It depends on what you mean by 'limited'. If there is only one or two high rise condo in a highly commercial area near city center/MRT, then the risk is much lower.


But if there are so many high rise, high density condos/flats in the same area , you're asking for trouble if you buy them

Eg. Bukit Jalil - Bukit OUG condo, Muhibbah flats, Kiara residence 1 and 2, KM1, Treez, Savanna 1 and 2, Covillea, Arena Green, Greenfield, Green Avenue, Jalil Damai, Sri Rakyat, Skyluxe and all those new condos that are going to come up. I can't even keep track of all the names of the new condos springing up in Bukit Jalil .....

By the way, Berjaya still has a few high rise, high density condos they are going to launch near Esplanade sometimes in the future.

If you're buying for own stay, it's less of a problem.

But if you're buying to rent out or flip, you'll have trouble finding tenants or buyers because they have so many choices.

This post has been edited by jalsrix: Dec 13 2015, 09:55 AM

In the past, the price of condos were low so even if there are many high rise condo in the same area, there were still some demand.

But now, the price of condos has doubled or tripled but rental still remains the same. The price of condos will only go down because it has peaked.


There are still property agents here who try to hoodwinked people into buying these low-demand high rise condos like skyluxe. If you buy now, the property price of these high rise condos has a high chance of dropping once it's completed.

Property agents will laugh all the way to the bank while the buyers will cry all the way. [


Another gloomy news, Yuan is dropping so Ringgit will also drop

http://www.thestar.com.my/business/busines...-yrs/?style=biz

This post has been edited by jalsrix: Dec 14 2015, 11:50 AM

http://www.themalaymailonline.com/malaysia

KUALA LUMPUR, Dec 14 — Malaysia’s property sector is expected to go through a “flat” year next year while market prices will benefit those looking to buy or rent houses, industry experts predicted today.

Siva Shanker, CEO of property agency PPC International, said there was no need to “panic” or worry as the property market would typically go through a cycle of a few “bad” years before recovering.

“If I were to draw a pattern, I believe 2016 will be a flat line again, it will neither go worse than it was and chances of it improving is also not there.

“And I think we will start to see a little bit of activity coming back into the market in 2017 and 2018 very slowly, hesitantly, because of the elections.

“And then when the elections are done and dusted and that’s out of the way, barring unfortunate set of circumstances, I believe in 2019 we will see the market surging forward again and the psychological year of 2020 will probably be the next high,” he said at PropertyGuru’s Property Outlook Forum 2016.

PPC International CEO Siva Shanker believes that in 2019, the property market will be surging forward again and the psychological year of 2020 will be the next high.Fellow panellist and developer Datuk Seri Vincent Tiew agreed with Siva’s predictions of 2016 as a “flat” year, but went on further to say that next year would also be a good time to buy property as property value is expected to rise by 2019 and 2020.

“Yes, I think 2019 and 2020, the prices should come back up to a very attractive pricing,” the managing director of developer Andaman Property Management said.

In the same forum, Siva said Malaysians who are looking to rent houses can expect cheaper prices next year, due to financially-squeezed property investors competing for extra income to repay their housing loans.

“I think next year, we are going to see rental shooting straight down as they compete with each other to rent their properties out so at least they can get a little bit of income which they can use to subsidise their mortgages,” he said, predicting that these property speculators will fight “tooth and nail” to keep their properties and avoid defaulting on their loans.

In PropertyGuru’s Property Outlook Report 2016 that was released today, it said it expects next year to be a buyers’ and renters’ market due to the current oversupply in property.

PropertyGuru said the annual average of unsold homes in Malaysia is at 36 per cent, adding that there is less demand with weak investor sentiment as only 54 per cent of the country’s annual total buyers buy to occupy.

The new supply of completed developments will only worsen the existing oversupply, especially in the mid-range and high-end projects, it said.

“The situation may place further pressure on developers and speculators so it is quite reasonable to expect many good deals to come into the market in 2016,” the country’s leading property site said.

“However this does not mean that prospective homeowners can start demanding prices or developers will throw prices. It just means that deals would be sweeter, especially for first-time buyers,” it added.

This post has been edited by jalsrix: Dec 14 2015, 10:08 PM

If you can't afford landed property in Bukit Jalil, there are still some older but still in good condition, medium density apartment/condo in Bukit Jalil with much lower price i.e. rm 500 psf. which are below 20 floors.

