Residential Property Leads In Klang Valley It Makes Up 77.7 Percent Of Transactions In KL And 76.8 Percent In Selangor
The residential property sub-sector continued to spearhead the Klang Valley’s market last year, making up 77.7% of the total volume of transactions in Kuala Lumpur and 76.8% of Selangor’s property market volume.
According to the National Property Information Centre’s (Napic) Property Market Report 2010 released on Wednesday, there were 376,583 property transactions worth RM107.44bil recorded nationwide last year.
Of this, Kuala Lumpur recorded 27,370 property transactions worth RM20.03bil, an increase of 8.1% and 45.3% over the transacted volume and value in the capital city from 2009.
Except for a 8.6% contraction in the development land sub-sector, transaction of the other property sub-sectors generally improved.
Commercial property recorded a 22.7% growth, industrial property grew by 9.2% and residential by 5.2%.
In Kuala Lumpur, condominiums and apartments made up the largest portion of residential transactions with a 51% share of the total volume.
Houses within the price range of RM250,000 to RM500,000, RM500,000 to RM1mil, and above RM1mil registered double digit growth of 15.4%, 37.4% and 56.6% respectively.
Prices of residential property continued to strengthen and strong demand for properties in established upmarket neighbourhoods drove up prices of double-storey terrace houses in Taman Tun Dr. Ismail, Bukit Bandaraya, Bangsar Baru and Desa Sri Hartamas by 4.7% to 14.1%.
Prices in these housing schemes breached the RM1mil mark while similar units in Damansara Heights and Taman Sri Hartamas stabilised at RM725,000 to RM800,000.
Condominium units in Mont’Kiara were still sought after as shown by a 3.1% increase in sales recorded and 11.1% increase in prices to RM355,000 for a Mont’Kiara Sophia unit to as high as RM2.73mil for a 10 Mont’Kiara residence.
Exceptions to this were units in Mont’Kiara Palma, Mont’Kiara Aman and Mont’Kiara Meridin which decreased by 2.9%, 2.7% and 3% respectively.
Rentals of residential property were generally stable with upward movements notably in the high-rise segment.
In the commercial sub-sector, shops which accounted for 1,130 units dominated with a 20.5% share.
A substantial number of transactions of commercial property, mainly of purpose-built office buildings, worth a total of RM1.45bil were recorded last year.
The retail sub-sector remained steady with an overall occupancy of 84.2%.
It registered one new entrant (21,697 sq m), one new start (77,484 sq m) and one new planned supply for 13,006 sq m during the year.
Kuala Lumpur’s office sub-sector recorded an occupancy rate of 81.2%, a slight fall from 83.3% in 2009.
The leisure sub-sector saw three new hotel openings - Sentral Hotel, G Tower Hotel and YY 38 Hotel - offering a total of 394 rooms.
The overall occupancy rate for three- to five-star hotels was at 69.2% compared with 65.9% in 2009.
In Selangor, a total of 90,414 property transactions worth RM36.6bil were recorded, an increase of 10.4% in volume and 30.6% in value from 2009.
In Selangor, a total of 90,414 property transactions worth RM36.6bil were recorded, an increase of 10.4% in volume and 30.6% in value from 2009.
Several major deals worth RM429.18mil were concluded involving three shopping complexes, nine purpose-built office buildings, a private hospital and three estate land.
Prices of residential property in Selangor also saw major increases with single-storey terrace houses in Petaling Jaya transacted at RM190,000 to RM343,000.
Houses in Subang Jaya and Bandar Sri Damansara saw increases of 8.9% and 5.8% respectively, to between RM250,000 and RM300,000.
The self-contained neighbourhoods of Bandar Utama and Mutiara Damansara saw prices of their double-storey terrace houses appreciated by 4.6% to 9.8% to between RM618,000 and RM760,000 in Bandar Utama, and by 2.1% to RM1.24mil to RM1.26mil for houses with larger land area of 193 sq m in Mutiara Damansara.
Similar houses in other parts of Petaling Jaya such as SS2, 20, 21, 22, 23, 24 and 25 recorded increases of 5.1% to 11.9% to between RM400,000 and RM680,000.
The primary residential market recorded launches of 10,002 units, higher than 8,430 units launched in 2009.
Last year, Selangor saw a drop in the number of overhang residential units to 3,180 units worth RM691.28mil compared with 3,770 units worth RM608.3mil in 2009. Condominiums/apartments formed the bulk with 1,468 overhang units.
The performance of the office sub-sector moderated with the average occupancy rate of purpose–built office buildings dropping to 76.9% from 78% previously.
There were two new office buildings - Philomath Resource Centre Building with 6,359 sq m in Gombak and Empire Tower with 18,936 sq m in Subang Jaya.
