Demand still high for prime land

A file picture shows the German ambassador’s former residence at Jalan Kia Peng. The property is selling at an estimated RM200mil.

Land in prime locations continue to attract huge interest from developers despite signs of a slowdown in the property sector.

Two properties owned by the German government in Kuala Lumpur had received overwhelming response, according to a source.

The tenders for the properties closed on Jan 26.

“There was a rush to buy the properties because of growing concerns that land (especially in the heart of Kuala Lumpur) is scarce,” said a source from Savills Rahim & Co, the real estate consultants that handled the transaction.

Based on reports, the German-owned properties – the former residence of the German ambassador in Jalan Kia Peng and the Goethe-Institut on Jalan Langgak Golf – would be sold at an estimated RM200mil and RM25mil, respectively.

“The market for land and development property is still strong despite the current slowdown,” said an industry observer.

It is believed that the sale by tender by CBRE Malaysia for the French Embassy on Jalan Ampang would also attract strong buying interest.

According to an advertisement in The Star earlier this week, the tender for the 7.9acre will end on Feb 12.

“There have been many interested parties for that plot of land,” said a source familiar with the transaction.

While no indicative price was given, it is learnt that the former British High Commission, a smaller plot measuring 3.01acres opposite the French Embassy, went for RM294.97mil, or RM2,200 per sq ft, to SP Setia Bhd in late 2012.

While previous reports put the price tag of the French Embassy at RM700mil, one industry observer said the final price would depend on the highest bidder for the tender.

However, a source familiar with the transaction of the German properties said otherwise.

“Details of the bidders for the German properties have been sent to Germany for approval, as the country wanted to know the profile of the buyers.

“It’s a tender, not an auction. So, ultimately, the final price will not depend on who is the highest bidder,” he said.

It is learnt that while half of the British High Commission land was zoned for commercial usage and the remainder for residential, the French site comprises a residential and an institutional portion. - By The Star