Is KLCC Property Evolving Towards Branded Serviced Residences?

Is KLCC Property Evolving Towards Branded Serviced Residences?

Kuala Lumpur City Center, or KLCC, is a highly sought after prime location in Malaysia. Right in the heart of Kuala Lumpur, KLCC is a commercial, business and entertainment hub that is always abuzz with plenty of activities. 

With buzzing life that’s happening around here, it is no wonder that more and more people choose to live in this area, not only for the convenience but also for the affluence and prestige that KLCC symbolizes. 
 

Types of Property in KLCC

KLCC is home to numerous commercial and residential developments. Commercial developments include shop units, retail units, office towers as well as SoVo/SoFo units. 

Residential property in the KLCC area are usually high rise apartments, condominiums and of late, branded serviced residences. This is due to the limited space left in this area as well as the high price of land in KLCC.  
 

Branded Serviced Residence Vs Normal Apartment

 A serviced residence usually refers to a serviced apartment unit that is fully furnished coupled with services such as concierge services and housekeeping services. These residences can be used for short term or long term stays, depending on the owner of the unit. Branded serviced residences have a tie into hotel or luxury brands that offer status and recognition through the association. 

Normal apartments or condominiums are private living spaces that are usually home to individuals or families. Some apartments and condominiums have very limited facilities.

Here are some other differences between branded serviced residences and normal apartments.

1. Difference in Land Status
Serviced apartments are usually built on commercial land while normal apartments/ condominiums have residential land status.

2. Difference in Utility Charges
Due to the commercial land status, serviced apartments have utility charges that are based on commercial rates. This means that utility deposits are also higher compared to normal apartments

3. Difference in Assessment Rates
Quit rent and assessment rates for serviced apartments are also calculated according to commercial rates, which again, will be more costly compared to normal apartments. 
 

Why Will Investors Choose Serviced Residences?  

There are several reasons why investors tend to choose serviced residences over a normal apartment, even though there might be a vast price difference. 

Branded serviced residences usually have good management (hotel management if they are associated with a hotel brand / located next to a hotel) that will ensure good building maintenance. This in turn ensures that the property value increases over time, giving investors a good return of their investment.

Branded serviced residences also usually come with fully furnished interiors that are not only functional but stylish as well. This makes rental units highly sought after for both short term and long term accommodation. Thus, investors will also gain from the high rental yield that these properties can bring. 
 

Typical Services/Luxuries Available in Branded Serviced Residences

Branded serviced residences usually have state of the art facilities and excellent services that aim to provide residents with the best luxury lifestyle. Facilities at these residences will include and are not limited to a swimming pool, sports facilities, gymnasium and landscaped gardens.
 


 

Typical services provided at branded serviced residences include concierge services, valet services, housekeeping and laundry services. The management will also provide 24-hour security to ensure that residents and their homes are safe. Additionally, there will be ‘a la carte’ services such as child care services, pet care services, personal trainers, personal chef and even car care services.

If the residence is one that has a hotel brand tie-in, residents will most likely be offered privileges and special discounts if they stay at that particular hotel. 

For example, those who live at The Residences at St Regis Kuala Lumpur have preferred rates at Starwood hotels worldwide. If the residence is connected to a hotel, then residents will most likely be given access to all the hotel facilities and amenities. 
 

Branded Serviced Residences in KLCC

The number of branded serviced residences in KLCC have been rising steadily over the past few years, encouraged by the number of investors who are willing to put their money in these luxurious units. 

Among the branded serviced residences in KLCC are YOO8 by Kempinsky, The Residences @ St. Regis Kuala Lumpur, Banyan Tree Signatures Pavilion, Four Seasons Private Residences and The Ritz-Carlton Residences. 

This market will continue to grow and according to Frank Knight’s 2019 Branded Residences Report, Kuala Lumpur’s branded serviced residences recorded a premium of 69% against non-branded luxury residences. 
 

YOO8 serviced by Kempinski, the latest branded serviced residences in KLCC

YOO8 serviced by Kempinski is the latest branded serviced residences in KLCC. Making up two of 8 Conlay’s 3 towers, YOO8 is set to be completed at the end of 2020. This is the maiden project of KSK Land Sdn Bhd which was founded in 2013. 

KSK Land’s vision to ‘craft bespoke properties that prioritize design, craftsmanship and lifestyle’ is evident in the masterpiece that is 8 Conlay. Upon completion, YOO8 will be the world’s tallest
 

8 Conlay by KSK Land 8 Conlay by KSK Land

 

Strategically located in the Golden Triangle of KLCC, YOO8 is a residence that is highly sought after due to its prime location. It is easily accessible and well connected to its surrounding areas as well as to the other parts of Kuala Lumpur via the main roads and expressways in this area. 

Being in the heart of KLCC also means that YOO8 is just a stone’s throw from the Bukit Bintang Shopping District, which is home to numerous retail outlets. YOO8 is also surrounded by plenty of restaurants and eateries that offer an amazing variety of food choices.

A multifaceted gem in a class of its own, YOO8 serviced by Kempinski is set apart by its talented brand partners. Its architectural design by Principal Hud Bakar of RSP Architects is driven by the Yin and Yang philosophy. Harvard educated Pok Kobkongsanti of TROP takes care of the landscaping at 8 Conlay, giving it a tranquil, ambient environment that will relax all your senses.

Steve Leung of YOO Studio is the interior designer for Tower A, while Kelly Hoppen undertakes Tower B. Units at Tower A mix a modern style with Asian accents while at Tower B, potential owners can choose from a glamorous urban concept or a harmonious spring concept.
 

The Water Lounge is a swimmer’s paradise The Water Lounge is a swimmer’s paradise

 

In terms of facilities, YOO8 offers its residents a state of the art gymnasium that will inspire you to level up your workouts. 

The Water Lounge and 25 meter lap pool on the 26th floor is a swimmer’s paradise while the Green Refuge on the 44th floor has a jogging path and resting nooks from which you can take in the stunning view of Kuala Lumpur’s skyline. 

Other facilities include a multipurpose room, a library area, a chill-out room, a lounge area and a games room where you can have hours of fun.

Kempinski, Europe’s most well established hoteliers hits the ball out of the park for YOO8 with its five-star services. Basic services offered at YOO8 include 24-hours security, valet services, concierge services, doorman services and shuttle bus service. 

Kempinski also provides housekeeping services, personal chef services if you can’t decide whether to eat in or dine out, and a personal trainer and masseuse that will help you make the best out of the state of the art gymnasium. 

If you need someone to watch your kids, there are day care services as well as experienced in-house nanny. There is also an on call tailor to help with your every sartorial need, car care services, as well as residence provisioning.

With 498 units and build-up sizes that range from 705 square feet to 1,328 square feet, there is something suitable for individuals as well as families. And if you are looking for a property for investment, YOO8 is a development that should be on your radar. 
 

Conclusion

As KLCC continues to develop, residential property will continue to evolve towards branded serviced residences that exude prestige and affluence. With many of these properties still in high demand, investors will continue to choose these residences over normal apartments in order to gain high investment returns and thus, further encouraging this market to grow.