Condos are building assets with limited land from developer. Most condo leasehold or freehold have useful life.
We know in Singapore leasehold assets 99 yrs, the building still need to be en-bloc or demolished when it reaches 50 yrs old.
Assume we are now 25 yrs old then when 75 yrs old the building need to be demolished then our investment become zero? or developer sell the land but the land need to be divided by thousands units in one condo area so the value is super small cannot be enough to top up new condo.

Why do we buy condo if this is depreciating asset? better buy landed house right? so when we are 75 yrs old we can sell the house high for our retirement. I don't know why people buy condo more than 1.

in SG, owners are usually well compensated when it comes to en-bloc. for example, LINK

so how is that similar in Klang Valley? Any real estate pro can shed some light on this?

How about Malaysia?

It depends on the developer, if developer offers you little cash then suddenly the condo crashed, how?

all depend willing buyer and willing seller. Few factor can contribute but now so always happen

1) Holding power not good
2) Whole condo appealing very bad even the neighbourhood.

This factor not usualy happen...some are suround by different type property.

Example few example

1) condo unit not good fengsui - didnt mean the landed property next to the condo alot not good...

2) 1 Unit owner didnt hv bargin power - didnt meanz their neigbhbour also the same -which potential buying unit frm owner.

This post has been edited by felixmask: May 12 2014, 02:36 PM

a bad building management will kill your condo value much more faster that any collapsing condo.
give 5 year you already know what is your condo situation ... no need to wait until 20-30 years.

so far I've not heard of any condos that have undergone en bloc and redevelopment in Malaysia. the first condo in Malaysia is still standing and occupied. the only ones that have been demolished are the public flats e.g pekeliling flats but that's not privately owned. Klang Valley still got lots of land compared to SG

Bad building Management, Bad Tennants also. If Buyers are responsible and think long term, its tn their best interest to preserve the Value of their Condo

Case in Point is Vice Hill, was one of the nicer Condo in Cheras, at Top of Hill, Scenic view but now, down the drain.

If any condo on en-bloc, Vice Hill should be the first.

Tear down the whole place and redevelop it to HER again.

I always heard market crash... Never condo crash. Depreciating value? Means what? buy at 500k becomes nothing in the future? I think ts too imaginative.

Crash does not mean ZERO value left lar.
Most stocks and condos mana zero? unless highland towers or Enron / WorldComm lar.

Apartments / condos do depreciate instead of appreciate.
Even rentals too.
it depends on factors like some members shared - mgt, area, nearby new build-ups & availability/rental, etc.

If U have NEVER heard of a property market crash - it means U are either a youngling or haven't been reading / exploring much.
Sorry to be blunt ya

I think u dun understand what I meant at all. Of course I hv heard stock market crash n property market crash. But TS is talking about condo losing value over time. Can u tell me which condo lose its value over time? from the beginning an owner buy from developer. I'm curious.

Something wrong with ur eyes.

Read carefully uncle.

i wish i am still young... i invested in properties since 2008. sold 2, now still have 3.

This post has been edited by cmk96: May 12 2014, 07:07 PM

this is a dem good point, easily overlooked...

why is there zero case of enbloc redev condo in my even now? why so many in sg?

those who keep harping on "no more prime land", pls answer that!

it is precisely there is plenty of good land in kv/my that nobody gives an ass on redev. what for?

it is a lot more profitable to build elsewhere as there is ample land, say wat u like.

and dun forget, here, its all about who's a bigger crony squeezing max blood out of anyone who wants to buy-speculate!!

Can u tell me which condo lose its value over time? from the beginning an owner buy from developer......
Leasehold condo after holding on to it after 35+ years I presume....
http://www.theedgemalaysia.com/insider-asi...diffences-.html

Do old condos in KLCC ever go en bloc? Will they depreciate in value with time for freehold properties? Tx....Posted by Francis Chong on Jun 29, 2012
http://www.propertyguru.com.my/property-fo...ll-they-de-9038

heheh like i said - since 2008?
there are property dips as well and yes, i've friends that invest only in properties as equities.

One - she has more than 6 properties - and she one who shared one of her apartments did depreciate / devalue.

Another - there is also an old school friend of mine.
Crazy saver - worked in SIA as a steward - owns several properties (residentials + shoplots) in Shah Alam, PJ & JB generating >$15K pm net cash.
And yes, he also said he had apartments depreciate on him

Yes, there's something wrong with my eyes.
U must be a much better investor than these millionaires of course... since U invested in when.. 2008?
I bet a lot of folks thought they were Masters of the Universe during the stocks' golden bull run time until kaka hit the fan - thinking luck as skill.
I wish U better luck than those previous Masters of the Universe.

