Price Increase or Decrease?

I received many questions from many owners of Dynasty Garden Condo whether the price of their property will increase or decrease when the opposite land to be developed by a company called Nusmetro starts their project.

Let me analyse it ....

1. Price of property in Klang Valley is getting more expensive due to price increase of construction materials. This we read in the newspaper almost everyday.

2. Price of property within 10km from the KL city is getting more and more expensive. Basically, there are not much land left. Even if there's land, developer tend to develop high end property for better profit margin. Dynasty Garden is within this radius.

3. Napic (National Property Information Centre) is reporting that the average residential price in KL is RM485,435 in the first half of the year, up from RM362,569 last year. This is a jump of 34%.

4. The government intends to imposed higher LVR (loan to value ratio), i.e. instead of loan of 90%, only 80% maximum. The balance 20% have to come out from your pocket. In other words, it will be more difficult to buy a house in the future than the current situation unless you have good cash flow.

5. Let's be layman. Assuming you have a terrace house and opposite your house is an empty land. Someone came and build a semi-D. Once they semi-D completed, will your property be cheaper or more expensive?

Some property agents are saying quickly sell DG or else the price will come down due to the opposite project. Question is, what is the basis that the price will drop?

The developer is targetting to sell at RM400/ft2 and above. That's more than 30% higher than DG price per sqft. So again, in what basis DG price will drop?
The cars cant park along the road to our property. That will be excellent. Then everyone must get additional car park or those with extra car parks can rent out. Rental can increase.

The only reason why the property agents are saying it will drop is because they want to make a quick sell.

G Residence at Happy Garden launched their first 2 blocks around RM300-350 persqft. Now their 3rd block is selling at RM350-390 per sqft. 95% of their units are sold.

See Hoy Chan is having some land next to it and news in the market is saying that they intend to launch at RM400-450 per sqft.

Last but not least, if you still cant think whether DG price will increase or decrease, go ahead and listen to those agents. Go and sell your property. And then, ask yourself, where can you get another property within this close range to KL, PJ, Bangsar, Federal Highway, Plus Highway at the price you are selling?

Do let us know if you know any. Chances are u will find somewhere within 20km radius from KL city.

And ya, thank your brilliant property agent for that.

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