Quite immediately, I received some comments with regards to Mont Kiara area.
Why had I not mention Mont Kiara?
Speaking to The Edge...
I spoke to The Edge back in April 2010 about the postponement of my high-end condominium project in Mont Kiara. We made the decision to postpone cos we felt that it was not the right time to push out. I admit - to some investors, they still think that the area is a hotspot, but to me, I tend to think otherwise.
As what I had mentioned - and I even cited data from Knight Frank Research's 2nd Half 2009 report. "The cumulative supply for high-end condominiums in Mont’Kiara had increased in recent years, he said, citing data from Knight Frank Research’s “2nd Half 2009 Real Estate Highlights” report. In an email reply to theedgeproperty.com, Knight Frank Research said the cumulative supply of high-end condominiums in Mont’Kiara had increased to 9,071 units in 2009 from 7,428 units in the previous year. This year, the cumulative supply in that area is forecast to be at 10,474 units and 10,921 units in 2011. Yong also disclosed that Kuala Lumpur City Hall (DBKL) had discouraged the contractor-cum-developer from going ahead with the project."With this ridiculous amount of units available, I believe that the developers would find some resistance in pushing out their products. I'm not saying its impossible, but it will be tough. They will need to be more creative (which has been what's showing now..) with the marketing of their properties. I noticed there are quite some interesting offers and package deals around nowadays - including lease back guarantee (with very high yields), buy-back guarantee, furnishing included, and many more.
The concept of the development is also very important. Gone are the days whereby the buyers and consumers look for standard building, big space and so on. They are looking at the three key criteria for luxury properties - security, facility and greens. As the community gets more health conscious, the developments have to be as well. Infinity pools, sky gyms and so on... that is becoming a standard offering for properties in Mont Kiara.
The area is still hot, and is still a hotspot, but I foresee it cooling down a bit. Top notch developers such as Sunrise, BKP, Ireka, Mah Sing, Kiaramas and so on all have developments around here, including ourselves. Some of the highest property prices recorded have even touched RM950 psf, which is really very high. I believe the market will remain stagnant a bit here, but it should reach a good RM1,200 psf by end of 2012.
The secondary markets will be quite tough I would say. Imagine this... it seems that every 1-2 months, a new project is completing and getting handed over to its purchasers. That would somewhat deter your buyers - unless it is an emotional buyer.
Come back here tomorrow and read Part 3 - I shall reply @Patchay's comment on LYN.