Developers are increasingly becoming fascinated by the excitement and thrill of building high-end homes that enjoy high profile and strong take-up rates. In the past one year, the market has been abuzz with launches of luxury condominiums and exclusive homes in well sought-after addresses and gated communities. They have provided a silver lining in the wake of the lacklustre performance of the general property market, especially for affordable homes.

StarBiz assistant editor ANGIE NG caught up with developers in the high-end sector to feel the pulse of the market.

LIFESTYLE and high-end residential homes are becoming status symbols for the affluent. Where one stays is an important consideration as the residential address says a lot about the stature of the person in the eyes of society.

This is the reason why so many high-end and exclusive projects are being built in various parts of the country, especially in Kuala Lumpur and the Klang Valley, and many of these projects have registered strong take-up rates.

The fact that these homes are the ones that are still selling well and are not experiencing a slowdown like for some other types of residential properties, especially the medium-priced ones, indicates that demand for such homes still exceeds supply.

To keep up with the growing demand for such homes, developers are vying for more of such exclusive projects and are on the lookout for land in well sought-after addresses to build more innovative products.

Considered as chic and fashionable, residents of such high-end homes can look forward to enjoying the exclusive environment, privacy, security and the comfort of these well-designed and built homes.

Most of these high-end homes have some common attributes, including low density, unique designs and themes, landscaping features, and an air of freshness and luxury.

The favourite hot spots for such high-end homes are the Kuala Lumpur City Centre (KLCC) enclave, Mont'Kiara, Damansara Heights, Bukit Tunku, Ampang Hilir/U Thant and pockets of land around Petaling Jaya and Kuala Lumpur.

Within the periphery of the KLCC alone, there are at least 12 high-end condominium developments with close to 3,000 residences.

These luxurious condominiums have price tags from RM500 to RM1,200 per sq ft and are equipped with a host of features and facilities .

Avenue Securities analyst Chan Ken Yew said the number of developers who were going into the high-end market had grown with more than a dozen of them being active in the Klang Valley alone.

''These high-end projects provide gross margins of between 35% and 40%, which are quite lucrative compared with the average 15% to 20% of most other developments. This augurs well for the bottom line of the companies and should drive greater interest for such developments,'' he said.

Parcels of land within the surrounding KLCC vicinity are changing hands at a rapid rate and at higher prices per sq ft of close to RM550 compared with almost half the prices two to three years ago.

Another popular address for high-end condominiums is Mont’Kiara, which has become home to more than 15,000 people, mostly high-rise dwellers.

Developers are swarming into high-end developments because they provide higher margin per sq ft, which translates into better profit for the companies.

These signature developments are rapidly changing the property landscape of the Klang Valley with their state-of-the-art architecture and the prestigious glass and steel effect.

These exclusive housing enclaves feature mostly semi-detached homes and bungalows with multi-million ringgit price tags.

Sunway City Bhd’s Kiara Hills with its enclave of 88 bungalows priced from RM4.5mil each, courtyard villas and condominiums, has set the industry price benchmark for high-end living.

Sunrise Bhd managing director Datuk Michael Yam said: ''In today's market, house buyers are no longer looking at just the price and size, and this is more so for the higher income bracket population. It is a complete package that they are looking for, on top of the quality of the physical unit, the surrounding neighbourhood, the address, the amenities and conveniences; it is the lifestyle that comes with the house.''

At the end of the day, besides location and the potential value, it all boils down to high quality standards and attention to details.

As aptly summarised by Mah Sing Group Bhd president and group chief executive Datuk Leong Hoy Kum: ''Well conceptualised, value-added lifestyle projects with innovative designs in strategic locations and easy accessibility that are backed by the developer’s strong branding and reputation are stealing the limelight these days.''

Source : The Star  19/09/2005