Second tower of KIP’s Core SoHo Suites set for launch in March

KUALA LUMPUR: Integrated property developer Kepong Industrial Park Group (KIP Group) plans to launch the second tower of Core SoHo Suites in Kota Warisan, Sepang in March.

According to its director Valerie Ong, the first block of Core SoHo Suites, Tower B, which was launched in Sept 16 last year had received good response with a take-up rate of over 80%. “Currently, a substantial number of buyers have signed the sale and purchase agreement,” Ong told TheEdgeProperty.com. The company expects sales to reach 90% in the first quarter of this year.

The 3.2-acre Core SoHo Suites has a gross development value of RM140 million. The freehold SoHo (Small-office Home-office) development comprises two blocks — Block A with 288 units and Block B with 178 units. The unit built-up size is 450 sq ft while the minimum selling price in Tower B starts from RM238,800 or an average of RM530 psf. Ong said the second block will see the unit selling price increasing by about 5%.

The SoHo project is part of a 39-acre development called KIP Sentral @ Sepang. It is KIP Group’s latest development which also comprises Core Avenue, a 76-unit retail outlet, and KiP Mall Kota Warisan.

Core SoHo Suites is located near various landmarks such as Horizon Village Outlet, Mitsui Outlet Park, Sepang F1 circuit and Kuala Lumpur international airports.

Although the Malaysian property market outlook remains challenging this year due to the weak market sentiment and difficulties in securing housing loans, Ong said properties that are in the range of RM200,000 to RM300,000 with good growth potential in terms of capital appreciation and rental yield will appeal to buyers.

Ong also opined that the availability of higher learning institutions has become one of the main catalysts for Kota Warisan’s development.

The development is situated near renowned universities such as INTI International University, Nilai University College, University Sains Islam Malaysia, Lim Kok Wing University of Creative Technology, Multimedia University and Xiamen University Malaysia Campus.

“We foresee great potential for student and university staff accommodation. Our development is about a 10-minute drive to Xiamen University Malaysia Campus. Currently, it has a few hundred students but we believe in two years’ time, the student population will double,” she added.

Xiamen University Malaysia welcomed its first batch of 187 students in February last year and the second intake of 300 in April. Together with a third intake in September, Xiamen University Malaysia is expected to have about 1,400 students, of whom 500 are from China.

The second phase of the campus’ development is ongoing and will be completed by 2020. Upon completion it would be able to accommodate 10,000 students.

Besides students, Ong said, those working at KLIA and KLIA2 are looking for small and cosy units located near their workplace.

“For these reasons, the 450 sq ft units at the Core SoHo Suites have met their requirements including proximity to their workplace or universities as well as being close to various amenities,” she added.

Ong observed that the current rentals for high-rise residential properties in the area range between RM900 and RM1,500 a month.

With the SoHo Suites being complemented by Core Avenue and KiP Mall Kota Warisan, which is slated to welcome the public in 2Q2017, Ong expects the SoHo Suites to be able to fetch a monthly rental within the market range.

This story first appeared in TheEdgeProperty.com pullout on Feb 17, 2017, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.