It's too risky to buy high density condos like KM1, Skyluxe and whatever condos that are coming up in the future.


Believe me, those strong winds at above 15 floors are very strong and can blow off roof and shatter windows.

This post has been edited by jalsrix: Dec 15 2015, 01:22 PM

I was just responding to a group of people who said they must buy property for their own stay but don't have the money to buy landed property, so the next better choice is the subsales lower density condo.

Or would you rather they stay homeless?

For investment or flipping purposes, it's a doomed case to buy these high rise,high density condos such as skyluxe.
How many rich people can afford to buy these new high rise, high density condos for own stay at such an expensive price? Not even 5%.



This post has been edited by jalsrix: Dec 16 2015, 11:24 AM

Please! I don't consider a high density with small land area condo a BMW.

It's more like a newer version of compact Proton Wira, looks nice outside but cramped due to lack of space

This post has been edited by jalsrix: Dec 17 2015, 07:32 AM

There are many property agents in this thread giving misleading info.

It must be a win-win situation for both property agent and buyers.

However, in this case, it's a win-lose situation. Property agents will be laughing while buyers will be crying if they don't heed my advice.


Yesterday, the USA has raised its interest rates after 10 years, so Malaysia might also increase its interest rate in the future to prevent the Ringgit from falling further.

This means less people will be qualified to get a bank loan based on their existing income. When there are less qualified buyers, there won't be enough buyers for condos above 500 psf.

Oil price is dropping and that will also affect the inflation rate.

http://www.thestar.com.my/business/busines...ates/?style=biz

This post has been edited by jalsrix: Dec 17 2015, 07:40 AM

Even if there is a 'waiting list', it doesn't mean the property is good.

In the past few years, there were many flippers who bought en bloc, these are not genuine buyers who reflect the real market. These are speculators and speculators cause property bubbles. Their motives is to sell once the property is completed, they can't hold long.

The scenario now.

1. Oversupply of high rise condo in Bukit Jalil

2. More difficult to get bank loan

3. RPGT has gone up

4. Condo price has stopped going up and may be going down

5. Interest rate is going up.

6. Interest free during construction is offered by some projects to encourage speculation.




Subsale is more difficult to speculate because there is no interest free during construction. You have to pay bank loan the moment the bank loan is paid to seller. Subsale reflects the true market value.






This post has been edited by jalsrix: Dec 17 2015, 10:02 AM

If I am a property agent for subsale, then I would only promote one subsale condo and blast the other subsale condo but I didn't.

I present the pros and cons of each condo/apartment and let buyer decide. There are many other subsale condos in Bukit Jalil with lower psf and bigger land space. I won't list them out or else people accuse me of being a property agent for subsale.


This is different from property agent for this skyluxe who only promotes the pros but don't mention the cons (.

Pros:

new condo
walking distance to bukit jalil park
short drive to Pavillion 2
park view and golf view

Cons:

high density
too many floors in one block
small land area
cramped entry/exit to condo
expensive psf when compared to older condos
expensive maintenance fees



This post has been edited by jalsrix: Dec 17 2015, 10:12 AM

http://www.themalaymailonline.com/money/ar...nk-funds-dry-up


KUALA LUMPUR, Dec 14 — Malaysians are finding it increasingly harder to get housing loans as banks have less money available to lend out, financial expert Gary Chua said today.

Chua, who heads financial education firm Smart Financing, said the housing loan approval rate, which was at least 65 per cent about seven years ago, has been showing a downward trend this year with banks rejecting a higher number of applications.

He said statistics show that the 53 per cent of loan approvals by banks in the first quarter slid to just 47 per cent for residential property loan approvals in the third quarter.

“To me this is one of the key points affecting the market as well, where the banks are tightening their belts and consumers are finding it difficult to get financing from the banks to fund their dream homes, so this would definitely get even tougher moving forward,” he said during PropertyGuru's Property Market Outlook 2016 forum here.

Chua said that banks in Malaysia are suffering from low liquidity as they have lent out most of their money to Malaysians.

“And at the moment, at the industry, it’s over 90 per cent, meaning 90 per cent of the banks’ money have been lent out to consumers. That means banks are having difficulty or stress in terms of getting more money to lend out,” he explained.

“For the banks, mortgage or housing loan is the lowest yielding business to them, hence if they have limited funds to lend out to consumers, housing loans will be the first one that they will pull back,” he said, comparing housing loans to the banks’ products with higher profit margins such as credit cards and car loans.

