Concerns that Kampung Kerinchi will become the new moniker for Bangsar South have been allayed, according to real estate experts.
During a meeting between Kuala Lumpur MPs and Kuala Lumpur Mayor Tan Sri Mohd Amin Nordin Abdul Aziz, Lembah Pantai MP Fahmi Fadzil recently proposed the name change. On social media, some internet users, however, have voiced their discontent with the name change and said that it would cause the cost of real estate in the area to rise.
Siva Shanker, immediate past president of the Malaysian Institute of Estate Agents and head of investments at Axis REIT Managers Bhd, allayed concerns about this topic by claiming that a name change will not necessarily cause a decline in property values.
Although the name could be changed to Kampung Kerinchi, the investment community will still refer to the area as Bangsar South because the development is already much too well-established. Perhaps there might be some price fluctuation if it weren’t as well established, he suggested to The Edge Financial Daily.
Siva thinks it would be preferable to keep the name Bangsar South, at least for the enclave’s commercial and residential projects.
“Like anything else in the world, real estate is subject to branding. If the name Bangsar South had no merit, the developer probably would not have given it a try in the first place. Being known as Bangsar South has some draw, he claimed.
Datuk Christopher Boyd, executive chairman of Savills Malaysia, agreed.
“In my opinion, a developer who owns a sizable parcel of land should be able to give it any name they choose, as long as it is reasonable. I believe changing the name would be unfair to the developer who spent a lot of effort and money developing Bangsar South as a posh neighbourhood for living and working.
The primary developer of Bangsar South, a 60-acre (24.28ha) fully integrated residential and commercial area, is UOA Development Bhd. Bangsar South’s name was changed from Kampung Kerinchi six years ago.
The success of Bangsar South, according to managing director of VPC Alliance (KL) Sdn Bhd James Wong, is evidence of the value of branding.
“When UOA Development bought the substantial block of land in this location, they wanted to set it apart from Kerinchi, which is primarily made up of low- and medium-priced apartments. Despite not being adjacent to Bangsar, this is how Bangsar South got its moniker.
“Bangsar is a term used to describe a high-end and desired residential and commercial development. The way UOA Development convinced Kuala Lumpur City Hall to approve the name change to Bangsar South was cunning, he continued.
According to CBRE|WTW managing director Foo Gee Jen, the name and branding environment contributes little to the value of real estate.
“At the beginning level, this is mostly relevant as a purchasing consideration. Beyond this, long-term financiers or property owners must look. To maintain and preserve the value, he said, location, infrastructure, connection, and the availability of services are essential components.
The Novum Serviced Residences, the first development in Kuala Lumpur by Kedah-based property developer EUPE Corp Bhd, are situated in Bangsar South.
The managing director of Eupe, Datuk Beh Huck Lee, told The Edge Financial Daily that compared to Kampung Kerinchi earlier, Bangsar South has developed significantly.
“Despite being close to Bangsar and the city centre, many Kuala Lumpur residents connected the moniker Kampung Kerinchi with squatters and underdevelopment.
“Today, [as Bangsar South], it is a very active commercial centre with an excellent traffic network. Therefore, with its new name and a fresh image that reflects the area’s revival, we need to keep looking forward, he said.
source from TheEdgeMarkets