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Is there a rental reduction trend going on now ?, Your input, personal experience and comm
SongSongLai
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Jan 13 2019, 10:46 AM
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Getting Started
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Tenant from 1050sf RM1500 rental old apartment move to new 850sf RM1700 rental new service apartment is the trend now..end up all the old apartment force to rent to bangla is the trend now
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icemanfx
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Jan 13 2019, 10:53 AM
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QUOTE(trust4you @ Jan 13 2019, 09:11 AM) The reason why its dropping becos ppl like new thing. As arron says people like to small new thing, new car, new house, if ur condo is aged n worst still management is poor, many tenant wull just leave. They wun tell u straight, but most of the reason the tenant will leave for other building if management is poor Between newly vped and older condo; for the same price and everything else is the same, most if not all will choose the newly vped unit. Like handphone, car, furniture, fashion, etc, older units and previous design need to drop price to sell. QUOTE(SongSongLai @ Jan 13 2019, 10:46 AM) Tenant from 1050sf RM1500 rental old apartment move to new 850sf RM1700 rental new service apartment is the trend now..end up all the old apartment force to rent to bangla is the trend now In a few years time, currently new service apartment will walk down the same path as old apartment. This post has been edited by icemanfx: Jan 13 2019, 10:56 AM
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trust4you
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Jan 13 2019, 11:04 AM
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QUOTE(icemanfx @ Jan 13 2019, 10:53 AM) Between newly vped and older condo; for the same price and everything else is the same, most if not all will choose the newly vped unit. Like handphone, car, furniture, fashion, etc, older units and previous design need to drop price to sell. In a few years time, currently new service apartment will walk down the same path as old apartment. unless that area no more land to develop, then price will keep increasing, just like hong kong. haha land is sacare. and uh, desa park city. almost no land liao there, pokkai
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x132755
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Jan 13 2019, 11:12 AM
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See what area loh..
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icemanfx
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Jan 13 2019, 11:13 AM
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QUOTE(trust4you @ Jan 13 2019, 11:04 AM) unless that area no more land to develop, then price will keep increasing, just like hong kong. haha land is sacare. and uh, desa park city. almost no land liao there, pokkai Redevelopment is always a option e.g kl sentral, bbcc, trx, bandar Malaysia, klcc, plaza equatorial, etc. Dpc developer could reduce the park and build like in many golf course. This post has been edited by icemanfx: Jan 13 2019, 11:14 AM
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trust4you
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Jan 13 2019, 11:24 AM
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QUOTE(icemanfx @ Jan 13 2019, 11:13 AM) Redevelopment is always a option e.g kl sentral, bbcc, trx, bandar Malaysia, klcc, plaza equatorial, etc. Dpc developer could reduce the park and build like in many golf course. redevelopment incur cost and compensation if hte area is built
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icemanfx
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Jan 13 2019, 11:27 AM
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QUOTE(trust4you @ Jan 13 2019, 11:24 AM) redevelopment incur cost and compensation if hte area is built Buying land cost money also. When the building is only worth the value or less of the land, redevelopment is financially feasible. Metropolitan cities like NYC, London, Tokyo, Sydney, Beijing, Shanghai, etc never run out of development. This post has been edited by icemanfx: Jan 13 2019, 11:30 AM
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trust4you
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Jan 13 2019, 11:39 AM
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QUOTE(icemanfx @ Jan 13 2019, 11:27 AM) Buying land cost money also. When the building is only worth the value or less of the land, redevelopment is financially feasible. Metropolitan cities like NYC, London, Tokyo, Sydney, Beijing, Shanghai, etc never run out of development. the fact that buying land is cheaper than to pay back those high rise density development each individual title, demolish them, and redeveloped back.
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icemanfx
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Jan 13 2019, 11:55 AM
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QUOTE(trust4you @ Jan 13 2019, 11:39 AM) the fact that buying land is cheaper than to pay back those high rise density development each individual title, demolish them, and redeveloped back. Not all building and places is worth to redevelop. It needs to be financially feasible e.g bbcc, trx, lyan n miho, KL sentral, bandar Malaysia, equatorial plaza, Unilever at bangsar, f&n in pj, bat in pj, icon city, etc. This post has been edited by icemanfx: Jan 13 2019, 12:09 PM
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keneeth111
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Jan 13 2019, 12:22 PM
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QUOTE(tmc @ Jan 12 2019, 02:41 PM) My tenant left my unit and now I have been looking for a tenant, but agent thinks my asking price need to drop rm200 to be comparable with market. I am keeping the same rate but coming to two month over, cannot find a tenant. Is there a rental rate drop going on ? where is your resi unit? is the unit also equipped with strong unique selling points which cannot be copied/overtaken by the new resi i.e. walking distance to LRT/MRT, shopping mall, offices....