Chua said first-time house-buyers with monthly incomes of RM5,000 also face challenges in securing loans, as banks impose a 60 per cent lending cap, which means they can only borrow a total of up to RM3,000 per month for items such as credit cards, car loan, mortgages.

Noting that current laws require banks to set aside 4 per cent of their funds and deposit this reserve in Bank Negara Malaysia's accounts, Chua suggested that this figure be brought down as it was done in 1998 and 2008 to enable the banks to have more cash to lend out.

He also said bad loans are at a “historical low” as only 1.2 per cent of borrowers have failed to repay their bank loans.

Developer Datuk Dr Vincent Tiew, who was also on the six-man panel of speakers, said that less banks in Malaysia are giving out loans now as some of them are trying to merge.

Tiew, who is the managing director of Andaman Property Management, said between 35 per cent to 65 per cent of loan applications by his prospective buyers are turned down, which meant his firm would have to approach 16 buyers to sell off 10 units.

He also spoke of the banking industry’s weaker support to the housing industry, where banks would slowly roll out loan approvals in piecemeal fashion for a development even if they had confidence in the project.

Siva Shanker, CEO of property agency PPC International, said it was time for the government to stimulate the property market, noting that past cooling measures to slow down the “mad increase” in property value have been effective and are no longer required.

This post has been edited by jalsrix: Dec 17 2015, 05:21 PM

http://www.thestar.com.my/business/busines...een-continuing/

You guys still think this project will sell well?

Of course, property agents for Skyluxe will deny the truth

Read article above.

http://www.thestar.com.my/business/busines...roperty-market/

> Oversupply in certain property sub-sector market;

> Stringent lending rules;

> Slow recovery of global economies;

> Too many launches at inflated prices in 2014 and prior to this;

> Full impact from developers’ interest bearing schemes (DIBS) to be felt this year; and

> National issues.


Don't BUY Skyluxe or other expensive condo in Bukit Jalil or you will get burned.

Property agents are only interested in their commission, they don't get burned.

This post has been edited by jalsrix: Jan 17 2016, 02:52 PM

Nobody is going to rent KM1 for 2.5 k when there are so many vacant new units near the LRT renting for 1.5k.

Stop misleading the public.

The fact that a lot of expensive condos such as KM1, Treez are all going to be under auction because of overpricing during the last few years.
They cannot sell and cannot rent to cover up the bank loan instalment.

This post has been edited by jalsrix: Jan 17 2016, 02:57 PM

Those are only advertised rentals, most people won't rent at that price because there are so many cheaper rentals available.

Phone them up and see whether there are any enquiries.


Z residence nearby are renting at 1,500 and they have all the amenities and are new condos.


http://www.propwall.my/bukit_jalil/the_z_r...ting=For%20Rent

This post has been edited by jalsrix: Jan 18 2016, 09:53 AM

That's in the next few years.

When all the condos launched during the past two years are completed this year and next two years, there will be many vacant units which can't sell or rent out.

There is already an oversupply of condos in Bukit Jalil area, buy at your own peril.

This post has been edited by jalsrix: Jan 18 2016, 09:55 AM

Prediction are based on many articles recently. The expensive condos (KM1, Treez, Skyluxe) will be more affected than the cheaper condos.

Read

http://www.thestar.com.my/business/busines...roperty-market/

> Oversupply in certain property sub-sector market;

> Stringent lending rules;

> Slow recovery of global economies;

> Too many launches at inflated prices in 2014 and prior to this;

> Full impact from developers’ interest bearing schemes (DIBS) to be felt this year; and

> National issues.

The effects of the accesses of the past - freebies, rebates and developers’ interest bearing schemes - are expected to culminate in 2016 and 2017 as more projects are handed over to buyers

This post has been edited by jalsrix: Jan 18 2016, 02:03 PM

Developers are usually very cunning. They won't say 'nobody is buying our condos'.

They will have false 'sold' units even when the units are vacant.

Once more and more buyers buy , then they will open up the 'sold' unit.

Don't believe in everything you see.

This post has been edited by jalsrix: Jan 18 2016, 02:06 PM

Don't trust property agents, please read


http://www.themalaymailonline.com/malaysia...supply-overhang


KUALA LUMPUR, Jan 20 — Property prices are expected to experience a “moderate drop” this year as demand dwindles and auctions of foreclosed properties add to the existing oversupply, industry experts said today.


