PROPCAFE Review: Tropicana Miyu @ Petaling Jaya Section 17

PROPCAFE has been delaying to publish this review due to resources, MCOs, lack of information and unconfirmed information on this project. Anyway, PROPCAFE has decided not to wait anymore and here is the short review for all our followers. Not as detail as PROPCAFE’s usual standard but hopefully the content is good enough for those who are interested on this project.

Tropicana Miyu Grand Lobby

TROPICANA MIYU

Tropicana MIYU is developing by Tropicana Corporation, a reputable developer which specialised mostly on mid to high-end property development in Malaysia. Tropicana Corp is season developer and the risk of completion is relatively low. PROPCAFE highlighted it because choosing the right developer is crucial to avoid high abandon risk in current “crisis” period. Quick search in google will help you to know more about this developer.

The name of a property is important as it is the name for many residents to call HOME. Yup, “I am staying at “MIYU”!”. Why MIYU? The Developer is thinking about ME & YOU! Sound a bit selfish :P. How about others? 🙂 In Mandarin, it sound like MEI YOU (没有 = Tak Ada). Joke aside, it is at least an unique name that can be easily remembered. MIYU in Japanese also can be interpreted as “Beauty, Dream.” So, name wise, not too bad.

Density

This project is sitting at a 2.28 acres land, with a total of 271 units. It translates to a density ratio of 119 units per acre. Although many claim that this is low density project, PROPCAFE disagreed because you simply cannot use gross units to conclude the density of the development (how about 150 units in 0.5 acres?). The land is very small and the units are offered with the layout of 2 bedrooms and above. To call it mid density is probably more appropriate. Anyway, living with less units like 200+ units within a project is getting rare nowadays and you still have much less traffic compares to larger lands with similar or slightly lower units offering. It is still a bless to owners. Decent density ratio, but not low.

The good news is, with only 37 storeys (7 storeys are carpark podium) and eight units to share a floor, there are still 3 & 1 lifts to share among 271 units which come in a reasonable lift sharing ratio, therefore, waiting time for lift is not an issue.

Freehold and Orientation

It is hard to get freehold property in prime Petaling Jaya land nowadays. MIYU, is clearly having great advantage of this compare to nearby leasehold properties. To add on, it is a fully residential property without any commercial units within the property, yup no 7/11, no laundry shop, no shops. But it also no such convenient within the building :). So, it really depends on how you see it. The units’ orientation of either South and North Facing made it easier for buyers to choose the units as all of them could avoid “West Sun”, except a wall from the corner unit. In term of the architectural design, well done, MIYU.

Facade

The design is mainly based on the featuring of “timber and gold cladding” elements which you can observed it from its guardhouse design then it flows to the podium, common and facilities areas. The external look of facade is very typical Tropicana’s property, simple and squarish look, but no surprise. Sometimes, ever green design could be safer, so not much to complain here :).

MIYU Facade

Facilities and Maintenance Fee

MIYU comes with pretty standard facilities at ground level and podium level 7 (see the list below). You will get water features, grand lobby, 40 meter long infinity pool, floating gymnasium, cabana, leisure lounge etc.

Bear in mind that MIYU only has 271 units and it will be a disaster to maintain “overstretched” facilities. And surely, owners do not want to see the maintenance fee to be increased from the existing pre-fixed RM0.33 psf fees. PROPCAFE thinks developer is providing a good balance of facilities to owners based on the future maintenance and number of owners. So focus should be more on the quality of these facilities instead of count of facilities.

Well, from previous project with similar pricing, Tropicana always very reasonable and not stingy to spend on common areas/lounge and its landscape. So, it should deliver it with its own class. More is Less, Less is More. Buyers should be happy to have this “sufficient enough” allocation of facilities by developer. If we really need to nitpick, with the price tag touch on million bucks, PROPCAFE like to have a rooftop garden to fully enjoy the view of surrounding and fully embrace the high-rise living. However, it should not be treated as negative point to this project.

Every unit come with at least two carpark bays, however it may take a while for those to drive up to level 6 :). No choice, the building is on a small land, so this is unavoidable. You just need to pray to get a lower floor allocation.

Floor Plan

Each floor will be shared by 8 units with the smallest unit stuck in the middle of the floor and larger units will be located at both end of the corridor. This floor plan allows corner units to enjoy its privacy and ventilation since only one wall shared with another unit and it has the 26ft width “air-well” in between the units.

Please take note a wall from the smallest units will be attached with the lift, especially unit 2 and 3 with the main 3 residential lifts. One of the walls at Unit 1 and 8 may still expose to west sun. If given choice, you may avoid this as it is the wall in its master bedroom.

Layout And Pricing

Type A – 851sf

Since it is a two bedrooms design, this should then be considered as family size (unwillingly) under the standard of city centr or prime PJ area. This type of layout provides two proper bedrooms (can fit even King size bed), standard living and dining area, and a small yard. The open kitchen is a bit too small though. One need to build peninsula in the dry kitchen to allow more space storage and working areas to compensate the existing tiny kitchen layout. Well, unlike many developers, MIYU has a separate aircond ledge area from its balcony, so owners can enjoy a proper balcony without the eyesore of having the aircon compressor right above or besides the sliding door.

Pricing ~ RM700k up

Type B – 1030sf

PROPCAFE likes this layout a lot as it has three bedrooms which is also more affordable than type C and D without to hit a million or above. To have a proper family living environment, three bedrooms are necessary and should be sufficient in most of the scenarios (live-in parent, baby, future planing etc). The architect has utilised the space well and setting it up as horizontal layout design to increase the dimension (width) and create much spacious feeling when the living and dining area sit side by side with each other. Two bathroom, large L shape kitchen, and a yard are good  enough to make it a very functional and practical 3 bedrooms unit.

Pricing ~ RM850k up

Type C – 1410sf

If you need extra space or are having a maid, this unit give you an extra utility room and additional two toilets. The rest are just similar as the type B which come with a good  horizontal layout as mentioned above.

Pricing ~ RM1.1mil up

Type D – 1520sf

This is the largest unit type in MIYU. Basically, it is a dual key design layout which allows owner to split a room for studio living purpose. PROPCAFE never believe of using it as two generation living i.e. keep  privacy for either young or elderly. Come on, as a family, please. So, it is more for those who want to increase the rental yield or for owner to rent out the studio separately. Good thing is, the developer is thoughtful enough to provide a small pantry and washer area in the studio unit. We have seen developers left it for owners to take care of the piping for pantry and washer which would be a big headache for investors, not to say cause the leaking in future. Kudos to Tropicana.

Pricing ~ RM1.2mil up

Overall, this project is priced (nett) at slightly above market price at around RM800-900psf.  You can still get the large units below RM800psf though. The subsales pricing of decent properties nearby like Ameera and 5 Stones are around asking around RM650-750psf. Well, in fact you can still get many properties with cheaper price tag in section 13. However, PROPCAFE sees this as the different segment based on its density, developer brand name, and location.  You can see our PROPCAFE Review on
Petaling Jaya Section 13 here
.

Show units –
3D furnished Unit vs. Unfurnished Unit

You don’t have to go showroom! Tropicana has combined the 3D furnished and unfurnished unit in their 360 degree virtual showroom and shared in their website. Absolutely brilliant! It gives a sense of easy viewing of the unit in most accurate manner. Please visit the developer’s
Miyu
 website to enjoy it.

Now we move to the most important parts of this development.

