Bangsar

Sold for: RM11.5 million

Concluded by: Shawn Fernandez, director of Fernstate Sdn Bhd (012-2881251)

When: November 2015

Noteworthy:
*Freehold
*Land area: 8,994 sq ft
*Built-up: 8,008 sq ft
*Gated and guarded
*Five ensuite bedrooms and one maid’s room
*Gym room and two lounge areas
*Swimming pool
*Staircase and internal glass passenger lift
*Fully air-conditioned
*Fully fitted and equipped wet and dry kitchens
*Fully fitted and equipped bathrooms
*Built-in wardrobes
*Recessed ceiling lights
*Solid timber flooring
*Underground parking for four vehicles (including high vehicles)
*Excellent security features with two gates, alarm, CCTV, intercom, 24-hour guards

According to the agent, Shawn Fernandez, director of Fernstate Sdn Bhd, the transaction shows that high-value sales can still be done in a market is soft.

The transacted property is one of seven detached-houses in a gated-and-guarded compound of the Enclave Bangsar development by Thriven Global Bhd. Previously, the land had older bungalows that were demolished to make way for this new development. This detached house was purchased by a Malaysian family.

Fernandez noted that across the road from this property is a detached house with similar built-up area for sale at RM15 million, whereas down the same stretch of homes are new detached houses with built-up areas of 8,000 sq ft for sale at RM8.6 million.

Since the house across the road is built by a private family, Fernandez said its price consideration may differ from a developer’s product, given the "personal time and effort" taken in building and fitting out the premises.

"Furthermore, I believe the quality of the fixtures and fittings in that particular property is very high-end. As for the other properties along the same street, which is developed by a company, the motivation is to sell at a reasonable profit in the quickest time possible," he said.

Another consideration for the lower price of the other houses is that they are built on a sloping terrain, allowing very little usable land area to walk on, said Fernandez. They are also not within a gated and guarded compound.

Fernandez said there have been very few transactions in Bangsar this year, averaging at RM790 psf based on the land area, while asking prices tend to be much higher -- between 15% and 20% above transacted values.

However, he noted that it may be a mistake to make too broad a generalisation as movements between asking and transacted prices tend to depend on vendors’ holding power and their personal motivations to sell.

"Price equilibrium is difficult to achieve when the vendor feels there is greater intrinsic value in his property due to other factors, such as the design of his property, the view, and more. On the flip side, price equilibrium can be achieved when the vendor is more in tune with market conditions and is motivated to sell," he explained.

Data from theedgeproperty.com shows that 10 bungalows in Bangsar, with land area ranging between 8,000 and 10,000 sq ft, changed hands from 1Q2012 to 1Q2015. These were sold from RM3.5 million to RM7.19 million.

From 2Q2014 to 1Q2015, listings on theedgeproperty.com show average asking monthly rental for similar-sized bungalows in Bangsar for the period of 2Q2014 to 1Q2015 to be just under RM20,000.

According to Fernandez, Bangsar is an area, much like Damansara Heights, where there is a substantial number of expat tenants from various multinational companies involved in sectors such as oil and gas, and pharmaceuticals, who gravitate to the area due to the various amenities within the neighbourhood.

"The malls such as Bangsar Shopping Centre and Bangsar Village are a good draw, while the availability of the LRT station, which goes directly to KLCC, is also beneficial. Easy accessibility to highways and international schools are also contributing factors."

Fernandez noted that typical rentals for good class detached houses with swimming pools are within the RM15,000 to RM25,000 range. Some condominium units, such as One Menerung, can command such rentals as well, he added

Bangsar

Interested in investing in One Menerung after reading this article? Click here.

Editor: To real estate agents -- if you have concluded an interesting deal recently, we would love to hear from you! Contact us at [email protected]

 

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