RM880 psf is not considered exceptionally high if it is nearby KLCC. However, mention Iskandar and everyone would look at you disbelievingly. RM880 psf, today? Are you out of your mind? There are way too many condos there already. Furthermore this is a luxuriuous one, who would be staying there? Why not buy in Singapore instead? Even Sentosa’s prices has come down a lot from its high few years ago. Well, Sentosa prices are still way above what is considered affordable today. A new waterfront project called Southern marina Residences in Puteri Harbour seems to be doing good enough under current circumstances.
Total number of units for the two tower blocks is 456 and according to PPB Group Bhd’s managing director, 50% were already taken up with 80% Malaysian buyers, 20% Singaporeans, mainland Chinese and Hong Kongers. In fact they are not waiting and has already started work on the two blocks which would be completed by 2018. Just three years away. Looking at the current negative sentiment, 50% take-up rate is considered healthy and if they can continue to sell slowly during the construction period and can reaches 70% perhaps next year, then it’s a home run already.
Why are some developments continue to do well even during slowdowns? Don’t believe? Just look some of the branded ones, especially in the hotspots? E&O in Penang. Desa Parkcity in KL. Answer is also because of location. If the location is indeed very attractive and it’s not easily available in future, the project will continue to sell IF the prices are deemed to be acceptable. My good friend was so ecstatic to be able to get a newly launched unit for RM700 psf. I did not tell her that I would prefer to get a secondary one for rental instead. Those who can still buy during negative times are definitely ‘stronger’ ones and not many would dare to flip during such times.
A branded developer helps tremendously, especially when the project is a huge mixed development and the current phase being sold is Phase 1. Come on, it’s better to buy Phase 1 compared to the final phase if everything happens according to plan. It meant Phase 1 buyers would earn the continuous appreciation with subsequent launches. This is unless the subsequent phases all fail, then everyone suffers, not just the first batch buyers. For most of the really big brands, if they have a total gross development value (GDV) of RM10 billion throughout Malaysia, it will not be running away from a RM500 million GDV project.
I have no interest to buy that seafront property overlooking Singapore even if I can afford. It’s just not me at all. Looking at Singapore everyday? Haha. Same reasoning as my rejection of buying a condo just so that I can look at Petronas Twin Towers everyday. I was not even willing to pay RM8,000 extra for swimming pool view when I bought my first condo! Haha. Do not worry, I am not considered majority. Many would always love the awesome feeling of having a spectacular view and the praises from friends who come visiting. Happy buying whatever you desire.
written on 29 June 2015
next suggested article: Malaysia – Singapore. Not just one new bridge. Few bridges please.
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