Location and Accessibility

The key selling point of this project has to be the location. This is the prime Petaling Jaya address which neighbouring with Damansara, TTDI, Bangsar, Bukit Kiara, and PJ section 17 (14 ….), SS2, Bandar Utama, Damansara Jaya etc. It is right in between Kuala Lumpur and Selangor and surrounded by all established and matured townships with full amenities (Private hospitals/ medical centers, art centres, sports faciltiies, parks etc). Just count the malls nearby, you will have 3 Damansara, Starling Mall, Glo Dsara (ops can ignore this :)), Atria Mall, Bangsar Shopping Center, One Utama etc and the countless eateries. Basically, this area of PJ has everything you need.

However, buyer needs to know this good location is actually right besides the Sprint Highway.  Of course, it gives you great accessibility to Kuala Lumpur and Petaling Jaya. But you also need to bear with the noise of this busy highway. Ask or visit your mates who are living beside the highway to understand and get the taste of such noise pollution before making your decision. However, many times we were told it is acceptable, so it is very individual. Nevertheless, buyer should ask developer about the quality of sliding door that can mitigate this issue. Convenient & Accessibility vs. Noise. Choice is yours. If not, to get the least impact, choose the direction towards the section 17. This can avoid the cemetery view toward sprint highway direction as well.

 Jalan Harapan

 Jalan Harapan

PROPCAFE would like to highlight that while Jalan Harapan is new, clean and wide, buyers need to aware about the “bengkel” and rundown shops at the end of the development which near to the sprint highway exit (see below). Hopefully developer will do some road upgrades and beautification works to make it more pleasant. This site could be the bottleneck jam area as well during the peak hours if Jalan Harapan to be utilised by more road users in near future.

Let’s focus on MRT here which many would like to have it near to their place. Yes, you have it here. The nearest station will be TTDI station which is 1.3km away and take 17 minutes to walk there (see below), though the brochure of developer shows 750m away with dedictated bridge to cross the sprint highway. We are not sure Malaysian used to take 1.3km uncovered walk, especially to cross two main roads, one at the Sprint highway and another near to TTDI station there. Okay at least, you have an option here and I doubt buyers who are paying RM1mil bucks of MiYU will use it often.

The down side of this project is that the residents have EVERYTHING nearby but NOTHING within walking distance. Even to go the Hub, you need at least 500-600m walk. It means you need to drive out all the time. Well, I guess it is not a big deal to majority of Malaysian. The only and truly walkable township in entire Malaysia is probably just Desa Parkcity.

Risk Factors

This last section, PROPCAFE would like to bring out two risk factors of this property. First, the Rumah Selangorku units are allocated at floor 8 to 11 according to the developer signboard hoarded at the site. Based on the available 226 units for sale, PROPCAFE would assume 45 units of Rumah Selangorku to be available here. The implication is huge to mix the units worth 800psf with the RSKU gross price of RM250k (max ceiling price for Rumah Selangorku units). The sharing of facilities, maintenance fees, and huge disparity of resident demographic may cause issues among the residents. Nothing to discriminate here, but we need to be realistic enough that it is hard earn money from buyers who are looking for specific living lifestyle when they pay such huge amount to call its a home. The developer is fully understanding this and many were told that they are in the process to convert it to normal units which has fixed the price at RM580k. PROPCAFE has to make it clear that until today, we couldn’t confirm anything about the conversion. So, we will leave it to owners to do their due diligence and check with developer. We have to say it is nothing new for developer to convert it with other forms of compensation or fulfilling this requirements in other developments. PROPCAFE feels that the developer can do better on this i.e. only launch it after the conversion is approved to avoid creating anxiety for many buyers who could have sleepless nights on this matter.

The second and last risk factor here is the PJD link or KIDEX highway which was previously planned to build near to the site of MIYU. Although the plan was shelved early, the proposal was put up again early this year (see below links). Jalan Harapan is wide and spacious, so there is no issue to build a highway there there to link up with other part of PJ and Kuala Lumpur. After MRT line 1, 2, 3, do we really need so many highways? The last thing we want to see is to have a highway right in front of the properties. Damansara Perdana folks know the best.

https://www.theedgemarkets.com/article/revival-mega-pj-highway-plan-cards

http://pjdlink.com.my/draft/

Final Say

In short, it is very rare to see a fully residential and freehold property in prime Petaling Jaya location. Although it is sit at a small land, the number of units and pricing are reasonable compares to other properties within the vicinity.

To date, this project is very “laku” and left with limited units. This show PJ lang supports are still there especially good location. While location is key for property buying decision, other areas highlighted above also cannot be neglected. PROPCAFE do not have crystal ball but we believe ownstayers who hunt for new property would still take MIYU as one of their choices in next couple of years. Those who are risk averse can wait for few more years when all the risk factors above becomes much clearer, of course there is always price to pay if you want to wait. I wish you very best to find your dream home and stay safe!

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PROPCAFE™ Review: Cyberjaya Revisit @ The “Mist” Over Cyberjaya

Being born in end of baby boomers or some said early Gen Y, landed properties are almost a given to many of us, especially those who are not the local in Kuala Lumpur. If you are at the same boat with me, you would have also witnessed the evolution of acceptance of living from landed to highrise. However, many Gen Y still love the convenience of staying at landed with the car porch right in front for the ease of going out and at the same time prefer to be living in guarded and gated environment to ensure the family safety, and nice landscape and facilities for kids to roam around and adults for a walk (ya, to destress). Sound a bit demanding? Well, if you can afford, why not? That’s why PROPCAFE recently covered more landed properties, since it is not as affordable like last time, we better know more about the values that property can deliver so that informed decision can be made.

This time, PROPCAFE revisits Cyberjaya which the master plan only gazetted about 3,000+ landed properties. This limited supplies in future shows the important to have a share now than future. While Cyberjaya will be filled with thousands of highrise units, landed will be the gem in Cyberjaya in years to come. For this, we paid a visit at the site of Sejati Residences recently, the project that has been in PROPCAFE’s to-be-reviewed list for a long time after our extensive coverage for Setia Eco Glades and Lake Point Residences previously. This visit has also prompted us to re-assess the Cyberjaya township as a whole which have changed significantly since our first review – “Cyberjaya @ Love it or Hate it” (
https://propcafe.net/cyberjaya-love-it-or-hate-it/
).

Cyberjaya Scenic View – Wonderful Drone Work by Handinugraha

For the buyers who can afford the landed properties in Cyberjaya, the hurdle is always not the price and property itself but the doubt of Cyberjaya’s future. Many still think to reside in Cyberjaya is tough.
This “mist” over Cyberjaya
 is always the
Perception
.

First, Oh it is suburb and far!

Let’s assume the time spend to KLCC (as a guide and point of reference) based on off-peak period since peak period is really hard to estimate and varies all the time. Do you know the distance from Setia Walk Mall in Puchong to Suria KLCC is about 28km and it will take you 40-45mins? From Putra Height to Suria KLCC, you would also need to drive 33km for approximate 40-45min to reach the destination. From the point of Ara Damansara Medical Centre to the same destination, you needs minimum 35-40mins of traveling time (26km). Even from Subang Jaya’s DaMen Mall to KLCC Park, it will take you 35-40mins too with a 28km journey.

How about living in city centre? Cheras Leisure Mall is only 12km away from Suria KLCC but it would cost you at least 30mins to reach there before you can shop at KLCC. Tropical Medical Centre in Kota Damansara to “Twin Jagung” is 22km (Petaling Jaya is not so near either, right?) and you still have to spend the same travelling time of 30-35mins to Suria KLCC during off period.

