Average of RM1,100 psf? 80% taken up. Market’s great? Scarcity matters.

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Just a few days ago, someone spoke to me about the state of the property market and how some expensive properties are being taken up but the affordable ones are not taken up fast enough. Perhaps we should also understand the concept of scarcity and this is especially important when it comes to the property market. In mature neighbourhoods, any new development will always be high-rise and the prices will usually reflect the demand for that particular area.

This is why prices will be higher than equivalent units in less popular neighbourhoods. This is also why when units are being launched in a very successful township which is the envy of many, the take-up rate will usually be faster than usual. Yes, even in the so-called slow property market of today. Here’s one such good news for one of such project. As for the takers, let’s not assume they are reflective of the whole market yeah.

Article in edgeprop.my here. Park Regent is a joint development by Singapore’s CapitaLand and ParkCity within Desa ParkCity. There are a total of 505 luxury condominium units and it comes in six design layouts with built-ups ranging from 872 sq ft to 3,500 sq ft. Average selling price is RM1,100. It’s 80 percent taken up within one month of its launching at the end of July.

ParkCity chief marketing officer K C Chong said, “Previously, we had announced that we had achieved a 70% take-up rate. I’m happy to announce today that we have achieved 80% take-up now.” He added, “I’m optimistic about the market. I don’t agree that the market is soft, it is just that people cannot decide what to buy. I believe that with the right product and location, the project will still sell.”

He also shared that majority of Park Regent’s buyers are locals and there are also some foreign buyers from South Korea, Australia, the UK and other countries. The freehold project is on a 5.6-acre site by the lake and central park at Desa ParkCity. It has a gross development value of RM1.08 billion. The project is slated for completion in 2023. Please do refer to the full Article in edgeprop.my here.

The buyers do not represent the median households in Malaysia. The price actually starts from close to RM900,000 and that’s a typical mortgage of probably RM4,200 or higher per month. With that price, one gets just a 872 sq ft unit. However, what this tells us is something very important. When it comes to property market, scarcity will determine the price and take-up rate. Plus the fact that we continue to have a good pool of working professionals earning very good salaries who yearns to stay in an established township. Last but not least is also because of the good brand names of both the developers. Happy dropping by and perhaps getting a unit(s) too? No need to mention kopiandproperty.com, there’s no extra discount. 😛

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