Pai, you have me sold on Maytower. I have been doing my research, and have noticed quite a few units for rent and sale. Also, I noticed that Capital Square isn't doing very well.

I am quite worried about the fact that it caters to expats, as i presume there aren't going to be many coming in over the next year or so, and some are already getting sent back. What is your opinion on this?

Also, any idea what is the going rate per square foot for a fully furnished unit now, and anything to watch out for?

Thanks man.

Hi chief


Plenty of units for rent -- Yes. I've pretend to be prospects and view these units before, most of it comes with mediocre furnishing and layout. No chic factor at all. The good ones are usually taken out in less than 1 week, provided asking price is reasonable. My unit has never been vacant for more than 10 days, in fact most are taken up before its even ready for occupancy.

Plenty of unit for sale -- No. In fact in the whole of Jan only got 1 advert for sale in TheStar.

Great example of a wrong product targetting at the wrong crowd at the wrong time. No surprise to me. Still, heard BRDB will launch their 2nd condo block for rm900psf.

Imagine the spill over effect that would have on Maytower if it finally materialise. Maytower today sells for less than rm600psf. The gap will be a lot closer 5 years down the road.

Good thing about Maytower is that locals like it too. In fact my current tenant is a beautiful sarawakian-based chic, and she pays me 1.8k rental per month.

As for expats, I noticed that there are many low budget expat especially engineers who r renting Maytower. Reason, cant afford those KLCC, Bangsar, MK properties and wants something nearby major public transportation. Technically, Maytower is their only choice at below 2k p/m.

Here's a tip if u wanna gauge the rental demand for maytower. Run a fake Star advert asking for 1.7k f/f. U should receive no less than 10 genuine enquiries within a week.

Go for the 351sqf units if u can, coz they'll give you best return altho more expensive if u calculate price psf. The 439sqf and other sizes (as long as studio) commands approx the same rental as the 351sqf units, hence why pay more? A studio, is a studio irrgardless if its 351sqf or 500sqf.

Also, try to go bare units as the ones selling FF units usually gives really crap funitures, think u'd be better off startin from scratch. If you can get a 351sqf unit on a high floor for less than rm600psf, I personally think its a decent deal.

Good luck hunting

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Added on January 29, 2009, 6:36 pmDisclaimer : Im extremely vested on Maytower, so its best to do your own research before making any investment decision. I shall NOT be liable for any loss or profit made should you decide to invest in Maytower. Caveat emptor.

This post has been edited by Pai: Jan 29 2009, 06:36 PM

Pai bro,

Haha, I don't mean distressed sale at Maytower, but opportunities at KLCC/Mont' Kiara area. Or even landed properties elsewhere(but this I think is very unlikely even in this downturn). My price outlook for Maytower in next 12 months is maintain or upwards as long as the rental demand is there, which would likely be in view of the niche segment. So basically a toss up between Maytower or a possible distressed sale elsewhere.....time will tell bro. Happy bull year for both of us haha.

minolta

Pai,

thanks for the detailed replies. i am all systems go at the moment. the only thing holding me back happens to be married to me.

i have been looking for an undervalued bangsar condo for quite a while now but it's quite hard to find.

it is equally hard to find a nice condo around the pj area which is undervalued.

and here i was thinking it will be bargains galore by now.

I see, if thats the case then Maytower can probably wait. The only risk here is that the distressed sales are not much of a bargain while price for Maytower continue to rise

Either way, good luck and personally think its gonna be a good year for those who prepared.

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Added on January 30, 2009, 2:15 pmu r smart, taikor.

Im also on the look for cheap Bangsar properties but so far prices have hold pretty well. However, I have concerns over short term (1-3 years) demand levels for Bangsar, KLCC and MK due to declining expat supply.

Ah well, as long as one have enuff reserves to hold a property for min 3 years, guess it wont be much of an issue.



This post has been edited by Pai: Jan 30 2009, 02:15 PM

I'm looking at an office block in a well-maintained buidling in the city center, going for less than 100K. I'm really having fun here lol

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Added on January 30, 2009, 2:22 pmThat's just temporary. If you can hold, then it's practically free money. They have to go up sometime just don't be losing your job, that's all

This post has been edited by wodenus: Jan 30 2009, 02:24 PM

wah, berapa yield this one?