This post has been edited by wongmunkeong: May 12 2014, 10:07 PM

The properties were under your name, BUT it does not belongs to you yet,
unless you are able to finish service the mortgage. Any hiccups in loan payment,
banks will tarik and put it for sale at good discount rate..
Many of my friends/relatives only dare to say the property belongs to them after completed the loans.
Otherwise, any credit / financial crisis like 2008 happens in the future, are you able to serve 3 properties above?
Not all properties are able to collect rental or have tenants during "bad economy" .. CASH is King during crisis time.

exactly.. 2008 till now, no hiccups in the property market yet..

pls tell me something i do not know.

if there is a crisis ... would i be able to hold these 3 properties... well... y not?

ppl who already flipped a few properties hv "cash reserved"....

only those who never flipped do not understand how come some ppl never bankrupt yet.

u sound like never flipped a property before... ppl who already flipped... hv cash reserved to withstand the crisis... i pity those who own a few prop but never flipped yet... maybe still under construction.... u should advice them.... BECAREFUL! ..ahaha...

American Concrete Institute puts the design life of reinforced concrete structure at 75 years. Does it mean when the apartment blocks reach 75 years, bank wont refinance it, insurance company wont insure it, and city council will ask for to demolish it en bloc because it may post a danger to public, or ask structural engineer to submit yearly safety report etc? Do we have a law for that?

See my first post la bro. I asked about condo when they reach 50 yrs. Then will you agree if you hold your condo for 25 years then value depreciate?

The Empire State Building in NY is 78 years old.. it is still standing.

This post has been edited by wodenus: May 13 2014, 02:10 PM

for me, i will stay there if the location is good...

but i think TS will die die say condo is no good compared to landed.

but TS didn't consider the huge price difference of condo and landed in the same area.

no point dreaming of a landed if you can't afford it. buy condo then.

Yea it all depends on the location.. location is almost everything

When condo let's say 70years old. What will happen when the age already too old and no longer safe?

read post #22...

99 years , anything can happen. At that time there are natural disaster, depression, or war. Government can be change. I guess we can only predict about 10 years time frame only then.

Price will be stagnant and reducing for condos...

Condo cannot buy. Pay monthly installment so long when finish pay if build quality no good then can tapao ady.
Landed can easily demolish and build new on the same land.
Condo land dunno how to settle

That's why a 2000 sq feet landed cost 1~2 million, and condo 500~800k at a similar location.

Landed demolish also cost a few hundred K which could be equivalent to half of condo already.

Condo is a strata properties, so you follow strata act accordingly, aka owner of condo joint own the land.

Can't compared head to head when the property price and nature are different to start with.

Residential property generally is 99 years lease, why worry about something beyond one life is beyond my understanding.

Leasehold residential property still appreciate in value according to market rate, it is not like leasehold is not totally worth it or must depreciate.

Unless the lease left with less than 30 or 25 years or so, then another different story.
So, there is a window of appreciation of 50 years at least.
50 years is more than enough for a lifetime already. (come out to work at 20~30 + 50, almost reach the destiny of life already)

Somemore lease can be renewed when expired or even way before reaching its lease at a fee.

I know car depreciate every yr n yet u c a lot of new car on d road
When d lease of property getting closer to maturity, d value will start to head south gradually

this. I cant see a point of worrying this issue. If u still worry u could always get the freehold one.

Tho the freehold land are getting lesser and lesser, the gov arent going to make anymore new land freehold, it is unprofitable to them.

This post has been edited by billytong: May 3 2015, 08:29 AM

Freehold also got issue.
Eventually the condo will not be safe to stay anymore.
Very bad quality and below 100years old condo might no longer safe to stay.
So if really happen, what can owner claim? A piece of land where few hundred owner stacked together on it.
If wanna rebuild, not everyone can afford

building could last easily pass 100years, the first skyscraper are still standing over 120 years old. I dont see why i need to worry that. Assuming u buy ur condo at young age 20, do u happen to live over 140 years old? I doubt that.

This post has been edited by billytong: May 3 2015, 08:47 AM

Condos do depreciate in the past. But not now.

I've a condo in Mont Kiara, when the value starts to stagnant. Rental is stagnating too so owners like me have to think hard how to maintain its rental compared to a smaller scale projects around that area. Just an example to support Mr Wong.

There are some middle range condos which are <500K are appreciating too. Because properties market are too hot now, affordability level for most are still within 500k.

Condo is too young for malaysia.

u can take US condo for reference on how they manage old condo

that is no point stating that without giving examples

Next time my children inherit. By that time if cannot stay ady how.
If mati dy already don't care, then no diff for freehold or leasehold.
As for landed. The land is inherited and wanna rebuilt wat also easy.
Just discuss only. One day if really the condo not safe to live in. What will be the action? Curious

When not safe.. then it will be like bukit antarabangsa...

no house but yet full of unpaid loans.

well u have skycrappers that last for over 120years,

we have multi storey ancient building last for thousand of years.

If the condo is not safe to live in, then demolish and built the new one, or develop the land into whatever kind of properties. Existing owners still joint own the land based on the strata property act.

The land itself may worth a lot more compared what you have paid for the condo 50 years ago.

Hmm....

Nice info..