City&Country: Growing interest in condos on PJ secondary market

The hot spots for condominiums on the secondary market in the Klang Valley are the established areas of Petaling Jaya, say real estate agents polled by City & Country.

Interest and demand for this type of property in such suburban areas as Subang Jaya, USJ, Sunway, SS2, Damansara Kim, Tropicana and Kota Damansara have been on the rise, while interest in the higher end condominium areas such as Mont’Kiara and KLCC in Kuala Lumpur is more subdued.

The condominium buying trend has also changed with the majority of prospective buyers preferring the more affordable two to three-bedroom units with average built-ups of 1,200 to 1,500 sq ft and asking price of below RM550 per sq ft to the larger units offered prior to the global financial crisis and the subsequent slowdown in the Mont’Kiara and KLCC property markets.

The agents also note that despite growing interest in SoHos or small offices/home offices, these have not fared well on the secondary market as more people are buying them for personal use than for investment purposes. There is more demand and value for condos that are situated on higher floors as well, they add.

The agents observe that condominium prices in PJ have escalated over the past one year. Rose Wong, head of sales at Oriental Realty, estimates that condominium prices have appreciated 50% in the past year in Subang, USJ and Sunway.

“Buyers understand that there isn’t much land left to develop in PJ, hence the demand has been overwhelming. There are many cases where the selling price of the property has risen way above its earlier valuation in a matter of a few months,” she adds.

Explains Anita Sharma, senior real estate negotiator at Reapfield Properties: “There isn’t an oversupply of condos in Subang and USJ. The increasing number of urban families who are seeking to trade their landed homes for the security and facilities that only condos can provide is also a reason for the boom in condominium prices in these areas.

“Rental rates have been great too, especially around SS16 as the area is well connected and has various amenities at its doorstep. A RM400,000 unit at Saujana Residency, for instance, has an expected rental return of RM4,000 per month.”

Other condos in the neighbourhood that are popular, says Anita, are Subang Olives, Serai Saujana and Subang Parkhomes.

The asking prices for condominiums in Tropicana and Kota Damansara are also on the rise. “There has been a sharp increase in demand for both rental properties and properties for sale in these areas,” says Oliver Gian, a team leader at Rina Properties. “Less than 18 months ago, a 674 sq ft unit at Pelangi Damansara Sentral in Kota Damansara was worth RM240,000. A similar unit is worth RM300,000 now.”

Despite the fact that most condominiums in Tropicana and Kota Damansara are leasehold properties, Gian, who specialises in these areas, says the land tenure is not a big issue to buyers today. “Buyers nowadays aren’t too particular about whether the property is leasehold or freehold as their decisions are often based on the property’s location, convenience, amenities as well as accessibility.”

According to Anita, an oversupply of condos and congestion could be behind the slow movement on the secondary market in Mont’Kiara. “Besides, many expats are opting to move to neighbouring areas such as Bangsar and Damansara.”

Wong agrees, saying that as a result, investors are under pressure to sell and rent their properties in Mont’Kiara at lower rates. “The average turnover for a condo in the area is between 6 and 12 months.”

A similar scenario is unfolding in KLCC. Jolene Teo, a real estate agent at Allworth Real Estate, says, “There is a slight dip in transactions for larger units. Rental yields have also not been performing well, dropping from 7% to 4% in the past year”.

According to Teo, this is due to waning foreign interest in these units compared with two to three years ago. Nevertheless, there is still strong demand for the smaller one to two-bedroom units in Marc Residence, Hampshire Place and Panaroma.

Below are the asking prices for some condominiums in selected areas in the Klang Valley. All these properties are freehold unless otherwise stated.

Kota Damansara/Tropicana

•    A leasehold unit at Palm Spring in Kota Damansara with a built-up of 1,200 sq ft is priced at RM340,000. The unit is fully furnished and has three bedrooms and two bathrooms. Facilities within the condominium include a barbecue area, club house, gym, Jacuzzi, mini- market, nursery, playground, salon, sauna, swimming pool and tennis, squash and badminton courts.
•    With a built-up of 1,252 sq ft offering three bedrooms and two bathrooms, a unit at Cova Suites is tagged at RM400,000. Cova Suites is located directly opposite SEGi university college and Sri KDU school. Facilities at the leasehold project include a café, an infinity pool, a nursery, gym, jogging and cycling track, multipurpose hall, recreation lake, sky garden and library.
•    A leasehold 1,217 sq ft unit at Casa Tropicana is tagged at RM403,000. The unit has 2+1 bedrooms and three bathrooms. Facilities in the condominium include a cafeteria, club house, gym, Jacuzzi, jogging track, mini-market, nursery, playground, salon, sauna, swimming pool, tennis and badminton courts, function room, spa and reflexology path.
•    A leasehold 1,388 sq ft unit at Riana Green, Tropicana, is priced at RM560,000. It comes with 3+1 bedrooms and three bathrooms. Facilities in the condominium include a cafeteria, gym, mini-market, playground, sauna, swimming pool and tennis court.
•    A partially furnished leasehold 1,245 sq ft unit at Metropolitan Square in nearby Damansara Perdana with three bedrooms and two bathrooms is going for RM435,000. Facilities at the condominium include a gym, jogging track, playground, sauna, swimming pool and tennis court. Tesco, The Curve and IPC shopping centre are a 10-minute walk away.

