T
here
are innumerable
reasons why families move
homes, and space constraints
is one of themain deciding
factors. Customarily, we would see
a growing family upgrading froman
apartment or a single storey house,
to a three or four-bedroomdouble
storey home, or a bungalow, if
affordable. This was a reality 15 years
ago, but today, it is very different.
The hike in property prices has seen
an increase in the number of families
living in condominiums compared to
landed homes. Although families
with an average of two to three
children aremaking 1,200 sq. ft.
(minimum) condominiums their
preferred home, the general
public’s acceptance of condo-living
is equivocal.
While condo or apartment
living has been the norm for our
neighbours in Singapore, Malaysians
or at least those up till Generation Y,
had the choice of “living on land”
when theywere growing up. Most
condominiumoccupants in the
Klang Valley todaywill attest to this.
It is a process, getting
acclimatised towards
living in a high-rise.
After two decades or more living in a
landed property to be suddenly
riding an elevator to get home, takes
some getting used to. Yet the demand
is there, partly coerced by property
prices. Still, there is something about
the self sufficiency of condo living
that seems to appeal to families.
Property developers discerning the
needs andwants of families are
establishing self sufficient
developments. This is prevalent in
landed property i.e. guarded and
gated (G&G)communities but more
so, condominiums. The luxury of
not having to leave home or its
proximate surroundings to get
groceries or necessities is one of
the primary attractions towards a
condominium lifestyle. Obviously,
the standard of comfort increases
based on the location, price and
prestige of the condominium. One
can expect free daily zumba classes
at a luxury condominiumbut not in
a standard high-rise residence. Still,
a decent mid-range condominium
has all the basic amenities to keep
occupants happy, from swimming
pools to clubhouses and cafes. If
anything, the numbers don’t lie.
According to the Real Estate and
Housing Developers’ Association
of Malaysia (REHDA), strata
residential properties are on the
rise and expected to grow further
in 2013.
Easing into condo-living
Space constraints and cheek to
jowl living are themain discontent
for many condominium residents
who transitioned from landed to
high-rise homes. A condo owner in
Kota Damansara, AlexNg said,
“It was too close for comfort,” and
it tookmore than a year to learn to
drown out all the different sounds
that come with living in a condo,
fromneighbour’s footsteps above
the unit, muffled conversations
on the corridor, radio and television
noise. “It’s almost like I developed a
resistence or I just got accustomed to
these foreign elements until I didn’t
notice themanymore.” Juanita Tang
on the other hand, appreciates the
property downsize because it means
less housework and no garden to
tend or lawn tomow.
Property prices versus
space constraints
Property prices are one of themain
factors that keep young families in
condos. Young parents Jason
and Alicia Tanmoved into a 3 + 1
condominium in Ara Damansara
in 2007. Todaywith a five-year-old
daughter, one-month-old baby and
amaid, space is their main concern.
Although theywould love to live in
a landed residential area, preferably
a G&G one, the current property
prices are too steep. Based on the
residential selling price in the second
half of 2012, 28%of residential
property range fromRM500,000
to RM1,000,000, followed by
25%between RM350,000 and
RM500,000 and only 15% from
RM250,000 to RM350,000. In 2013,
amajor increase in propertywithin
the RM250,000 to RM350,000 price
range to 26% is positive and reflects
the rise in strata properties launched.
Ultimately, residential landed
property prices remain relatively
high, withwell located, spacious
G&G residential landed properties
easily costing between RM500,000
and RM1,000,000.
Family Friendly Condos
The amenities that come with
condo living is amajor appeal.
Family-friendly facilities such as
club house privileges, playground,
day care centre, outdoor parks,
restaurant, sports facilities and
gymnasium/fitness centre etc. are
the usual premiumcondominium
comforts. Desa Park Citywhich
Juanita calls home, comes with a
beautiful parkwhere she can go
for a walk or a run. There’s also
a clubhouse with a gym, pool and
a cafe, plus a stripmall with a
variety of shops and a supermarket,
all withinwalking distance.
“What I relish after moving into
a condominiumafter years of living
in a landed property is definitely
the convenience. Not having to
leave the vicinity of my home to
carry out simple errands or
maintaining a healthy lifestyle
is a true luxury. Everything is a
walk away.”
Security
Condominiums trump
the average landed property
unquestionably due to the G&G
security features. According to the
Tans, “Securitywas themain reason
we chose to live in a condo. Once you
are within the property and pass the
guardhouse, you’re safe. We can take
our time to get in and out of the car
and don’t have to be wary and
apprehensive, with guards patrolling
the perimeter.” The G&G feature is
one of themajor rationales driving
the rising condominiumproperty
trends, making up 23% after those
with ‘green’ features.
Still, landed property
is the ideal real estate type
that most Malaysians prefer,
with condominiums
following second, and
service apartments third.
Are property prices likely
to drop to allow the average
Malaysianmore choice?
