291,000 sq ft land for RM677 per sq ft. Estimated GDV of RM3,436 per sq ft.
This just happened
It is considered a small piece of land. Actual location wise, it is really, really close to a MRT station. Neighbourhood wise, it is within an established and mature neighbourhood. Surely if homes were built on this piece of land, there would be many interested buyers if the price is attractive enough. Surely this piece of land will have many potential buyers, right? Anyway, I have no idea if there are many buyers who are willing to pay a high premium for it (the land) but for this particular piece of land, UEM Sunrise Bhd has acquired it. They are paying RM197 million for this 6.86 acres of prime freehold land.
Article in themalaysianreserve.com UEM Sunrise Bhd has acquired 6.86 acres of prime freehold land adjacent to the Taman Connaught MRT station in Cheras for a total consideration of RM197 million. The development would have an estimated total gross development value (GDV) of over RM1 billion and is slated for a first phase launch in the second half of 2022.
UEM Sunrise CEO Sufian Abdullah said, “The proximity of the land to the Taman Connaught MRT station provides UEM Sunrise an excellent opportunity to explore a Transit-Oriented Development that meets the demands of young urban professionals working in the city and complemented by a lifestyle offering in attractively priced residences.” Please do read the article for more information about this project, especially those who love Cheras and a Transit-Oriented-Development (TOD). Article in themalaysianreserve.com
What happens when demand for homes go up?
When demand for homes go up, the prices for homes move up. When prices for homes move up, the price of land on which these homes are built will also go up too. Of course, when price of land moves up, this would also mean the cost of the home development would move up. Somehow it’s a cycle where both (land price and home price) would be influencing one another.
Just need to understand that demand for homes will come from a lot of younger buyers who does not need a big sized home yet and would love a lifestyle of staying close to the office versus waking up very early in the morning to drive to work. Now, just need that right product and great starting price. Second half of 2022 yeah. I wonder if UEM-Sunrise would also get us to write about the project too. We shall see.
Next suggested article: Sunway acquires land in Cheras for exclusive development