Good question and my homework convinced me to enter this ...
Average rental, for now, it is untested, due to the building is yet to build and only can complete in >3 years time. So we take nearest completed condo to compare, say Savanna Bukit Jalil and along the highway which is also next to the Kesas like KR2, The Endah Promenade.
Savanna, Bkt JalilGreenery and quiet. Facing golf. All units with 3 car parks. Quite near to KR2 and most sizes are quite on par.
Size 1,212 sq feet, full furnished, currently fetching rental btw RM 2,600 to RM 2,800 ( Some units asking for RM 2,300 but not consider due to RM 2,800 unit has more furnished and renovation )
Entering subsales price is ard RM 600k onwards ( or RM 500 psf )
Market rental as at today is RM 2.15 to RM 2.31 per sq feet
Endah Promenade, Sri PetalingA good looking Leasehold service apartment for first purchasers who bought it as low as RM 330k onwards 4 years back. Of course, a normal service apartment without much concept like KR2.
Unit size of 1,279 sq feet with full furnished and renovation is asking RM 2,700 to RM 2,800 ( Some lower floor units asking for RM 2,300 but no renovation and very plain condo without any high end looking, also with only 1 car park )
Entering price is RM 560k onwards ( or RM 437 psf )
Market rental as at today is RM 2.10
Kiara Residence 2, Bukit JalilI pick the most nearest size, 1276 sq feet. Type B4 at Level 15 Tower 3, the most premium Type B unit at solo Tower. S&P price is RM 598,800 and after 7% discount, the actual price is RM 556,884 which is RM 436 per sq feet. DIBS and partly furnished the crucial parts like Twin Gor said. I rate it RM 400 per sq feet after minus the promotion.
Loan 90% of S&P Price RM 598,800 is RM 538,920 ( at BLR - 2.30% for 35 years loan is RM 2,484 monthly installment )
Maintenance Fee ( RM 0.20 X 1276 = RM 255 )
Total Maintenance : RM 2,484 + RM 255 = RM 2,739
Market rental as at today, if follow both of the benchmark above, 1276 sq feet X RM 2.15 to RM 2.31 = RM 2,743 to RM 2,950
By 2015 or 2016 ?KR2 would be complete in 3 years time from date of S&P, say sign earliest July 2015 and VP around December 2015. Pay 3% down payment now ( RM 20k ) and nothing until VP at Jan 2016. To enter sub sale, for Savanna is RM 80k ( 10% of RM 600k and S&P Cost ) and for Endah Promenade is RM 70k ( RM 55k and S&P Cost )
I don't know what happen by 2015/2016, but just my 2 cents expectation as below ...
I expect the market rental for all the 3 condos above increase by 4% every year, so by 3 1/2 years later, once KR2 VPed, I expect all to increase 4%, then 4%, then 4% and then 2% compound ... Is 4% rental increment is too high every year? Let's take it high because I am confidence by 2016, BJ is another level of BJ.
Therefore, for KR2, a Type B4, size 1,276 sq feet in my highly expected calculation would fetch rental of
RM 3,150 to RM 3,384 ( however, the monthly installment is RM 2,484 + RM 255 = RM 2,739 )
If KR2 able to deliver exactly what they are selling, a quality condo with concept and it's exclusiveness of quadrant zone or corner units, I am sure no matter what is the rental in next 3 or 5 years, Savanna and Endah Promenade is well below KR2.
Anyhow, KR2 competition is another wave from completion of ZR and more costly project like Treez, KM1 and etc ...
Apr 17 2012, 07:54 PM
Quote
0.0478sec
0.39
7 queries
GZIP Disabled