News: Lendlease Confident Over Demands For TRX Residential Units

Feb 4, 2020

Lendlease Group is confident that there will be demand for its ‘value-proposition’ residential tower in Tun Razak Exchange (TRX), even though the Malaysian property market is slowly recovering due to oversupply. 

“We can’t predict the market, but we can give buyers facts. What people do is compare the relative pricing of Kuala Lumpur, versus some of the other cities. If you look at Kuala Lumpur, people see a lot of embedded values because of the price point they are entering. So, people will make those calls, because they will make those comparisons,” explained Lendlease Asia chief executive officer Tony Lombardo.

TRX is an upcoming financial district, a RM10 billion mixed development, comprising six residential towers (2,400 units), an office building, a retail mall, a luxury hotel and a 10-acre rooftop park, reported The Edge Financial Daily.

Read our honest review on Core Residence @ TRX here! 

Lendlease’s first residential tower in TRX includes 444 units, while the second tower comprises 442 units.

The group intends to launch its first tower soon, and “depending on how demand [is like], we may launch the second tower as well … we will determine how many [of the second tower] to be released into the market [later],” Lombardo revealed.

While the National Property Information Centre data reveals that Malaysia’s residential property projection stood at 31,092 units, down 3.8% from 32,313 units recorded at the end of 2018, Lombardo remains positive and explained that property buyers should take a long-term view of the market.

“This (Tower 1) will be completed in 2023, it is a 39-month construction period. We got to make a long-term view of the market, [so] buyers are buying at the right time of the cycle now,” he added.

Meanwhile, 50% of the retail mall that is part of the development has already been taken up by committed leases.

“So, we definitely feel we are in a very good position to get this lease close to 100% before opening. The market will eventually start taking off — I can’t predict exactly when — but we feel pretty comfortable that we are building the right product at the right time, and the market actually appreciates what we are doing,” he said.

Lendlease is set to open the mall by the end of 2021.

Access to public transportation is among the key advantages of the development. “From my perspective, the reason why Lendlease decided to go after TRX in the first place was because the site will [integrate with] the MRT (Mass Rapid Transit) interchange, so it is the only site in KL where you can access 68 stations [across the Klang Valley] once the second line opens in 2021,” Lombardo explained.

The Exchange TRX is a 60:40 joint venture development between Lendlease and TRX City Sdn Bhd, formerly known as 1MDB Real Estate Sdn Bhd, wholly owned by the ministry of finance.

 

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Nadia Razali
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Alam Harta Realty
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