With the opening of new Cyberjaya interchange to Lingkaran Putrajaya in 2016, the distance from Cyberjaya CBD (MDec/D’Pulze) to KLCC is now shorten to about 32km via MEX highway, with approximate 30-35mins (off peak).

Wait a second! We just mentioned Puchong/ Ara Damansara still take you about 30km and 30-40mins to go the heart of Kuala Lumpur, right? And those perceived live near to the city like Cheras or Petaling Jaya would take similar time to reach Suria KLCC too. So, do you get it now?

Well, KLCC is an easy reference point and we cannot cover all different point of reference here, but google map can always help!

Second, No much choices of eateries!

Four years ago, when PROPCAFE first written about Cyberjaya (The Article: Cyberjaya @ Love It or Hate It), this is the deal breaker to many potential own-stayers. Fast forward now 2017, it is a totally different scenario. You wouldn’t believe it until you act! “Act what”? Please search whatever food you fancy in Google. “Vietnamese, Balinese, Japanese, Asian, Chinese, ‘Mamak’, ‘Tai Chow’, Western, Middle Eastern, Myburgerlab, McDonalds’, KFC, Mixed Rice (Chap Fan) and etc in Cyberjaya. You will know that your perception may need to change now. Also, you won’t believe how many nice cafes are now around in Cyberjaya (till you search) to chill and enjoy time with families and friends.

One of the problems in Cyberjaya is the buildings and shops are scattering around i.e. not centralised like other township (except nearby D’Pulze mall), you may need Waze to lead you there if you are not yet a Cyberian! And, yes, weekend food choices may reduce easily 30 percent as some stores are targeting only workers in Cyberjaya. Well, it can only be better when more residential properties completed with the increase of “locals” here. However, to many, weekend maybe a better time to travel a bit more to Dengkil, Puchong, Kajang etc for your authentic favourite foods, which is the common activities for Malaysian.

Sejati Residences @ Cyberjaya By Paramount Property

Third, Lack of entertainment!

It was the real issue few years back. Come on, now tell me what you want for entertainment. 😉 SPA & Massage, Karaoke, Bowling, Cinema, Archery, Golf, Indoor or outdoor football/basketball, Go-kart, Resort and etc. Seriously, many have been deceived by the scene when one just drives around Cyberjaya. Time to search and go rather than just drive and drive. Oh ya, you may try to have a day staycation at one of its kind Dash Box hotel to enjoy the wet and water activities with your family.

Fourth, Cyberjaya is hot and badly need a nice centralised site or mall to hang out, with all needs within one roof!

The opening of D’Pulze two years back has changed the shopping experience in Cyberjaya for workers and residents here. It is a fairly busy mall during weekend and has all your needs to shop or do grocery activities with families and friends. There are also few more small scaled commercial retail spaces in Shaftbury, and GEMS to complement the other needs for residents and workers in Cyberjaya. Again, Cyberjaya will never in static mode. The soon to be completed SkyPark mall, Tamarind Square, and Centrus will bring more choices to Cyberian. Alright, the question now has turned from “No Mall?” to “Would it be too many?”

Sejati Residences @ Cyberjaya

Fifth, Cyberjaya has all type of schools but no Chinese school for my kids!

Cyberjaya is famous for having many universities and colleges but it is more than just for university students. It hosts all type of primary and secondary schools, from government, international, local & foreign boarding, vision (Wawasan) school to even islamic childcare centre. What is the highest demand’s school in local scene nowadays, especially to Malaysian Chinese? Surely, SRJK(c)! Yes, SRJK(c) Union, which classified as Smart School with its start-of-art facility, opens its door in 2018 (see progress below). To PROPCAFE, we see SRJK(c) Union as one of the key catalysts to bring more young families to Cyberjaya, from the over-crowded old townships nearby like Puchong, Kajang, Seri Kembangan, and etc. Imagine the time and money you can save on kids’ routine to/from school. And your grown up kids may not even need a school bus or yourself as they could safely walk/cycle back home in Cyberjaya like what we used to do in old days! It would solve all the headache from parents. Yes, education planning always play a very important part to own-stayers when they are considering the place to call HOME.

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Sixth, what’s make Cyberjaya so special? How could Cyberjaya lure me to sacrifice the matured amenities that I am enjoying now?

Head up to see each traffic light and surrounding in Cyberjaya. You will see the CCTV are around you. Yes, Cyberjaya comes with integrated Malaysian Emergency Response System (MERS) and 999-CCTV (closed-circuit television) system. Under the safe environment, Cyberjaya is also the cyclist’s heaven as it comes with dedicated bicycle lanes in the township! What more for green lover? 30% of 7000 acres of Cyberjaya is reserved as green lung. You can have scenic view at the lakes and parks like Cyberjaya Lake Gardens and Cyberjaya Lakeside (link to Putrajaya lake). The Cyberjaya’s Low Carbon City Framework (
http://www.cyberjayamalaysia.com.my/about/clean-and-green
) will further impress you if you want to know more about the green and clean vision here. Lastly, if one loves something unconventional like Cruise, WaterSki, wakeboard and hot air balloon, short drive to Putrajaya will easily satisfy you. Huge regional mall and indoor theme park? IOI City Mall at the border of Putrajaya will occupy your whole day. What else to “shoot” on Cyberjaya? Healthcare? On top of existing healthcare centre and Putrajaya hospital, the first Cyberjaya government hospital has been firmed up and now in tendering stage.

Absolute Beauty – Cyberjaya Lake Garden (Fantastic Job by Razak Abdullah)

The above are all about the Cyberjaya “now”. How about the game changer or the next big things in future? PROPCAFE always love to look into the future prospect and catalysts to evaluate the potential capital appreciation in any township development, so stay tuned! It will cover under our next review of
Sejati Residences @ Cyberjaya.

Still hate Cyberjaya? Nevermind, you always have other choices in Klang Valley. For those who love it, enjoy your stay in Cyberjaya!

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PROPCAFE™ Review : Sunway Velocity Two @ Cheras by Sunway Property

When Sunway Property launched its first phase of residential property – V Residence as part of the integrated mixed development project – Sunway Velocity in 2014, the selling price from RM8xx psf to around RM1,000 psf in Cheras has freaked out many investors. Still, it was sold out! Similar reception happened again for its V Residence 2 and V Residence Suites even though developer continued to hike the price and offered it above RM1,000 psf. Yup, a whooping price that close to 2nd tier KLCC property value!   Amazing! It does not stop there, buyers still “BBB” and the “hot” scene continued in the recent Sunway Velocity TWO launch. Let’s PROPCAFE covers this latest project and share some insight for all PROPCAFE followers.

Source: Sunway Property

Why the buyers willing to pay the premium for property under Sunway Velocity?

For the first three phases, PROPCAFE believe that it was mainly due to (1) buyers’ belief on Sunway’s execution; (2) Sunway Velocity’s masterplan that apparently nicely crafted and meet most of the daily needs for residents. The 5 Vs – V Retail, V Office, V Residence, V Boulevard and V Garden, on paper, look impressive; (3) the infrastructure upgrade in this southern part of Cheras which include MRT and redevelopment plan of Cochrane. Summary? One layman word – CONVENIENCE!

Of course, the convenience does come with price like any other similar projects! The general perception among investor community was that the selling price seems fully factored in all these positive potential values. Well, being the market price leader in Cheras can never be easy! Kudos to the developer.

