Sifus & Bosses,

Need investment opinion between Suasana Sentral Loft and Sunway Velocity's V Residence 2. Below are my own view but hard to decide between them. What is your take?

<Suasana Sentral Loft>

1. Title: Residential Condo
2. Location: KL Sentral - need no more description
3. Connectivity: LRT, Monorail, plus future MRT
4. Surrounding: Grade A office buildings occupied by MNCs
5. Pricing: asking 1000++ psf
6. Rental prospectus: Was told very easy to find tenant
7. Freehold & completed

<Sunway Velocity V Residence 2>

1. Title: Commercial - Serviced Residence
2. Location: Cheras but at the fringe of KL City Centre
3. Connectivity: Future Cochrane MRT station, underground
4. Surrounding: When complete, immediate surrounding are offices, shopping mall; wider surrounding some old quarters probably need regeneration
5. Pricing: RM1000++ after discount
6. Rental prospectus: Unclear, any advice? Is RM3500 for a 900sf 2-bed unit possible?
7. Freehold expected to complete in 2017

Thank you.

TRX residential launches will likely be rm1.5k++, if not rm2k+. Just look at how they position themselves surely the ambition is on par with KLCC enclave. Both MRT1 and MRT2 will also have station at TRX.

Here is the breakdown of RM400 psf difference between Amaya Maluri (RM700) and Sunway Velocity (RM1100)

100 Freehold
50 Not near high tension power
50 Better immediate neighbourhood and amenities
50 Slight proximity to city centre
150 SUNWAY BRAND
400 Total

For existing neighbourhood and amenities, definitely TG is way better, needless to describe further. Those who go for Velocity is buying for the "blueprint" for future potential, with upcoming Ikea, and big parcels of government lands, and this could "transform" the area, not to mention that it is in fact very close to the city centre (although bearing the Cheras address) with TRX one stop away - BUT, all these rosy pictures have a high "execution" risk.

Both have upcoming MRT station, although Velocity has got a bit of edge with underground station, which I think much better than the elevated ones.

Afterall, these two projects are already expensive in pricing, both run the price stagnant risk and with such level of entry price, finding tenants to pay an attractive rent might be difficult.

But if i really have to choose one of the two, I will go for Velocity - as net net, on assumption of both projects becoming successful, i see Velocity with more upside potential being so close to city centre and TRX. And, Sunway builds successful mall, Tropicana would need to prove they can do the same.

Nearly forgot, TG is leasehold, i always roughly account for a 10% difference between freehold and leasehold. So if both selling at RM1100psf, I would say TG is in fact selling at about RM1200 for freehold equivalent comparison.

Land within the TRX development has a reserved price of RM3000-3500psf, close to the pricing within the KLCC enclave. So can roughly guess how much psf the residences/offices will sell for the TRX development. Also, there are various tax breaks, allowance, incentives for TRX.

On the paper, it will rivals KLCC area, but whether it will be successful is open to everyone's interpretation.

Can know how big the size for these units?

Price cut on Sunway Velocity for the new V Residence Suites? Was advertised starting price/unit from 624sf and RM690k, i.e. 1105psf?? Thought already selling RM1200psf in previous phases?


http://newlaunch.iproperty.com.my/Sunway-V...F3NAaAm_L8P8HAQ

Here also, starting RM690,000/624sf

http://www.sunwayproperty.com/velocity/

It would be quite disappointed if the quality of tenants only like Paradigm Mall

Thanks. Got clearer picture? Try to see the price and size

Any news on phase 1 V Residence completion date? Thought it should be by Nov 2014?

It is a tough market. Retail space supply getting plentiful and retailers think twice on expansion. Economy is slowing and consumers have less to spend.

Any mall wants to fill up a 1 million lettable space is undoubtedly challenging, if able to achieve 70% occupancy on opening should be commendable, thereafter if can rise to 90%+ occupancy in 2-3 years time is a success.

Bad idea to have so many floors of mall. Just like Nu Sentral, less foot fall on higher floors, they need to put some good brand tenant or f&b well spread across floors to attract people to walk up.

How big the size your 1+1 ?

Hmm, not cheap ar. They keep increasing the price bit by bit, really confident. Think after the opening of mall, other amenities and MRT coming to operation the area will be enhanced.

Another right step by Sunway. I have always thought that Sunway velocity development size is not big enough. For any regeneration to be successful, size matters other than execution ability (something Sunway good at).

With velocity mall now likely a success, timing can't be better to expand it now.

Road accessibility needs to be enhanced though in that area, hopefully the link to MEX highway will bring about the change.

Footfalls for the mall can only get better when MRT starts operation, just like how it benefits mid valley mall.

My bad. Remember reading news about link to MEX from mytown or IKEA side, even if that happens shouldn't link to velo

Looks nice. It has the potential to become a successful integrated development since mid valley and kl sentral

Nice. Finally M&S Food is here. Food has always been M&S' main selling point, I am quite surprised that none other M&S stores in malaysia like the one in Gerdens Mall sell food.