49,000 sq ft land size and RM548 million GDV

Reported in a few English dailies. How much returns can we expect from a plot of land with the size of 1.12 acres (about 49,000 sq ft)? No idea about the actual net profit but what about a gross development value of RM548 million? Suddenly my jaw dropped. Wow. Well, one boutique developer is doing it and it seems to be very successful too. It’s Expressionz project, just off Jalan Tun Razak was very well received and it reported a takeup rate of 70% thus far of which over half are foreigners. Buyers would only need to move in with their luggage, everything else is taken care of including even the sound system.
There are many sizes and layouts to choose from including even a penthouse. Price per sq ft is reported to be RM1,400 on average. Based on the typical average luxury property prices which are around RM900 per sq ft, this RM1,400 per sf is on the upper half but since it is supposed to include all furnishings, I think the price seems okay for many of these wealthy buyers wanting just a place within the city to relax. I do not think many families would be moving into such a development but for an expatriate with a partner, it looks enticing. The development would be ready in year 2018.
By 2018, I also hope that the property cycle in terms of uptrend would continue. Nope, I do not want the 2009 – 2012 periods to come back. Just the usual and typical small increases per year. That would be just fine. Demand for more homes in Malaysia is huge but current uncertainty as well as affordability for new launches has certainly sapped a lot of enthusiasm from the market. Q1 2015 saw a drop in transactions when compared to Q4 2014. Read here:   Residential property transactions sees a slight drop nationwide in first quarter of 2015   In fact, 2018 should be the year where a huge number of all those affordable units launched last year and this year would be ready too. Happy anticipating yeah.
written on 31 Aug 2015
Next suggested article: Better sentiment or better pricing and higher transactions