Subang
•    A 1,468 sq ft leasehold unit at Pangsapuri Ridzuan with three bedrooms and two bathrooms is available for RM262,000. The condominium is a five-minute walk from the Setia Jaya Komuter station. Facilities in the condominium include a sauna, gym, salon, jogging track, swimming pool, tennis and squash courts, mini-market and children’s playground.
•    A partially furnished, 1,200 sq ft unit at Tropika Paradise is tagged at RM360,000. It comes with three bedrooms and two bathrooms. Tropika Paradise is a low-density development and is a short distance away from SRK USJ 20, SJKT Seafield and SMK USJ 13. Facilities include a swimming pool, playground, gym, tennis court, sauna, BBQ area, mini-market and nursery.
•    A 1,555 sq ft unit at Casa Subang is priced at RM420,000. It comes with four bedrooms and four bathrooms. The condominium is located close to SEGi university college and the Giant hypermarket. Facilities include a cafeteria, mini- market, nursery, playground, salon, swimming pool and tennis court.
•    With a built-up of 1,515 sq ft and offering two bedrooms and two bathrooms, a unit at Subang Olives is priced at RM650,000. The unit is partially furnished. Facilities in the condominium include a gym, Jacuzzi, jogging track, playground and two swimming pools.
•    A fully furnished leasehold unit at USJ One Avenue, Subang, with a built-up of 1,704 sq ft, is priced at RM550,000. The 3+1 bedroom and three bathroom unit was recently renovated and has a pool view. Facilities in the condominium include a gym, jogging track, playground, sauna, swimming pool and squash and tennis courts.

KLCC
•    A unit at The Orion with a built-up of 1,323 sq ft is priced at RM680,000. It is fully furnished with three bedrooms and two bathrooms. Facilities at the condominium include a gym, jogging track, playground, squash court and swimming pool.
•    A 1,356 sq ft unit at Hamsphire Place is priced at RM1.315 million. The unit is partially furnished with two bedrooms and two bathrooms. The condominium is located near Phileo Avenue Commercial Park, Bank of China (OSK Tower) and CitiBank. Facilities include a café, gym, Jacuzzi, mini-market, playground, salon and swimming pool.
•    A 1,551 sq ft unit with 2+1 bedrooms and two bathrooms at Idaman Residence is tagged at RM1.318 million. The unit is fully furnished and has a view of KLCC. Facilities include a gym, Jacuzzi, mini-market, playground, sauna and swimming pool.
•    With a built-up of 1,249 sq ft and offering two bedrooms and two bathrooms, a unit at Panorama is up for sale for about RM1.561 million. The unit is fully air conditioned and partially furnished with a built-in wardrobe and has marble and timber flooring. It is a five-minute walk to the KLCC LRT station. Facilities at the condominium include a gym, Jacuzzi, playground, sauna and swimming pool.
•    A 1,626 sq ft unit at Marc Residence is priced at about RM2.032 million. The unit comes fully furnished with 3+2 bedrooms and four bathrooms. The condominium is just a five-minute walk from the KLCC LRT station. Facilities at the condominium include a café, gym, mini- market, playground, sauna, swimming pool and tennis court.

Mont’Kiara
•    A 1,398 sq ft unit at Rosevilla is priced at RM475,000. The unit is partially furnished with 3+1 bedrooms and two bathrooms. Facilities include a café, gym, jogging track, mini-market, playground and swimming pool.
•    A 1,458 sq ft unit at Kiaramas Sutera with three bedrooms and three bathrooms is tagged at RM600,000. The unit is fully furnished. Facilities include a café, gym, jogging track, mini- market, playground and swimming pool.
•    A unit at Kiara 1888 with a built-up of 1,238 sq ft is priced at RM680,000. The unit is partially furnished with three bedrooms and two bathrooms. Facilities at the condominium are a café, gym, jogging track, playground, sauna, squash court and swimming pool.
•    A 1,248 sq ft unit at Astana Mont Kiara is tagged at RM680,000. The three-bedroom and two-bathroom unit is fully furnished. It comes with a tenancy agreement of RM3,500 a month. Facilities include a café, gym, Jacuzzi, jogging track, mini-market, playground, sauna, squash and tennis courts and swimming pool.

Dutamas
•    A unit at Changkat View with a built-up of 1,100 sq ft and three bedrooms and two bathrooms is priced at RM380,00.The unit is partially furnished and is located near Mont’ Kiara International School and The French International School. Facilities at the condominium include a café, gym, Jacuzzi, jogging track, mini-market, nursery, playground, salon, swimming pool and tennis court.
•    A 1,450 sq ft unit in Duta Ria is priced at RM420,000. The unit is partially furnished and comes with three bedrooms and two bathrooms. Facilities include a café, gym, Jacuzzi, jogging track, mini-market, nursery, playground, salon, sauna, squash and tennis courts and swimming pool.
•    A 1,182 sq ft unit at Hartamas Regency condominium with three bedrooms and two bathrooms is going for RM580,000. The unit is partially furnished. Facilities include an e-community and smarthome system, swimming pool, gym, playground and sauna.
•    A 1,148 sq ft unit at Solaris Dutamas with two bedrooms and two bathrooms is priced at RM700,000. The unit is partially furnished. Facilities at the condominium include a gym and swimming pool.
•    A unit at Hartamas Regency 2 of 1,520 sq ft is going for RM720,000. The unit is fully furnished and comes with 3+1 bedrooms and four bathrooms. Facilities include a gym, mini-market, nursery, playground, sauna, swimming pool and squash court.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 876, Sep 19-25, 2011