The opening of Empire Suite in Subang Jaya added 217 hotel rooms to the hospitality market.
The overall occupancy rate for three to five-star hotels in the state improved to 60.3% after staying below the 60% mark for the past two years.
Abstract from thestar.com.my
Monday July 30, 2007
KL’s 10 most expensive condos
The excitement in the property sector over the spiralling condominium and land prices in the KLCC area over the last four months seems to be gaining momentum. Top property consultants tell StarBiz how to separate the wheat from the chaff.
WHICH single condominium development in Kuala Lumpur is considered to be the priciest in Malaysia? The dust hasn’t settled on this issue as two purported contenders for the title have yet to be launched.
According to KL property experts, the 10 most expensive condominium developments based on current prices are all sited in the Kuala Lumpur City Centre (KLCC) area (see Table A) except Pavilion Residence. However, if the yet-to-be launched Four Seasons and Binjai developments were taken in account, those falling below RM1,000 per sq ft would be out of the list.
But the “asking price” and “transacted price” may not necessarily match. Currently, the costliest average price per sq ft has been transacted at RM2,000 for the One KL project. This development is noted for its marketing strategy of one swimming pool on every floor. The tower has 35 levels.
Developers who launched their condominium projects earlier are now frantically revising the pricing policy for their remaining units. And those who have yet to launch are now trying to push the limits.
But all eyes are trained on the Binjai and the Four Seasons projects – touted to fetch more than the current benchmark of RM2,000 per sq ft. The Binjai management purportedly “screens” prospective buyers and even require an interview. The showhouse has long been off-limits even to ordinary tycoons.
Foreign as well as local interest in Kuala Lumpur’s luxury condominium developments seem to have been spurred by the Government’s relaxation of residential ownership rules for foreigners and the waiver of real property gains tax (RPGT) recently. And what’s happening in Singapore’s high-end condominium property market is having an effect on KL.
High-end properties in KL’s prime residential locations are considered to be the cheapest in the region. This has given rise to the rare phenomenon of residential property fetching even higher rentals than office property in KL. For example, the office rental rate at the UOA building in Jalan Pinang was recently transacted at RM3.80 per sq ft while a tenant at 3 Kia Peng condominium is in negotiations to renew his tenancy for RM4.50 per sq ft.
Demand for the “best” condo-developments is at an all-time high with record-breaking prices per sq ft quoted – even for land in the KLCC area. For instance, the plot of land occupied by the Hakka Restaurant at Jalan Kia Peng was reportedly sold via tender for over RM1,300 per sq ft recently – a record price.
And what do our local market experts have to say about such transactions and dizzying prices?
Avare
S.K. Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng said: “Technically, all KLCC condominium developments are considered to be high-end properties in terms of price and quality. Super-condos – as opposed to high-end condos – are merely super 'big' in terms of size alone.
“The pricing structure of high-end KLCC condos will depend on whether they are located within the first tier or second tier of land.”
The Petronas Twin Towers are regarded as the epicentre of the KLCC area, with the surrounding lands viewed in terms of concentric bands with the first tier being closest to the towers.
For example, the first-tier condo-developments will include projects like One KL and K Residence and the second-tier will include Hampshire Park, The Meritz and Cendana.
Property agents look at the desirability of condo developments based on various factors depending on the targeted tenants for the units to be rented or leased out.
The development must be easily accessible and the type of neighbourhood should suit the targeted tenants. Does the neighbourhood offer a ready catchment of tenants such as expatriates?
If the targeted tenant is the young and happening type of expatriates instead of family-oriented expatriates, then the condo-development should be near the bars and entertainment areas.
One Menerung
Land status is very important. If the development is on commercial land instead of residential land, then the rental yield will be affected by the commercial rate for quit rent and utility bills. For example, your monthly electricity and water bills will be charged the commercial rate.
The track record of the developer is equally significant. Certain established developers like Tan & Tan have their own following. These repeat buyers will buy anything they build, explained Chan.
Unlike the old days, developers now will usually have done all the studies they need to formulate their pricing policy. They would price their property at what the market needs now.
But buyers ought to be aware that if a developer were to build all the condo units in the same size, you will have a tough time renting out your particular unit. You will be competing with many other owners trying to rent out their units.
Also, the team of consultants engaged for the project is important. Buyers generally like “branded” properties. For instance, the Troika developers have engaged Foster and Partners and astute buyers are confident that with such a prestigious architectural firm, the condo design won’t be easily “outdated”.
Buyers of high-end condos who wish to rent out their units have to understand the expatriate rental scale. For instance, a multinational executive transferred to KL may only have a monthly rental budget of RM5,000 and ambassadors may have an average of RM15,000. So, if you wish to rent out at RM20,000 a month, you are looking at a tenant in the top position in a multinational. The question you must ask is “Who is going to be your tenant?”
