People’sexpectations, needs... they wantconvenience. Many people are alsodownsizing. The whole socio-demo-graphic needs have changed.”

Retail havenThe Pavilion Group will also

have retail space of 1.17 million sqft within the Pavilion DamansaraHeights project – split between afive and seven-storey develop-ments that will be seamlessly con-nected. The retail mall will also beconnected to the PavilionDamansara Heights MRT station.The retail mall, nine out of 10

office blocks and the majority ofthe residential units are expectedto be completed in stages by 2022.During the official unveiling of

the Pavilion Damansara Heightsproject last week, Kuala LumpurPavilion Sdn Bhd retail chief execu-tive officer Datuk Joyce Yap saidthe mall would be centrally locatedand seamlessly connected to theSungai Buloh-Kajang MRT Line“It is just five stations between

Pavilion Damansara Heights andPavilion Bukit Bintang MRT. TheMRT had a ridership of over 7.4million from December 2016 toAugust 2017 and it serves as a cor-ridor with an estimated populationof 1.2 million.“This is a high and growing

catchment for the mall to capitaliseon, in addition to serving the con-venience for mall retailers andemployees.”With great location and connec-

tivity, Yap says retailers also seekquality retail space to expand theirbrands.“We are in an affluent location

in Kuala Lumpur, surrounded byexclusive neighbourhoods, generat-ing a niche catchment for the malland retailers.”The Pavilion group is best

known for operating the upmarketPavilion KL mall.It has been reported that the

local retail property market is cur-rently facing a glut. With some 40malls gearing up to enter GreaterKuala Lumpur by 2020 – a dozen ofwhich are boasting a net-lettablearea (NLA) of one million sq ft, thelocal retail market is set to be chal-lenging.Currently, it is anticipated that

there are about 250 malls withinthe Klang Valley.Yap says that with so many malls

offering standardised retail, peopleare seeking new experiences.“Pavilion Damansara Heights

will carve a niche for itself byoffering an unprecedented retailpositioning,” she says, adding thatthe Pavilion retail brand hasachieved much success and globalrecognition.In August, the Pavilion Group

unveiled plans to develop thePavilion Bukit Jalil City mall andhas targeted sales of RM1.7bil in itsfirst year of operations.During the unveiling ceremony,

Yap revealed that the group hasplans to differentiate the upcomingmall by attracting shoppers withnew brands and concepts.Yap says the mall, which would

open for business in 2020, hasreceived more than 1,000 registra-tions from prospective tenantsalready – debunking the wide-ly-held view that a glut remains inthe commercial property space.With a net lettable area of 1.8

million sq ft, the Pavilion Bukit JalilCity mall is set to be a regional mallin terms of brand mix, flagshipstores and concept.Yap expects the mall to have an

occupancy rate of over 70% whenit begins operations in three years.

Dining space: A shot of the dining room at the show unit from Pavilion Damansara Height’s luxury residences.