Malaysia Property Roundup: Investing For Capital Appreciation? Obey This Rule

City girl picture, courtesy of GoodPlace.my

With the bull market set to end with the slew of curbing measures we can now possibly safely conclude that the 20-40% property price appreciation in 2-4 years that we have previously seen is all but history.

With the banning of DIBS (and the predicted increase in interest rates later this year) speculators are dropping off like flies, but for those with monies to invest in the long game there could still be pockets of opportunities – the challenge is to look at where others don’t.

Below is an email from Cassie, a GoodPlace.my reader who have downloaded our How To Value Your Property guide (go here if you haven’t done so):-

Where should I invest if I want good returns for the mid- or longer term?

Where should I invest if I want good returns for the mid- or longer term?

I’m going to refrain from doing the crystal ball gazing and predict the next “hot areas” because, frankly, people who tell you WITH CERTAINTY where the moolah is gonna be are collecting out of their collective arses. As you should already know by now, GoodPlace.my is somewhat guru-allergic, and predicting “hot” areas is perhaps skating too close to guru lameness.

So instead here’s some (rather common sense) guidelines that I adhere to when I look at properties which I wanna buy to sell for later (say, a couple of years down the road). If you’re seeking to flip (by definition, sell in 1-2 years) then you might want to look elsewhere (or take a look at this guide).

Places such as Penang (read the GoodPlace.my area guide on Penang) and the Kuala Lumpur city centre are some examples where the land is fast “running out”, and the only way newer properties can be built is to purchase existing building blocks and flatten them to the ground. At the peak of the bull property market in Singapore, older apartments were “en-bloc”ed to make way for flashier condominiums to be built. This trend has not caught on (yet) in Malaysia, but we expect to see some of the older apartments in KL centre to be razed in the next couple of years.

For some metropolitan cities in developed countries, the city hall would normally make their master plans public which means that new growth areas can be easily spotted. For the rest of us, we either try bugging local authorities like DBKL (good luck) or catch up with the latest gossips on where the next MRT line is going to be built. Map maker extraordinaire Ho Chin Soon does a good job in correlating infrastructure plans with property growth areas, so I’d listen to him.

Personally, I am not huge on “fringe” areas where the newer developments are (properties are getting built at a place just because the land is cheap) because the potential appreciation might be small (see the Cardinal Rule for Price Appreciation above). But then again, everybody’s investment style is different, and I like to stick to the fundamentals especially since I play the long game.

And so now you know why I am bullish about Penang, and that I also have a fan-boy site on KLCC properties. 😉 The jury is still out on Iskandar, although there are signs that the gravy train is, well, put to a halt soon enough.

Update: We have since published a more comprehensive guide on how to know if an area is going to be hot – click here.

New Developments & Launches

rimbayuIJM Land (website here) is planning to launch the third phase of the Bandar Rimbayu township this quarter, buoyed by the outstanding response to the first and second phases (where 90% and 80% of the units were already taken respectively). Bandar Rimbayu is situated next to Kota Kemuning in Shah Alam, and is targeted to be completed in the next 15 years, eventually catering for some 50,000 people.

Phase three of Bandar Rimbayu consists of some 454 homes semi detached homes in two available designs, tentatively priced from RM850,000. Each home is built on a spacious 32fx x 70ft land. Phase four and five will be set to be launched in the next two years.

Caspia (M Residence 2, Rawang)

Source: Mah Sing’s Facebook page

Mah Sing has launched Caspia @ M Residence 2 last Saturday at its clubhouse in Rawang. These are 100 semi-detached homes, each with build-up area of some 2,200 sq ft. M Residence 2 is Mah Sing’s signature gated township in Rawang, alongside with, well, M Residence 1 and the upcoming M Residence 3.

The Cube, Kuching

Source: Instarmac website

Instarmac, a new kid on the block in the Malaysia property industry, has launched The Cube last Saturday. Not to be confused with Bandar Puteri Puchong’s “The Cube”, this condominium is located in Kuching. Comprising some 94 units spread over three blocks, prices are RM447,000 upwards.

For more information about The Cube, visit their sales office in Kuching (Google map here) or call +6082-577710.

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About Khai Yin

When I am not writing for GoodPlace.my and helping my readers find properties though the DealMatcher service, I spend time doting on my three kids: Wenyi, Qinyi and Eian. My personal stuff, some published essays and contact details can be found at khaiyin.com

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