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silverwave
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Jan 13 2019, 12:34 PM
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QUOTE(tmc @ Jan 12 2019, 02:41 PM) My tenant left my unit and now I have been looking for a tenant, but agent thinks my asking price need to drop rm200 to be comparable with market. I am keeping the same rate but coming to two month over, cannot find a tenant. Is there a rental rate drop going on ? I am having a similar issue and my unit is fully furnished, so the rental is higher than bare units. Entering the 3rd month now, with no luck. I've given 5 agents to advertise and i'm thinking if i should advertisement myself (though i don't know what kind of tenants will enquiry since i don't have the pre screening ability like agents). When i got the unit in 2014 (property prices were at it's peak), the previous owner was renting it at Rm300 more.
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BEANCOUNTER
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Jan 13 2019, 12:40 PM
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QUOTE(trust4you @ Jan 13 2019, 11:39 AM) the fact that buying land is cheaper than to pay back those high rise density development each individual title, demolish them, and redeveloped back. buy expensive, sell more expensive lah………..simple equation...... of course you dun go and buy an existing buildings in cyber, demolish it and rebuild and sell more expensive lah…..that's commit suicide,
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BEANCOUNTER
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Jan 13 2019, 12:42 PM
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QUOTE(silverwave @ Jan 13 2019, 12:34 PM) I am having a similar issue and my unit is fully furnished, so the rental is higher than bare units. Entering the 3rd month now, with no luck. I've given 5 agents to advertise and i'm thinking if i should advertisement myself (though i don't know what kind of tenants will enquiry since i don't have the pre screening ability like agents). When i got the unit in 2014 (property prices were at it's peak), the previous owner was renting it at Rm300 more. 5 agents??????? try 30 please..... bcos likely 28 of them will do nothing....and just wait for durian falls of branch..... the 2 will likely more keen to attend to your unit.
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silverwave
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Jan 13 2019, 01:14 PM
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QUOTE(BEANCOUNTER @ Jan 13 2019, 12:42 PM) 5 agents??????? try 30 please..... bcos likely 28 of them will do nothing....and just wait for durian falls of branch..... the 2 will likely more keen to attend to your unit. Yea still giving out more, those which are more reliable or expert in that area. I know what you mean, i did that in 2015, out of that only 3-4 came back with potential tenants. Others just vanished!
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icemanfx
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Jan 13 2019, 01:41 PM
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QUOTE(silverwave @ Jan 13 2019, 12:34 PM) I am having a similar issue and my unit is fully furnished, so the rental is higher than bare units. Entering the 3rd month now, with no luck. I've given 5 agents to advertise and i'm thinking if i should advertisement myself (though i don't know what kind of tenants will enquiry since i don't have the pre screening ability like agents). When i got the unit in 2014 (property prices were at it's peak), the previous owner was renting it at Rm300 more. If your unit is one among hundreds available in the area, and all else being equal, cheapest price is probably is the best and only method. 3 months of vacancy is equivalent to loss of 25% annual rental revenue. On hindsight, had you asked for 15% cheaper, you are likely financially better off. This post has been edited by icemanfx: Jan 13 2019, 02:22 PM
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trust4you
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Jan 13 2019, 02:01 PM
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QUOTE(silverwave @ Jan 13 2019, 12:34 PM) I am having a similar issue and my unit is fully furnished, so the rental is higher than bare units. Entering the 3rd month now, with no luck. I've given 5 agents to advertise and i'm thinking if i should advertisement myself (though i don't know what kind of tenants will enquiry since i don't have the pre screening ability like agents). When i got the unit in 2014 (property prices were at it's peak), the previous owner was renting it at Rm300 more. boss mind sharing where is the unit area located?
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silverwave
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Jan 13 2019, 02:30 PM
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QUOTE(icemanfx @ Jan 13 2019, 01:41 PM) If your unit is one among hundreds available in the area, and all else being equal, cheapest price is probably is the best and only method. 3 months of vacancy is equivalent to loss of 25% annual rental revenue. On hindsight, had you asked for 15% cheaper, you are likely financially better off. Yup, you are correct, i will have to look into that too. QUOTE(trust4you @ Jan 13 2019, 02:01 PM) boss mind sharing where is the unit area located? A condo in Subang
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BEANCOUNTER
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Jan 13 2019, 08:00 PM
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My wildest guess is either metropark or one of those condos around subang hi tech park
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jetwash
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Jan 13 2019, 08:31 PM
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QUOTE(silverwave @ Jan 13 2019, 02:30 PM) Yup, you are correct, i will have to look into that too. A condo in Subang Just go for a cheaper rate. Much better than an unrented unit.
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