I read an interesting article in propertyguru.com.my today. I then searched for more information from propsocial.my (refer to the image of “Desa Kudalari.” This is the OLDEST condo in the KLCC area built by Tan & Tan.. The owners may be able to band together and sell the while project en-bloc. I think the reason for selling is also because the condo is already 33 years old. Yes, it was completed in 1984! I was in primary school then. Haha. Now you sort of know my age.
According to marketing agent CH Williams Talhar and Wong (WTW), majority of the owners are seeking a buyer for the property. If this is successful, it will be the first en-bloc sale of a strata building here in Malaysia. In case anyone wanted to know, the tenure is freehold and the owners are definitely not under any pressure to sell.
Another very good reason for them them to sell is because when sold en-bloc, the price per sq ft is definitely higher versus selling it unit by unit. As per the property guru article, the indicative price is between RM2000 – RM3,5000 per sq ft versus an earlier sale for just RM1,250 per sq ft in 2015. The buyer would definitely be demolishing it and build something with a much higher gross development value (GDV). This high-rise condominium has one 19-storey residential tower and four blocks of three-storey buildings on 7.35 acres of freehold land. Take a look at a picture of its swimming pool. Yes, it looks dated but all the information I could found online said that the maintenance has been good.
Actually, if there are more en-bloc / en-masse sales or even some new laws being made to facilitate these en-bloc sales, the government may be able to build at better locations even for affordable homes. Just look to Singapore for ideas to do it effectively and efficiently. In fact, once sold, the developers may be able to come up with a better design and get more interest with the said property. In this particular case, the total build up may be many times higher, conservatively. After all, the older buildings are all within hotspots today! Happy visiting your friends in Kudalari condo. I have none currently.
written on 7 Apr 2016
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