This viewpoint is just so

I don't want to flame anyone here, but the fact that there are high end condos, FREEHOLD and selling half the price of your development in a more matured surrounding yet slow take up should be a big warning sign to buyers already.

You know the only reason why TG is selling and those older condos are not? Because those condos are cash upfront and TG is DIBS being bought by speculators to flip.

If 450-700psf in a matured area also no buyers due to low rental yield who's gonna buy your flipped condo when it VP in 2015?

Good luck to you, buying in at 1100psf....

This post has been edited by joeblows: Mar 13 2013, 04:42 PM

How about compare to Opal Dsara across the road, low crime rate, fully built with good facilities and neighborhood, selling at 500psf? Fully furnished mind you.

I can't imagine who will pay not even 1100 but 1300psf for you guys to flip to when TG is complete.......

Ok lo, as you wish to believe. I already did my best try advise you if you already knew the facts but still don't wanna believe its not my fault.

Btw, not only is 1 bedder price same as 4 bedder in MK, it can even buy a DSTH landed in Sri Hartamas or Tmn Tun with change left for reno.

You judge for yourself lo which one has a greater demand.

All the best in your investment. I have feeling, you gonna need it.

PS: KLCC 1A Stonor walking distance to LRT also price only around RM600psf.......so much for this "new lifestyle".

This post has been edited by joeblows: Mar 13 2013, 05:03 PM

Only a very optimistic (or gullible) person could possibly believe such a scenario.

A person who can buy a million-ringgit property is NOT an ordinary man-on-the-street. The situation is totally different from those who bought 400-500K DSTH PJ houses and had them appreciate to 800K-1M.

Let's do the math:

RM1M loan (and mind you, this is probably just 800sqft, suitable for single or at most young couple).
Monthly repayment = RM5k
Max loan allowed - usually 40% of NETT salary. Ok lah, we will assume this "millionaire" don't have a car and relies 100% on MRT.

So, 5K/0.4 = RM12.5K NETT. Means gross salary for this single person = RM15K or so thereabouts.

Wonderful. How many single people you know who have RM15k salary? How many young people with RM15K salary a month loooove to sit MRT instead of running around in a 3series?

For those who say "couple will stay" you got to be kidding. Which couple would be so foolish to buy a 1M 1-bedder which they will need to move out of in a couple of years when they have kids instead?

Simply put, no demand for this type of overpriced chicken coop in the sky.

This post has been edited by joeblows: Mar 13 2013, 10:12 PM

Why wouldn't people buy One South or Opal Dsara just across the road at half the price psft?

Just doesn't make sense at all......

Luxury condos are for the really high-end people, who want the posh address.

Those people aren't going to be sitting MRT.

I think you should offer 1200-1300psf. After all, your prediction if I recall earlier, 1800-2000psf by 2016, so still should be >40% profit, easy money!

Really?

Is there a % set-in-stone that BNM allows? I thought they tightened where previously bank allowed up to 80% of gross down to 40% of nett, which is why so many loans get rejected.

If I'm not wrong, there should be a guarantor for your friend who just took a 650K loan from Maybank with nett salary of 5k, right? Or is it a joint loan?

Multi-millionaire so free to TCSS on LYN?

I admit I'm not one yet. Sigh.

I think his opinion something like mine except maybe I'm more bearish.

Slowdown is coming for props in general, especially for high-end condos in non-matured/prime areas. 600-700+ psf is really, really pushing it in some of those areas and >1000psf is utterly mind boggling. Not to mention in 2015 there is going to be massive oversupply of high-rise (even some up up up camp agree on this, like AMINT).

Personally I don't think any property priced below 500K (unless in a really lousy location) will be badly affected and landed won't be badly affected (especially in prime or matured areas) as things stay as it is. As cybermaster recently asking about DSTH in TTDI area, I think he agrees on this, and still sees limited upside for landed in med/long term (this I agree as well).

Where we differ, I think there's possibility of a economic slowdown in the region sometime end of this year or early 2014, and a chance that BNM may raise rates. I don't think its 100% btw (despite seeming to be from Bear camp).

