I am now learning to invest in property. Any reader have any thought on it.
PETALING JAYA: The number of condominiums mushrooming within Mont’ Kiara and KLCC may have caused the suppression of market rental yield (net), but this does not necessary indicate bad news from many investors’ point of view, says executive director of Regroup Associates, Paul Khong.
Khong: A lot of condos are now trading close to developers’ prices...if you could get a 30 to 40% discount on the purchase price, there is a good chance of capital appreciation
“Firstly, investors who purchase the KLCC and Mont’ Kiara condos are more driven towards capital appreciation rather than looking at the fundamental of rental yields; same theory for people who prefer to buy landed properties,” he adds.
Secondly, condo prices have dropped around 10% to 20% and 20 to 30% among luxurious condos within Mont’ Kiara and KLCC respectively as compared to its peak between the second and third quarter in 2008,” says Khong, while noting less price drop of around 10% among condos located in other areas such as Petaling Jaya (PJ).
Sarkunan: I believe it is the right time to scout around for good buys especially in October and November before prices start picking up at a faster rate
Sarkunan Subramaniam, executive director of Knight Frank Malaysia concurs: “The rental yield performance will not affect much on the buying mood among investors who are keen to buy condos located at both KLCC and Mont’ Kiara areas as majority of them purchase in anticipation for bigger gains in future capital appreciation”.
Regroup’s Khong also says that the slight market rally which started around 3 months ago has seen property prices moving up slowly with less fire sales and availability of good buys as compared to the first quarter of 2009.
“A lot of condos are now trading close to developers’ prices and if you could get a 30 to 40% discount on the purchase price, there is a good chance of capital appreciation.
“It all boils down to your entry price versus the transacted price - if your entry price is high, chances are the capital appreciation will be limited,” Khong notes.
Knight Frank’s Sarkunan adds: “Personally, I think we have reached the bottom somewhere around the second quarter of 2009, and I believe it is the right time to scout around for good buys especially in October and November before prices start picking up at a faster rate.
The prices for the KLCC condos have easily dripped around 30% to 40% since late 2008. Today, condo prices are correcting to a reasonable level. If you are buying 30% to 40% below the peak market price, it is considered a good buy,” says Sarkunan.
Based on Regroup’s research, Khong says the Mont’ Kiara/Sri Hartamas and KLCC areas currently contribute around 50% of the total number of luxurious condominiums (RM350 psf and above) in Klang Valley.
Besides that, he says Regroup’s statistics also show that in the next few years, new condos smacked in Mont’ Kiara/Sri Hartamas and KLCC areas will consist 57% out of total new luxurious condos supply in Klang Valley with 26% and 31% contributed by Mont' Kiara/Sri Hartamas and KLCC respectively.
“The current supply for luxurious condos totals 7,500 units within Mont’ Kiara and Sri Hartamas, and future supply amounts to 5,800 condos,” says Khong.
PETALING JAYA: The number of condominiums mushrooming within Mont’ Kiara and KLCC may have caused the suppression of market rental yield (net), but this does not necessary indicate bad news from many investors’ point of view, says executive director of Regroup Associates, Paul Khong.
Khong: A lot of condos are now trading close to developers’ prices...if you could get a 30 to 40% discount on the purchase price, there is a good chance of capital appreciation
“Firstly, investors who purchase the KLCC and Mont’ Kiara condos are more driven towards capital appreciation rather than looking at the fundamental of rental yields; same theory for people who prefer to buy landed properties,” he adds.
Secondly, condo prices have dropped around 10% to 20% and 20 to 30% among luxurious condos within Mont’ Kiara and KLCC respectively as compared to its peak between the second and third quarter in 2008,” says Khong, while noting less price drop of around 10% among condos located in other areas such as Petaling Jaya (PJ).
Sarkunan: I believe it is the right time to scout around for good buys especially in October and November before prices start picking up at a faster rate
Sarkunan Subramaniam, executive director of Knight Frank Malaysia concurs: “The rental yield performance will not affect much on the buying mood among investors who are keen to buy condos located at both KLCC and Mont’ Kiara areas as majority of them purchase in anticipation for bigger gains in future capital appreciation”.
Regroup’s Khong also says that the slight market rally which started around 3 months ago has seen property prices moving up slowly with less fire sales and availability of good buys as compared to the first quarter of 2009.
“A lot of condos are now trading close to developers’ prices and if you could get a 30 to 40% discount on the purchase price, there is a good chance of capital appreciation.
“It all boils down to your entry price versus the transacted price - if your entry price is high, chances are the capital appreciation will be limited,” Khong notes.
Knight Frank’s Sarkunan adds: “Personally, I think we have reached the bottom somewhere around the second quarter of 2009, and I believe it is the right time to scout around for good buys especially in October and November before prices start picking up at a faster rate.
The prices for the KLCC condos have easily dripped around 30% to 40% since late 2008. Today, condo prices are correcting to a reasonable level. If you are buying 30% to 40% below the peak market price, it is considered a good buy,” says Sarkunan.
Based on Regroup’s research, Khong says the Mont’ Kiara/Sri Hartamas and KLCC areas currently contribute around 50% of the total number of luxurious condominiums (RM350 psf and above) in Klang Valley.
Besides that, he says Regroup’s statistics also show that in the next few years, new condos smacked in Mont’ Kiara/Sri Hartamas and KLCC areas will consist 57% out of total new luxurious condos supply in Klang Valley with 26% and 31% contributed by Mont' Kiara/Sri Hartamas and KLCC respectively.
“The current supply for luxurious condos totals 7,500 units within Mont’ Kiara and Sri Hartamas, and future supply amounts to 5,800 condos,” says Khong.