Over RM1 million for a garage of 146 sq ft. Nice and dangerous.

Do we know about that international property market loved by many investors from throughout the world? Especially the Chinese from China and Malaysians? Yeah, it’s London. It’s also my first choice if my kids want to study overseas. In a recent media report, it was highlighted that one GARAGE in the upmarket London district of Chelsea will be auctioned for £180,000 (RM1.08 million) or more. the size for this garage is ONLY 146 sq ft. Savills estate agents said that this type of garage car park space is “rarely available.” What a statement for such a small space and expensive price tag. Oh yeah, the final price may be even higher.

A bit more details on the garage. It provides for a secure off street parking and these garages are becoming increasingly rare in central London. In fact even some extremely high value properties may lack off street parking according to Chris Coleman, head of Savills auctions. Oh yeah, for this price, the buyer can also get an average house in England and Wales, which is £188,270, according to the Land Registry House Price Index. In London however, the average has hit £514,097 in December 2015. This showed a huge increase of 12.4 percent and continue to show how London prices are further away from elsewhere.

Halifax housing economist, Martin Ellis, said that these prices increases within London and elsewhere would continue to persist and this mean increasing affordability with prices continue increase faster than  wage growth. This should help to slow down the demand for housing and may allow prices to ease. Earlier article on the ever ‘crazy’ prices in Greater London: Greater London, severely unaffordable. Start thinking Greater KL 

Sometimes, when we read these news, we should really think again about the potential possibilities here at home. Both the potential gains and losses, not just one side. Seriously, we must be wary if the Malaysian property market reach such levels which hopefully should have a soft landing instead of a hard one. Where affordability is concerned, let’s note that there are already lots of properties within Greater KL which are already way above the average prices of homes and the significance that MRT stations would be bringing beginning 2017. Read here: MRT stations will change the area dynamics Buy based on affordability even if many famous property gurus are telling us that 2016 is going to be a bargain year for properties. Happy investing.

written on 11 Feb 2016

Next suggested article: London property market is now risky?

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