Sunway Velocity Master Plan

This article will not repeat all the unique selling points of Sunway Velocity that mentioned many times by various published articles over the years. PROPCAFE will focus more on what have been delivered to gauge the potential by looking at the current Sunway Velocity together with the offering of Sunway Velocity TWO. PROPCAFE hopes these information would help readers to determine Sunway Velocity TWO’s value and potential upside in future.

How is Sunway Velocity doing now?

V Retail – The lifestyle retail mall is executed well and it is probably the best mall to hang around in Cheras, with plenty of eateries, entertainment and shops. The footfall is very reasonable during both weekdays and weekend. No one will expect it to draw customers with high spending powers like the shoppers in Mid-Valley or Bandar Utama, so far it is doing very well and it is very commendable in this part of KL.

This mall is currently the ONE to go for Cheras folks, however, PROPCAFE sees the increasing crowds at its neighbour – MyTown mall, thanks to IKEA’s presence. In future, some crowds are expected to diverse further to Eko Cheras Mall once its retail shops fully opened. It is due to the great location of Eko Cheras which is sitting at the centre of Jalan Cheras with many mid and up market residential enclaves there (e.g. Taman Billion, Bukit Segar and etc). Although three big malls in Cheras could be very competitive, Southern KL is still underserved. So, it is a good news to Southern Kuala Lumpur shoppers as varieties and choices will always benefits the customers. Directory of the Velocity retail listing is available
here
. To add, previously PROPCAFE was there to witness the the mall pre-opening (coverage of the mall –
article
).

V Office – It is important to have offices near or at the mall as it will at least pull some weekday crowds to spend at the mall. Currently, the good occupancy and some co-working space in Sunway Velocity do bring in traffic which is rather positive. Having said that, the Velocity office’s lobby look grade but it may not be grade A office and in fact, based on the facade, Eko Cheras Office tower looks more “glassy” and classy.

Sunway Velocity V Office

V Boulevard – Plenty of activities and eateries there. It will only get better! Good crowds too.

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V Residence/V Residence Suites – PROPCAFE feels the facade is a bit “Dull”. With market pricing of RM1000-RM1200psf, one may expect more fanciful building to live in.  Sunway did keep its high standard in term of landscape and facilities there though.

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V Garden – The 2 acre garden, well, definitely a lot of room to improve. 🙂 It is a bit below the expectation from the artist illustration in the brochure. After couple of visits, we still could not see anyone there. Sorry, something might not be right here. Could be the timing of my visits i.e. too hot in the afternoon. Or maybe due to its  location, design or simply not green enough?

2 Acres V Garden

Hotel component is completed and Sunway Medical Center will be ready in 2019 (see the recruitment advertisement below). Certainly it will improve the tenant profile in Sunway Velocity and future Sunway Velocity TWO. Checked!

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The education center for professional courses will be set up at the current office block.  It will only bring in few faculties from Sunway College and occupy about 5 floors. We do expect some tenant queries from lecturers, rich students. Good news indeed for investors. Not sure whether residents welcome the news.

What do you need to know about Sunway Velocity TWO?

There is no doubt that Sunway Velocity TWO has all conveniences and everything you needs However, there are still plenty of things that buyers need to take note as well while considering this project.

Location

Sunway Velocity TWO, strictly speaking, is not located at Sunway Velocity integrated development but at the opposite land.

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In other words, Sunway Velocity and its previous residential properties are sitting at the triangle land surrounded by Jalan Cheras, Jalan Peel and Jalan Shelley. This Sunway Velocity TWO is located at Jalan Peel itself which is directly facing Sunway Velocity with a dedicated link bridge (to be built) to connect the mall and other facilities at Sunway Velocity.

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Even though Sunway Velocity TWO may not be as convenient as Sunway Velocity site that comes with a great ingress and egress for Jalan Cheras and Jalan Peel direction, there is not far away for Sunway Velocity TWO to connect and drive over to Jalan Cheras from Jalan Peel. It is acceptable. 🙂 Anyway, with only 4-5km to reach Kuala Lumpur City Centre, Sunway Velocity TWO still allows residents to fully enjoy downtown lifestyle.

Map of Sunway Velocity, Sunway Velocity TWO and UNA (SDB)

Surrounding of Sunway Velocity and Sunway Velocity TWO. Not so pretty. That is the price you pay for getting a matured location in the old part of city centre.

 myTown from Cochrane MRT Station

Land Title

Although the land is right opposite the freehold Sunway Velocity, Sunway Velocity TWO is residing at a leasehold land. This is one of the factors that this project is launched at a much lower price than V Residences/ Suites. If general rule of thumbs applies, it means the leasehold property should come with a discount of 10-15%, some investors even have the perception of 20-25%. No one like to buy condominiums with 70 year left in the lease and also it is not favoured by bank when comes to loan application when lease drops below certain years. So while it may not reflect the negative value fully in short term, it would show in long term for sure when buyers comparing the freehold V Residences/Suites with Sunway Velocity TWO. Having said that, since this land is so close to the amenities given by Sunway Velocity, 15% discount is rather fair. Buyers just need to know that this project may probably always be marked in discount with the benchmark of Sunway Velocity’s freehold residential towers in future. If the price of Sunway Velocity freehold residential towers stagnant means it could be very hard for Sunway Velocity TWO to move beyond it. In short, it always needs to directly rely on its “parent” to perform, which is not PROPCAFE’s cup of tea.

Public Transportation

One of the biggest plus points for Sunway Velocity’s residential property and Sunway Velocity TWO is its fantastic commuting facilities. Two MRT stations and one LRT are all within walking distance. Sunway Property is smart enough to ensure that the link bridges are all over the place to connect all properties here which includes Sunway Velocity TWO.

Both Cochrane MRT and Maluri MRT stations are about 300-400m away from Sunway Velocity TWO (Maluri Station is relatively nearer for SV2 residents but Maluri LRT is a bit way too far). Good news is most of the pathway are covered, credit to the developer. Again, V Residence/Suites are in better position in term of the distance to MRT station (especially Cochrane station). Well, additional 200m will probably burn more calories, good for Sunway Velocity TWO residents. 🙂

 Covered Walkway to Sunway Velocity Mall from Cochrane MRT Station

 Covered Walkway to Sunway Velocity Mall from Cochrane MRT Station

 MRT – Maluri Station

According to developer , they will open the access route via the mall for Sunway Velocity TWO residents according to MRT station operation hours, therefore, residents do not need to worry about the need to walk at the main roads in this part of Kuala Lumpur during off hours :). Two stations to Bukit Bintang and six stations to Kuala Lumpur Transportation Hub – KL Sentral, you simply cannot complain much about it.

Forget about the LRT station and MRT 2 line interchange at Chan Sow Lin mentioned in the brochure, it is hard to imagine Malaysian to walk that far under Malaysia hot weather.

What do you get from Sunway Velocity TWO?

Sunway Velocity TWO will be sitting at 3.89 acres land with a total unit of 872 from two towers (each with 436 units). This translate to a pretty high density ratio of 224 units per acre!

Each floor comes with 10 units which sharing six lift. Lift sharing ratio is about 73 units per lift within the tower and again the ratio is at high side.

The ceiling height of 3.3meter (near to 10 feet) is something to cheer about.

The unit is bare i.e. no kitchen or electrical items. Think positively, at least air conditioners and heater(s) are given. Bathroom is comprehensive enough to have full wall tiles, shower screen (without door), basin with solid top.