City center what do you think? it's a distress sale though going to have a look at it soon. Apparently some company bought too many units and got a little overextended lol

boss, city center office lots can give anything from 4% up to 9% gross yield, and yield is often determined by the entry price.

Just be extra careful prior committing to the prop as good properties often doesnt come cheap. Good luck

Hi Boss.. I guess you have much elaborated my question for past few post .. haha...

I have been eyeing on Casa Mutiara, because of its surrounding areas like BB, Sg Wang and LRT station.

Expats had been downgraded from hotels to studio units due to cost cutting IMHO especially during this economy down turn..

Big luxury condos in MK and KLCC areas are pretty much affected by this turmoil.. partly also due to over supply of such luxury condos and so co-incedents all the luxury condos are completed recently at the same time.. This condos are demanding rental between 5k to 20k per month..

Also I have come to know that not only foreigners, locals are also part of the tenant pool for this kind of property..

Actually we have a service crisis now. Serviced condos suffer from the same problem as the Internet, they're dependent on too many people. To run a proper serviced condo, you need people who understand, who "get it", who dress well and speak well and know the unwritten rules of the luxury class (after all, it's a luxury condo they're marketing, isn't it ?). How are they going to find people like that? they'd have to pay lots and lots and even then, such people are in very high demand in sectors that pay more. So they're going to have staffing issues.

A luxury condo must have luxury service. Floors have to be cleaned and waxed, lifts must be fast and clean and never break down. There should be doormen and attendants.

Looks like someone has been doing their legwork .....

Whats your target price to go in?

Hi Pai... not much legwork la.. all this are from reading the Gurus' discussion and also from magazines and news papers and online articles..

I am still very alien to this kind of property.. I currently only having an apartment rented to working adults..

Like you say.. have to do a lot of study and research before going into it

I am looking at 355 sqft at RM200k to RM220k with partly to full furnished.. possible??

What do you think about the current expat market now ??

1. Possible, but u need to be on the ball with agents to sniff these bargains and perhaps its good to talk with CM insiders as well. They will be the 1st to know if anyone is selling.

Btw, u know about Swiss Garden residence nearby CM? Last few developers unit on a high floor apparently was bought for over 500k (a 6++ sqf studio with 7% guaranteed returns). That means these units were selling for RM800-Rm900 psf. Crazy stuff


2. Expat market in general is very bad. But, Casa Mutiara IMO is a bluechip property with unreplicable(so far), strong moats. Despite the fact that 98% of tenants are expats, occupancy is still very strong and rentals have been very resilient VS condos in expat areas like MK, KLCC or Bangsar. I know a fren's unit, was rented out in Jan barely 5 days after advertisements for 2 years tenancy at RM1900. Good deal huh


Btw, like Maytower Im obviously vested in CM , so its probably best to get output from other ppl like agents, tenants, other owners etc. Also, there's a thread for CM owners, you can do your research there as well :

CASA MUTIARA DISCUSSION THREAD

Good luck mate

This post has been edited by Pai: Jan 31 2009, 02:18 PM

Thanks Pai.. great help from you here..

MK has dropped quite a bit hasn't it?

Anyone bought Windsor / Waldorf??

any opinion on PRIMA REGENCY??

yeah - but only in certain parts....your "lower end" portion - i.e. I-Zen and Bayu - seems like the price is dropping by 10 to 15% - perhaps indicating that buyers / speculators want a speedy exit.

however, your higher end ones - like Aman, Sophia, Banyan - seems quite steady.....hardly any price movements.....YET.

Seem to be getting the impression that prices are flying up over at Solaris Dutamas though.

Heard a diff story from a friend though. His mate's Aman has been vacant for over 6 months, asking rental came from initial 12k p/m to 7k now, and still vacant today.

Dunno much about price movements, but tenant supply is terible now. Solaris Dutamas tot' is still 80% empty, no?