As more property launches showcase properties over a million-ringgit, the question that arises is who are these buyers? Mostly foreigners and local owner-occupiers particularly in the Mon’t Kiara enclave and KLCC area, says Metro Homes’ director See Kok Loong. He added that the agency will focus on luxury properties as their specialty.
The magical RM1 million number is also used as a yardstick by the Valuation and Property Services Department of the Ministry of Finance which publishes the annual Million Ringgit Property Deals.
The booklet can be accessed online at their website at www.jpph.gov.my.
A quick glance of the latest issue will tell you that most million ringgit property deals are conducted in the Klang Valley, with the rest of the country experiencing such deals mostly only with respect to land deals. In Kuala Lumpur alone, during the period 2008/2009, most of the deals involving RM5 million and above are for bungalows located in established hot spots such as Damansara Heights and Bangsar, as well as shophouses in prime locations within the KL City Centre.
Sky-High Prices
The usual suspects for condominiums fetching over RM1 million are, for example, One Menerung and Sri Penaga in Bangsar and the Mon’t Kiara higher-end units. Despite the hyped-up oversupply of high-rises within the KLCC area, expect more high-rises to come onstream within the next two years.
SP Setia Berhad’s 40-storey Setia Sky Residences, which is located about one kilometre from Petronas Twin Towers, are expected to be completed in July 2012. At average pricing of RM760 psf, its size range of between 1,055 sq ft and 1,701 sq ft easily translates into million ringgit properties for the bigger sizes.
This is S P Setia’s first foray into luxury high rise and the reception has been overwhelming, says its president and CEO Tan Sri Liew Kee Sin. Launched in July last year, Phase 1 of Boheme Tower is sold out to a mix of local and foreign buyers. “From an average pricing of RM680 psf, Setia Sky Residences saw a 12% increase in average psf for the second tower,” the SP Setia’s boss adds.
Landed Property Boom?
Despite the congestion and increasingly crowded skyline dotted with high-rises, the Klang Valey still has an abundance of land to build landed properties. So, it comes as no surprise that developers known for their high-end properties such as SP Setia, Sunway, Mah Sing and IJM are launching landed properties with minimum million-ringgit price range.
IJM, for instance, will be launching Shng Villas in Cheras comprising of 200 semi-detached houses with starting prices of RM1.6 million. Expected to be launched at the end of this year, the luxury houses are targeted at local buyers who still form the bulk of their buyers.
At the same time, it is also launching Phase 4 of Laman Granview. The 20 semi-detached houses there start at RM1.3 million. Another of its project in Cheras, Bukit Mandarina Phase 5, with minimum prices at RM1.5 million, is also targeted to be launched this year-end.
As property prices creep up, expect future launches to start at increasingly higher price levels. As a property guru once said, at the recovery of every downturn, prices will start to climb to levels higher than before the downturn. Another guru pointed out that it pays to buy in a rich man’s area as the price increases are greater than in a poor man’s area. Conclusion - it pays to invest in million-ringgit properties in prime locations.
