QUOTE(keith_hjinhoh @ Apr 8 2011, 09:26 AM)
This statement is flaw. They maybe able hold their price (capital guaranteed) but not capital appreciate
Do you understand the meaning of 'hold their prices"?
Have u observed the value of property prices in TTDI, Bangsar and Bandar Utama for the past 5 years? Are u telling me the prices ure seeing now is the same as the prices 5 years ago? If this is what ure saying then you obviously have no idea about the property market in these areas.
For you info, im a TTDI resident. I bought a condo in 2009 for 471K and its current price is approx 650K. This is based on values of transacted units. Right now the going price for a double storey corner lot with land is approx RM 1 mil in TTDI. Was this the price in 2006?
So please dont tell me that prices here have not appreciated. If ure not sure then call up and ask property agents who specialise in these areas before you say my statement is flawed.
Read the following article which came out in 2008: Investing for the long term Remember the property boom days before the 1997/98 Asian financial crisis crippled the Malaysian property industry?
In 1993, quantity surveyor Bruce went shopping for a house and paid RM238,000 for a nicely renovated 2-storey intermediate link house in the Aminuddin area in Kuala Lumpur's Taman Tun Dr Ismail.
"There was another unit two doors away, priced at a cheaper RM220,000 but my family and I hated the way it was renovated. So, we went for the more expensive buy," says Bruce.
Buying the TTDI house was not an easy decision to make for Bruce as he had to first sell at a loss his existing house in Kepong's Taman Bukit Maluri, bought during the property market's peak before it crashed in the mid-1980s recession.
See the following link for an analysis of prices in some prime areas: http://www.metrohomes.com/appmain/hminfo/i...=NOT/2008/00033A painful decision then but now, with the benefit of hindsight, it turned out to be a brilliant move. "The capital appreciation of the Kepong house is nowhere near that enjoyed by the TTDI property," says Bruce, who sold the TTDI link house in 1997 for a tidy profit and upgraded to a corner unit down the same road. The current asking prices for 2-storey link houses in the Aminuddin/Burhanuddin areas range from RM590,000 to RM630,000.
Location and timing Location is an all-important factor in property investment, as with timing, as a house price sampling by Metro Homes for the period between 1993 and May this year would attest to.
An analysis of the survey of selected popular addresses in the Kuala Luumpur-Petaling jaya areas points to the fact that while values of property in preferred locations do succumb to a downturn, they also tend to be more resilient. And once the market improves, these areas not only recover lost ground but also scale new heights.
The sampling shows that the cheapest 2-storey link house in the Aminuddin/Burhanuddin area in TTDI was sold for RM390,000 in 1997. Then the Asian financial crisis hit and values dropped 15% to RM330,000 in 1998 before slipping further to RM320,000 in 1999.
But those who had invested in the property then would be laughing all the way to the bank now. As at May this year, the cheapest 2-storey TTDI house in the Aminuddin/Burhanuddin area changed hands at RM490,000, with the most expensive unit fetching a significantly higher RM600,000.
The value uptrend for TTDI semi-detached and detached houses is more pronounced - those who had invested in these homes during the last downturn would probably have doubled their investment today.
In 1993, the cheapest semidee in the Jalan Zaaba/Leong Yew Koh area in TTDI went for RM280,000. Prices climbed steadily and by 1998, buyers paid anything from RM720,000 to RM950,000 for a unit, down from a high of RM1.18 million the year before. As at May this year, buyers paid RM1.55 million to RM1.85 million, with current asking prices ranging from RM1.35 million to RM1.8 million.
If you had bought a TTDI bungalow back in 1993, your investment would have quadrupled. A unit on Jalan Athinahapan/Taman Zaaba cost as little as RM530,000 to RM620,000 in 1993 but the same type of house was sold for a whopping RM1.4 million to RM1.6 million five years later. In 1999, prices slipped to RM1 million to RM1.5 million, but as at May this year, values had soared to RM2 million to RM2.8 million. Current asking prices range from RM2.2 million to RM2.9 million.
Metro Homes' director See Kok Loong attributes the huge capital appreciation in the semidees and detached homes to extensive renovations done to them over the years. In contrast, there's only so much an owner of an intermediate link home can do to expand or improve it.
As the sampling shows, the uptrend in price values in TTDI is not unique to this township, which is located across the road from the bustling suburban residential and commercial hubs of Bandar Utama and Mutiara Damansara.
Other popular addresses surveyed show the prices of houses in good locations experienced a downturn but then rebounded to reach new highs (see table below).
Overall, the property market enjoyed a boom before the Asian financial crisis. Prices stabilised in 1999, which, believes See, had to do with the move by national asset management company (Pengurusan Danaharta Nasional Bhd) to buy up the banks' non-performing loans.
"In 2001, we saw prices rising again. In 2003, prices regained their 1997 peak levels and went beyond. In 2007, they recorded a big jump and this had to do with the real property gains tax waiver," he tells City & Country.
Prices and appreciation ratesWithout doubt, prices vary not only from township to township but also from location to location within a township. For instance, the prices of 2-storey link houses in the Aminuddin/Burhanuddin area in TTDI are at a discount to the newer phases of Athinappan and Sulaiman. Likewise in the popular Bangsar enclave, the Terasek sections command a higher pre-mium than the older houses in the township.
The rate of capital appreciation differs too from township to township. According to the sampling, in Kuala Lumpur's Taman OUG, a 2-storey link home bought for RM270,000 or so in 1997 would have only fetched RM320,000, or about 18% more, as at May this year. This is a far cry from, say, Jalan Terasek in Bangsar Baru, where values almost doubled in the same period.
"In Taman OUG, the properties are old and require extensive renovations. There is also less new development in the area to raise the benchmark price," explains See.
So, is it time to buy?
There is no crystal ball but this is See's reading: If the economy were to slide, prices will dip 5% to 10%. But prices will recover quickly in mature areas such as Bandar Utama, which are supported by demand and where the basic infrastructure is already in place.
However, with lower interest rates, prices are unlikely to come down as there will be more demand, which, in turn, will push prices up, says See.
His advice: Buy if you are a long-term investor and if you see something you like. While prices may or may not dip in the near term, you may not be able to buy a home of your choice then. In the long run, prices today will ultimately be cheaper than in the future.
Still buyingWhile the property markets in several countries have in recent months nosedived and transaction volumes have shrunk conspicuously locally, Lee, a professional in his mid-30s, is unperturbed.
Now staying with his parents in Petaling Jaya's mature SS3 area, Lee started shopping for a home some six months ago, before the US subprime mortgage crisis exploded into a global credit meltdown. But he has not let up on his house hunting. "Now is a good time to buy…" says the enthusiastic investor, who is getting a tad disappointed because prices of properties in good locations with good accessibility seem to be holding up.
"I like SS17 in Subang Jaya for its convenience and accessibility, but the 2-storey link homes there are still going for between RM310,000 and RM350,000…" says Lee, who is familiar with SS17 because he went to Inti College which is located there.
While prospective investors like Lee are hopeful that prices will drop, sellers are not budging... for now.
http://www.metrohomes.com/appmain/hminfo/i...=NOT/2008/00033This post has been edited by cybermaster98: Apr 8 2011, 02:02 PM 
Apr 7 2011, 07:48 PM
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