QUOTE(Longshot @ Dec 24 2024, 04:59 PM)
Boss,
Every development has different product targeting different market.
As a township or area mature, all the products value will rise in tandem regardless of the products unless it's located in an area within the development that is not favourable e.g. close to HTC or sewage etc
Hence my point, if the cost of renovation is prohibiting the prices of landed to rise, then it should be across the entire state or country but as I know, certain areas continue to enjoy the capital appreciation despite this. Those areas continue to experience capital appreciation and partially I believe the reason is their strata status that allows for a MC to continue maintaining the place overall condition and ambiance. This maintenance enhances the property value while neglected development fall into messy disarray and poor upkeeping of facilities and securities.
A simple example is Usj 13 community has established security and managed to maintain their parks while USJ 14 failed to maintain theirs. Hence the difference in property value and 1 will continue to appreciate while another remains stagnant. As the difference between the 2 grows, eventually 1 will reach a stage where it is value for money and another a premium for the nicer things.
It all depends on the market and what a potential buyer is looking for and the priorities or requirements a buyer has at different stage of their lives. A 50 year old will have different requirements Vs a 40 year old Vs a 30 years old.
For my observation, yes it is suppressed, it caused some old landed house price not increased too high. I comparing USJ and Puchong Bandar Puteri, previously is USJ same level to Bandar Puteri, now bandar puteri is higher, and i can not afford to buy Bandar Puteri, the unit suit me all is million or nearly million but bare unit.
But USJ i still can get renovated unit below one million, with GnG.
If i go for USJ 13, i can get an End lot unit lower than 850k.
Hence i go for USJ old landed.
For prime location, of course the price still increase with better rate, because its pro is overcome the high renovation cost. TS prefer USJ , so i commented the USJ landed should be hardly to increase too much, gently increment is acceptable, when i bought my 1st house in Sg Buloh, usj house generally about 850k to 900k, now only 50 to 100k difference, only USJ 5 increased so much.TS also not too much concern about the level of security, as long as fenced and guarded, so USJ 5 and USJ height is not a reference for TS.
Actually my current house in puchong (not bandar puteri), i also can see the low transaction price, it had been suppress at roughly 700 to 750k for a bare unit before 2019 unti today, someone try to sell higher but fail to sell it. Only corner lot can easily sold out above million for a bare unit , and normally less than 6 months will sold out. It is 20 years old landed, even though we had upgraded to gated few years back, but it not help too much on the selling price. My front raw just sold at 650k last two years because the owner move to Johor and want to let go soonest.
Generally the house price still increasing in klang valley area, suppress just minimize the increment rate.