KUALA LUMPUR (May X): The expansion of Kuala Lumpur Metropolitan Group into a RM1.6 billion second phase of its iconic resort development highlights continued investor and developer confidence in Malaysia’s resort-style property and tourism market, particularly in Port Dickson.
The new project, Lexis Hibiscus 2, will add 910 overwater villas and 800 sky pool suites to the beachfront destination in Port Dickson, located about 1½ hours from Kuala Lumpur.
It builds on the success of Lexis Hibiscus 1, which previously entered the Guinness World Records for its large-scale overwater villa design and unique hibiscus-shaped layout. The original development helped establish Port Dickson as a niche luxury resort investment destination.
The second phase continues the same signature design concept and is expected to further strengthen Malaysia’s positioning in experiential tourism and themed resort developments.
One key takeaway is how strongly location influences resort viability. Port Dickson was chosen due to its west coast positioning, relatively stable weather conditions, and proximity to Kuala Lumpur, Melaka and Genting Highlands—forming a key tourism circuit.
This makes it suitable for structured tour itineraries that combine city tourism, heritage visits and resort stays within a short travel loop.
Another important insight is the group’s reliance on a 15-year leaseback investment structure, where buyers purchase units but lease them back to the operator for hotel management and rental income distribution.
Under this model:
This demonstrates strong demand for passive hospitality investment products, particularly among international buyers seeking low-management exposure.
Lexis Hibiscus developments are not purely residential assets—they are directly tied to tourism flows. According to the developer, guests come from over 180 countries, with a nearly even split between domestic and international travellers.
Tour groups remain a major demand driver, especially from markets such as China, Hong Kong, Taiwan and Singapore. These structured travel routes reinforce occupancy stability across multiple projects in the Lexis portfolio.
Early units in the first phase were priced from around RM500,000, with resale values reportedly doubling over time. In the second phase, prices range between RM850,000 and RM1.2 million, with fully furnished units on 99-year leasehold tenure.
Buyers are also offered:
This reflects a hybrid model combining property ownership with hospitality income generation.
A key takeaway from the developer’s strategy is the emphasis on scarcity and differentiation. The overwater villa concept is highly specialised, and limited supply in Port Dickson has allowed premium nightly rates—sometimes exceeding RM1,600 per night—to be sustained.
This reinforces a broader property insight: niche, experience-driven assets can outperform traditional hotels when supply is constrained and branding is strong.
Beyond Lexis Hibiscus 2, the group has expanded into multiple hospitality assets including:
This shows a clear strategy of scaling a hospitality-branded real estate model across key tourism and urban hubs.
Singapore