I have a small property lunch group. One is focussed only on landed. One prefers KLCC or its vicinity. One prefers higher end condo and traditional hotspots. I am the odd one out, my decisions always need some explanation. Haha. Well, recently I told them that I may be buying a new condo in Sandakan; Sri Utama. It’s RM320,000 for a 1,131 sq ft full facility condo in a mature and yet still growing area. The developer is IJM. One of them asked, ‘Is it good value?’ I was stumped. Should I say its good value? Or should I say I was simply buying for fun? Haha. Anyway, following would be my reasons if I am buying it. First is of course because that’s my half-hometown; my wife’s. Other reasons?
Price per sq ft is definitely on the lower end when compared to majority of everything that I am seeing today. It’s only RM280 per sq ft. For condo, I am not sure if any developer would want to build such a unit in future for such a price. However, price per sq ft means little if that particular condo is already the last development in the area.
A mall is planned in the future by IJM. It’s just outside the condo that I am buying. Currently, Sandakan does not have a proper mall and even the Harbour Mall in the town centre is nowhere near the usual mall standards of Klang Valley. Okay, I have no idea if the mall may take another 10 years to build, so perhaps I would have to wait.
Rental potential can be a little volatile. One may wait for a few months, or rent a partially furnished unit for RM1,000 or even a fully furnished unit for RM1,700. This is Sandakan after all. It’s okay, if I am buying, I will maintain the principle of renting out fully furnished. The fortunate thing is that while demand is not very high, the supply of a similar type of property is not many too.
Many more developments would be coming in the near future including high-rises, landed homes and the current development is already a matured one which meant Giant hypermarket is nearby, lots of cafes and restaurants nearby and even a medical centre is opening in the near future. Banks and even a Mc.Donalds restaurant is available within the same development too.
So, is it good value? Well, come to think of it, if the rental can be high and is guaranteed, I may not be able to buy that condo. Surely many would buy to rent out. If the market is not slowing like today, more people would have been more bullish and would most probably try to sell higher. If the new mall is already in progress, surely I would need to pay a premium for it? There’s just too many ‘what ifs’ So, let me just conclude that I think the price versus the possibilities remain attractive to me. Happy deciding.
written on 23 Oct 2015
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