The rise in construction
costs are unlikely tomake it
so. However, many property
developers are focusing on
the needs of average
Malaysians and launching
more developments
within the RM250,000 to
RM350,000 range, which helps them
target a wide segment of market
demand. This is reflected by the
verity that 62%of themarket from
January toMay 2013 involves strata
residence types compared to 38%of
landed property.
** NOTE – All charts, graphs and
figures were obtained from the Property
Industry Survey report by the Real E
state and Housing Developers’
Association of Malaysia (REHDA).
ON
friday
june 28, 2013
DID YOU KNOW?
• The word CONDOMINIUM originates from
the Latin words, ‘con’ which means ‘together
with’, and ‘dominium’ which means ‘right of
ownership’.
• In the US, condominiums include a wide
range of high-rise residential property types
like apartments, penthouses, town houses,
studio units, duplexes and triplexes.
• In Malaysia, the condominium is perceived as
a high-end apartment, usually with good
quality fixtures and designed with more
sophisticated features.
must-check list before buying a high-rise property
• Reputation and track record of the developer.
• Take into account the feng shui positioning of the
property; where it faces or is it at a cul-de-sac; the
facilities or amenities next to the property; if it is
located next to a highway, factory, vacant land etc.
• Type of material and interior fittings.
• Check for leaks, termites or plumbing and electrical
wiring defects.
• Better to buy the worst unit in a good development
instead of the best unit in a bad development. The value
of the property depends on whether the property
can either be re-sold at a profit or rented at a
good rate.
• Special rates, Bumiputera rebates and discounts
offered by property developers during the launch
period. Property prices increase upon completion.
• Speak to current residents, owners, guards and
maintenance workers of the development for
insights beyond what the real estate agent or property
seller has provided.
Ideal
condo-living
tips on buying property insurance
•
Insured value/sum insured –
Get a professional property valuer to
estimate the value of your property based on rebuilding costs. For
property insured by the bank, the coverage is usually based on the
amount of loan taken. It’s advisable to top up coverage for better
protection. Householder policy holders should declare items they want
insured to get full compensation. Maintaining documents, receipts and
photographs of these items prove helpful in the event of a claim.
•
Average condition –
If the insured value in your insurance policy is less
than the rebuilding cost, the ‘average condition’ will apply in the event
of a claim. It is advisable to re-evaluate your property and its contents
annually for a more accurate insured sum that covers renovations,
enhancements and additional movable household items.
•
Insurance purchase responsibility –
Insurance only needs to be
purchased upon vacant possession from the developer. It is mandatory
for the ‘management’ to purchase fire insurance for the entire building
for strata title properties. Still, respective unit owners or tenants are
advised to purchase or top up on the coverage. Do check if your bank
already required you to purchase property insurance beforehand.
•
Premium and policy –
Ensure you pay your premiums on time, within
60 days from the inception date or the cover will be null and void. Insist
on a receipt for premiums paid and contact the insurance company if
you have not received your policy within one month of purchase.
•
Making a claim –
Notify your insurance company in writing with full
details as soon as possible and take necessary measures to mitigate
further loss. Advisable to contact your insurance agent immediately to
find out relevant procedures and action required.
•
Complaint –
If you are dissatisfied at any time regarding your insurance
claim or policy, submit a written complaint to the complaints unit of
your insurance company. For further action, you may take the matter up
in writing to Bank Negara or the insurance mediator at the Financial
Mediation Bureau.
Good to Know
When purchasing residential landed property, one is paying for the land
and the building structure. When purchasing insurance for it, concentrate
on the
costs of re-building the structure and the contents of the home
.
Employ a valuer to estimate these costs before taking up a
comprehensive insurance package to ensure coverage of the costs of
re-building and loss of contents.
Strata-titled owners are advised to
purchase both houseowner and householder policies as the insurance
these owners are required to take up under the high-rise management
only covers the cost to re-build the structure.
>Steep landedpropertyprices and security
concerns are attractinggrowing families
towards a condo lifestyle
FIABCI
Malaysia is
again
conducting
its Smart
Investment in Property Seminar
on Sat 6 July 2013,
9am to 4pm at the Berjaya Times
Square Hotel, Kuala Lumpur.
Six esteemed speakers will
explore the Malaysian Property
Market pursuing the core theme
“Post GE 13
–
Where ?”
Registration Fee (inclusive of
lunch, tea/coffee breaks, seminar
material and certificate):
• FIABCI Members RM288 per
pax (early bird discount RM256)
• Non-Members RM338 per pax
(early bird discount RM288)
The registration form
can be downloaded from
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Feel free to email your queries to us:
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Landed VS Strata Residential
Property Type
Visible rising trend in strata property launches
More launches of strata properties are expected in 2013
particularly in the Klang Valley
Residential Property LAUNCHES
INSIGHTS
CUT AND KEEP
