Which Property Would You Choose (To Rent)?
If you have a rental budget of S$2500 or its equivalent RM8,000 per month, which property would you choose (you MUST pick one of the two alternatives that cost the same amount of money):
A 1,100 SF 4 room HDB (public housing flat) in Red Dot Island, or
A 3,000+ SF 4 bedroom luxury condominium in KLCC
According to Channel News Asia, rents for a 4 room HDB (Housing Development Board) flat in Red Dot Island (the most common type of public housing) have risen by 10-20% to S$2500 pm. That's insane! For the equivalent in Ringgit, you can rent a 3x bigger apartment at Kirana Residence, a luxury condominium in the heart of KL, according to Malaysia’s #1 property search portal, PropertyGuru.
Yes, folks S2,500 or its equivalent RM8000 is what my corporate tenant is paying to rent my fully furnished 3000+sf apartment in the heart of KLCC in 2022.
Now I am NOT complaining, folks.🤠
My 2022 rental income as a KLCC landlord is more than 10% below what it fetched in 2000, the year I first got the keys from the developer. But at least I STILL have a tenant….I know many KLCC luxury condominiums are sitting empty because of a dwindling expat tenant pool. See here for one of the reasons why expats in KL are packing their bags and bidding Selamat Tinggal and leaving our shores.
Is our PM is going to do something for “poor” KL landlords who have seen KLCC rentals drop by 30-40% over the past five years? Because everyone seems to be asking Putrajaya to help them fix their housing problems. .
Are you interested to know how much rentals have declined in the past 5 years at selected 5* KL condominiums like the Troika, Marc Residence and the Binjai On The Park? Please check out my earlier post at 360 KLCC here
Post Script “You must choose the lesser of two weevils”
Around the time in 2000 when I bought my 4 bedroom 5* luxury condominium in KL, my Better Half bought a five year old 2 bedroom 1000sf condominium in Red Dot Island. I pointed out to my Better Half I was getting a bigger freehold property for about the equivalent price in Ringgit my Better Half was paying for her 999 year leasehold Red Dot Island property.
Now fast forward to 2022
According to EdgeProp Singapore, the average rental for a two bedroom unit at my Better Half's Red Dot Island condominium is S$4000+ pm. That's about 50% higher than my 4 bedroom 5 “ luxury condominium in KLCC. Wowza!
(Note the S$ has appreciated about 30% against the Ringgit since we both bought our properties in KL and Red Dot Island)
In short, my Better Half choose the smaller non freehold property but her Red Dot Island property now fetches a much higher rental than my bigger KLCC property. Her 2 bedroom 999 year leasehold property has also more than doubled in value in S$ terms. My 5* KLCC property in contrast has appreciated just 50% in Ringgit terms
In hindsight, it was better to have chosen the smaller leasehold property in Red Dot Island rather than the bigger freehold property in KL. Well, what do YOU think? Answers, please, from property Professional Specialists in KL Branded Residences/ High End Condominiums on a post card.
To end on a lighter note, please see the YouTube clip below on why in the Royal Navy, Commanders of fighting ships must always “choose the lesser of two weevils.”
Disclaimer
I am not a registered real estate agent. If you are thinking of buying a high end KL investment property you should contact a BOVEA registered valuer or real estate agent.
Before you call a real estate Professional, why not read my blogs 360 KLCC and Real Estate Marketing 101 for insights in how to evaluate any properties USPs, find their X Factor and Walkscore and get FREE property price transactions and rentals in PSF.
