Selangor Property Market to Rebound in Two Years


UALA LUMPUR: The property sector in the country is likely to weaken further amid worsening economic conditions with the market expected to rebound in two years, said property consultanty firm Rahim & Co Chartered Surveyors.

Executive chairman Datuk Abdul Rahim Rahman said people were getting more prudent with their spending, adopting a wait-and-see attitude that has resulted in the property market getting softer.

“(The price of) luxury condominiums in Kuala Lumpur City Centre (KLCC) for example are down 15% to 20 %,” he said. “Apart from that, the ongoing buildings development activities outside the central business district may push down the rental rate for offices when they are ready by 2010 – 2011 as a result of oversupply of office space.”

Abdul Rahim said he expected the Malaysian economy to recover in 12 to 16 months but the property market would take another two years to rebound after the economy recovered.

“This all will depend on the Government’s strategy and initiatives to strengthen the economy.”

“We are not as bad as in 1997 when the property market needed 4-5 years to recover. We believe this time around, the property market would be stable again within two years after economic recovery,” he said.

Savills Rahim & Co Real Estate Agents’ managing director Robert Ang said buyers were now asking for a yield guarantee from developers before buying properties.

“Last year, the yields were 4% to 5%. As the market weakens, buyers want guarantee from developers to give them higher yields at 6% to 7%,” he said.

He added that due to weak demand, some of the company’s clients were advised to defer their new launches, especially the higher-end projects, to the third quarter.

Nevertheless, the property sector remains relatively well supported at the moment, Rahim noted.

“Banks are still providing loans to buyers and developers. Apart from that, sellers are getting more flexible on pricing their properties.”

“However, the demand is not as strong as before,” he said.

Rahim & Co will be organising a seminar called “Looking Beyond: Challenges & Opportunities In The Malaysian Property Market” on March 3 at Hotel Istana Kuala Lumpur.

The seminar will feature talks on the property market situation in the country by local and international speakers.

Article source from Carey.com.my

Selangor Property

Selangor Dredging’s Five Stones to Set New Standards in Condominium Living

HOSE looking to buy a condominium or service apartment around Petaling Jaya maybe hard pressed in the next several months … or maybe not.

For those looking for something exclusive, property developer Selangor Dredging Bhd will be launching the last two blocks of its Five Stones project in the first quarter of next year. Prices begin from RM490 per sq ft, compared with RM450 per sq ft when the five-block project was first launched in August.

The first phase, which comprises a 38-storey block, a four-storey block and a 15-storey block, is today 90% sold. The entire project will have 377 units.

ts managing director Teh Lip Kim says the two blocks will have a total of 192 units with built-up of 2,000 sq ft in Block E (36-storey high) and 2,900 sq ft in Block D (25-storey).

Teh says the company will have a private launch before Chinese New Year next year, which falls in February.

The 25-storey villa block will differ slightly from the previous launch. It will have a lanai and a broad passage – what Teh calls a breezeway – between the entrance and the living area.

“The old traditional houses have very good cross ventilation and we are going to incorporate this. Besides these two extra features, in terms of design, the unit remains about the same,” she says.

She says Five Stones will be setting a new benchmark for condominiums in Petaling Jaya.

“Most of the developments come with a pool and some facilities. With Five Stones, there is a one-acre park, a pool, basketball and badminton courts. Residents will be able to enjoy the facilities and the park without having to leave the safety and security of the community,” she says.

The company is also offering a 10/90 scheme where buyers pay 10% and the stamp duty for the loan documentation subject to bank approval. Installment begins three years later for the remaining 90%. The interest has already been factored into the price of the unit. Those who are paying cash will have a 3% rebate, she says. When the project was first launched, its smallest unit, at 1,700sq ft, was sold for about RM800,000.

Selangor Dredging also developed Ameera, which is situated next to Five Stones. Ameera was launched three years ago at RM290 per sq ft. That project is now 100% sold, with the last unit going at RM410 per sq ft.

“SS2 is undervalued when compared with Mont’Kiara, Kuala Lumpur, and Bandar Utama in Petaling Jaya. SS2 is an established area and very central, like Mont’Kiara,” she says.

S.K. Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng says RM490 per sq ft seems a bit steep but for those who want the location and a project of that category, they do not have much of a choice.

Says Chan: “If you want something new and in that location, that is the only thing at the moment. There are the Ken I, II and III developments, with the best being Ken II. Developers are improving their offerings. The company (Selangor Dredging) is essentially targeting families, the owner-occupier market, which is why the built-up is pretty large. Their audience are those who are already in the Petaling Jaya, or specifically in a double-storey landed unit in SS2, and who now wants the security of such an environment,” she says.

The SS2 market is different from the Damansara Perdana market, which is predominantly a tenant market, she says. There is also no gated and guarded projects in SS2, which appeals to home buyers today, she says.

“The main thing is access. On that same road, there is Ameera, Five Stones, Ken III and Jasmine Towers. There will also be a mall development there with double-storey housing on the other side of the road. This means residents in that area will have to go through housing area to get to their destination if congestion builds up,” says Chan.

Another source from a real estate agency says it is difficult to talk about pricing because the project has not been built. “There is nothing to compare it with at the moment but it will be high-density for that location once it is completed,” he says.

Besides Five Stones, other developments in that area include Casa Suites and The Tropics, both by Dijaya Corp Bhd. Casa Suites is already completed and a unit with a built-up of 675 sq ft is currently going for about RM330,000. There are units with built-up of nearly 700 sq ft and about 800 sq ft available. The larger units, however are priced close to RM400,000.

On a per square foot basis, this works out to more than RM450 per sq ft. When it was first launched, the units were priced at RM198,000 or RM280 per sq ft. Casa Suites is located in Damansara Intan, between Ken II and Tropicana Mall.

Alternatively, if buyers are not in a hurry, there is The Tropics, which is currently being constructed above Tropicana Mall. The project will be completed in the first quarter of next year. Like Casa Suites, the built-up of the units begin from about 600 sq ft.

Dijaya Corp will also be offering Casa Damansara 3 in the first quarter of next year. Casa Damansara 3 will comprise 200 units with a built-up of between 1,100 and 1,200 sq ft with three bedrooms. The project will be located behind Tropicana Mall. Prices have not been confirmed yet.

Article written by THEAN LEE CHENG from SKBrothers.com