All units come with at least one carpark lot. Type D, E, and F are allocated with two side by side car park bays. For the largest unit type F, high floor units (22nd floor up) are given additional carpark lot (2+1 i.e. one is tandem carpark lot).

Sunway Velocity TWO Scaled Model

Sunway Property’s project will not short with nice facilities. You would expect all standard facilities to be available together with some thematic facilities to wow the buyers (see below). If Sunway Property can delivery similar quality of facilities as V Residence/Suites and V Residence 2 then it will be certainly a Plus for Sunway Velocity TWO given the price is at easily around 15pc discount. Double volume grand lobby is spotted in the brochure which can be a key differentiating factor when come to competing the tenant or buyers with other residential properties nearby. The exposure of such lobby to main road of Jalan Peels will make it more noticeable unlike Sunway Velocity’s earlier phases.

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Grand Lobby

Layout

There are six different layouts available at Sunway Velocity TWO.

Type A 635sf (1+1 Bedroom + 1 Bathroom)

Sunway Velocity TWO – Type A

An efficient layout that occupies a reasonable master bedroom with an extra study room that can still fit for a single bed. The yard is a plus point as many small pad could hardly fit it in the layout. Nothing much to pick and if there is really one then it will be the kitchen that without an window which nowadays doesn’t really exist for small unit anyway.

Type B 840sf (2 Bedrooms + 2 Bathrooms) – Dual Key Ready

Sunway Velocity TWO – Type B

This unit has some advantages as it comes with a balcony, yard, and windows for kitchen. The kitchen location also nicely sit at the end corner without fully expose to dining and living area. However, PROPCAFE is never a fan of dual key unit as many times the extra ROOM is way too small for tenant to live even for short term stay, not to say a year. Come on, Malaysia is not in such a bad condition like Hong Kong to squeeze human being into four narrow walls. The master bedroom that means for extra unit has limited natural daylight via only a small window. If one buy it for own stay, would this room to be used as master bedroom? It is unlikely that the master will stay there with such a small window without much natural light! Also, Sunway Velocity TWO does not supply kitchen, so owners need to build two fully equipped kitchens in this unit.

In short, this will be the unit solely for investors who believe a better yield in dual key concept. PROPCAFE does not have any statistics on the rental rate for such a “tiny unit” but we wish all investors the best of luck in future. Bear in mind, when come to investment, yes rental yield is key but not everything. Exit plan is the ultimate end game when you sell the unit to subsales buyers at premium. For a dual key unit to fly, you need another similar minded investor/subsale buyer because own stayers may not fancy this layout with such a tiny window. This means the pool of your subsale buyers will be restricted. Anyway, based on the sales chart and according to the ballot session, dual key type was the hottest and sold out in no time! So, let’s leave it to the market to determine the outcome in future.

Type C – 883sf (2+1 Bedrooms 2 Bathrooms)

Sunway Velocity TWO – Type C

PROPCAFE likes this proper 2+1 unit because it has all the plus points mentioned in Type B – Balcony, Kitchen with window, and yard. Study room can also fit a single bed or a baby room for a small family. Alternatively, use it as utility/store room (yup, many buyers only realised the importance of it when they don’t have enough to store all their accumulated stuffs!).

Type D – 969sf (3 Bedrooms 2 Bathrooms)

Sunway Velocity TWO – Type D

The only difference of this unit from type B is that it is corner unit with extra bedroom. This dual key unit has all the same issues in the “split room”. Room without much natural sunlight, doom!

Type E – 1044sf (3+1 Bedrooms 2 Bathrooms)

Sunway Velocity TWO – Type E

A very decent layout that all units come with wide windows and good ventilation with natural sunlight. All are good except if you do not mind small rooms. Ya, four rooms fit into around 1ksf is a bit too stretch.

Type F – 1281sf (4+1 Bedrooms 3 Bathrooms)

Sunway Velocity TWO – Type F

This corner unit is the only layout that comes with horizontal combination in living + dinning area. Horizontal layout always makes the living area more spacious. Too bad, in the case of Sunway Velocity TWO, it is only available for those who can afford it! The rest may need to stuck into the longish vertical living cum dining. Just think about it and pull out your memory on visiting the luxury condo  above RM1k psf, you will always see living and dining are side by side not head and tail! :).

Overall, the layouts are reasonable except what has been highlighted – lack of natural sunlight for the split unit in dual key concept, narrow (10ft wide) and longish living and dining area.

Orientation

Oh my, this is the bad topic to talk about. Based on the floor plan below, you would notice smallest unit Type A, B and D are facing Cheras. The first block (which has launched) will be affected by the developer’s future office block. It may not directly block the view but Type D, B and A toward the office block will be partially affected without having a full wide view. Also, the same units could be slightly obstructed by SDB’s UNA project which is  parallel with the developer’s future office block. Second Tower will not be affected but be prepared for minimum 5% increase of price (indicative by sales personnel).

Brochure mentioned about facility facing instead of KL Tower view. Why? Because the first block of Sunway Velocity TWO that face this direction will be totally blocked by the future development (residential) . Buyers should prepare to have their units with “wall paper and window” view, probably 100-120m distance (you may check with developer). Even half of the units from future second tower (to be launched in few months time) that facing this direction cannot escape this. To add salt on it, all units will be hit by West Sun in the evening. Hot x 3. Thanks to its North West orientation. Well, the consolation is that the future building in front will probably shield some of the heat for these units.

Sunway Velocity – Cheras View

Sunway Velocity TWO – Facility View

All new phases that including Sunway Velocity TWO, future office block and residential towers are all integrated with Sunway Velocity via the bridges (see pictures in below). Well planned by developer.

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What is the pricing?

The price tag on the chart are all near to RM1,000psf. However, everyone know that it cannot be sold at this price given the current market price of freehold fully integrated V Residence, V Residence 2 or Residence Suites are just slightly above RM1,000psf. After all the rebates, the net price should be about 11-12% discount from list price. Let’s zoom into the pricing. We obtained this pricing when it was launched and revisited to the sales gallery in late November which showed the late comers do not lose much as the net price is just around 2-3% higher due to the changed of package. In general, incremental price for each floor is about RM1k.

The smallest unit Type A – 635sf  was listed as RM614k to RM646k.

Type B (840sf), the list price starts from RM738k to RM770k before the rebate.

Type C (833sf), the gross price range is RM763k to RM795k.

Type D (969sf), the gross price was set at RM897k-RM1.04mil. We observed that there is a jump of price about RM75k from 45th to 46th floor onward.

Type E (1044sf) –  Gross price listed from RM925k to RM1.034mil. Similar to Type D, there was large adjustment on price from 45th floor – RM954k to RM1.031mil (46th floor).

Type F (1281sf) – All units are listed above RM1 million gross price with the range of RM1.057mil – RM1.124mil.

You may easily work out the net price with the estimate rebate around 11-12%. Some large units should get below nett RM800psf and as usual smallest unit price will be at the high side which can go near to nett RM890psf.

Is Sunway Velocity TWO cheap (compare to Sunway Velocity earlier phases)?

