The hidden gem in the middle of the Klang Valley

by **Cals** Sun 10 Apr 2016, 23:27

Saturday, 9 April 2016

The hidden gem in the middle of the Klang Valley

DESA Kudalari’s lovely grounds have been a well-kept secret.

Not many knew about it, and even less have set foot on the place. Those in their 20s or 30s will probably have a challenge finding it. But this does not detract from the fact that this is probably one of the most – if not the most – beautiful high-rise and low-rise residential address in the Klang Valley.
And yet, because of its proximity with the Petronas Twin Towers and its location within the Kuala Lumpur City Centre (KLCC), developers and property consultants have been eyeing the land for redevelopment.
To be fair, the story of Desa Kudalari has got to be looked at from different perspectives.

There is the economic value and it is no secret that the last several years, land price in the area has escalated by quite a bit.
Added to that is the rising plot ratio permitted by City Hall the last several years. The higher the plot ratio, the larger the built-up area permissible. And because development tend to go vertical, instead of horizontal, the result is sky-scrappers popping up in that area.
Desa Kudalari, however, is premised on horizontal growth, not vertical. That explains the wide open space, meandering linear gardens, jogging tracks that move from one secret garden to the next.
This explains why property consultants and developers are of the view that Desa Kudalari belongs to another area. But really, does everything have to go vertical?
Comprising 7.35 acres, there are only 186 condominium units there. There is only one single tower block of 19-storey and five blocks of three-storey walk-up units.
The total built-up area is 246,000 sq ft against a total land area of 320,166 sq ft. Which means its plot ratio is less that 1. Today, if Desa Kudalari were to be redeveloped, it would have a plot ratio of between 8 and 10 times. This effectively means there will be a lot more concrete piling there if this place is redeveloped. This is the economic perspective.
But there is also another perspective to Desa Kudalari – the sentimental and ethical issues of keeping what is currently a beautiful green lung, a private residential address notwithstanding, amidst the bustling development that is growing around it.
For the longest time, there has been talk about making the city a liveable area. The congestion around Desa Kudalari is an issue. Although a mass rapid transit (MRT) station is being proposed across the road from it, not all the unit owners are enticed. If the MRT station does come through, this will help to alleviate the congestion.
For the longest time, there has been talk about greening the city. Then how does one explain the rationale of bulldozing trees and exchanging open space for a couple more sky scrappers?
There is another perspective to Desa Kudalari and this concerns Malaysian laws with regards en bloc sales. If the various stakeholders involve succeed in pulling this off, this will be Malaysia’s first en bloc sales.
Currently, in the case of Desa Kudalari, 90% of its 140-odd owners have indicated they are positive about selling. About 10% are uncertain or belong to the No group. Under Malaysian laws, even if one refuses to sell, the deal is off.
According to various sources ranging from architects, developers and property consultants, several potential developments in and around the city should be redeveloped. All of these are commercial entities like Wisma Cosway, Wisma Central, Ampang Park and Sg Wang Plaza. Desa Kudalari is a residential development and it is nothing like any of these tired-looking commercial entities that have indeed seen better days.
There is yet another perspective. This centres around the economics of construction and property development industry.
For the last several years now, property consultants have been lamenting the over supply of office space in the Klang Valley that totals about 100 million sq ft today, more than Singapore’s 86 million sq ft, according to Knight Frank.
As a result of the oil price fall out, the city’s top grade offices are seeing vacancies as oil and oil-related companies downgrade and downsize.
Ironically, since last September, City Hall has been giving developers a 50% discount for development charges for all developments if they commence work within six months of getting their development orders.
We have excess malls, offices and high-rise residentials today.
To be sure, there is no right or wrong for the unit owners to sell or not to sell. But options are important. And the pressure to sell should not be present.