Luxury high rise? Rising higher next year.

Source: iproperty.com.my

Yes, I love high-rise. No, I do not have any landed units, even the one I am staying. Those that I really like is a little too expensive. Those that I could afford is a little too small in my opinion. So, I prefer to get a huge unit of high-rise instead. No, I do not own any luxury high-rise units even today. This is my personal definition for luxury high-rise. As at today, my personal definition for luxury high-rise would be homes of RM1 million or higher. I know, this amount is unlikely to enable anyone to buy some gated and guarded landed homes even if it is outside Kuala Lumpur. It would not even buy my colleague’s terrace home in PJ today. His is a non-gated, non-guarded unit. Some of those units which are just RM1,000,000 to buy and a bit more to renovate? Do refer to the image. There are definitely more expensive units but these at least matches the minimum width I have in mind. Anything smaller would be tough to park two Segment C ( Civic / Cerato / Altis) cars side by side and still have enough space to open all doors. Let’s look at luxury high-rise units instead today.

According to an article in TheStar however, the luxury condominiums are those priced from RM700,000 to RM1.5 million. This was what  Axis REIT Managers Bhd head of investments and Malaysian Institute of Estate Agents immediate past-president Siva Shanker said of the luxury condominium market. “There has been overwhelming supply for units between the RM700,000 and RM1.5mil range and over the past two years, developers have either slowed down or held back launches of these units. With fewer of these launches and less supply, the oversupply is slowly correcting and the sector will be close to an equilibrium.”  CBRE|WTW managing director Foo Gee Jen added that we would see improvement in the luxury condominium market. Some reasons he stated include: Malaysian economy growing steadily, general election should also spur investments into the country. (I have no idea why investors would love Malaysia due to an election. Perhaps after the election, the country would be more stable and thus is more conducive for investors? Foo also shared that due to an oversupply of small office home office or SoHo units within the market, it will take longer to recover. Do read the full article here. Quite informative with lots of numbers. 

 

Well, if you are currently staying in a luxury condominium, great news for you even if you may not want to sell since it’s going to get more expensive. If you are currently thinking of getting a luxury condominium, time to view many more units and push for the best price which is acceptable to you. If the predictions by these famous property experts are true, then the better units are definitely going to increase in price, next year. If you are struggling to pay for that luxury condominium which you bought during the double digit price growth years, hold on. Good times are coming, again depending on how accurate the predictions are. As for the rest of us who are staying in condos below RM700,000 we can continue watching Astro. Haha. Nothing much happening. Let’s take note though that when sentiment improves and the luxury condo prices really do move up, the cheaper ones would move too. Happy anticipating.

written on 7Aug 2017

Next suggested article: Fully occupied condos will be more expensive 

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