This is my personal opinion, but let me put it to you this way....Mont Kiara condominiums are one of the best assets to buys in Klang Valley right now.....within a certain price range.
If you're considering property investment in Mont Kiara, then you're into a certain strategy already, no? You want to buy a relatively safe and high value upmarket place with a known high rental value income. That will be your strategy. Capital appreciation is a bonus, main aim is rental. If you're into diversification and buy few small/studio unit with lesser entry price, then I don't think MK area is for you. Even the small studios have a high entry price.
You have to go see units in MK to appreciate what I'm saying. If you want to read this, then read this objectively. Suffice to say that I'm a heavy investor in this area and this has remained my favourite hunting ground despite my need to diversify my portfolio elsewhere. I have no benefits if you choose to follow my recommendations, only possible disadvantages from a potential competitor. But I believe the pie is big enough to accomodate us all, and I wish to share my view with potential investors.
My Points: -
Price per sf is cheap now!
Rm350-450psf for older condos like Pines, Angkupuri, Pelangi, Palma. Price for Pines has appreciated about 20% since last year after the refurbishment.
RM400-500psf for new condos like Banyan, Meridin, Kiaramas Ayuria, Kiaraville, Kiara 1888. Kiaraville transacted at RM600psf on VP, now about RM480psf. Ayuria even cheaper at RM450/sf. Prices will never be much lower than this. Certainly never lower than developer's prices.
Prices have trended upwards over the past 2 months. No more cheap cheap buys.
Location is king. Mont Kiara is an upmarket place. The maintenance charges are not crazy....about 30cents/sf/month.
Comparable to other mid-range condos in Subang/PJ/Old Klang Road
Now, take a few condos that you may know and compare the price psf.....Sentul East(FH) about RM350/sf, Maple Sentul(FH) about Rm420/sf, Seri Maya(FH) about RM350/sf, Armanee Terrace(LH) about RM330/sf, Casa Desa(FH) about RM330/sf, Papillon(FH) about RM430/sf, Impiana Meridian(FH) about RM390/sf, Manjarala 18(FH) at about RM330/sf.
Compared to prices in MK, MK is really a bargain, as the build quality, upkeep and location are superior to all this(IMHO). Just see to compare for yourself!
Now what does all this means? It means that:-
1. There will be capital appreciation especially on the newer MK condos once the economy recovers.
2. It is a really nice to stay and bring up your family.
3. Its THE place expats want to stay.
But what about for investment? Besides the potential capital appreciation?
Well, you can argue that the rental has come down and that rental demand is slow. I can share with you that it has definitely picked up since the last 2 months. Notice also that rental rates are down...but it is down across the board in regards to all condos/service apartments, except for certain niche studio apartments. KLCC rentals have definitely gone down. MK rentals have gone down. But do remember that interest rates are at all time low. Thus as long as your rental is able to cover your loan installment, then it is a go. Rental rates will recover when the economy recovers.
What about the fact that there are so many condos there at present? And that there are new condos finishing soon?
Well, why are there so many condos there in the first place? Because it is a good location and high demand, pushing prices higher. Developers want high profits, so build more. But one fact remains.....there are minimal free land along Jalan Desa Kiara and Jalan Kiara now. There are still plots around the Kiaramas areas though. And looking at the latest trend of launches.....ie Seni, MK10, MK11, all these will likely be huge units in the future with prices of at least RM600/sf. High quality furnishing, but prices will be beyond the 95% of all Malaysians. I don't think there will be much more units of 1000-1500sf launching in the future as developers will max out the profit for the little available land.
What are your risks?
Well, for starters, entry price is high. You don't even need to consider investing here if you do not have the ability to secure a high enough bank loan. Even if you do have the ability, Azizi Ali might recommend you to diversify to few "cheaper" properties rather than all money into an "expensive" property. You have to think that for yourself.
If you buy and have no power to hold if unable to rent out, then you are better off not buying. Not that its not doable, but its way stressful.
And whoever says that occupance rate in MK is 30%...well, that is so not true. 30% would be the right number for owner occupied, but you have to add in about 40-50% for expats occupied. I think a figure of 70-80% occupied (all available units counted for, new and old) will be closer to the truth.
Rightly said, I shared the same views as your goodself. MK is the best o the best buy at the moment. I bought a unit at kiaraville 4 months back, tempted to get another unit but worried about the gearing. Still comtemplating ......which condo do u deed is the best bet at the moment in term of value?