Thursday, July 19, 2012

M-City Sohos in Ampang

I can't believe I wrote about Elements and M-Suites in 2010, more than 2 years ago. Back then, we were already talking about paying over RM1000psf for an apartment which is not even in the CBD. While both projects are not even completed, remaining units are flogged by the developer at prices that have appreciated about 10% to 20% from when they were launched. Slightly a year after, developer Mah Sing launched another pod of pigeonholes here at Ampang Hilir, the 1000+ units M-City which is at the junction of Jalan Ampang and the MRR2 highway.


The master-plan of this development is quite interesting. They've got 2 main blocks flanking a series of hanging gardens and the lowest garden on the facilities deck even has a man made river running through it. The first 3 floors are retail lots so this is really a mixed development of residential, offices and retail. Not something we would be excited about after the Empire Subang fiasco... 


A year after M-City was launched, I chanced upon this project again at a property fair in Penang this month. Incredibly, despite selling like hot cakes, there was a real choice unit available on a high floor with un-paralled and un-blocked views of the Ampang lakes. It's about 500sf, comes with a car park with a price tag of just under RM600k after discounts. On top of that, the developer is offering a very easy own package with a 2% down-payment (i.e. RM3k) which can be paid over 36 months with 0% interests if I have a particular bank's credit card, DIBS and zero SPA and Loan fees. On top of that, the balance 10% of the downpayment is waived  - so easy to own!!

 

I would say, thank GOD for the Bank Negara's 70% loan ruling for 3rd property purchased with loan, which means that despite the DIBS, I still have to fork out 20% cash during construction. If not for this, anyone thinking with his heart (or with his d*&^ if he was thinking of keeping his mistress here), would have signed up straight away. 

I think I have said enough about studio units and SOHOs. We're flooded by this type of development (When are developers going to consider building homes for the young families?). The fact that such a choice unit is still available at this late into the launch suggests that:

1. Developers may have kept certain units away from the market during launch thus giving us the impression that they were selling really well thus adding more pressure on potential buyers. This is also necessary to prevent all the good units to be snapped up by the small pool of buyers leaving the bad units harder to sell when these buyers have already spent their money

2. Some early buyers may have difficulty securing their loan - but this rarely happens 1 year after the property has been launched

So, what does this suggest? I think if you go to a property launch and found that all the choice units have been taken up, don't get stressed... come back a year later and it might just appear...

20 comments:

Anonymous said...

Sinleong, thanks for write up on m-city. i was considering to buy m-city but has this niggling doubt and in the end didn't . so your posting serves as a confirmation of my doubts. however i am looking at KL Eco city, have you any thoughts about this development ? thanks Ken

sinleong said...

KL Eco City...good location flanked by Midvalley and Bangsar. But I didn't like the fact it is leasehold. However, for this location it will appreciate no matter what. Just need to be wary at which price point you are entering... I'll have something about this later

Anonymous said...

Ken, so you ended up took The Element?

Anonymous said...

1000 Psf is actually very high price. If u think for a studio some expats gonna pay at least rm 2 to 3 k just for rental then only can cover the bank interest. But expat now not that silly they look for bargains at Cheaper area as 3 k they might as well live in mont kiara as there got schools for their children .
Developers are like sick greedy maniac. Some of them are hoarding land like spsetia and ytlland. Ytlland has much land in sentul but did not want to develop it yet as this place may fetch even higher prices after another 10 or 20 yrs.
Now they price their project higher and higher so it may show a gain on their assets on their books

Anonymous said...

Sin Leong I notice ur post mostly concentrated on condo living in central kl?
What about other areas like landed homes in pj, mutiara damansara , etc
These also goes up a lot
I think in future the city only is a place to work
Ppl won't live in middle of the city as its too jam, too much crime too dirty and too expensive
Prices at KLcc is stagnant actually with many unit empty
Ppl rather stay further away

sinleong said...

different market la... city center is more for rental to corporates n expats... landed homes are for family living...

Anonymous said...

Quality Expat has become lesser and lesser
In fact expat are living outside the city at areas like desa parkcity , mutiara and kd and of course Mont kiara or hartamas
If u buy at city have to compete with all those other condos to rent to expat
Some of them they have families and condo too small so they live at ampang etc

Anonymous said...

500 sq feet is too small
It's like a small shoebox lol haha

Anonymous said...

people in hong kong live in 500 sq feet shoebox because they have no choices..
but here in malaysia???
u gotta be kidding...
if need to fall into developer trap and live in 500sq feet condo...
i rather move further, can get cheaper deals

Anonymous said...

Sin Leong . Ever since ur first condo how many unit have u bought or sold and are there tenants
Since ur focus is in the city area
But increasingly ppl are moving away from the city
As its expensive and unsafe
While expatriates use to be lazy and live near KLcc
Now however they have cars and can live as far as desa parkcity
Are we being too bullish of the KLcc property mkt as rental yield is low and hard to rent out

sinleong said...

hi, i dont just confine my collection in the KL city. i've ventured as far as even subang, ampang, Penang and bangkok...

Anonymous said...

How do u usually find tenants for those u plan to rent out? Do u use propety agent cause handling on ur own could be troublesome

Anonymous said...

Now the talk is on the rubber research institute land
Well as with any property which is so Much talk of - I doubt it will come cheap To the normal investor later on when they sold could be benchmark against those freehold unit at mutiara damansara which is about 700 or more psf basis

sinleong said...

i advertise myself but i find that most people who call me are estate agents...

Anonymous said...

What's the best way to find good tenants ?
Do we go to estate agents ?
If we advertise ourselves also may cost more and maybe not effective
Do u have any sample of tenancy agreement ?

Anonymous said...

Sometimes the jobs are not in cbd area
It's only named as cbd but my first job is in Bukit jalil
My second job is in pj
My third job only in Jln ampang the so call CBD
I guess ppl moved along with the jobs opportunities they have
And as time change settlements also change
Value of property depends on where the jobs are created and the income group in this area
Penang income could be higher than KL
So Penang property price is good
Kl is really a sick sin city
Robberies , murder , kidnapping u name it u get it
No guarantee u will live long here
When robbers can happen to strike u next

sinleong said...

i got a sample tenancy agreement here http://realtymalaysia.blogspot.com.au/2009/07/renting-out-your-property.html

Anonymous said...

I feel MahSing is in trouble looking for purchaser, not only M City, how about Icon City, M Residence, SouthVille at Bangi, Cyberjaya and etc..?

I personally don't like Mah Sing, due to bad workmanship, poor after sales.

labbai mohamed munawar yusuff said...

Hi sin leong
I bought a unit in m city in year 2011 at the price rm 1000 per sq feet. I just got a letter from developer the completion is by december 2015.what the current price for this property?

sinleong said...

well...pretty much everything is > RM1000psf now in the KLCC area but again, it depends on the unit size and in this market condition, while the price might be there, the value might not be