If prices are the same, would you prefer to buy a landed property or a condo? (By the way, my personal answer is condo but we must understand the majority may not think like me) Let’s assume the landed is at least 20 x 70 and the high-rise would be 1,200 sq ft. We should also assume that both are just next to one another within the same neighbourhood. Same developer even. We also assume that the neighbourhood is a safe one and there’s no need for any gated & guarded community. I think the winner would be the landed home, right? In real life situation however, this does not exist. Not in Malaysia, not in Singapore and definitely not in most countries in the world.
Many times we read about some conclusions telling us that most people prefer landed over condo and we think this is the reason why we must buy a landed? Or the story about how landed would have better price appreciation because land cannot be increased while condos could be built ever higher? Thus, when the quantity is many, the prices could not go up much? By the way, there is a reason why many landed development nowadays say that they have multiple security levels, a fully equipped clubhouse for the residents so that they get to enjoy facilities within the development and even complimentary transport to the nearest mall for example. There is also a reason why condos, especially the luxury ones are really huge, sometimes a few thousand sq ft and may have a duplex concept. There are also those which cars could be parked right outside the condo even if you are staying on the 16th floor for example. See what I mean? Both are trying to outdo one another by copying what the other has.
There are also three things that will cause the decision to be harder to make.
Number 1. Landed homes in some mature neighbourhoods would already be priced so high that not even the top 10 percent income earners in Malaysia could easily buy. Those who bought were at an earlier and lower price most of the time. Those who bought today? They are by far richer than me and perhaps owns a start-up which has gone international. 😛
Number 2. Condos are usually in a much better neighbourhood. Somehow a small piece of land was available in some mature neighbourhood and the only way to build properly is up. There are so many choices still, within the KLCC vicinity today. Yes, even in Desa Parkcity too…. Or those who must stay in Mont Kiara area for example, the cheaper way is to buy higher up and not on the ground; landed.
Number 3. Capital appreciation does not happen JUST for landed. It does not happen JUST to established neighbourhoods. It could ALSO happen for condos. It could ALSO happen for secondary areas which are continuing to grow and perhaps even 10 minutes away from some established neighbourhoods. However, the condo prices would not usually be higher than the landed. The secondary areas would also not lead the price increase but more of a follower to the established neighbourhoods.
Happy buying yeah, whether it’s the ‘sure go up’ landed property or the ‘maybe can go up’ condo. I still have not placed any downpayment for a landed property. Not because I dislike landed lah, it’s because I am a working professional and downpayment for a landed property in an area I like is too high. As for those I could afford, at the moment, I still feel they are a tad too far away. Who knows, in a few years time when I have a more flexible working schedule, I can buy a little further away? Cheers.
written on 9 March 2018
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