Setia Alam welcomes first upscale high-rise residences

AFTER the success of its landed homes and commercial properties in Setia Alam, Shah Alam, S P Setia Bhd is gearing up to launch the township’s first high-end high-rise residential project.

Named Setia City Residences, it is a part of the developer’s integrated development, Setia City in Setia Alam. S P Setia plans to launch the project in the fourth quarter of this year.

The group launched Setia Alam, which has a gross development value (GDV) of RM16 billion, in 2004. The 2,525-acre freehold township has sold more than 16,000 units worth RM6 billion and has completed more than 12,000 units to date. About 60% of the township has been developed.

S P Setia deputy general manager Tan Siow Chung (pictured) says that despite the current economic situation and weak property market sentiment, the group will proceed with its planned launches.

“We will continue to invest in township developments in the Klang Valley and Johor. We also intend to make our mark in integrated developments by creating and delivering similar eco-lifestyle concepts grounded on our ‘live, learn, work, play’ philosophy,” he says.

A first in Setia Alam

The RM500 million Setia City Residences sits on 5.77 acres next to its retail component, Setia City Mall.

The serviced apartment project will have three 35-storey towers — Adora (tower A), Bella (tower B) and Carra (tower C). Each tower will have 260 units with built-ups ranging from 858 to 1,207 sq ft. The targeted selling price starts at RM650 psf.  The units will have  2 to 3+1 bedrooms with two bathrooms.

“We’re introducing the first high-end high-rise residences in Setia Alam to give homebuyers more options. Our landed homes are usually sold out within a few days of the launch,” says Tan.

There will be one sub-basement car park and five levels of podium car park — from level three to seven — while the facilities floor, dubbed E-Deck, is on the eighth floor. The residential component starts from level nine. The smallest unit (858 sq ft) has one parking bay, while the other three layouts will get two.

The design and planning of the facilities floor were inspired by natural terraced hot springs and travertine in Pamukkale, Turkey, says Tan.

“The swimming pools are divided into three terraces. The top pool is for swimming. The second terrace is for relaxation, where we provide a thermal spa and sunken lounge spots. The third is the wading pool for children,” he adds.

The E-Deck will have a variety of facilities, such as a yoga lawn, spiral skyway (elevated walkway), barbecue pit, playground, multipurpose hall, tennis court, forest pools, floating river, garden, parcourse, function lounge, reading room and nursery.

Setia City Residences opened for registration in the second quarter of last year and more than 2,000 people have registered to date.

Construction of Setia City Residences will commence in November and is expected to be completed in 2019.

Setia City Residences will sit atop a 2-storey retail podium and will have a direct, elevated pedestrian link to the second phase of Setia City Mall, which is currently in the planning stage.

“We hope to complete the project on time for the second part of Setia City Mall, the residents will be able to enjoy conveniences at their doorsteps,” says Tan.

The retail podium, which is for lease, will offer 10 shops with an average built-up of 5,000 sq ft. Although not a mall, the shops will cater for the residents and the public.

Outlook

After Setia City Residences and Setia City Mall are completed, Tan says the group will look at launching other components in Setia City. Future launches will comprise apartments, commercial properties and a transport hub.

Tan says the group is looking forward to welcoming SEGi International School and a medical centre in the near future. However,  he says details of upcoming launches are still being finalised.

As the property market is still weak, Tan says S P Setia is cautiously optimistic about the outlook. “Because of the soft market, we have diversified the types of properties we are offering to our buyers. Setia City Residences is one of the products that we believe appeals to our buyers as it offers conveniences and modernity.”

Eu Chee Siang, director of ECS Valuation and Property Consultancy Sdn Bhd, says most of S P Setia’s property launches have enjoyed healthy take-ups in the past five years. Its properties are also in demand on the secondary market.

“Our survey of selected developments in Setia Alam revealed encouraging capital appreciation of between 28.5% and 58.3% for terraced houses and apartments from 2011 to now. Developments include Akasia (affordable apartments), which enjoyed price growth of 58.3%, and shopoffices at 66.7% year on year from 2011 to 2015,” he says.

He adds that several affordable apartments have enjoyed good take-ups during their launches and have shown secondary transactions of between RM300,000 and RM360,000, depending on the size and level.

While the affordable apartments are doing well, Setia Alam lacks high-end condominiums. “Therefore, we believe Setia City Residences has the potential to attract homebuyers and investors, given its price of RM650 psf and the proximity to to Setia City Mall. We also see that the Gen Y are more receptive to lifestyle concepts.  We believe this product has the potential to attract this group as purchasers,” says Eu.

He notes that most high-rise serviced residences and condominiums in the Klang Valley outside of the city centre are selling at RM600 psf, such as the projects in Bandar Bukit Tinggi by WCT Bhd and Emira Residence by OSK Property Holdings Bhd in Section 13, Shah Alam.

“Those projects charted impressive sales too. This reaffirms that there is a demand for such developments in the respective areas. Therefore, Setia City Residences’ medium-sized configurations and being situated in a mature neighbourhood of Setia Alam, should be able to garner a good take-up during its launch,” he says.

Chan Wai Seen, executive director of JS Valuers Research & Consultancy Sdn Bhd, says Setia City Residences may spearhead high-end serviced apartment developments in Setia Alam, although it may not improve the demand for high-end serviced apartments in the area in the short term.

“We have to consider the prevailing property market sentiment and political situation. At this juncture, demand will be focused on reasonably priced landed residential properties in the township,” says Chan. “But when people start to appreciate the serviced apartment living environment, it will encourage more serviced apartment projects. It may take years to develop such a trend.”

Chan believes that the overall property market in Setia Alam is moving forward, including the high-end high-rise residential projects, because Setia Alam is in the right location and is well accepted in the market. However, the growth momentum will depend very much on the country’s economic performance and overall market sentiment.

Eu says houses priced at RM500,000 to RM600,000 will continue to drive demand in the residential segment. “Therefore, developers should supply more units in this price range. We believe that with the right concept, attractive product features and well-planned marketing strategies, the high-end condos will be favourable despite the weak market. As we know, properties are a good hedge against inflation,” says Eu.

Check out more properties in Setia Alam.

This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on Oct 5, 2015. Subscribe here for your personal copy.