The scene of the launching day proved that buyers/investors believed Sunway Velocity TWO  is value buy! Many would think that if the market price of Sunway Velocity earlier phase is now above RM1kpsf, Sunway Velocity TWO that priced from RM7xxpsf to RM900psf would be SAFE! It is under the perception that Sunway Velocity TWO having the same unique selling points like Sunway Velocity. It sound right. But, is that really true? Maybe. As a sophisticated buyers/investors, we should also think differently here. RM800/900psf is not cheap in Cheras for sure in the first place. It looks cheap because of the price of earlier phases was high. Have the buyers checked the capital appreciation of earlier phases? The price of earlier phase apparently did not move much from the previous launched price because the property is still in Cheras in the end of day.  To break and move way above RM1,000psf is not an easy cake. Therefore, the assumption of cheap will be challenged when the market price of Sunway Velocity earlier phases continue to be stagnant. It means Sunway Velocity TWO could be stuck too with discount against SV Residence as it will likely not be able to over take V Residence (due to all the factors mentioned) i.e. it will rely on the market price trend of Sunway Velocity that is rather saturated around RM1,000psf at the moment.

No right or wrong answer. This article is to help all of us to think more than convention with all the factors listed here. It is all down to the value in your heart in term of Leasehold vs. Freehold, Bare Unit vs. Kitchen Fitted Unit, distance (slightly further) to public transportation, convenient of retail/facilities – cross the road vs. down stairs, good vs. undesirable view offered, And finally, instead of keep thinking it is cheap because of Sunway Velocity previous phases launch or market price, one should also try to think about the value of the property itself and compare it with other development nearby to fully understand the potential and sustainability (and room to grow) of such pricing in Cheras. Good thing is, those competitors within walking distance are pretty much priced at the similar range. It should be safe but capital appreciate to move above current price is a big question mark  which is a million dollar question to answer. PROPCAFE certainly has no crystal ball to see it. So, let’s pray for property market in next 5 years! Lol. Happy Hunting!

Note: Master plan, commercial video and layout were sourced from public domain and credit to Sunway Property.

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PROPCAFE™ Guide : PROPCAFE’s Editors’ Outlook and Summary of The Property Market

This 2015 outlook was actually prepared a few weeks ago, but due to the CNY festivities, it’s been put on hold – but as the cliché goes – better late than never. These are the views of the few fellas in Propcafe – do remember whilst we are all investors here, none of us are involved directly in the property development industry – here we are, a bunch of investors with diverse background, sharing with you – our thoughts of the current state of the market, as well as outlook.

What are your thoughts on the real estate market in Klang Valley in 2014 and the sentiment in the market?

Black Coffee

The sentiment is bearish and reflected in volume of the transaction in first half of 2014 where it is flattish compared to 2013.

Cafe Correto

Definitely not the year for investors. There is nothing in favour for investors.

Economy does not look good at all especially on the dark cloud of lower oil price crisis that spillover the whole world especially to the oil net exporter like Malaysia. This will affect the “cash flow” of investors to buy or to hold the properties.

Tightening of credit lines from Bank and BNM does not help at all.

BNM has placed a lot of pressure on Banks to watch out its portfolio risk and indirectly enforced stricter lending criteria than its official BNM guidelines. Less credit means less opportunity to investors. Year to buy VALUE BUY properties. Property at market value (not overpriced) will not entice me to waste my limited credit lines. Like Chinese says, year to aim “Chun Chun”. Developer will be difficult to offer CHEAP properties during bad economic climate due to forever rising cost and also the soon to be started GST. Although residential properties is exempted, relevant material cost still will incur at least additional 2 to 3 percent building cost to add into selling price. Unless, developer reduce its profit margin significantly (to 10 percent?) and put in high density, good deals will be hard to find. Sentiment – Ownstay buyer will be happy as more choice units will be available for them in primary and secondary market. Those bbb days are over and number of investor will be significantly reduced. Cheap units in secondary may not be there except those projects that previously buy x3 by vulnerable investors. Seasonal investors have made their buck last 5 years so holding power would be there. Strong intention to sell will not there from season investors because disposal does not mean they can get back the credit lines to purchase again due to the stringent lending policy which change all the time. The year starts with oil crisis with terrible stock market or other asset investment environment, so first 3 months will be SLOW. Then GST kicks in on April, wait and see from buyers is expected. Second half of the year, if global and Malaysia economy continue to be sluggish then we can expect whole year to be SLOW. If government react to the slow market by loosening the financing/cut rate and start giving incentive to support real estate market or economy getting better (start to recover) then there is some hope to get the performance that close to the year 2014. Or else, it will be a bad year to property market for sure. How bad? Million dollar question. Stagnant in the price likely. Those non strategic location and luxury properties with huge supplies may see more auctions and some selling lower than market price.

Flat White

Extremely slow for landed over 1mil. Lower priced properties such as condos under 500k or landed between 300k to 700k still see good take up rate. However the mad rush to queue overnight is over, as of now. Same sentiment for subsale market.

Kopi O Peng

Government’s anti speculation policies had shown its impact, judging from the shrinking overall property transactions, short term property flippers have switched to other investment tools such as stock and commodity market)

Latte

Brisk take up rate from primary sales. Subsales remain tough, seeing signs of softening asking price from secondary market. In general, we still see value buys were snapped up like hot cakes despite property cooling measures in place.

On market sentiment, many exercise caution however that properties with good value propositions will still perform well.

Soy Cappuccino

In 2014 can be felt that the market was softening and the consistent buying pushing force hardly been felt throughout the years of 2014. Season wise investors started slowly withdrawing from the market as compared early 2008 and can see the market is dominated by younger generation buyer of investors. Nevertheless based on total value of properly transacted, 2014 market was still fairly healthy in some categories especially commercial retail, landed residential and well planned township project which comes with good concept.

Affogato

2014 was an uneventful year, with not many ‘valued’ launches (from the presepctive of an investor). With prices everyhere, from Old Klang Road, to Puchong to Setapak all breaching the RM500psf barrier; it makes getting a healthy yield an even more daunting challenge. Sentiment was pretty soft, with a lot of real estate investors choosing to stay sidelined whilst the late comers snap up various launches.

What did you think was the hottest launch or best launch of 2014 ?

Black Coffee

The hottest launch would be those affordable mass market, family size house with price range of 400-600k with at least 3 bedrooms. Launches such as Midfields2, Season Gardens, Saville Kajang have been well received.

Cafe Correto

Vortex@KLCC. New launch starts with 1000psf (some units even slightly lower than this) from KLCC zone 1 area, is almost impossible to get nowadays. The layout is superb which utilised fully the space. With the less than or around 800sf, it fits in 2bedrooms and 2 bathroom with addition study area. 2+1 set up with the price starts less than rm800k, what else can you get there at the busy junction between Jln P Ramlee and Jln Sultan Ismail. You won’t miss it if you drive around KLCC which means the visibility and location cannot be wrong. Unfortunately, not even all Monoland previous customers could get it, not to say others.

Flat White

Vortex by Monoland – they don’t even need to sell to fully sold out.

Kopi O Peng

High rise –

a) Midfields by YTL, Q started a night before the launching, and the developer do not have enough to sell,

b) Vortex, by invitation only, below market price.

Landed – Ecohills, despite siberfar, many SP Setia and Ecoworld supporters.

Latte

For highrise: Vortex by Monoland it was literally sold off without much marketing efforts.

For landed properties: Few pockets of launches by INP in Bandar Kinrara and Temasya Glenmarie, these launches did not see light and they are all taken – at least the non bumi units.

Soy Cappuccino

There were few launches were quite hot despite the property market is starting to be soften by the incoming influx of newly completed of subsales, to my surprised Eco Majestic by Eco World is doing pretty good as what I had expected.

Affogato

Again, from an investor point of view. For those who want to go into KLCC, it was no doubt Vortex Residence by Monoland – as usual pricing it below market average, making all the other KLCC projects look expensive. Saville Kajang, and absolute price of RM300k++ , for a livable 2/3 bedroom unit, quite unheard of. But this IS Kajang mind you.

