Old Klang Road has been in the limelight in recent months. From the future launches of the likes of 8 Seputeh (Gapurna), to The Grainz (by Exsim), to Verve Suites @ KL South (by non other than BKP Properties) as well as The Petalz (also by Exsim). And we are not even talking about the various projects which are under construction along the OKR – Jln Puchong stretch, e.g. Ong Chong Resident’s 8 Residence , Mutiara Johan’s Tiara Mutiara and Akisama’s Parklane (a massive 4,000 units of apartments). So Old Klang Road IS quite happening! (and I’m already excluding a few projects in front of OUG Plaza, near the Jln Puchong Police station like 8 Benteng)
So what is this Avantas Residence, where is it, and what does it have to offer.
It is located right before the Taman Desa junction.
The picture on the left shows the location of the site – on the left side of the road, this is taken from OKR heading towards OUG.
Second picture on the right, shows the view of the site from the opposite side of the road. You can see the Taman Desa hill at the back, as well as bits of Papillon.
Location wise, it is not too deep into OKR. You can access it quite easily from Federal Highway or Seremban Highway – unlike the neighbouring Saville , which requires you to u-turn entering it (if you are coming PJ or KL via Federal Highway), or to u-turn exiting it (unless you are heading to OKR or Taman Desa).
It’s right along the major Old Klang Road, and similar to Saville, the orientation is also similar. So you can sense, that we will be using Saville as a benchmark for most comparison.
It was reported in the NST 2 years ago (!?) http://www.nst.com.my/streets/central/monorail-extension-to-jalan-klang-lama-1.16052#ixzz2KxUklTJR :
Land Public Transport Commission proposes that the Monorail service extends to Taman Gembira
A PROPOSAL has been made to extend the KL Monorail services from its Tun Sambanthan station to Taman Gembira in Jalan Klang Lama.
But since then until now – I don’t think there’s been any updates nor new development on this proposal. Even Gapurna’s project is leveraging on the existence of the future monorail line.
Think of Saville, and Avantas is similar in terms of size (1 acre land), orientation, 6 levels of parking (additional basement parking for the retail crowd – probably learned from Saville’s experience of limited parkings for visitors). The facade is honestly nothing to shout about, no oomph factor.
There are 28 stories, first 6 floors are for parking, 1 basement floor for retail parking, and 5 commercial units (developer’s keeping it – not open for sale to public). Level 7 is the facilities floor, with facilities such as pool, children’s playground, gym .. and proposed laundromat as well as sundry store (being I’m quite skeptical about this .. I’ve not seen such businesses prosper, as they cater strictly to residents only). Roof top has a proposed sky garden too.
Prices range from low RM600psf upwards to RM730psf; cheaper psf for west facing larger units; for same floor units, east facing units can be up to RM50psf more expensive! Do note however, that for east facing units on the lower floors, views will be blocked by the hill of Taman Desa.
Despite this being a preview, up to 6 floors have already been fully sold to internals as well as business associates(so the developer claims), and another 6 floor is being reserved by the developer for future launches, albeit a higher psf.
All the units come with free air conds for the rooms, and a separate unit for the living area, as well as water heaters. No wardrobes nor kitchen cabinets will be provided. But for units larger than 1000sf, 2 car parks will be provided.
This an artist rendition of the 1+1 unit, note the vertical blocks in the middle, this is the proposed +1 study. Actual unit doesn’t come with any walls at all for the +1 room.
West facing units are larger sized, with smaller units all facing east. Do check out the 1100sf units – potential for dual entry , ie. 2 separate units. But oddly enough, the 8xxsf and 9xxsf units that come with 2 bedders – all have only one bathroom. This is rather odd, and takes a bit of getting used to. 9xxsf is NOT small, and having to share a bathroom with the next room – is not really something the master bedroom tenant will look forward to.
The developer is a a new company, CPI Development Sdn Bhd, with no previous track record and this will be their maiden project. To me this will be the deal breaker, how much confidence do you have in this company.
From initial research on mudah.my and ipoperty, Saville’s 12xxsf units are asking for around RM520psf, with rentals for a fully furnished units ranging from RM2500 to up to RM3500 (wishful thinking IMHO).
Papillon units, if it can be used as a comparison, are asking for about RM600psf all the way to RM800psf (!) in the subsale market.
Other future competition to take note of, these projects, from the 2 developers who are not known to be cheap :
The Grainz @ Old Klang Road by Exsim … as well as The Petalz @ OKR also by the same developer … future launches, limited information at the moment.
Verve Suites @ KL South – rumoured from RM700psf all the way to RM1000psf. Developer’s site is open for registration , or you can view renditions of it from skyscraper city.com
But these few developments will surely be quite iconic, given the developers back ground and their track record in coming out with stunning developments.
So Old Klang Road is definitely BUZZING … the question is, how “investable” is this project. My answer is, only if the numbers make sense to you. What’s your outlook on OKR, future developments of OKR ? If you are able to get LTV90%, even roughly a loan of RM500k, you are looking at roughly rental of RM2500 to break even – is this doable ? Do keep in mind future deluge of condos along the main OKR stretch. But on that note as well, bear in mind KLEC down the road is asking for RM1200psf ? According to the sales folks, Saville has a healthy demand units even partially furnished at RM1800 upwards. Also apparently this area is quite popular with stewards and stewardesses.
Or are you going to bank on future capital appreciation and ride on higher expected pricings by Exsim and BKP ?
If you are going to go along the LTV70 stretch, a positive cash flow will be quite easily achievable. But is this what you really want, compromising your goals and settling for a lesser target. I don’t know if it will meet my personal criteria of ROI 100% of capital invested + 6% targeted gross rental yield.
My take :
- location is key, fronting Old Klang Road, and potential monorail (if it ever happens)
-
not too deep into OKR, diagonally opposite Scott’s; so enjoying the proximity of Tesco, without actually having to live above it.
-
proximity of Chinese primary school just down the road – SRJK Choong Wen, next to the Old Klang Road market before Jalan Kuchai Lama
-
easy access and catchment for OKR upgraders
- steep pricing
-
future competition from pipe lined projects
-
questionable returns (are there other projects with lower risks and easier way to meet your targeted ROI?)
-
developer is unknown, no track record, so no details of past performance
Current promotion for early bird includes :
a) rebates of 5%
b) legal fees for SPA is waived, only if use the panel laywer
c) developer interest subsidy scheme (seems getting popular these days, you pay the bank the interest first, then the developer will reimburse you later)