27 April 2010

Crest Builder postpones launch of luxury condominiums.

Read about the The Edge's news coverage here.

PETALING JAYA: Crest Builder Holdings Bhd has pushed back the launch of its first high-end project Kiara Crest in Mont’Kiara, Kuala Lumpur to end of next year on concerns of an oversupply of residential high-rise units there, its executive director Eric Yong (pictured) said.

The cumulative supply for high-end condominiums in Mont’Kiara had increased in recent years, he said, citing data from Knight Frank Research’s “2nd Half 2009 Real Estate Highlights” report. In an email reply to theedgeproperty.com, Knight Frank Research said the cumulative supply of high-end condominiums in Mont’Kiara had increased to 9,071 units in 2009 from 7,428 units in the previous year.

This year, the cumulative supply in that area is forecast to be at 10,474 units and 10,921 units in 2011. Yong also disclosed that Kuala Lumpur City Hall (DBKL) had discouraged the contractor-cum-developer from going ahead with the project.

“We submitted our plan to DBKL, but they did not encourage us to go ahead with the plan because of the oversupply and lack of adequate infrastructure to cope with the increasing traffic here. As far as I know, DBKL has just begun to draft its plans to improve the infrastructure there.

“For us, we are launching only something like 160 units so we rather wait,” he told theedgeproperty.com recently. He added that the company was not in a hurry to launch the RM220 million project because of the virtually zero-holding cost of the land which was acquired in 2004 for only RM6.7 million cash, or RM52 psf.

The proposed Kiara Crest is a 38-storey luxury tower housing 178 condominiums with floor space of between 2,000 sq ft and 2,600 sq ft on a 2.93-acre freehold land. With only six units per floor on 32 levels, the average unit will have between two and four bedrooms. Each unit will have a minimum of three car parks.

Located on Jalan Kiara 5, construction work was initially slated to commence early this year. It is located near Sunway’s Casa Kiara 2 and Asiaquest’s Gateway Kiaramas. The project is also a stone’s throw away from the Garden International School on Jalan Kiara 3.

The company completed its maiden project – the leasehold RM280 million 3 Two Square in Petaling Jaya’s Section 19, three years ago. The 5.5-acre commercial project features a 13-storey office tower, 199 office suites and 38 retails lots.


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