What are your thoughts on the Klang Valley real estate market in 2015, and going forward?

Black Coffee

With all the tough measures that still in place by BNM and government such as ban of DIBS, LTV70, using net income instead of gross income, RPGT etc, the general real estate market in Klang Valley expected to be flattish or slightly dropped compared to 2015. Furthermore, the residential high supply from 2011/2 primary market is hitting secondary market from 2014-6. The potential buyers are also wait and see from the gst impact 1.April.2015 onwards. However most developers if not yet they already built in the cost into the selling prices.

Cafe Correto

Year 2015, well, if you can still buy (cash and credit lines available), why not? Market will be soft means more opportunities for this group of buyer. Many believe that buy new launches now and by 2018/19 bad time could be over (which around election year), many policies in favour for Rakyat should be there to support the market. Peak time again in 3 or 4 years time? The call is yours.

Flat White

Will be slower than 2014 with fewer launches. The 1
st
 6 months will be testing as GST implementation will cast doubt over people’s minds.

Developers will try to launch mid priced properties (around 500psf).

Kopi O Peng

Slower and reduced transactions, but higher overall transacted amount.  Less cooling measurement policies from government as the current policies already successfully cooled down the market.

Latte

Price will likely to be stagnant with lower number of transactions. Credits supply will continue to be tight in near term. Should BNM ease the rates and borrowing restrictions, we may able see more transactions and more positive market sentiment

Soy Cappuccino

Moving forward to 2015, I think the real estate market in 2015 will be more or less same as 2014 due to the continuous lacklustre buying sentiment. Quick flip market is shrinking. Back to basic where normalization of 20% of cap gain. Market uncertainties due to other economical factor, government policy of introduction of more and more affordable homes, min house price regulation for foreigners, adoption of coming GST scheme, Oil price fluctuation, financial institution is more cautious in giving loan, BNM intervention and ringgit paper weakening; somehow will affect the 2015 real estate market where more likely buyers would likely adopt a wait-and-see strategy for six to nine months after the implementation of the GST. For all these indicators, I am expecting to see the change in most developers in Malaysia in their marketing and pricing strategy to adopt to the market comfortable digestion level to introduce product price range of 400k-600k with smaller unit size to the market. It will interesting also that I am anticipating the change of property market trend in term of market requirements and paradigm shift of definition of home, where the emerging of new market is getting clearer – The Gen Y&Z lifestyle product

Emphasing more on Lifestyle living with premium elegant address

Integrated mixed development will be getting more acceptable

The rise of SoHo, SoVo, SoFo , SoXo …

New developments of township at outer Klang Valley to keep the price at affordable range (The expansion of Klang Valley’s perimeter).

All In all, I would say 2015 property market is the key year to dictate the market on 2016!

Affogato

Launches will continue to take place, but developers will need to re-strategize to target more ‘affordable’ housing price. VP-ed units from 3-4 years ago will be coming online these few months. Will be a test to see investor’s holding power; and if there’s any shift in tenant preferences.

PropCafe Property Market Outlook 2015

Any particular launch you are anxiously waiting for in 2015 and why?

Black Coffee

We subscribe to anytime is a good time to buy provided it is a good buy. Launches with good location and accessibility, amenities, affordable mass market pricing, family size will always will be in demand. A new trend is follow the infrastructure. Saville Cheras and Ekotitiwangsa should greatly benefited from the MRT and DUKE extension highway. As for landed, a well thought township from reputable developer is always a good bet. I am looking forward for Eco Sanctuary albeit high end landed from EcoWorld.

Cafe Correto

Hot deal in 2015. It has to be again Monoland product – Sky Suites. Fantastic location but don’t expect great view from this building though it is right opposite KLCC. Rumous the size would be small and pricing starts from rm1200psf up. Next door, the land owned by TA is expected to launch more than rm2000psf. Eventhough it has 1000 units to sell, expectation is, it will be taken up in no time. Hope the message can be sent to other developers. Don’t squeeze the buyers, leave more money on the table then the customers will be always there with you during good or bad times. Another deal would be the affordable Lakefront project by MCT. The launch of project with rm400psf and size from 1ksf means rm400k (hopefully before discount) will be a good buy for 1st time home owner or investors who still believe there is strong rental market in Cyberjaya. Bear in mind, Cyberjaya has ample supplies but this rm400k deal with family size condo looks promising, both on rental or ownstay purpose. Similar size of condo in Cyberjaya either very old or too expensive. This may fit in just nice if you believe in Cyberjaya.

Flat White

We see people are rushing to lock in capital items such as cars, furnitures, luxury items BUT houses prior to the GST. There is no mad rush to lock in properties.

No particularly anxiously waiting but would like to see how is the pricing for Tropicana Aman and Eco Sanctuary.

But my property friends are EAGERLY anticipating Sky Suites by Monoland, a high densed boring but well located project. Was told all 1000 units are fully “booked” even before they were launched. Such a rumour.

Kopi O Peng

I personally do not expect any new launch, as i see more value buys in the sub sales market. Savvy investors will look for undervalue gems in the matured market.

Latte

Sky Suites at KL by Monoland, location, location, location.

Soy Cappuccino

No particular launch, so long is valuable buy, I will buy. I am looking around area of Cyberjaya, Cheras ( nearer KL side), Redevelopment of Pudu, KLCC & Bukit Jalil. If talking about specific particular launch, it will be The Sky Suites @ KLCC by Monoland.

Affogato

Numerous PJ area launches, because this are does not have any more land.. From the F&N land, to the Sentosa cinema, as well as the whole section 13 area.

What will be the strategy you are going to adopt in the near future?

Black Coffee

The property market is getting tougher with both liquidity in primary and secondary market is drying up.Home buyers and investors must be resilient and have strong holding power. The flipping game (gameplan or accidental flipper) for property is getting tougher. Going forward Property with good cash flow and high liquidity for rental will be safer investment.

Cafe Correto

Value buy in primary market and bargain hunting in secondary market and auction market (if cash allowed to do it). Focus still very much on mass market around rm400 to 500k. Leaving some cash as emergency aid and prepare the worst. If bank suddenly loosen the lending criteria then this cash can be used to BBB again.

Flat White

VALUE BUY, VALUE BUY, VALUE BUY.

Kopi O Peng

“Buy to Let” strategy, buy and rent, focus on matured area.

Latte

To be cautious, to go back the basic to focus to maintain good mix of CF+ portfolios and have sufficient reserves for good deals coming along, or to buffer the uncertain market conditions.

Soy Cappuccino

Buy and hold strategy. Change strategy from Short term to midterm plan. Buy “Limited Unique Product”. My focus will more to these two words of “Value” And “Buy” and apply some knowledge and tools to combine these two words together. Do I need to make it so clear? You do the sum and let me know!

Affogato

Aim sharply before pulling trigger , given the limited credit availability due to LTV70,

What is your advise to budding new investors ?

Black Coffee

Equipped yourself with knowledge and surrounded yourself will like minded friends/networks. For example Propcafe consists of 7 enthusiast founders with different background but sharing similar love in property investments. Never have herd mindset and always perform own due diligence for investment making decision.

Cafe Correto

In this end of property boom cycle, make sure you have enough buffer to cover: 1 year property installment with zero rental on your empty unit. 2. Buy those you can use as ownstay. 3. Don’t listen too much from the so called guru.

