Hope your gut feeling for this Belfield is right. Latest rental of regalia is below   

https://www.iproperty.com.my/rent/jalan-sul...iced-residence/
Sure i agree that appreciation comes from a multitude of factors. To me the pros and cons have been discussed extensively here but if we were to level up points 1-6, will regalia still be the same price?

depending on what you deems as good performance, before covid outbreak, my fren's airbnb business there has been quite successful and generate juicy margin of return every month on each unit he rented/profit sharing...

Thank you for quoting my post from more 2.5 years ago. Didn't realize got ppl so free time and stalk my posts especially coming from seasoned forumner.

So are you going next? Going screenshot all my posts and bring me to court in the future?

For me, Belfield main usp is the branded developer and competitive prices (for their product) . Other than that, nothing to shout about its usp, layouts, development, micro location etc.

Just embrace it as every path has its trails.. nothing to be ashamed about..

I think those are useful at least for forumers to filter or ignore those who talk big like popoti gulu with gut feeling that doesn't hv any basis..

Simply by opposing your views then this would be a good buy already..

Unfortunately I have no interest to check your trail.. The vested prop is already reflection of the investment acumen of the individual.

Well it is good if you dip your hard earn money. Need to put food where the mouth is. If I read this thread correctly, it is based on gut feeling of many vested interest that 118 will bring boom and tradewind will rejuvenate the area. Some has gut feeling local Malaysians willing to pay rm2500 rental at this area... Well good luck to those gut feeling.

I think we shouldn’t assume that all buyers are purely buying for rental yield only (ie there would still be a proportion of buyers buying for own stay).

This development I believe will attract a fairly sizeable proportion of own stay buyers due to its fairly big layouts (considering it’s so central), affordable price psf, affordable net price, reasonable maintenance fee (eg. 35 cents per sqft so for a 3 bed 2 bath unit works out just under RM400), 2 carparks for 3 bedrooms and above (perfect for family of 3/4), nice facilities, good schools, close proximity to big firms for city workers, security and monorail for the occasional trips. I can see this sort of plus points appeal to the current trend with lifestyle living on the rise. Not everyone wants/need to live in a big mansion and would rather save commuting time. Time is money afterall.

I for one wouldn’t want a development that attracts Airbnb operators as it tends to affect the facilities more than a typical residential development.

So with a good proportion of own stay buyers and landlords, the risk of low occupancy is reduced and less competition between landlords. Higher proportion of own stay buyers would also translate to better upkeep of the property which in turn increases the appeal/value.

Nevertheless, everyone loves numbers so let’s do some projections below in case you’re considering to buy as an investment:

Rental RM2800 a month (for 3 bed 2 room unit - I think this isn’t unreasonable considering central KL location and on-going OPUS rates. Also we are talking at least 4 years down the line so who knows what the demand will be when the economy picks up again)

The above rental translates to about 2.7psf, which personally I think it’s a fairly conservative estimate. If anything, 3psf isn’t entirely impossible also.

Maintenance 0.35psf

Average price 700-750psf (depending on your unit selection)

Gross yield (3psf rental, 725psf mid-point unit price, 0.35psf) = ~3.66%

Similarly, on a conservative 2.7psf rental, gross yield is ~3.25%.

Not bad at all considering current FD rates is like what, 2.5%? And FD doesn’t benefit from any capital appreciation.

You’re most likely not buying in cash so the gross yield above will have to be adjusted based on the amount you have invested with your own cash (ie downpayment, fees, etc.).

You may argue that hey, Tesla stocks surged x5-6 this year alone but would you ever apply for a housing loan to invest in Tesla?

Maybe yes if you’re extremely hungry for risk but the majority probably wouldn’t due to stock market volatile. Properties on the other hand are meant to be a slow burner, benefiting from inflation (ie you don’t pay cash in advance to benefit from time value of money - the later you pay up, the better because value of money decreases over time due to inflation).

And the above is only based on rental yield so you may also benefit from capital appreciation. But let’s be real - condos/service apartments asset classes don’t usually appreciate as much compared to landed. Landed on the other hand aren’t the best for rental. So it really depends on what exactly you are aiming for - build a portfolio of income producing assets or a portfolio for capital growth, just like dividend vs. growth stocks.

