Occam’s razor explanation:-

Allevia is overpriced for this micro location. It may well be the prettiest block compared to its neighbours but is the price justified?

Dude it’s an issue when you intentionally discount negative feedback. Sure fine if you wanna live there and have a very long time horizon. But if it’s an investment of any sort then be pragmatic and go by the numbers.

You’re not wrong. I wrote this off very quickly despite the lovely design when I knew where it was. They didn’t even try to price it lower and went the other direction and priced this really high with really large sizes.

It goes to show that yes location is important but sometimes gloss and marketing can make buyers look past it. This generally doesn’t work in a less lux area.

I know people in Residensi 22 and I was surprised how well it took off like it did. This is maybe 800m (not sure) away and unfortunately not as convenient in my mind. Residensi’s build quality is actually quite basic. But I guess UEM is banking on people thinking it is.

If this takes off then rightfully it’s neighbours like Aston or Richmond should as well but they haven’t. Hence, this is overpriced for its micro location.

This post has been edited by Cavatzu: May 12 2022, 04:36 PM

Why wouldn’t it be a valid comparison to compare bang for your buck? It’s the same developer for the same type of product (jumbo luxury units) on the same street (less than 1 km away).

R22 launched in the property boom period for less than 700 psf. Allevia is touching 900 in the midst of a terrible economic downturn. Even if you valued R22 the same as Allevia now, it has the superior location, proven exceptional rental performance and most likely will be fully renovated and furnished to a high/expat standard.

This is how you contrast and compare what you get for your dollar. Perhaps we should compare Allevia to its terrible trio of neighbours?

This post has been edited by Cavatzu: May 13 2022, 10:58 AM

My point is the value for the money. Would R22 not be a better option subsale then if you wanted to live in the area for a similar price? Someone asked if it was overpriced and the consensus is yes.

This “virgin” attitude to property is exactly why we have oversupply and overhang. It has made high rise units into a consumption good rather than an investment. Subsale for high rise except for a few select ones is effectively ruined.

If you’re talking about new projects like Allevia, then the starting price simply wasn’t attractive enough for the actual product considering it’s weaknesses. Because there’s so much supply now, people can take their time to shop around and compare.

Hence they have to drop prices to clear stock or get labelled as an “overhang project” which is even worse for their sales. But it’s a catch 22 and it pisses off anyone who bought earlier at full price.

Either pay full price for a hot selling project or catch a falling sword with those that don’t.

This post has been edited by Cavatzu: Jul 21 2022, 05:20 PM

Well how many new expats are coming in now? Yes for sure there are more temporary workers but with the crappy MM2H rules, you won’t see many long term residents so they won’t buy.

You need locals to buy to rent out to this crowd. And it’s still inferior to R22.

Coulda woulda shoulda. I can say the stupid stance on the MM2H on top of seperating families during Covid left a very sour taste for a lot of expats.

On top of that, there’s a very real emotional sentiment to be near family so many have relocated to their home country. Then you also have a very depressed property market where it is in fact substantially cheaper to rent than own. So what cloud 9 should we be on? Then for Mainlanders, the entire Iskandar has been a debacle of unimaginable magnitude.

Yes Malaysia is a nice place to live in but chronic mismanagement has really been a setback for decent poorperly growth. For now, I would say cool it on explicitly foreigner targeted property and look at what the local affluent are after.

Duplicate

This post has been edited by Cavatzu: Jul 22 2022, 09:24 AM

The locals who live in MK likely won’t qualify for rumahwip or want to live in them.

My big grouse about MK is the lack of dai chow and other affordable Chinese food.

Hmm wrong product d and marketing. I think Allevia will die standing pitching itself as this luxury thing. Should’ve gone for value for money family sized units or small investor units. The micro location really sucks with all the zhapness around.

This post has been edited by Cavatzu: Dec 7 2022, 12:00 PM

Of course there is. As in all locations, the right congruence of micro location, product quality and tenant perception/buyer interest at the right price determines whether it’s a success relative to the competition.

I’ll just remind that Residensi 22 sold for about 700 psf back at peak levels.

What does forex have to do with it besides foreign investment. And DIBS was present for Residensi 22 too which is pretty tangible given the large quantum.

My point is Allevia seems to be the wrong product at the wrong time for an unfavourable location.