But I surely won't buy a >1000psf condo in non-prime area for "investment". I don't think many of the more intelligent forummers will too. The risk/reward ratio is just totally skewed off. Low chance of reward (and low reward, even 200psf increase is just a 20% increase whereas if you buy 500psf, 200psf increase gives you 40% profit) and high, high risk (especially taking >1M loan for a single condo property).

Many investors should do the maths before they BBBBB. Don't care if you're bull or bear camp.

You are comparing DPC, a fully gated community with lots of green park areas and run and developed by a single developer to KD, which has mishmash of developers, numerous condos selling at lower price point, etc?

How does this comparison make any sense?

Might as well advise people to buy Opal Dsara, which selling at around 550-600psf. IF TG2 can appreciate to 1200-1300psf (a big ask by itself), Opal can sell at 900psf, which makes a profit of 50% easy money.

Casa Indah 1 and 2 or Opal actually still can get decent rental yield (although probably not enough to cover repayment).

I estimate CI1 and Opal could probably yield about 4-4.5% on transacted price (assuming you furnish it well and get a little lucky with a good tenant).

If buying for investment I'd prefer Opal as majority of tenants there of higher class and you don't get so many "undesirable" foreigners that drive the selling price and rental yield down (trying not to be racist here but we all know what I mean)...

If you really squeeze I think can get Opal transacted price down to 520-530 psf or so........

Any seasoned property owner knows those stickers mean nothing.

When I was looking at Dsara Twins almost two years back in 2011 Henry Butcher also had a big cardboard placard with stickers all over to show how many units being "snapped up by buyers".

Mar 2013 I believe you still can find units for sale from the developer, two years later. Probably with bigger discount too. And twins isn't even >1000psf.

I can buy 1400sqft Opal Damansara (condo just across the road) for 720K.

Then I spend 130K on ID. Enough to fit in Gaggenau, Grohe, Sealy/Tempur-pedic mattress and 40in TV. Seriously, 130K is a huge sum for ID and reno on a 1400sqft condo.

Total = 850K for a 1400sqft dwelling, that I can move into in 2-3 mths.

Isn't it smarter than paying 1.5M for an equivalent in TG that's only ready in 2 years?

This is just what I'm wondering about.....doesn't really make sense.

This post has been edited by joeblows: Mar 18 2013, 03:38 PM

Opal Damansara may not be at the very top end of luxury apartments but its nothing to scoff at either. Certainly a long way away from the mid-lower end like Desa Kiara or Riana Green.

I've been to several "luxury" (meaning upper-middle end) condos to look at the facilities, including: BU9, Opal Dsara, Troika, St Mary Residences (which I actually considered buying but luckily didn't), The Oval and 1MK and the common areas are not really that much difference.

When comparing the price range (Troika, St Mary's and The Oval are all >1000psf compared to the MK and PJ locations which are all well south of 1000psf) there is not really a big difference between the common areas.

The only differentiators really are the location and the tenants (area with more undesirables or low occupancy gets lower offers, which is normal).

Maybe only the truely super-high end ultra-luxury type exclusivity like Pav or St Regis would be able to distinguish themselves above the pretenders based on common area alone.

Opal does have drawbacks.

1. It's noisy (near the highway), but then again, Tropicana Gardens is along the same stretch of road. Also, units facing inside will be less impacted by the noise of the road.
2. The road can be congested during rush hours. This is true - but then........the entire stretch of road leading in the Sunway Damansara is a nightmare during rush hours anyway.

Opal does have other things going for it:
1. It's low density. Lower than Tropicana Gardens if I'm not wrong.
2. There's lots of parking.
3. It's cheaper.

Probably more or less similar actual facilities, but as you say, its the design and finishing that give it a premium feel.

Also, Pav and St Regis are more of a "brand image" than actually being much more luxurious than the other places per se. ie, a Ferrari would always be considered much more high end than a Nissan GTR although one could very reasonably make an argument that the GTR is a superior car.