As a discerning property investor, you’re always on the lookout for prime opportunities that promise both luxury and solid returns. Oxley Holdings Limited, an award-winning property developer with a diversified portfolio and presence across seven geographical markets, has certainly caught the eye of many in this regard. Their latest offering, Jewel by Oxley KLCC, is a shining example of their commitment to luxury and quality, and it’s making waves in the Malaysian real estate market.
The development comprises of a two-storey retail galleria (The Boulevard), a 29-storey Grade A office block, the 78-storey So Sofitel luxury hotel and serviced residences, the 49-storey Jewel luxury serviced residences. So Sofitel Residences tower will house 207 hotel rooms and 590 residential units.
Jewel by Oxley KLCC, nestled within Oxley Towers KLCC, is an epitome of urban luxury living. The development comprises a 49-storey building housing 267 exclusive serviced residences, with a wide selection of layouts from 1 to 3+1 bedroom and dual-key options. The units are semi-furnished, tastefully designed, and residents have access to first-class facilities such as a grand lounge, gym, pool and pool deck, children’s playground, BBQ area, zen garden, and co-working space among others. The development promises low density living, ensuring privacy and exclusivity for its residents.
Oxley Towers KLCC, where Jewel by Oxley KLCC is located, promises to be one of the tallest residential towers in town. It will also house the highest residential swimming pool in Malaysia. The development’s prime location, a stone’s throw away from the iconic Petronas Twin Towers and right next to the 50-acre KLCC Park, further enhances its appeal. With three skyscrapers atop a 2-storey retail podium and a 25,000 sq ft public plaza on the ground level leading directly to KLCC Park, Oxley Towers KLCC is poised to become a landmark in Kuala Lumpur.
By February 2023, Oxley had pre-sold nearly 60% of Jewel by Oxley KLCC for RM302 million (approximately S$93 million), marking a robust start to the Year of the Rabbit. This successful pre-sale indicates a strong demand for quality urban residential developments, particularly as international travel resumes post-pandemic.
In terms of the broader Malaysian property market, the Q1 2023 data shows a somewhat mixed picture. There has been a recovery in office vacancy rates, and a growing trend for leasing retail space through a revenue sharing model. However, residential purchase demand has been somewhat subdued, likely due to cautious buyer sentiment.
Despite this, Malaysia’s economy grew by 7% in Q4 2022, with a full-year growth of 8.7% in 2022, driven by labour market recovery and domestic demand expansions. However, the market faces challenges such as weaker global growth, inflation, and geopolitical conflicts. The Bank Negara Malaysia predicts slower growth of 4.0 to 5.0% in 2023 for the Malaysian economy, although domestic demand and increased tourist arrivals are expected to provide some support.
In the residential property market specifically, Q1 2023 saw asking prices increase for the fifth quarter in a row by 1.6% QoQ. However, the number of available listings in the market decreased, suggesting that owners may be adopting a wait-and-see approach due to economic uncertainties. Sale Demand Index fell by 5.6% QoQ, indicating resistance to higher asking prices, further hinting at a fragile market sentiment.
Yet, despite these challenges, there remains potential for the savvy investor. The rental demand remained above pre-Q1 2022 levels, despite a decline, and rental prices saw an increase of 4.7% QoQ and 15.3% YoY. Also, sellers are unlikely to adjust prices downwards as the economic fundamentals remain strong despite slower growth. Some sellers may withdraw their listings, which reduces the number of options for property seekers.
In this market climate, properties like Jewel by Oxley KLCC stand out as potential havens of stability and growth. The robust pre-sale figures suggest that there is a strong appetite for luxury developments, and the prime location and high-end amenities of Jewel by Oxley KLCC make it an attractive investment.
Indeed, Oxley’s successful track record of iconic developments in world class cities like Singapore, London, and Dublin further adds to the appeal of Jewel by Oxley KLCC. This project is likely to enhance the group’s brand and promote its expertise in developing prime sites in key cities across the globe.
While the Malaysian property market presents some challenges, there are reasons to be optimistic about luxury property investments like Jewel by Oxley KLCC. Its strategic location, high-end amenities, and the solid reputation of Oxley Holdings Limited make it a compelling consideration for any discerning property investor.
*Source of reference: Yahoo News Malaysia, Yahoo Finance Malaysia and JLL Malaysia