A close friend asked me a few days ago about a luxury condo project in Malaysia. Currently priced at over RM1.4 million. Yes, a luxury condo in Penang priced at over RM700 psf. My friend is over 40 years old and thus you may ask, but if she is able to pay for a RM1.4 million property, why not a landed property instead? After all, surely landed properties will increase in price faster than any condo since a few hundred units share one piece of land? Let’s focus on the following few reasons why i told her that she should proceed and not be influenced too much with the ‘landed mentality.’
Condo lifestyle is a real trend. This is not just in Malaysia but is happening worldwide. Many years ago, condos were always smaller. Perhaps 1,000 sf and somehow the management of the condo is always problematic to say the least. In fact majority if not all would give you just one car park. People who started staying there were also those who felt that landed was too expensive and thus they chose to buy condo instead. Condos were also thought of as a secondary home, especially the older generation who just can’t bear having other people staying on top of them and lots of many other reasons.
Diversity in choices. Today, the variety of condos available meant that your choices would just be filled. For example, 2 car parks are minimum and some gives 3 car parks today. The management of the condo is now better as it is a joint management and if you are staying there, of course you want the best for your home. Today, even my parents would agree there are advantages to condos even if they still prefer landed as at today. Many years ago, they think condos are for poor people! A condo may even be bigger in terms of built up than many of the terrace houses today which are already above RM1 million easily. My current condo is 1,750sf and this is without any doubt bigger than many of the newer terrace houses in the market today.
Location, Location, Location. My close friend said she wanted to stay close to her family. For this reason, there were only condo choices because the area her family was staying was a very matured area. Those ares which are full of, ‘born here, studied here, stayed here and will die here’ type. In Penang there are many such areas and for these areas, typically new properties would be just condos as the developer can then maximise the piece of land they bought. This is the reason why most of the time, when the price is right and the location is great, the choices available would be just condos. There could never be new landed properties in old housing areas. Please stop dreaming.
Her final choice? Yes, she’s getting that condo because truth is, even if she were to argue with me, her options were limited. She either pays so much that she feel tensed every month or she buys a condo which is much bigger than any terrace houses nearby and gets to stay just a few minutes from her family home. As for me, until today, I have only bought condos. I know, it’s HIGH RISK since only landed properties would be considered a safe investment. It’s ok, there are people who just want only landed and there are those who prefers huge potential condos. That’s me.
written on 29 July 2014
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