Some time back, I wrote about this: Lower end, Higher end and Mixed Blend I seriously do not believe majority of Malaysians can afford those properties priced RM 1 million or higher. In fact the mixed blend which is those properties which want to be ‘luxury’ but is not considered by the super wealthy an yet due to it’s above RM850,000 price, there is a very limited number of people who can afford them. An example, 1,000 sq ft for RM850,000. This is definitely excessive for majority and yet the richer ones would definitely not want such a small unit. RM850,000 is nothing and they can easily afford something twice the amount. They definitely do not want their friends to visit their 1,000 sq ft condo…….
My good friend, Dr. Daniele Gambero recently wrote a very good article for propertyguru.com.my which is worth sharing. He shared that statistically, 60 percent of the Malaysian population or 18,000,000 Malaysians are the core middle class who controls a good 55% of the Malaysian wealth. With this, he estimated that properties priced between RM200 to RM700 psf will be targeted by them today and for the next several years. Within the Greater KL and Klang Valley, he predicted that residential properties priced between RM250,000 and RM850,000 (according to different areas of course) will remain a very good product for investors and will guarantee a good capital appreciation.
Anyway, just to prove my point and perhaps reinforce Daniele’s idea of up to RM850,000 I searched for condos between RM800,000 – RM900,000 and found some of the following in property guru.com.my. I searched for Bangsar. Size is really considered small even if area wise is considered a popular one. To be frank, when I did not have a chance to stay in a bigger place, I have always felt that 1,000 sq ft should be enough. However, with a family of four, I feel that space is now very important and I am not willing to sacrifice space simply because of the area that I stay in. I would prefer to buy what I need instead.
I then searched in iproperty.com.my for Desaparkcity related condos for RM800,000 to RM900,000 and found that the choices are very limited. Sizes are really small and would not fit a family of four comfortably in my opinion. As for their latest launchings, it is already above the typical prices which I think is affordable. How much should these properties be appreciating in the future? It really depends on how obsessed are the buyers with the area instead of the size. One trend is also emerging within these two years of slowdown. Smaller sized homes are being launched instead of the bigger ones. In fact, not many launchings are beyond 1,200 sq ft. In fact majority are trying to ensure prices are very affordable and the sized are already smaller than 1,000 sq ft. Think really objectively when we buy. Besides just the area, a shortage of certain sizes or an abundance of such sizes would also determine the prices. Happy believing and acting accordingly.
written on 14 Nov 2015
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