Wednesday, March 17, 2010
Upcoming Project: SixCeylon at Bukit Ceylon
It is confirmed now, the 1970s Bolton Court at No. 6 Jalan Ceylon will be demolished and in its ashes rise the "SixCeylon". Bolton owns Bolton Court which consists of large duplex units for rental income. As it is 40 years old now and looking extremely tired, it's time for Bolton to tear it down and use the land for more income.
The project is expected to be launched this June. It will consist of small 600sf studio units right up to larger 2, 3 or 4 bedroom units and apparently will be priced from RM750psf onwards. As the developer has announced that the price will start from RM600k, it is likely the studio units will be priced at RM1000psf. Like Wing Tai's Verticas, Lion's One Residency and UMLand's Seri Bukit Ceylon before it, every new project in Bukit Ceylon happens to be priced one step higher than the last one.
Will this be a good buy? I won't be queueing up for it. There is a huge glut in high end condos in KL at the moment. Tenants who are willing to pay for expensive condos are currently lacking severely. Bolton is touting 6% to 7% returns on SixCeylon which means one is expecting a rental of about RM3500/month. This is currently the rent in Seri Bukit Ceylon although many owners have pushed their rent downwards to grab tenants. So when the newer and better SixCeylon comes into the market, it means Seri Bukit Ceylon and One Residency will be pushed below RM3000.
No problems so far for rentals RM2000 or less. Today alone I had to turn down 2 prospective tenants.