UOA Development is familiar to me because my former company operates from one of the tower in The Horizon, Bangsar South. As I come to KL pretty often then when I was based in Penang, I also had many lunches in the few restaurants there. In case you are still wondering where is Bangsar South, it’s known as Kerinchi? That’s where the Kerinchi flats are? Anyway, Bangsar South is now considered a prominent address and my tenant moved into her condo last year. She bought it for RM750,000. Yes, that’s indeed a very good price for an area which many associate as ‘low-end.’
UOA Development has just reported healthy numbers for the first nine months ending Sept 30, 2015 (9MFY15). It’s net profit increased 34.4 percent to RM305.95 million versus a revenue of RM1.13 billion for the same period. Yes, the net profit margin is at a comfortable level of 27 percent! Though it’s without any new project launch, it ended Sept 30, 2015 with total property sales of approximately RM708.4 million. UOA said that it will keep its focus within Greater KL and will be on the lookout for strategic development lands. Some of the projects contributing to this set of good numbers include Desa Green, Scenaria @ North Kiara Hills, South View Serviced Apartments, Southbank Residence, Desa Sentul, The Vertical Corporate Tower and the recently-completed Vertical Office Suites.
A search in propertyguru.com.my revealed that in terms of family-type sizes at an affordable price tag, there is one Vista Angkasa which is below RM500,000. Stretching this further to RM700,000 would reveal some additional choices. Take a look at the screenshot for the latest listings. KL Gateway offers some small units but the prices are already close to RM1,000 per sq ft. In other words, the target market for these units would have to be highly paid senior managers or preferably expats. Other than these two, it’s hard to imagine a typical manager to pay so much just to stay close to his office even if its in Bangsar South. Plus point? Bangsar South is already considered a good area to be today and Mid-Valley is extremely nearby. Yes, UOA recently took over the branding of the KL Gateway LRT Station (formerly called Universiti). So, I think there are lots more happening there. Prices are high though and if it’s not your cup of tea, buy its stocks instead and wait. Happy deciding.
written on 25 Nov 2015
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