The Fennel by YTL: A detailed analysis with price comparison
The sell-out success of first two blocks of The Fennel during its July weekend preview proved that investment sentiments are still buoyant especially among the younger purchasers. Prospective purchasers started queuing as early as 6.30am and waited for hours just to get into the sales gallery to have a glimpse of the available units for sale. Thereafter interested purchasers were given a minute to make a RM800,000 decision. Majority of the crowd consist of young couples and family.
Sentul West and Sentul East by YTL
Sentul is just a stone’s throw away from the Kuala Lumpur city centre. It is easily accessible from Jalan Tun Razak, Jalan Ipoh, Jalan Sentul, Jalan Raja Laut and Jalan Pahang. With its close proximity to the Kuala Lumpur city centre, Sentul have seen rapid development in the past decade spearheaded by the 294-acre urban renewal project plans of YTL. Suitably named as Sentul West and Sentul East, the Sentul KTMB train depot and tracks divide these two portions with the former having a private and gated 35-acre park known as Sentul Park.
Currently completed within Sentul West is the aforesaid 35-acre Sentul Park, KLPac, SPKC (Sentul Park Koi Centre), The Maple and Sang Suria Condo. Completed within Sentul East is The Tamarind, The Saffron, d6 and d7 offices.
The Fennel is located off Jalan Sentul and fronts onto Jalan Enam. It sits on a 6.5-acre freehold plot of land located south of Sentul Boulevard and north of The Capers, another sell-out success by YTL. Totalling 4 blocks, each tower is 38-storey high offering 916 units of modern condominiums. YTL had only released the first two blocks for sale in July (Blocks A and D) with the remaining two blocks to be launched at a later date. With built up ranging from 1,000 sf to 1,500 sf, The Fennal is designed by Singaporean architect firm, RT + Q Architects sporting a refreshing tilting design facade with full glass height. This design is a complement to The Capers, having a similar but yet distinctive facade, that was launched in 2011.
Other main features include a 1-acre park and salt water swimming pools spanning 50 metres located above the arrival courts in between the condominium blocks. There are also bubble glass lifts, one at each arrival court to ferry passengers up to the podium deck. Two open central green spaces, one on the ground level and another on the podium deck, are designed in such a way to provide ‘tropical verandahs’.
To further enhance the concept of greenery and open space, there are also a series of pocket gardens and sky forests introduced on selected floors nested high above the ground.
The Fennel Project Brief
|Development||The Fennel Sentul East|
|No. of Units||916 units spread over 4 blocks (Blocks A & D sold out, Blocks B & C yet to be launched)|
|Density||141 units per acre (land area of 6.5 acres)|
|Built Up Area||1,186sf, 1,222sf, 1,237sf, 1,272sf, 1488sf & 1554sf|
|Launching Price||About RM650 psf|
Price Comparison between The Fennel and Existing Developments
The selling price of The Fennel at RM650psf is actually one of the highest amongst all the existing condominiums in Sentul and the surrounding area. The only existing development which is slightly higher is The Maple, another YTL project. The secondary transactions of The Maple is higher because it is located in Sentul West and sited directly next to the 35-acre Sentul Park with direct access onto it.
When compared to under construction projects, the selling price of The Fennel at RM650psf is about 18% higher than The Capers (launched in 2011). However, it is still lower than the selling price of VUE Residence Serviced Suites at about RM700 psf (smaller sizes with built up of about 500sf onwards).
High-rise developments in this location generally have a moderate rental returns of about 5.0% to 6.50%. The exception being The Maple where the average rental yield is about 4.40%. As mentioned earlier, The Maple has the best location. The graph above indicates the rental yields of condominiums in Sentul.
There is a clear trend that yield increases as developments / projects are located further away from Sentul West and Sentul East, confirming the fact that YTL is turning Sentul into a prime, upmarket and coveted address.
The rental return for The Fennel, if were to adopt the average rental rate of The Maple at RM2.30 – RM2.60 psf in current economic scenario and pricing, is expected to be within the range of 4.20% to 4.80%.
|Project||RM psf / built up||Average Gross Yield||Average Rental RM psf|
|Viva Residency (> 1,000 sf units)||468||5.50%||2.10-2.30|
|Viva Residency (840 sf units)||512||5.80%||2.20-2.80|
Looking at the transaction prices of The Maple at RM660psf to RM690psf and some units up to RM760psf (higher band of transactions) as well as the current asking prices of The Capers at about RM950psf to RM1,200psf, there is still room for The Fennel to appreciate in price. However, most of the purchasers for both The Capers and The Fennel comprise of investors and upon completion, there will be definitely many units entering the secondary market for sale. This is already happening for The Capers where there are many units for sale even when construction have not reached an advanced stage.
Since the inception of YTL’s Sentul Master Plan in 2003, the property landscape there has been changed tremendously and property values have been unlocked. Riding on the current and previous successes of YTL’s residential projects and well placed public amenities, Sentul West and Sentul East will no doubt become a successful development as envisioned by YTL. With freehold land tenure, generous open spaces and parks and its close proximity to the city centre, it is already a place where many people now have called home.
|Project||No. of Sample Transactions|
|Viva Residency (> 1,000 sf units)||14|
|Viva Residency (840 sf units)||7|
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