Flat White

Buy whenever you can afford, but applying bank loan is more stricky than one thought currently,

Kopi O Peng

a) Buy for own stay first before buying for investment

b) If there is no good buy, rent first while waiting for good deal.

Latte

Work hard to understand the underlying value of the properties. Network, be humble and learn from those who had made it in real estate investment.

Soy Cappuccino

Do you own diligent and be more hard working. Don’t trust others including news and media as well as don’t trust yourself so much either, trust on facts and actual numbers. Don’t extremely over analyzing and do it within your mean. If you look hard enough, there will be good buy regardless of time and location. Last but not least, of course please subscribe to us at PropCafe.Net and following us on our facebook
https://www.facebook.com/propcafe.net
 🙂

Affogato

Be smart and practical in your investment. If you can wait, then go for valued buy new launches, else can just invest in many of the subsale units available, where the rental yield is still pretty decent. Always always do your own due diligence – and buy with eyes wide open, not eyes wide shut.

What has been your best investment to date, and why ?

Black Coffee

There are plenty of invested properties yield more than 50% cap gain, some with 5/95 scheme or zero down during the heydays of 2009/10. However my best investment was my first flipped condo in Sentul. From the proceeds, I have re-invested in multiple condos that yield multiple folds return compared if I still keep the condo.

Cafe Correto

It has to be investment on Regalia. Not so much in term of profit but the self satisfaction on the execution part. Booked a leftover underpriced unit from developer (maybe 20 over layouts has confused the marketing team) few months before its VP in Aug 2012. I signed the SPA in March 2013 (don’t ask me how I dragged it) for a 860sf unit 2 bedder at nett rm450k. Received keys in May 2013 then rented out and sold in the same month of Oct 2013 at rm690k. Technically 6mths+ flip with rm240k gross profit. This show that it is still possible to have gems from leftover units from the soon to be vp project.

Flat White

Setia EcoPark. Look no further especially any launch prior to 2012 where its prices still affortable. Best ROI ever especially Setia’s innovative 5/95 DIBS package. Just kicking myself didn’t buy enough.

My big miss was Desa Parkcity. Otherwise I would have been sipping my white wine somewhere in France region while replying this questionnaire.

Kopi O Peng

All the auction deals with 30% below market value.

Latte

Consider myself lucky to start looking at property investment on early days, did enjoy some good appreciation for properties purchased pre BBB era. What was a good gain earlier doesn’t mean you may also gain later, real estate investment is a long haul journey, in all, I enjoy it.

Soy Cappuccino

I think my best investment to date is not property but rather the knowledge of property and friends who are share the same common interest and passion in property. There won’t be any best investment so long you are still investing !

Affogato

Empire Damansara for its liquidity and capital appreciation. Pacific Place, for it’s almost zero down entry scheme; and proximity to LRT station, from low RM400psf ; “where to find” these days. So cheap, compared to the other new launches in the Ara Damansara area.

Any thoughts on MRT2, MRT3, Kidex, Kwasa – and how it will influence your investment strategy

Black Coffee

Follow the infrastructure as this will enhance accessibility and conveniences of the properties.

Cafe Correto

MRT 2 and 3 just too far away. There are plenty of MRT 1 and LRT opportunities, why bet on something that may change or fail to execute? When bad time come, everything will be shelved.

Flat White

No thought. I don’t buy on rumours, sell on fact.

Kopi O Peng

i am avoiding properties closed to these amenities as developers have priced into the selling price.

Kwasa, MRT2, MRT3 more like a vision 2020, a medium term investors with 3-5 years time horizon, would unlikely to see the impacts.

Latte

Do be very careful to potential new developments that priced in these infrastructures, as track records show that projects under current government administration has the tenancy to delay project completion, and to be further ‘tertangguh’ It would be safe to only invest in these location when these infrastructure materialise.

Soy Cappuccino

No doubt these are the area labeled as hot spot. It does not influence my investment much unless the price and product match my target. Of course, MRT2, 3, KIDEX, KWASA, DUKE2 & DUKE3, SKIP; all this require a longer investment horizon, perhaps I might look at it for long term strategy. No doubt is worth to have your eyes here and maintain a flexible strategy to accommodate some of the properties around here.

Affogato

Look at the time horizon of the estimated completion date, then decide on your time horizon for investing – does it tally, can you hold that long ? i.e. I-City and promise of an LRT line .. when will it materialize , 2020 ? 2025 ?

Is the usage of rental yield as a benchmark, still reliable ?

Black Coffee

Yes, it is still relevant as rental yield (whether net or gross) is the first yardstick to be used to filter a good cash flow game properties. However, many other factors in play that need to be considered. For example the potential of the “upcoming areas” that might rendered current rental yield insignificant.

Cafe Correto

Forget about great rental yield. Reality hits due to highly priced property nowadays and stagnant income growth. Low and mid cost apartment may still provide relatively good yield but to manage it with high number of property and low quantum may not be everyone’s cup of tea. I will keep the existing portfolio (with pretty good yield) while slowly add in MRT infrastruture driven project. Slow down is the theme of this year.

Flat White

It depends on what is your inclusion as your cost.

Kopi O Peng

Rental yield is just a number, as long as rental can cover monthly instalments, investors shall look at the capital appreciation instead.

Latte

Yes, this is the core fundamental value of asset investment, anything without CF or yield is likely to be speculation than investment.

Soy Cappuccino

Yes to some extent but I won’t be too rigid with that. It is just one of the key factor but not the ultimatum. There are lot more to consider other than rental yield for today’s scenario.

Affogato

As a novice investor, it should be one of the key benchmark during decision making time.

Your thoughts on “bubble” in the Klang Valley real estate scene?

Black Coffee

Prices have been escalated steeply and BNM, government has taken step to curb speculation since 2011 and thanks to them the transactions have been trending down and flattish for past 2 years. Nevertheless, most developers have sold well and holding large unbilled sales that can last them for next 2-3years therefore they could hold the prices for the inventories and future prices. Nevertheless the Malaysia demographic is young and there are still demand for new housing. 2015/6 will be an interesting period where tough measures, wait and see attitude of buyers, uncertainties of world economy and gst impact, the oil prices etc all are interwined and affecting Klang Valley property market.

Café Coretto

I missed the forummer called Toptail when talk about bubble. I am more incline to believe that market will be stagnant in 2015 and some projects in “si beh ulu and far place” may suffer if it is vp this year. Bubble? No. We don’t have subprime loans in Msia. But, those who thought they are so smart to get loan via “creative” ways, god bless them.

Flat White

There wont be any real bubble in Klang Valley as demand for property is still rather consistent, however certain type of properties at certain locations might not be performing as well as other. I keen to say SOVO buildings not close to public transportation will not be doing that well.

Kopi O Peng

Bubbles = oversupplies, Not applicable on all property categories. High rise properties are oversupplies in general, especially in the new area like Cyberjaya, or overdeveloped area like in Jalan Ampang, or Mont Kiara.

Latte

No sign of property overhang yet. If we were to compare our real estate prices to our neighbouring countries, such as Vietnam, Myanmar, Thailand, and Singapore, in fact Malaysia properties prices are not so bad.

Soy Cappuccino

Bubble? I heard it since 2007 , and very often in 2010-2012 and I hardly hear today. I would say more to price correction especially for high-end market and also overly supplied market with “high end price”.

Affogato

Yes, in selected areas, e.g. Mont Kiara and high-rise, especially studio-sized units in places like Cyberjaya.

In the traditional areas, do not expect a bubble – even if price corrects, there will be people who will snap it up right away.

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