Dua Sentral Hotel Suites @ KL Sentral

Project name:          Dua Sentral
Area:                       KL Sentral
Developer:               Magic Coast Sdn Bhd (http://www.duasentral.com/)

Type:                       Hotel Suites/Resort (Commercial Land Title)
Tenure:                    Freehold

Price range:              from RM706,800 to RM5,300,000
Size range:               from 872 to 6,352 ft2

Price/ft2 range:         from approx. RM811/ft2
Total Units:              386 units

*Above info @ August 2011 

 

You can get more info from following website:

http://www.duasentral.com/
http://www.duasentral.com/html/siteprogress.html

http://www.iproperty.com.my/developments/developmentreview.aspx?pid=2145

The Developer/Management Team: 
Magic Coast Sdn Bhd is a subsidiary of Oilcorp Bhd [http://www.oilcorp.com.my/] which signed an agreement with Amanah Raya Development Sdn Bhd, a subsidiary of Amanah Raya Berhad [http://www.arb.com.my/en/index.asp], to jointly develop this Dual Sentral.

Dua Sentral’s hotel suites are managed by Best Western, the world’s largest hotel chain with more than 4,000 independently-owned and operated hotels worldwide. So you can rest assured that your investment will be well taken care of. In addition, having a prestigious brand name attached to the development will ensure sustainable capital appreciation.

Location:

Kuala Lumpur Sentral is spread over 72 acres of land bordered by Jalan Travers, Jalan Damansara and Jalan Tun Sambanthan, situated in the southwest of Kuala Lumpur City and just 1.5km from the central business district.

Google Map

Map data ©2011 MapIT - Terms of Use

Price:
Compare with closed by developments: 

• M Suites @ Jalan Ampang ~ price from approx. RM843/ft2 (price info @ May 2011) ~ Dua Sentral is approx. 4% lower
• Dedaun @ Jalan Ampang ~ price from approx. RM1,235/ft2 (price info @ Nov 2010) ~ Dua Sentral  is approx. 34% lower 
• Vue Residences @ Jalan Pahang ~ price from approx. RM640/ft2 (price info @ June 2011) ~ Dua Sentral is approx. 27% higher  

Also compare with developments located in prime location which are not far away from KLCC:

• Neo Damansara @ Damansara Perdana, PJ ~ price from approx. RM537/ft2 (price info @ Aug 2011) ~ Dua Sentral is approx. 51% higher  http://awonginvestment.blogspot.com/2011/09/neo-damansara-damansara-perdana-by.html 
• Boulevard Residence Damansara @ PJ~ price from approx. RM472/ft2 (price info @ April 2011) ~ Dua Sentral is approx. 72% higher http://awonginvestment.blogspot.com/2011/09/boulevard-residence-damansara-pj-by-ocr.html
• 8 Petaling @ Sri Petaling ~ price from approx. RM346/ft2 (price info @ Aug 2011) ~ Dua Sentral is approx. 134% higher http://awonginvestment.blogspot.com/2011/08/8-petaling-by-petaling-garden-sdn-bhd.html

My View:
The price/ft2 is approx. same as the M Suites @ Jalan Ampang.

M Suites @ Jalan Ampang

• provide partially furnished (hob, hood, fridge, microwave oven, washer dryer, bedsroom with wardrobe cabinet etc.).
• Free services for 1 year 
• Maintenance Fees RM0.35/ft2
• 442 total units

Dua Sentral

• stated Fully Furnish / Partially furnished
• 7% Return on Investment via Tenancy Arrangement for 5+5* years
• 5 years Free Maintenance Fees for Hotel with Leaseback Arrangement
• Maintenance Fees RM0.33/ft2
• 386 total units

Dua Sentral seems better with guarantee 7% return & 5 years free maintenance fees. But you need to get the details for the guarantee 7% return, as normally you will end up with less than 7% based on the actual calculations plus terms and conditions with the Developer/Management Team.

Another thing you need to consider is the quality of items provided within their packages "partially or fully furnished". This is important as to get your place funished nicely normally cost around RM150/ft2 (a big cost to consider when compare both developments).

For condo located within KLCC cost can range from RM650/ft2 up to RM1200/ft2, therefore the price RM811/ft2 for Dua Sentral is consider reasonable. Besides, for Binjai, it cost up to RM3,000/ft2.

Based on 90% loan for RM706,800, say BLR6.6%-2.2% = 4.4% interest per annum, for 30 years. The monthly repayment is approx. RM3,185. If you are planning to buy & rent for investment, you need to take this into consideration. Will ppl willing to pay more than RM3,185 per month to rent a place in KLCC?

Don't forget the approx. monthly repayment of RM3,185 excludes following items:
a) Maintenance fees
b) Assessment tax
c) Quit rent
d) Interest rates increase for the loan (this is the main risk as BLR still low at the moment)

If you compare this with developments within prime location like PJ & Sri Petaling, the price/ft2 is a lot cheaper outside KLCC, at least 50% cheaper? as shown above.

The good thing about investing in properties within KLCC is that during booming time the price/ft2 will go up faster compare to areas outside KLCC. But don't forget, the price/ft2 will drop a lot too during recession.

Higher Return normally = Higher Risk

To me, best is to wait for the economy to go down before you start taking more risk to invest within KLCC areas.