Tuesday, September 27, 2011

Empire on Fire

The Empire Subang shopping mall today was ripped apart by a huge explosion at about 4am on Wednesday 28th Sept. Four people were injured. Luckily, no fatalities.

The Empire which has a hotel, office complex, gym and soho units was a hot project in this area, lifting property values sorrounding it. 797 sf Soho units reached a high price of RM500k from an initial launch of just over RM200k within 3 years. The blast will certainly affect property values here. We hope the owner will work towards recovering it as soon as possible.




Updated 9pm: The whole building has been evacuated and nobody has been allowed to enter. The cause is still not confirmed but according to the authorities, it is almost certain caused by gas leakage. The mall management, Mammoth has issued a statement that the building is structurally sound. However, critics say how they can be so certain without anyone being allowed in to inspect the building. Surely we should now be really concerned about the quality of work of some of Malaysia's less reputable developers. I shouldn't comment more without knowing the facts. However, we should be more discerning about the quality of our properties from now on.




Updated 29/9: So, it's confirmed now. Caused by a gas leak. This obviously reflects badly on the developer, no matter whether it is a construction defect or human negligience. In any case, this sort of thing is not supposed to happen. Humans are humans, humans are negligient. That's why construction is supposed to be fool proof. Fire insurance will expect to go up for this property. Luckily, no fatalities.




Lessons learnt: Try not to buy an apartment sharing the same building with a commercial retail mall - if you do, insist the developer is reputable and has extensive experience


10 comments:

Live Long MU Fan said...

Dear Sin Leong,
What do you think of buying an uncompleted apartment (soon to be completed) by Talam? Reading around, I am very concerned about potential leaking. On the other hand, I really like the location and the to-be-completed building seems to have quality (straight lines :)

sinleong said...

Talam? U kidding me?
This developer has no regard for quality... but as they say, location, location, location... but i tend to think longer term than that

LML said...

hi, need your advice on Mutiara Perdana Sunway, a FF and 4 rooms, 4th flr unit asking for 300k, currently tenanted for RM2.3k. bank valuation 280k. It's still "worth" to buy? or that's a 5th flr unit askg 260k, basic, need about 20k to convert n make-over. Kindly advice which is better if for investment/rental purposes. Thanks

sinleong said...

wow, 4th floor can get RM2300? they probably converted the hall into a bedroom, which makes 3 rooms sharing one small bathroom. if valuation is RM280k, it means u're paying RM20k for the tenant premium. which is reasonable. But, mutiara perdana has other problems like no telephone cable for home broadband. i'd go for the 4th floor unit if a gun is pointed to my head but try to go for 3rd flr or lower is you can find one

LML said...

Hi,sinleong, thanks for your advice:-)
Mean i should go for the 300k (FF + 4 rooms + 4th flr + tenancy)instead of 260k (basic + 3 rooms)?although the 300k is actually "overprice".Do you think still room of appreciation for MP asking at 300k? thanks again!

sinleong said...

actually, im saying don't buy.. but if you have to, then try to nego to RM280k. in property there is always room to appreciate but just depends how much and how long

LML said...

I got the message:-) Thanks n thanks

LML said...

Hi,

I would like to seek your advice on property investment.

My aim is more to "cash flow" properties and appreciation in long run. The target area would preferably around PJ/Sunway/KL due to issue of easy manage and people more willing to pay higher rental. The main criteria of selection is location, location and location, is have to either near LRT or kolej,

My question is WHERE is NEXT as in view of the current market price and rental, it seem not "profitable/ encouraging" to get one. I am utilise "lazy cash" to buy NEXT.

Please enlighten me by giving some suggest project/location so that i can be more focus in my searching. I also in the opinion that the property market is slowing down and that might be price correction in year 2012, so no hurry as i want to get the right stock at right price.

my budget is max RM400k.

Thanks for your times and advice :-)

sinleong said...

hi, yes... take your time to study the area and focus your search there. for a budget of RM400k, and for steady rental income, i think student properties are the way to go. you should look around subang jaya ss15, or sunway PJS7 or PJS9 area. some say cyberjaya too but prices have seem to have surged ahead for the moment. there were developers building in front of MMU and next to LUCT dishing out GRR of around 8% but we've missed the boat for now. cyberheights villa seems quite affordable (~RM430k to 450k), and it is the only condo in cyberjaya set beside the lake on an expansive plot of land. there's also quite a lot going on in setapak, near to TARC but unless you go for the 2nd hand older properties, you won't find anything in that budget.

LML said...

thanks again:-) i shall focus on the area i am familiar such as PJS7 & SS 15.