With posh Grade A office skyscrapers, hotels, high-rise homes, and an abundance of retail and F&B options, Kampung Kerinchi has emerged as one of the Klang Valley’s most sought-after locales. It also contains a number of ongoing, recent, and impending projects.
In its July 6, 2009, issue, City & Country stated: “If the term [Bangsar South] sounds a bit foreign, it is because many know the area as Kampung Kerinchi in Kuala Lumpur.” This was almost ten years ago.
At the time, the Putra LRT Universiti station’s bus stop was being upgraded, and a food court was being built for the vendors who maintained roadside stalls. UOA Group, the developer of the 60-acre mixed-use Bangsar South development in Kerinchi, was in the process of giving the area a facelift.
Fast forward to the present day, and Kampung Kerinchi has come to be associated with the brand name Bangsar South.
The director of CCO & Associates (KL) Sdn Bhd, Chan Wai Seen, claims that the massive Bangsar South project had a significant impact on the neighbourhood. Many developments nearby have benefited from Bangsar South’s notoriety through association, while others have attempted to use the name in their endeavours.
“Like Ara Damansara, several developers have used the name in their projects, especially when they launch, even if the ultimate address may alter. It originated with the township project by Sime Darby Property. The name of the project eventually takes on the identity of the neighbourhood, claims Chan.
It is believed that a group of people from Kerinci, in Sumatera, established a community there in the 18th century, beginning the history of Kampung Kerinchi. Some locals believe the name is an integral part of the community’s legacy and worry that if the name is changed for the sake of progress, a significant element of the region’s history may be lost.
Fahmi Fadzil, a member of parliament from Lembah Pantai, recently asked for the name of Bangsar South to be changed back to Kampung Kerinchi, and she is currently having negotiations about it with the Kuala Lumpur City Hall (DBKL) and numerous stakeholders.
The developer of Bangsar South, UOA Group, makes it clear that the name “Bangsar South” refers to the mixed-use complex, not the neighbourhood. UOA Holdings Sdn Bhd, a member of the UOA Group, is the registered trademark holder for the names “Bangsar South” and “Bangsar South City.”
Property specialists have allayed fears that the area’s property values may decline as a result of Kampung Kerinchi’s renaming of Bangsar South, as was published in The Edge Financial Daily on June 11th.
According to CBRE|WTW managing director Foo Gee Jen, branding and name recognition are only a minor component of the ecosystem that determines how much a piece of property is worth. “At the beginning level, this is mostly relevant as a purchasing consideration. Beyond this, long-term financiers or property owners must look. For the value to be supported and sustained, location, infrastructure, connectivity, and the availability of services are essential.
According to Datuk Christopher Boyd, executive chairman of Savills Malaysia, it would be unjust to the developer who spent a lot of time and money making Bangsar South an upmarket neighbourhood to live and work in.
“I think a developer should be free to call itself whatever it wants within reason if a developer owns a very large stretch of land,” he said.
Many investors, particularly foreigners and expats, are more familiar with Bangsar South than Kampung Kerinchi, according to CCO’s Chan, but the impact of any rebranding will be temporary as long as the area continues to offer high-quality properties.
Favourable market outlook
Chan is upbeat about the medium- to long-term prospects for its real estate market as Kampung Kerinchi has developed into a well-known site for residential and commercial constructions.
According to him, the existence of a sizable population who both lives and works in the area bodes well for complementary initiatives like retail, wellness, and leisure projects.
Chan claims that before UOA began building Bangsar South in 2007, the neighbourhood was primarily occupied by squatters and Kampung Kerinchi’s constructions were primarily residential. As a result of the area’s near proximity to Universiti Malaya, he claims, “many residential units cater to students.”
Chan continues by saying that the construction of apartments and condominiums on small plots of land, such as Vista Angkasa by Kuala Lumpur City Hall, Pantai Hillpark by YTL Land & Development Bhd, and Pantai Panorama by Amcorp Properties Bhd, did little to improve Kampung Kerinchi’s reputation, which at the time was dominated by squatters and low-cost housing.
According to Chan, Bangsar South served as a stimulus for Kampung Kerinchi’s urbanisation and helped the area become a well-planned, modern, integrated development.
The development’s success is partly attributable to its strategic position in the Klang Valley, which is adjacent to Bangsar, Petaling Jaya, Old Klang Road, and Damansara.
According to him, Kampung Kerinchi’s real estate costs have increased by 30% to 40% during the last five years. Residential property costs range from RM750 to RM1,000 per square foot for projects finished less than eight years ago, and from RM500 to RM650 for projects older than ten years, according to the expert.
The Universiti and Kerinchi LRT stations, as well as a number of motorways such the Federal Highway, New Pantai Expressway, and Kerinchi Link, are accessible from the region. “The Setiawangsa-Pantai Expressway (SPE, formerly known as DUKE Phase 3) will be completed,” claims Chan, adding that this will improve accessibility at Kerinchi.
The most expensive housing developments in Kampung Kerinchi are KL Gateway Residences, South View Serviced Apartments, and Camellia Serviced Suites (all three built by UOA) (by Suez Capital Sdn Bhd). He continues, “The inexpensive ones are Vista Angkasa and Pantai Panorama.”
He claims that The Park Residences and Camellia Serviced Suites are two of the area’s most well-liked constructions (by UOA).
