ya...rite....
There is a signature campaign on going to solicit support from home owners in PJS9 Bandar Sunway to convert their leasehold titles to freehold.
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PJS9 is one of the earliest phase of Bandar Sunway developed by the then Sungei Way Group (now known as Sunway Group). It is located literally beside the busy Sunway Pyramid shopping mall and Sunway Lagoon theme park. There are also 3 major colleges in its' vicinity - Sunway College, Monash University and One Academy. The housing area consists mainly of double storey link terraces and semi-detached units.
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I do not know on what basis the house owners are lobbying for conversion of their titles. However, I DO NOT support this campaign and I hope the Selangor state government will reject this application.
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The property prices here are already too high - if they get their freehold titles, the prices will definitely skyrocket beyond affordability. At launch, these houses were sold on average between RM160k to RM200k. Now, a double storey link intermediate unit is going for RM600k and above. This will cause many owners to sell their houses and most new owners who have paid a bundle for properties here will rent their houses to students because the private student market now contributes the best rental yield in any properties. Here, students pay up to RM1500 for a master bedroom. The cheapest rent is no less than RM400 for a small room with fan.
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So, the impact is, PJS9 will see a larger influx of students and existing students will be forced to pay an even higher premium so that the owners can recover their costs.
PJS9 is one of the earliest phase of Bandar Sunway developed by the then Sungei Way Group (now known as Sunway Group). It is located literally beside the busy Sunway Pyramid shopping mall and Sunway Lagoon theme park. There are also 3 major colleges in its' vicinity - Sunway College, Monash University and One Academy. The housing area consists mainly of double storey link terraces and semi-detached units.
.
I do not know on what basis the house owners are lobbying for conversion of their titles. However, I DO NOT support this campaign and I hope the Selangor state government will reject this application.
.
The property prices here are already too high - if they get their freehold titles, the prices will definitely skyrocket beyond affordability. At launch, these houses were sold on average between RM160k to RM200k. Now, a double storey link intermediate unit is going for RM600k and above. This will cause many owners to sell their houses and most new owners who have paid a bundle for properties here will rent their houses to students because the private student market now contributes the best rental yield in any properties. Here, students pay up to RM1500 for a master bedroom. The cheapest rent is no less than RM400 for a small room with fan.
.
So, the impact is, PJS9 will see a larger influx of students and existing students will be forced to pay an even higher premium so that the owners can recover their costs.
15 comments:
No surprise that somebody is very smart! It is nice to purchase as leasehold and then transfer to freehold and sell for double price! That is how to make money for air! In simply words: The reason for this complain is GREED
i wont call it greed la... that's a bit too harsh. who doesn't want their leasehold property to be "upgraded" to freehold.
exactly. why not upgrade all properties to freehold?
Lol... as usually in life – mistakes, mistakes, mistakes...;)
People pay a premium when are purchasing freehold. Otherwise, everybody would purchase cheaper leasehold and campaign to be converted to freehold. If an incident of the conversion would occur, such type of campaign would become a trend. I don’t mind when somebody wins lotto, I don’t mind if this campaign would be eventually successful; But if so, I would never buy freehold in the future. Would you?
Nothing wrong with that if the case is, if they succeed, they duly pay their share of premium, now that would be a fair deal for all.
Never a fan of leasehold freehold thingy anyway, what purpose do they serve?
nowadays the leasehold properties cost as much as freehold!!!
it is actually not true, if you compare prices of comparatable properties; leasehold is much cheaper
maybe u can tell me where the NEW leasehold properties are significantly cheaper than the new freeholds? If the leasehold properties are subsale or have only <60 yrs of course it will be cheaper.
since u challenged me on this, i'll say let's take for example Puncak Jalil (leasehold) and Bandar Kinrara (freehold). Also take note the freehold and leasedhold parts of Puchong. of course, dont compare niche projects with gated communities such as Lake Edge. But if you would like to compare that too, compare with other FREEHOLD gated areas like Desa Park City. Or better still compare Freehold Sierramas against Leasehold Valencia
Another example which I might know better than other examples (old-build properties): Menara Bukit Ceylon condo(Bukit Ceylon)(Freehold) vs. Angkasa Impian condo (Leasehold) (Sure you need to exclude disadvantage properties which currently face to new development). Quality-wise, equal-sized units in Angkasa Impian condo are similar or even better than units in Menara Bukit Ceylon condo and price-wise are cheaper but I would avoid these simply because of leasehold. Possibly, not only me, unless a successful precedent of the campaign for conversion of leasehold to freehold would take place. If this would happen I presume you, Allan, would not be longer interested in selling your unit in Angkasa Impian for what you are selling now...Would you?
Another example which I might know better than other examples (old-build properties): Menara Bukit Ceylon condo(Bukit Ceylon)(Freehold) vs. Angkasa Impian condo (Leasehold) (Sure you need to exclude disadvantage properties which currently face to new development). Quality-wise, equal-sized units in Angkasa Impian condo are similar or even better than units in Menara Bukit Ceylon condo and price-wise are cheaper but I would avoid these simply because of leasehold. Possibly, not only me, unless a successful precedent of the campaign for conversion of leasehold to freehold would take place. If this would happen I presume you, Allan, would not be longer interested in selling your unit in Angkasa Impian for what you are selling now...Would you?
Another example which I might know better than other examples (old-build properties): Menara Bukit Ceylon condo(Bukit Ceylon)(Freehold) vs. Angkasa Impian condo (Leasehold) (Sure you need to exclude disadvantage properties which currently face to new development). Quality-wise, equal-sized units in Angkasa Impian condo are similar or even better than units in Menara Bukit Ceylon condo and price-wise are cheaper but I would avoid these simply because of leasehold. Possibly, not only me, unless a successful precedent of the campaign for conversion of leasehold to freehold would take place. If this would happen I presume you, Allan, would not be longer interested in selling your unit in Angkasa Impian for what you are selling now...Would you?
..wish to add also – look what happened in Singapore with leasehold vs freehold. Freeholds become at least several times more expensive than leaseholds. One would expect the same would happen here, in Malaysia. When you buy a leasehold you simply buy “lease” and you can leave your grandchildren with nothing in their hands eventually if you not lucky to sell it before that. Any real agent rushes to tell you, while selling leasehold, that is leasehold? You would know that this is a freehold from the same agent before even you know details about the property... They know well what they are doing.
About NEW leaseholds: everything NEW becomes OLD tomorrow
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