My question is, what happens to the property prices and rental rates of these existing 6-7-year-old apartments when these new apartments are complete? Also considering other factors such as Landed Property expansions, Covid Recovery, RTS etc
I'm not familiar with real estate market so I'm genuinely asking what would the future trend of prices. I would like to use this info to decide to buy the subsale unit for own stay and possibly renting it out in the future if I ever decide to move back to KL. I'm not desperate to buy a house as I've already owned one and fully paid in KL. But if the monthly installment+maintenance is going to be at least equal to or less than the rental then I see why not to buy one. More so, the units look well-renovated and fully furnished.

CONTEXT

I've relocated from KL to Setia Tropika about 1.5 years ago and been renting here since in one of the apartments called Sky Garden Residence ( another neighbouring apartment Sky Peak Residence)
I love this place, a lot of shops within walking distance, right at PLUS exit, and within a 15-20mins drive to all major towns in Johor Metro (Kulai, Senai, Skudai, Dato Onn, Austin, Tebrau, Southkey, JB)
Also relaxing 15-30mins drive to/from work in Senai.

2022 - I rented a 3+1, 1200 sqft unit, fully furnished, 2 car park unit for rm1300. for rental renewal, my landlord increased the rental to rm1700, He told me he had to because his instalment is very high (not my problem, lol). So I moved out to another unit in the same apartment.
2023 - 2+1, 1000 sqft, FF, 1 car park - rm1500.
2024 - looking at the rental rate for the similar unit I have now, it seems like nothing less than rm1800, so I kind of have these feeling my current landlord will up the rental rate.

I've been looking at the sub-sale prices and it seems to be going down since 2022. My first rented unit was going for RM480K, even when I moved out my landlord offered me a similar rate and then went down to RM450K when I ignored the 1st offer. And this was in April 2023.
Currently, I've been seeing these units going for RM420K. 2+1 units (similar to the one I'm renting now) are going for RM380K. Neighbouring apartment Sky Peak seeing a similar trend, though it's slightly more expensive than Sky Garden.

Rental rates are going up but subsale prices are going down? Why?[I]

Now, I just saw that SP Setia going to build another apartment right between Sky Garden and Sky Peak. I checked with them, the max price will be RM550K for 3-bedroom units 850sqft.
There is another apartment across the PLUS highway called D'Secret Garden 2 by KSL that is under construction, right next to 6-year-old D'Secret Garden 1.

This post has been edited by Kakistok: Dec 10 2023, 09:45 PM

Thank you for your information.

I think the reasons that price is going down are:

JB has a bad reputation for high rise over supply. It damage the investors' confidence.
Landed in JB still "Affordable" compare to klang valley, hence high rise is not preferred by own stayer.
Mostly only investor buy high rise, and better located product is being developed in CBD to cater to daily traveler to SG.

First of all.

JB people get used to stay in landed.

And JB still have plenty of land.

Rental up because the population growth and Singapore working tenant demand.

Price gone down because they are massive undeveloped land nearby, people will just wait for a new build condo. Unless is a mature township project.

Why owners are selling then when rental are going up? Or because when the new condos are complete the rental rate will go down again due to more supply?

Check the price when they buy, no matter how much the rents are hiking unless it's 3k++, it still won't cover their installments. Might as well sell now to cut loss

Second reason is as what you pointed out, when new supplies comes in again, rents gonna dip again.

Most selling now should be first hand buyers, those bought during pandemic discounts or lelong should be happily holding on

Few reasons.

1. Possible its a leasehold
2. When the new condo completed, tenant will mostly move to the new one, good facilities, new lift hence the rental wont be high as now

I guess you are right. My 1st landlord told me he bought it for RM550K (RM458/sqft) and added another 80k for renovation.
I checked the price history in propertyguru, it's around rm450-500/sqft before 2016. Now going below RM400/sqft.

To add to his instalment, maintenance another rm350perm due to his big unit size.

its freehold. but valid 2nd point

bump

In JB, better buy condo that serves SG daily travellers. Looks for the ones, which are in the city centre or the ones which offer free shuttle bus to CIQ. That way, the condo price don't drop much and rental keeps increasing.

Nevertheless, better to buy landed if own stay.

...

*******SP Setia going to build another apartment right between Sky Garden and Sky Peak.****
The land just opposite sales gallery ......




But it will only be launched in 2026.

I visited the sales gallery last week, and the staff provided me with details.


However, this condo has a dual-key unit layout.

Sky Peak and Sky Garden do not have dual-key units, correct?

This post has been edited by plouffle0789: Apr 1 2024, 12:27 AM

But it is commercial title.
cukai tanah and cukai harta expensive.....

This post has been edited by plouffle0789: Apr 1 2024, 12:29 AM

If we plan to own stay in JB, what are the bad aspects of buying a condo?

This post has been edited by plouffle0789: Apr 1 2024, 12:31 AM

There are subway,KFC, Mac donald's,Starbucks,burger king drive thru restaurant at setia tropika.

Maybank

8, Jalan Setia Tropika 1/21,
Taman Setia Tropika ,
81200 Kempas,
JOHOR.


Ambank

LOT NO. G3, TROPIKA WELCOME CENTER,
JALAN SETIA TROPIKA 1/21,
TAMAN SETIA TROPIKA,
81200 Kempas,
JOHOR.

Tel: 03-2178 8888
Fax: 07 - 2351 127

Monday to Thursday: 9.00 am to 4.30 pm
Friday: 9.00 am to 4.00 pm



Hong Leong Bank

TAMAN SETIA TROPIKA, JOHOR
Ground Floor, No.1, Jalan Setia Tropika 1/15,
Taman Setia Tropika,
81200 Johor Bahru

Counter Transaction Hours

Mon - Thu: 9.15am - 4.30pm

Fri: 9.15am - 4.00pm

Business Hours

Mon - Thu: 9.15am - 5.45pm

Fri: 9.15am - 4.45pm

This post has been edited by plouffle0789: Jun 26 2024, 12:24 AM