Tuesday, July 6, 2010
It's Only Hot Cake If You Rent It Cheap
As I was trawling the internet for properties in Sunway PJS7, which apparently has been in high demand due to the neighbouring Taylors College main campus, I chanced upon some advertisments for Mutiara Perdana. This apartment is located just minutes walk from the campus' main door. One ad claim that their unit is the only one available in market currently, giving the impression that it is really hard to find.
I recently went for a survey and found that the claim is indeed true. The unit advertised for RM200k is the only one I can find for sale. The asking price also seems to be higher than the bank's valuation which is between RM150k to RM160k for these 3 bedroom units. I don't know how long it will stay in the market but when I looked around the place, I found at least 6 units available for rental.
It might be understandable considering that the semester is coming to an end and most students won't be rushing for accomodation until the intake around August. However, what I found was, the units being occupied or taken were all rented below RM1000/month for an empty unit. Fully furnished ones go for around RM1400 and some even asking for RM2000. I came across one owner who wanted RM1200 for a completely empty unit - no fittings, no furnishings... One agent told me that the unit has been in the market for a long time. The previous tenant who was paying RM800/month left and the owner now wants to increase the rent.
I don't think it will be impossible for the rental to go up in the future but at this stage, it is still too early. The campus is not yet even half it's capacity. Some owners yet to be realistic. No doubt some students are paying up to RM800 for their room but they will move as soon as they find a cheaper option. And there are owners providing this cheaper option.
Also a great concern with the building of a bridge linking the Lagoon Perdana apartments due to be completed end of this year will add another 1000 rooms into the equation. Then the market may become more realistic and the bankers' valuations may seem to be right after all...