6445 views 6 comments

The Fennel by YTL: A detailed analysis with price comparison

by on August 28, 2013

Capers & Fennel

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

The Fennel location planSentul 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

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.

Fennel poolOther 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
Developer YTL
Location Sentul East
Accessibility Jalan Sentul
Type Residential Condominiums
No. of Units 916 units spread over 4 blocks (Blocks A & D sold out, Blocks B & C yet to be launched)
Tenure Freehold
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).

Rental Return

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
The Maple 664 4.40% 2.30-2.60
The Saffron 543 5.40% 2.30-2.60
Tamarind 505 5.00% 1.90-2.20
Sang Suria 384 5.00% 1.50-1.80
Titiwangsa Sentral 508 5.20% 2.00-2.40
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
Putra Majestik 327 6.10% 1.50-1.80
Vistana Condo 330 6.50% 1.70-2.00

Capital Appreciation

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.

Overall

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. 

Notes:-

Project No. of Sample Transactions
The Maple 10
The Saffron 11
Tamarind 11
Sang Suria 9
Titiwangsa Sentral 15
Viva Residency (> 1,000 sf units) 14
Viva Residency (840 sf units) 7
Putra Majestik 23
Vistana Condo 8

Update

The Fennel by YTL Phase 2 is now open for registration! Read about it here or log on to www.thefennel.com.my to register your interest. 

 Post Views (15604)

comments
 
Leave a reply »

 
  • September 16, 2013 at 4:01 pm

    How is this project compare to “The Face” and “M City”? When is the other block release to market and is foreigner eligible.

    Reply

    • admin
      October 3, 2013 at 5:15 pm

      Hi Eng,

      The Fennel entry price is much lower compared to M City. Furthermore, The Fennel together with The Capers have iconic building design and architecture. The other 2 blocks (blocks B & C) is open for registration now. Please read it at http://propertyzone.com.my/blog/the-fennel-registration. Foreginer is eligible to purchase commercial and residential properties as long as it’s above RM500,000.

      Reply

  • wenkheng
    October 24, 2013 at 1:41 pm

    Great article!

    But I seriously question the viability of investing in the Fennel. An average, 800k unit would have month repayments of roughly RM3.8k (assuming maximum loan term 25 years). Called up the sales office and the confirmed maintenance fee would be RM0.45 psf. That would translate to roughly RM4.5K/month. Subsale prices are only going to increase, making monthly repayments even less bearable. How in the world are you going to generate positive cashflow, with a 1.2k sf property, with monthly outflow of RM4.5K?

    I suppose capital appreciation is the thing lah, but then, the market is so bullish its scary.

    Reply

    • admin
      October 25, 2013 at 10:39 am

      Thanks! yes the property market is bullish however do note that our property market is approaching the top end of the recent property cycle; post the global financial crisis in 2008. Bank Negara will be tightening on monetary rules anytime and the budget today most likely will announce further measures to curb speculation of the property markets.

      Developers are in a frenzy to launch their projects before the end of the year because almost all of them are anticipating a slowdown next year onwards. Futhermore, the current regime of DIBS, 100% – 110% financing via credit notes & cash rebates will end soon. Do remember that prior to 2009, these practices were non existent at all! It should have stopped once our economy improved (we were largely unaffected by the global financial crisis thanks to BNM foresight).

      Without those incentives, not many people would be buying these new launches (primary market) and developers nowadays rely heavily on these incentives & packages to sell their projects.

      Coupled with a revision of OPR (it’s just a matter of time for it to be revised) and with it comes a rise in borrowing costs, the current “merry-go-round” will have to stop.

      What we’re hoping for in the next property dip (what goes up must come down as evident in so many property cycles throughout the years) is a soft landing and a price correction where these investors and buyers can absorb comfortably.

      For the fennel and capers, the principal purchasers of course will earn the most and the rentals most likely will be able to cover the loan repayment + maintenance charges. Rents for capers and fennel should be around RM3.8k – RM4.5k. However, this will not be the case for subsequent purchasers upon completion, as prices are expected to be around RM1,000 – 1,200 psf as noted in some asking prices and internet forums!

      Reply

      • wenkheng
        October 25, 2013 at 11:14 am

        The Tamarind, another YTL project nearby, which is really comparable to the Fennel is currently renting for RM2.2k. The Saffron, is at RM2.3K fully furnished. What makes you think the Fennel can fetch double the price?Mind you we’re currently at the peak of the property cycle.

        BNM is a rock solid central bank under the leadership of Zeti Akhtar Aziz. God bless her soul.

        Reply

        • admin
          October 25, 2013 at 11:46 am

          Well, we should be really comparing the rentals of Fennel & Capers with The Maple. I’m actually looking at the asking price upon completion of about RM1k psf with an anticipated return of about 4% – 5%, so rentals should be around RM3.8k – RM4.5k. Unless the RM1k psf is not achieved coupled with a sudden supply of condos there, then the rental should fall within an achievable range of about RM3 – 3.5k. what do you think will be the right rental for both the fennel & capers?

          Reply

Leave a Response