Thursday, March 8, 2012

Klang Valley Gross Yield 4th Quarter 2011

According to the Edge Property's report on the 5th of March 2012, landed property is still popular. However, performances of high rise remains encouraging although some areas like Mont Kiara and KLCC are not doing as well today.

Year-on-year price growth (monitored from 2nd Q 2010 to 4th Q 2011) for landed property is around 20% to 30%, highest being 40% for Bandar Kinrara single storey terraced houses. Other top 5 are:

TTDI dsl 38.89%
Bandar Sri Damansara dsl 34%
TTDI ssl 32%
Bangsar Park ssl 29.03%
Bandar Utama dsl 28.57%

Price growth for condos is not so interesting, most places seeing hardly any growth and in fact some prices declined such as for Marc Residence (-3.65%) and Stonor Park (-18.14%), both in the KLCC area. Highest appreciation is USJ's Good Year Court (39.47%) probably due to the start construction of the LRT station just outside the USJ6 area. In the last quarter of last year alone, USJ Good Year Court prices climbed 20% while no other high rise properties recorded double digit growth.

In terms of rental yield, condos remain the better investment although yield has fallen to around 4%-6%. The top 5 are:

Parkview 6.6%
Mont Kiara Sophia 6.55%
Plaza Damas (Mayfair) 6.5% - interestingly, Plaza Damas Mayfair prices has risen 14% over the year. One of the top performers
Marc Residence 6.23%
Mont Kiara Pines 5.79%

Developer Mayland must be pleased to have 2 of their properties in the top 5 rental yield category. It will be interesting to see how the Regalia fare when it is ready in the coming weeks.


Anonymous said...

Hi Sinleong,

Is the rental yield calculated based on purchase price or current property value?


sinleong said...

i believe it is current...

wong said...
This comment has been removed by the author.
wong said...

I believe these are gross yield before less maintenance cost. Correct me if I am wrong.

Do you think it is good to have these top5 condos in our investment portfolio since they fetch good rental yield?
Do you own any top5 condos in your portfolio?


sinleong said...

I dont own any of them...however, interestingly I do have some properties grossing higher than the 5 above at current market value... examples are Kg Warisan, Pangsapuri Subang Jaya, Somerset and Mutiara Villa...

Next is, what is market value because what i've noticed is, bank valuation are getting lower and lower, despite the last transacted value of the property, banks are still valuing about 10% to 20% below.

wong said...

wow, i just check kg warisan is grossing > 7%, that is very good.

Do you think it is a good timing to buy those good yield even though we cant get the bank valuation? of cos we have to folk out extra cash on it. :-(

sinleong said... did u calculate the 7%?

wong said...

Kg Warisan 1540sqft fully furnish is asking at 750k-800k and renting around 4.5k for fully furnish

gross yield
= rental x 12 / property price

please correct me if I am wrong.