From what I heard recently, SP Setia might change its initial plan of Corporate Office Tower in Setia Walk to high-end serviced apartment, which probably designed bigger build up areas and luxury concepts compare to current The Solace, Brio and Vio Serviced Apartment.
Don’t get me wrong! I say, I heard only, so far SP Setia hasn’t revealed anything about the changes. However, it is an interesting case study to analysis why the property developer makes such a decision, does it an advantage or disadvantage for existing investors who bought The Solace, Brio and Vio, I mean if the changes are confirmed.
Doubt No.1 – Oversupply Shop Lot and Office in Puchong?
They change it because The Puchong Financial Corporate Centre (PFCC) developed by IOI Properties is just next door and believed the supplies of offices are sufficient to cater the current demand in Puchong area? Bear in mind, the newly completed IOI Boulevard is located just not far from SetiaWalk.
Doubt No.2 – Overwhelming Response on Serviced Apartment?
They change it because of the overwhelming response from buyers during the launching of both Brio and Vio Serviced Apartment? Just can’t imagine the developer sell their products like a hot cake even though the prices are generally deemed a bit too high. But the fact is, buyers are queuing overnight for it! Total of 759 units from the 3 blocks serviced apartments are almost fully sold out now.
{ 2 comments… read them below or add one }
i agree that the solace and all are overpriced. is it really the market value? can the rental enoigh to cover the monthly repayment?
my view, shop lots might be over supplied there, but the value still exist, nothing be worried fr SP Setia to go on wth tat plan since the dev is still growing, potentially bringing mid term returns. However, ROI for serv apartment will be significant than tat, volume, demands, n fast earning. N it won’t cannibalise existing apartments, coz bth cat gt own markets, n it’s obvious in Sel n WP market