At 700-750psf, I would think there’s still room for appreciation given all the > 1000psf developments around the city. Even if it stays at this level, you’re still in the money due to inflation. At such an entry price, I think the downside risk is low and manageable.

Interest rates charged by banks are low at the moment too and along with HOC perks, I don’t think it’s such a bad time to consider such a property.

There are macroeconomic concerns of course but this is anyone’s guess. Economies go in cycle so as long as you only buy if you can afford to hold, I don’t think you can go terribly wrong with this. There are also concerns re supply (though personally I think KL freehold properties in decent location aren’t exactly in excess) which shouldn’t be disregarded but again, this is where you need to do some work to your unit to standout from the crowd. Nevertheless, when economies recover, demand will naturally tick up again.

And this property will only be ready in 4 years time at the earliest I reckon, and do you think the post-Covid economy will recover in 4 years time? That’s up to you to decide but I think the odds are higher for a recovery in my view.

For most of Malaysians out there, once reach certain price, they would rather buy landed for own stayers. And this is not exactly a low-medium density development. For a 3bedrooms here, it will cost easily >rm750k nett. most wouldn't buy 788sqft for own stay, which will cost Rm600k. And if they need to drive to everywhere, they might as well buy further away and enjoy better amenities, bigger space, lower density etc at elsewhere.

For most of Malaysians out there, once reach certain price, they would rather buy landed for own stayers. And this is not exactly a low-medium density development. For a 3bedrooms here, it will cost easily >rm750k nett. most wouldn't buy 788sqft for own stay, which will cost Rm600k. And if they need to drive to everywhere, they might as well buy further away and enjoy better amenities, bigger space, lower density etc at elsewhere.

Based on your Conservative rental figure, it is very obvious that this is not a buy for rental. Frankly speaking, we do not know what will happen in future but if u r banking on future ecpmony recovery, it is a gambling as it is not within your control. Good for you if your gamble pay off. Otherwise... I only can wish you all the best.

You’re right and I wouldn’t disagree particularly for those who likes big spaces further out from the city but based on the last sales chart, there seems to be an appetite for larger units, which could potentially be driven by the school and access to central KL.

Most of the smaller Type A units are probably purchased by investors looking to rent out to young professional couples seeking city living.

No comments for those who buy for own stay. As long as you like it, routine etc...if buy for own stay, they will not be bother what forumner here say anyway...

However there are so many vested investors try to talk up a development to push the sale... And too bad for inexperienced investors who may influenced if they do not self due d.

A lot of these new serviced residence projects rely on the potential of gentrification of the surroundings to keep their value high.

Key word here being POTENTIAL. It's reliant on a lot of factors like government redeveloping old areas, other new properties being built and populated etc.

Stuff like this doesn't happen overnight, or even within a decade. It might take 15, 20 years before an area is fully developed into a bustling commercial-residential hub with constant human traffic and economic activity.

Whether an investor is able to stomach this long development is one thing. Hoping that economy and government are able to facilitate development of the area is another 😅 Investors must do their homework on potential tenants/subsale target market and decide for themselves if the risk is worth the reward. Just because Sunway Belfield is "low" for the area doesn't necessarily mean it'll appreciate well enough to justify maintenance costs LOL

Nowadays, which area is good wt promise investment return? Sifu taiko here can comment a bit? Sincere to learn n listen

10years ago, rental collection can cover instalment n expenses still with xtra passive income, newly vped project recent years hardly heard of this, probly rumawip (price control) or market oversupply (similar products) now?

Klcc area not from one master developer creating everything i can see, how it goes sucess passed years?

Thank you for quoting my post from more 2.5 years ago. Didn't realize got ppl so free time and stalk my posts especially coming from seasoned forumner.

So are you going next? Going screenshot all my posts and bring me to court in the future?

For me, Belfield main usp is the branded developer and competitive prices (for their product) . Other than that, nothing to shout about its usp, layouts, development, micro location etc.