“If you look at primary market transaction, there’ll be less launches this year, take-up rate will be lower, the oversupply that is in the property market, the overhang, will build up if you talk to the banks more auction and foreclosures of properties this year,” Wong said during a press conference here today.


“For first 3 quarter last year, it was 8 per cent drop... We are not expecting a recession, we’re not expecting a property bubble, but there will be a moderate decline and a decrease in the property market but unlikely that there’ll be a double digit decline in property prices,” he added.

This post has been edited by jalsrix: Jan 21 2016, 10:58 AM

Don't trust property agents.

http://www.thestar.com.my/business/busines...n-klang-valley/

Tuesday, 2 February 2016
Tough market for condos in Klang Valley
BY EUGENE MAHALINGAM


Challenging outlook: A weak rental market for high-end condos and apartments is expected over the next two years
Challenging outlook: A weak rental market for high-end condos and apartments is expected over the next two years

PETALING JAYA: The market for condominiums in the Klang Valley is expected to be more challenging over the next two years, due mainly to the large incoming supply scheduled for completion this year and in 2017.

Henry Butcher Real Estate Sdn Bhd chief operating officer Tan Chee Meng said the demand for non-landed properties is expected to be weaker than that for landed properties.

This would also be compounded by the fact that the tight credit situation would continue to affect sales.

“Transaction volume is expected to decline further,” he said at the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the private sector, Malaysia seminar recently.

He added that while residential property prices would soften, they, however, were not expected to dip significantly.

“The market will be challenging in the first six months of 2016 but could pick up in the second half, provided the country’s economy is not adversely affected by any external shocks.

“As the next general election has to be held before August 2018, the market could see stronger improvements from the second half of 2017, on the basis that the ruling government will boost the economy and offer more goodies in the run-up to the elections.”

CH Williams Talhar & Wong (WTW) in its Property Market Report 2016 concurred that the condominiums market in the Klang Valley was expected to be more challenging in the next two years.

“The infrastructure developments such as MRT SSP Line and East Klang Valley Expressway are likely to spur more condominiums developments in the prime as well as suburban areas.

“However, developers are advised to maintain a cautious stand. The rental market is expected to be a tenant’s market with more units coming onstream this year.”

Citing the Real Estate and Housing Developers Association’s industry survey for the first half of 2015, Tan said sales of high-rise properties dwindled 9% during the period compared with 2014.

“Only 4,373 or 40% were sold out of the 10,877 units launched, of which 10,550 were residential units. Apartment and condominium sales were dismal, with only 779 (18%) of the 4,259 units launched being sold.

“The number of unsold units rose 14% to 78% in the first half of 2015 from 64% in the same period in 2014.”

WTW said 8,374 units of condominiums and serviced residences were launched in 2015.

“The second quarter of 2015 saw more new launches especially in the Embassy Row (Ampang Hilir/U-Thant) and the Golden Triangle. The majority of the new launches were serviced residences (69%), with small built-up areas and targeted at young working professionals or expatriates.”

WTW added that while transaction activities in the luxury condominiums market was less active in 2015, the average transacted prices rose.

“Luxury condominiums in the Golden Triangle were transacted at RM1,500 per sq ft on average, whereas secondary areas remained firm at RM920 per sq ft on average.

“The average occupancy rate for condominiums and serviced residences developments remained at between 77% and 80% in Golden Triangle and the secondary area, it was between 60% and 65%.”

In light of the challenging outlook for the high-rise sector over the next couple of years, Tan said he expected a weak rental market for high-end condos and apartments.

“The will likely be an increase in non-performing loans and a more active auction market. Developers’ margins will be cut by higher marketing costs and additional incentives offered to buyers. We believe they (developers) will focus on smaller-sized units to lower absolute selling prices.”

This post has been edited by jalsrix: Feb 2 2016, 09:02 AM

Before buying this property, go and survey nearby condos such as Twin Ark, KM1, Treez, Z residence, Kiara Residence, Covillea and see how many empty condos are 'for sale'.

Rental can't even cover the monthly instalment you pay to the bank. There is an oversupply of condos in Bukit Jalil. It's a tenants market.


Don't be tricked by property agents or developers.

This post has been edited by jalsrix: Feb 13 2016, 10:35 PM