Smaller units, ranging in size from 638 to 1,419 sq ft, are available at Camellia Serviced Suites, which is a F&B and lifestyle retail centre close to Nexus. Units can be outfitted partially or entirely, according to Chan. The Park Residences, with typical sizes ranging from 1,260 to 2,097 sq ft, is appropriate for families. It is close to The Village, which has food and beverage establishments. Both projects have strong security measures in place.
Some of the most recent completions in Kampung Kerinchi include South View Serviced Apartments, KL Gateway, The Park Residences, and The Vertical within UOA’s Bangsar South development.
Serviced flats in the region are now priced between RM800 and RM1,000 per square foot, while offices range from RM900 to RM1,000 per square foot, according to Metro Homes Sdn Bhd director See Kok Loong. According to him, UOA’s initiatives are well-liked in the neighbourhood since a bridge connects them to the Kerinchi LRT station.
The Estate by Bon Estates Sdn Bhd, Novum @ South Bangsar by Eupe Corp Bhd, and South Link Lifestyle Apartments by UOA are three ongoing projects to keep an eye on.
Units in Novum @ South Bangsar range in size from 647 to 1,441 square feet, with an average price per square foot of RM900. There will be condominiums available at The Estate with built-ups ranging from 2,346 to
5,807 square feet, starting at RM767 psf. The apartments at South Link Lifestyle range in size from 452 to 904 square feet and start at RM784 per square foot.
The Sphere lifestyle retail mall, The Village’s restaurants, the lifestyle centre Nexus, Life Care Diagnostic Medical Center, Cengild Medical Center, and Sunfert International Fertility Centre are just a few of the amenities available in Bangsar South.
The Sphere’s net lettable space was increased from 67,000 square feet to 110,000 square feet as a result of UOA’s renovations in 2017. With 93% occupancy, the mall reopened in February of this year.
As a result of its promising medium- to long-term prognosis, Kampung Kerinchi should be on the list of real estate markets to monitor, in See’s opinion. However, because the majority of the land in the region is leasehold, he claims that properties on the secondary market may be impacted, however other criteria, such as maintenance and the community, may have an impact on values instead of just tenure. He doesn’t anticipate any significant effects on primary market projects.
“The majority of developers would be extending their leases by 99 years, and new titles had recently been issued. Also, the lease will still have more than 90 years left after the development is finished.
The structural building lifespan for high-rise developments is roughly 50 years, and many buyers are less picky whether the tenure is freehold or leasehold, the author claims. He emphasises the fact that South View and Novum are two recent outliers that are freehold constructions.
Commercial segment is growing
Since Kampung Kerinchi historically consisted primarily of residential complexes, the business and retail sector of the market is thought to be relatively new in the region.
According to Stanley Toh, executive director of Laurelcap Sdn Bhd, “the landscape has shifted from condominiums and apartments to office buildings, retail stores, a convention centre, and a hotel.”
The Horizon boutique office towers’ opening in 2013 or 2014 was the most noticeable alteration. Nexus Bangsar South followed, and right now it is the Vertical Business Suites, claims Toh. He credits the region’s strategic location and accessibility for this growth.
Toh claims that The Vertical Business Suites’ pricing have increased from RM900 per square foot in 2016 to RM1,100 per square foot this year, indicating a demand for office space in the area.
According to Toh, many buyers are enticed to the idea of having a solitary office tower with good visibility at an inexpensive price in terms of absolute quantity. This is especially true with the Horizon Boutique Offices. The office buildings have all been sold, and the price range when it was first introduced was between RM35 million and RM50 million, according to him. Toh doesn’t think any of the towers are for sale, and if they were, he thinks the asking price would be nearly twice as much as the developer’s asking price.
KL Gateway, a recently finished commercial building, offers offices in a 38-story tower with built-ups ranging from 1,200 to 11,800 square feet, while The Vertical Suites’ 35 and 32-story Towers A and B provide offices with built-ups ranging from 735 to 1,350 square feet.
Toh asserts that the general state of the economy has caused prices in the commercial sector to rise, albeit slowly.
According to Toh, the trend of businesses relocating from the city’s core to its periphery is visible at Kampung Kerinchi, where Pfizer Malaysia, Dagang Exchange Bhd, I Synergy Bhd, Touch & Go, Property Guru, and Persys Technologies Bhd have established offices. He continues, “CIMB Bank is also relocating from its present location in Jalan Raja Laut to Bangsar South.”
According to CCO’s Chan, the typical price of offices in the area is currently between RM800 and RM1,000 per square foot and has climbed by around 20%. The occupancy rates of the offices in the area are also generally over 70%. He points out that the retail space is all for lease and has an occupancy rate between 50% and 80%.
Toh thinks there is room for value to rise in the Bangsar South office market, where the average price per square foot is roughly RM1,000.
According to him, the average pricing in KL Sentral and KL Eco City is between RM1,300 and RM1,500 per square foot, while the price in Damansara City Centre starts at around RM1,500. Aside from The Vertical Business Suites Towers A and B and KL Gateway, high-rise serviced apartments make up the majority of the area’s forthcoming constructions. Therefore, there is still room for capital growth, according to Toh.
According to real estate experts, Kampung Kerinchi has grown more crowded as more projects are being built there, particularly during rush hour.
While See believes that traffic management can be improved and recommends using flyovers to reduce the number of traffic lights, Chan asserts that accessibility from the NPE needs to be addressed. He also anticipates improved accessibility because to the Pantai Sentral Park interchange and the new SPE.
Toh says that the main factors driving price increases will be improvements in the area’s transportation and accessibility.