Product Highlights

• Lucentia is the residential component of BBCC, a mixed development located in Kuala Lumpur’s prime shopping district, Bukit Bintang.

• Within walking distance are BBCC’s own Mitsuioperated mall called LaLaport (20 – 30% of retailers are Japanese), currently under construction, as well as Lot 10, Sungai Wang Plaza and Pavilion. Hence, Lucentia offers ease of access to shopping, dining and entertainment. It is also well connected to the public transport system (LRT, MRT and monorail).

Financing

• We believe the financing margin secured by most buyers is in the region of 50-60%, which is fairly typical for high-end, high-rise residential properties.

• The developer currently offers up to 2% in loyalty rebate via the EcoWorld Prestige programme for returning buyers of EcoWorld properties.

Market Response

• Lucentia’s Tower 1 currently has clocked up an estimated take-up rate of 90% since its launch in November 2016. We understand that the balance 10% were reserved units, pending release.

• Tower 2, launched in October 2017, is now 50% sold.

The Big Picture

• Lucentia's good take-up tells us that there could still be pockets of strength in the hardest hit, high-end, high-rise residential segment – one of them being reasonably priced compact units in the shopping strips in the heart of KL.

• With a built-up area of 455 – 880 sq ft, Lucentia fills the demand gap for compact residential units in the Bukit Bintang shopping area, vs. predominantly larger units starting from 1,300 sq ft in Pavilion KL in the vicinity.

• Also, Lucentia is very competitively priced at RM1,600 – 1,890 psf, vs. close to RM3,000 psf for the recently launched similar compact units in Pavilion KL.

Source: AmInvest Research - 14 Nov 2017