A few days ago, a friend showed me her new in-season branded handbag and told me that she bought it for RM4,500. While I was not surprised with the price of a handbag and am aware that there are some which are way more expensive, I thought to myself how someone could pay that much for a handbag of that design.
I wouldn’t spend that much for a handbag but some would pay way more for it. Why? This is because I am not a bag person and know nothing about handbags, while those who do know the value of the brand, design and craftsmanship would covet it, no matter the price tag.
This brings me to ponder on the topic of price versus value. Can someone place a value on something? Cost is one thing but what about the value of quality and service?
An issue came up recently about the property prices in Ipoh and about how properties are almost out of the reach of common folk. What are the comparisons? Compared to Ipoh property prices in the 1970s?
I spoke to The Haven’s Chief Executive Officer, Mr. Peter Chan, to try to get his input, using his luxury resort as an example.
He shared, “If The Haven is deemed expensive, is there an equivalent to compare this property with another? Comparisons are not only made in terms of the physical property itself but also design, location, land usage, quality, facilities, services, maintenance and security.
“The land value of The Haven and within its vicinity is about RM100 per square foot but it is built on a plot ratio of 1.2. This means that the pro-rated land value of this development is about RM80, similar to prime locations in Kuala Lumpur and Penang, after adjusting for land use. However, do take note that it is dense in the two cities but not at The Haven.”
As land priced at about RM500 per square foot (psf) would have developers build on a plot ratio of five to eight, this means their actual pro-rated price psf is between RM60 to RM100.
Added Mr. Peter, “Although the land value of The Haven is about the same as those in Kuala Lumpur and Penang, it is being marketed substantially lower due to market perception that Ipoh can’t be this “expensive”!
“Did you know that KLCC and other city centre prices are valued in the region of RM2,500 psf? Because developers there build on plot ratios of around 10, it means that the pro-rated land value of the development is only RM250. Then why is it that they are able to sell at over RM2,500 psf, with a margin of RM1,750 without taking into account the appreciation of land value?
“With The Haven selling at around RM700 psf of property of similar, or even higher quality, including the land, are we now deemed expensive? We are actually priced the lowest in the world!”
For the record, The Haven is a five-star hotel in Ipoh, a rating officially accorded by Tourism Malaysia in 2015. To date, the property has bagged more that thirty awards, both local and international.
Book your stay now at:
BEST WESTERN PREMIER The Haven Ipoh
Add: Jalan Haven (Persiaran Lembah Perpaduan), 31150 Tambun, Ipoh, Perak, Malaysia.
GPS Coordinates: N 04° 38.167′ E101° 9.684′
Tel: +605 220 9000
Fax: +605 220 9011
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