HIGH END RESIDENTIAL MARKET IS STILL IN DEMAND

hai all,

With the current economic situation, property investors should always look into bigger picture and aim for their goals. Fret not; house is always a need and people with different lifestyle, various levels of income levels, obligations and other life needs yet they still need to buy or rent a house like Urbana residences. Residential property is always in demand regardless of the economy situation. Based on personal observation, there’s one category in the real estate market that is still moving – high end market, transactions are still happening. Nonetheless, it all depends on the right pricing by setting reasonable pricing as per market demand is crucial.

Let’s all consider the market right now is a buyer’s market and sellers are in the urge to sell their high-end property by settling with realistic market price but lower profit margin. Aspiring buyers will make a move to purchase the property when the price is below the market value or if they ace the good deal. In order to attract more buyers, buyers will need to add in some effort by value adding with some simple touch up or refurbishments like adding carpet in the living room, this does make a difference.

Often investors would want to invest in high-end market but questions like areas or neighbourhoods have high-end properties. In the city of Kuala Lumpur, there are few prime and high-end neighbourhoods like Mont Kiara, Bangsar, Damansara Heights and KL City Centre. But why are they considered high-end areas?

1. Market awareness and mature market – these areas mentioned earlier have been well established as ‘expat’ areas, it is frequently recommended to the foreigners by their friends, relatives or business acquaintances.

2. Established transportation infrastructure and amenities – usually couple with children has the biggest factor in making decision whether to purchase or rent the property. Reason – convenience to commute to their children’s school rather than their workplace. Their most preferred and ideal home is to be near to their children’s school and nearby amenities like groceries, eateries and services centres.

3. Larger market for foreigners – most of the high-end areas mentioned are located in central Kuala Lumpur instead of Selangor state. Let’s take into account of the state’s ruling of the minimum cap for purchase of properties by foreigners where expats are only allow to purchase property with the value of RM1million in KL city centre. Thus, the lower restriction will encourage expats to purchase more than renting.

4. Rise of expat population

5. Residential property located nearby multi-national companies or grade A offices.


There are some tips for consideration when purchase high-end residential unit.

1. Price and value: Do some research and gauge the demand and current price for properties around the area or consult your real estate agent. Check around the latest transaction price for similar projects and compare from areas to areas of their value.

2. Demand: The occupancy rate of the project can tell you something which is the demand for residing around the area. You can check it from property websites or get your real estate agent to get the report for you. Then, you will be able to justify the average rental rates for the project.

3. Maintenance: Keep your property well maintained to brush up the potential of capital appreciation. Speak to the property management committee or the neighbours to understand the efficiency of property management. Get background check on the developer’s background and past project.

4. Developments in the future: Keep yourself abreast to the latest news and happenings around the area. Are there any developments that might degrade or enhance your life or tenants’ quality life? Any new projects surrounding that are going to elevate the value of your property in the same area? Will this improve or worsen the traffic condition of the surrounding?

5. Unit’s condition: Inspect the individual unit which you have the intention to purchase. Make sure there are no defects or minimal defects – cracks on the walls or ceilings, pipe system leakage or even bathroom leakage, flooring’s condition especially if it is timber and others. If there are major defects, please get your property management to look into it and get it fix as soon as possible because you want to lease out to tenants smoothly.