Spent sometime in analsying KL property market and sharing my findings here.
1. developers start to brand their projects with names like Ritz, Bayan Tree etc and commanding a good premium.
2. developers offer the following
option 1 : cash rebate - thus lower the down payment quantum
option 2 : discount
option 3 : interest absorption scheme
All these move the projects reasonably well as upfront load is lighter especially the cash rebate
3. bank loan LTV has reduced to 85% max, or even 70%
4. most buyers are hoping for capital gain, after project TOP, ie after 3 years of debarment period (ie cannot sell within 3 years)
5. very very high number of completed units looking for tenants...I cannot quantify the numbers, just counted a few project in Mont Kiara, Golden triangle..the number is frightening.
6. very high number of newly completed units, and many many sub sales units, some projects run onto 1000 units for sales and there will be many serivce apartments as well into thousands.
7. top end projects in KLCC less than 5 years are very much lower than the new launches.
8. financing cost is around 4.25%pa
9. Huge supply of land for the larger KL
Conclusion :
1. so call paper profit or capital gain is unlikely can be materialised
2. strong holding power needed, including loan servicing
3. huge oversupply in the sub sale market and rental market, good supply in the primary market
4. traffic condition is getting worst
5. KL is not a financial hub, govt has shifted out alr
so dun touch KL even it looks "affordable"