i notice recently there are a lot of launches are 'mix development' which means the project consist of retail shops, offices, serviced apartment. example are such as jalil city, one south, sunway velocity just to name a few. i wonder if this is the new trend? anyone foresee any impact on such concept to the property market? appreciate ur sharing

good to see u spotting new trends. But why not look at existing, boring areas? Not too exciting?

What are the existing boring areas that you would recommend?

maybe want to growth up the area.. then retail shop & ask ypermarket come in...developer earn a lot

not saying not exciting or boring, at the end of the day, it's the $$ we all looking for. a new development would be 'almost for sure' give decent appreciation upon completion, rental would be also 'almost for sure' get positive cash flow for holding it 2-3 years. and several other advantages. while in secondary market, some issues, such as higher initial capitals to cover legal fees etc, seller sell too high and loan not up to 90%, hardly get good positive cash flow under normal circumstances (seller sell at a price ngam ngam to cover installment). anyway if there is any good deal in secondary market, please PM me also

make no mistake, all these so called mix-development..............only benefits one party only.........and its not the buyers........

cause no more land.. now left all commercial or leasehold title

jialat

mind sharing with us how would the 'one party' get benefited?

$$$

lolx...of course it's $$$. let me rephrase my question, how exactly will the 'one party' (i assume is developer?) make more money from mix development?

developer lor

ok...understand that. i mean how would a developer gain extra profit from mix development?

Well, instead of having non income generating 4-5 storeys carparks, they now have retail and offices that they can sell............... sure it'll cost more to build but knowing sunway these commercials wont come cheap should generate additional substancial revenue stream for them

since there will be retail lots, if the developer do a good job in keeping some bulk of the retail lots, and control their retail tenants well, then it may help to boost the value of the property development as a whole in longer run. And also, they will have a stake and be sure that the maintenance of the building, securities, infra, access etc is well taken care to attract more customers to their mall, which eventually helps them to demand for higher rental.

For the residents staying on top of the retail or next to office block, it will be more convenience and enjoy the extras as stated above. better still if the owner wants to rent it out, the better the office block tower and retails operates, the better it helps to command rental yield. On the contrary, if retails all close shop, dun think residencies tenants will be glad to see gloomy mall below where they stay, suspect of drug addicts, a lot of foreign labor etc, securities an issue then.

So, if developer wants to maximise return on land plot, let's hope they want to maximise it in the long long term as well, not just for the sake of selling all units off at sky-rocket price and cut themselves off as soon as possible. I guess, the more reputable developers will be able to deliver long term solution better.

feel free to comment. thx

btw, one should also take note the prices of these residential units in mix dev VS plain condo n apartments........


If I were a developer with 10 plots of landbanks in KV, I'll build 10 mix dev irrespective of supply and demand

Clever move. This is what I will do also.

1 dev = With housing, commercial and private hospital.
1 dev = With housing, commercial and hyper market
1 dev = With housing, commercial and college/uni
etc.