Aug 13 2014, 02:00 PM
QUOTE(CMW123 @ Aug 13 2014, 01:48 PM)
Good read for condo investment from the STAR on 9 Aug 2014:
Poser on condo market
BY THEAN LEE CHENG
:
“Two factors determine the market today – units with a built-up area of 1,000 sq ft or a ringgit value at the RM500,000 level. This situation has resulted in developers generally planning for their projects based on these two criteria,” says Lim.
“Up to RM700,000, we still think it is affordable. Anything above that is very difficult to sell and banks are finding it tougher to give loans. These are the determining factors today,” he says. Lim says he does not know how long this situation will prevail.
These two criteria upon which buyers base their purchases on is particularly glaring in locations in Mont’ Kiara and the Kuala Lumpur City Centre (KLCC).
The outcome is that buyers are buying into one-bedroom units of about 700 sq ft in Mont’ Kiara (with a monthly rental of between RM2,500 and RM3,500) and developers are building small units of less than 1,000 sq ft in the KLCC area for about RM1mil.
The point is, with an average monthly rental of RM3,000, a young Malaysian may as well buy his/her own unit. Which means, the owner of a one-bedder will be seeking a foreigner to rent the place.
Multiplying usage
Lim says developers are also discovering that their strategy of multiplying usage, which has seen the launch of mixed-use commercial units such as SoHos, SoFos, SoVos - essentially small offices, home offices - may not be as workable as initially thought.
“Developers thought that by multiplying usage – either for residential or office use – they could sell. But this has not been the case,” says Lim.
“They are finding out that they cannot mix the two,” he says.
He points out that this dual mix - as when one occupant uses it as an office and his neighbour uses it as a home - is not beneficial for the overall market.
:
Thanks for sharing...Poser on condo market
BY THEAN LEE CHENG
:
“Two factors determine the market today – units with a built-up area of 1,000 sq ft or a ringgit value at the RM500,000 level. This situation has resulted in developers generally planning for their projects based on these two criteria,” says Lim.
“Up to RM700,000, we still think it is affordable. Anything above that is very difficult to sell and banks are finding it tougher to give loans. These are the determining factors today,” he says. Lim says he does not know how long this situation will prevail.
These two criteria upon which buyers base their purchases on is particularly glaring in locations in Mont’ Kiara and the Kuala Lumpur City Centre (KLCC).
The outcome is that buyers are buying into one-bedroom units of about 700 sq ft in Mont’ Kiara (with a monthly rental of between RM2,500 and RM3,500) and developers are building small units of less than 1,000 sq ft in the KLCC area for about RM1mil.
The point is, with an average monthly rental of RM3,000, a young Malaysian may as well buy his/her own unit. Which means, the owner of a one-bedder will be seeking a foreigner to rent the place.
Multiplying usage
Lim says developers are also discovering that their strategy of multiplying usage, which has seen the launch of mixed-use commercial units such as SoHos, SoFos, SoVos - essentially small offices, home offices - may not be as workable as initially thought.
“Developers thought that by multiplying usage – either for residential or office use – they could sell. But this has not been the case,” says Lim.
“They are finding out that they cannot mix the two,” he says.
He points out that this dual mix - as when one occupant uses it as an office and his neighbour uses it as a home - is not beneficial for the overall market.
:
Let's see if a few notes from the article relevant to EKC.
For discussion seek, not to promote/demote,
Q1: How would all bosses view the BlkE 8xx sf units, with lowest price tag ~RM500k+ and highest ~RM700k?
Q2: Des the EKC SOHO beneficial for the overall market or not? Your view, pls.
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