Property in Malaysia for sale and rent | Buy, Rent and sell real estate and homes

KLCC luxury condos have dropped to the level RM750-RM900 per sq ft , and the rental rate also dropped to RM4 psf for partial furnished. But the developers' are still selling RM1500-RM3000 per sq ft.

The supply of completed condo units will be more and more in 2009. Is this price level going to be stable in medium term?

any expert can share with us?

thanks

i'm not expert, but right now is not a good time to buy a klcc condo.

the klcc has a long way to fall. it has huge oversupply, more supply coming up, and demand falling as expats leave the country. foreign buyers are desperate to sell as they cannot rent their units.

it's going to go more down before it goes up.

On the other hand, if you find a really good deal, it might just work for you. I know there are developers giving guaranteed returns for premium condos in the city center.

Hi Edward,

I'll never trust rental guarantee scheme unless it's hotel or resort suites operated by a reknown hotel operator. If talking about normal residential properties with rental guarantee package, it shows that the developer just want to push the sales and the price will be marked up accordingly. E.g of Hampshire Residence, this project was marketed in UK with rental guarantee package and i found out the price in UK is about RM200 per sq ft more than what was being sold in local at the same time.

So which developer in the city centre as you mentioned could give such scheme?

Ng Hong Ming

Just a quick question. Why do you trust rental guarantee schemes from hotel or resort suites?

Asim

Hi Asim,

For hotel or resort suites, your unit will be used for generating income by the hotel operator on long term basis. Don't buy those projects with rental guarantee of 8% for 10 years or more, because it'll affect the resale price. Remember that the second buyer will not get 8% return unless you resell it at original price.
It'll be ideal if they provide profit sharing scheme or maybe 8% pa rental guarantee for the 1st 2 years and then followed by profit sharing basis. Assume the hotel or resort is doing well in the future, it'll be easier to resell your unit.

As i said, buy those hotel or resort suites which will be operated by reputable hotel group. If you know the resort will be operated by Bayan Tree Group, you will be more convinced to own an unit there!

If compare to the normal residential condo, the developer will provide you rental guarantee for 2 years only, after that they will be unlikely to continue the tenancy with you because that is not their core business. Some developers can even pay you the 2-year rental in advance or offsetting the selling price. To me, it's just like a cash rebate or discount.


So be cautious of all these guaranteed return schemes.