Thursday, September 5, 2013

UOA's Southview's Finally Launched

After much hype, the Bangsar South Southview Residences is finally launched. As mentioned, this is a Freehold project adjacent to the Lease-hold KL Gateway site which was launched earlier this year. Therefore, it has come to my surprise that the price is slightly similar as we all expected it to be higher.

There are 14 units per floor and it goes up to 46 storey. There are 2 such towers so you can imagine how dense it is. Only the tower further away from the Federal Highway has been launched.

Typically, the cheapest intermediate unit is about RM600k. The developer is offering a complicated 5% + 2% + 10% discount scheme which works like this:

Price-book price: RM600,000
5% discount: less RM30,000 (6% if you are an existing UOA customer)
S&P Price is RM600,000 - RM30,000 = RM570,000

If you sign the S&P and pay the balance of the 10% downpayment within 1 week notice, you will get an additional 2% discount which is RM11,400

Price you pay upfront for this investment is RM57,000 - RM11,400 = RM45,600

Then you wait 3 years for it to be built and nothing to pay since you got DIBs. Upon completion and your bank settles the balance of the purchase price from your loan, UOA will give you a cheque for RM57,000 (10%).

So, your buying price falls down to RM570,000 - RM11,400 - RM57,000 = RM501,600 (for the 640sf unit, this is approximately RM780psf). For a freehold property in Bangsar South, this is not bad for an investment. Suppose at the back of a bad economy under Najib, punters should have no problems to flip it under duress upon completion at the selling price of RM600k which gives them a cool RM90k profit (after costs) - from the initial downpayment invested, this is a 50% margin.

Actually the smallest unit are the 500sf studios. There were only 6 such units launched. And typical of any suppliers, they have reserved these for their "own people". However, I am not a fan of studio units. I particularly like corners and these are 3-bedroom units with a comfortable size of 933sf. After all the discounts calculated, the price came to just over RM700k i.e. RM750psf. This is in contrast to KL Gateway's corner units which were peddled up to RM900psf.

The drawback is the location. Southview is sandwiched between KL Gateway and YNH's land which they will launch slightly later than this. While KL Gateway is adjacent to the Universiti LRT station, YNH's is closer to Kerinchi LRT. The facade is also rather poor. UOA, probably due to the valuable  freehold plot tried to pack as much as they can resulting in the 2 blocks looking like low cost flats. This will have an effect on tenant catching as they might probably look for more trendy accommodation.

In the next post, I'll upload some pics.... watch this space


Oh Jiun Leng said...

Are you the member of UOA? I have called the UOA and they said this project is under soft launch only, thus only open for members to book
And they still dunno when will open to public for sales

sinleong said...

interesting... no i am not a member. i'm a purchaser of a previous project. however, i did help 2 relatives book units. try go to the showroom and mention my name

Oh Jiun Leng said...

Thanks SinLeong! Will go to the sales office and try my luck :) do you have any idea how is the sales when you did the booking for your relative?

sinleong said...

pretty much all the small units have been booked. however, as days go by, some units get released back to the sales board cos loans were rejected

Chong Wee said...

Hi SInLeong, learnt that you have your "no highway", "no high tension cables" principles...
May I know what you think about Southview which is sited just adjacent to the LRT track and... the high tension wires are 300m+ away across FH (behind TM tower)?

sinleong said...

the high tension wires are visible but they are not really that close. by the time southview is completed, KL gateway would have blocked it. block A is much further away from the LRT and federal highway than block B