Do you believe the condo rental is dropping even for units with KLCC views or nearby KLCC? Let’s look at Singapore first. According to Singapore’s major newspaper The Straits Times, prices of high-end condominiums in Singapore continues to drop and the major reason is because of falling rents. It gave a new examples such as one unit in The Sail which was sold for S$1,475 (RM4,270 per sq ft). At this price level, it is the lowest for more than 5 years. In Cairnhill, a four-bedroom unit measuring around 3,000 sq ft was sold for about $1,300 per sq ft. This was a price last seen since 2007. While some of these were still sold for a profit, there are already units where the owners were selling at a loss. One example, all three deals at Orange Grove Residences in 2016 were with a loss of nearly S$1 million (RM2.89 million). Note, this is LOSS.
Actually, this situation is not limited to just Singapore. Coming back to condos nearby or around KLCC, the rental is softening and the renters have so many more cheaper choices. My friend’s condominium was rented out only recently after being put on the market for more than 2 months. The rental she was asking for had to be reduced continuously when she learnt that there are newer condo units being rented out for even lower than her unit! Viewings are plenty and non-stop. However, with more choices, it meant that renters were really spoilt for choice!
Prices for some of the less core areas are under even more pressure. This is because everyone is trying to look for cheaper alternatives. Condo oversupply meant that it’s either renting out at a lower rate or having to pay the whole mortgage amount every month. Not an easy choice currently. Oh yeah, take a look at the rental prices for some quite attractive condos nearby KLCC. The information is from iproperty.com.my Just over 1 year ago, my friend could still rent out her older condominium units for over RM3,000. Today, there are plenty of choices for below RM3,000 and newer too. For some owners who just could not hold on with such low rentals, they would be selling and definitely for a lower price. No buyer would buy at a higher price when the rental is weakening today. Happy renting.
written on 18 Apr 2016
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