Product Highlights

• These are serviced apartments located in the same tower together with a 4-star business hotel, within KL Eco City, an integrated development by S P Setia, anchored by Grade-A office towers. The office population translates to a captive rental market for the serviced apartments.

• The property offers a vibrant city lifestyle (shopping, dining and entertainment) with its close proximity to Mid Valley City and The Gardens, coupled with accessibility to public transport.

Financing

• S P Setia’s 10:90 scheme where the 10% down payment is required, with zero instalment during the 3-year construction period. We understand that buyers may be eligible for certain “incentives” with regards to their 10% down payment.

• We gather that most buyers have “deep pockets” and hence they could go with a 50-60% financing margin. In any case, they will only be billed the balance 90% upon the delivery of vacant possession, which is three years from the commencement of construction.

Market Response

• ViiA Residences has clocked up an estimated take-up rate of c.80%, about a year after its launch.

• We believe the good response could have given the developer confidence to put onto the market two more residential towers, Vogue 2 and 3, in KL Eco City at the beginning and end of 2018 respectively.

Source: AmInvest Research - 7 Nov 2017