REAL ESTATE

Jan 14 2020

#Real estate condominium & #Video

#Real #estate #condominium



Real estate condominium

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Johor Bahru Real Estate

Good Johor Real Estate Fair at City Square Mall This Weekend

I was in City Square mall and they have quite a good real estate fair going on (Friday, today, through Sunday). City Square mall is still under renovation but quite a bit of the renovated space is now open with new places, many more quick dining choices than I remember.

The real estate fair is by far the best I have seen. Quite a large number of Johor developments represented – I would guess over 25. It is amazing how many housing units will be delivered from 2014 – 2016. That is mainly high rise condo (as the lead time for the bungalows and link-houses is usually not that long. I still am worried about 3 things: traffic in JB (given all new housing units – as well as attractions for Singapore visitors), backups between JB and Singapore and the surplus of housing unit to office space being constructed. We will have to see how those issues play out.

I am also a bit concerned at so many units being delivered with, I believe, very large leverage currently (people not having to put hardly anything down on these units under development. That is a risky recipe historically. But there are many good indications about Johor economically looking forward so maybe it will work out.

But for those interested in real estate in Johor state this is quite a good fair to visit. I picked up some news in my visit:
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Twin Galaxy Condos in the CBD

Twin Galaxy started construction in late 2012. As with all new condos in Johor Bahru recently the developers are aiming for the high end of the market. Twin Galaxy’s 2 towers will be 35 stories. The development includes integrated shops and restaurants along with recreation areas for residents (pools, game rooms, library, kid’s play room).

The location is nice, next to Hotel Selesa and across the street from, the also under construction, Setia Sky 88 condos and near the New York Hotel.

Plaza Penagi is just 4 blocks away. KSL Mall is 1 km away.

Condo options include: studio (560 square feet) – this has to be aimed at the Singapore market, 2-bedroom (936 square feet), 3-bedroom (1163 sf), 4-bedrrom (1701 sf) and Penthouse with private garden. They offer to attach a “studio” to the 2 or 3 bedroom which adds 560 square feet (they make that into the master bedroom).

The CIQ and causeway are 5-10 minutes (2 km) away assuming any sensible driving and traffic load. It is a bit worrisome what will happen to the traffic flows with all the high rises being build in a close area, but this is a worry for the whole area.

I can’t find any details on the delivery time frame on their website. I don’t understand how such basic information is left off.

D’esplanade Residence @ KSL Mall

The D’esplanade Residence condos at KSL mall in downtown Johor Bahru should be ready soon (I would guess in late 2012 or early 2013). The official site has little no sales information but does have some floor plans.

I believe the closest tower is the hotel, the tower on the left has offices and the back tower is the condos. I took the photo last month.

The condos sit atop the KSL Mall and next to the KSL hotel.

Units for sale include:

  • RM 879,000; 1,465 square feet; 11th floor; 3 bedrooms; 3 baths.
  • RM 980,000; 1,700 square feet; 3 + 1 bedrooms; 2 bathrooms, swimming pool view.
  • RM 1,124,000; 8th floor; 1,874 square feet; 4 bedrooms; 3 baths

Price per square foot on units is close to RM 600.

The hotel is already open. They seem to like calling it an “integrated resort” – as far as I can tell that just means it has a spa attached to it. I have seen rates from RM 200-300. The closet tower is the hotel, I think.

Setia Sky 88

Setia Sky 88 is a new condo just getting set for construction to start. I haven’t seen when delivery of units is anticipated for, but one article says completed in 4 years. I find it hard to understand how they are going to take so long, but since the website fails to have any information at all I guess the best current guess is for delivery in 2016. I still find that so slow that I can’t believe they will really take that long but until I get updated information that is the only date with some evidence backing it up. As with all new condos planned for the CBD of Johor Bahru recently the developers are aiming for high priced units.

The location is nice, across the street from the New York Hotel. There is another highrise condo being built right next to the Setia Sky 88 (across the street – between the Sky 88 and Hotel Selesa), which is also just in the beginning stages of construction.

I would imagine the car washes that line part of the street now will be replaced with more upscale retail shops, but we will see.

Plaza Penagi is just 4 blocks away and the wonderful Chez Papa (French cuisine) is just 6 blocks away. KSL Mall is within 2 km. The KSL condos are getting close to being completed (also very high prices on these).

I am not really sure why they have to exaggerate (saying the CIQ is 2 minutes away), the causeway is 5-10 minutes away assuming any sensible driving and traffic load, in my opinion.

I think the nearest existing condo would be the Wadihana Condo which is likely between 1 and 2 km away.

What is a Reasonable Expectation for Service?

Moving to a new country offers many things you have to figure out and get used to. Really the idea of exotic locals is largely outdated. Most things are basically the same everywhere. It is the details that get a bit tricky.

I knew this so paid extra for my rental with the expectation that the extra payment meant I got the higher level of service expats expected. This made sense to me. It sure seems like I get as bad a service as could possibly be tolerated. I can’t imagine there is a level lower than this.

I don’t know if I am just being taken advantage of by my agent. Or if this is just the state of “customer service.” The condo had many issues to be addressed (it was known it had issues and hadn’t been rented out for years). I said I would go to Thailand for 2 weeks and return when we agreed the items would be taken care of. I returned, nothing had been done.

Numerous follow ups by me were required to get the minimum to finally be done to let me move in. The entire time I have had to ask 3-6 times for things to be done. Repeated request for status always failed to get a response.

People would not show up when they were suppose to, to fix stuff, again I had to manage this as the agent was missing in action. If people didn’t show up at all again the agent was missing in action and I had to tell him. This has repeated for everything. No matter what, I have to ask multiple times (actually there were maybe 3 times when I didn’t have to do so, but by and large I have had to).

Two of the ACs didn’t work (remember the house was not used for years prior). The one in my bedroom I got fixed. Another one I only tested and it seemed to blow out cold air so I went on. A few months later I started using that room and the AC doesn’t work (probably the freon is out – but maybe it is just broken). So it never worked, and they said I can pay to fix the AC that never worked in this unit they assured me was more expensive because they would provide good service and assure things were at an “expat level.” Again this seems like they are just either taking advantage of me of have a very poor standard of service but maybe my expectations are wrong.

The fridge has never been good, but I didn’t care that much. Now the ancient fridge died, ruining all my food. I told the agent. They said he would arrange for someone to fix it. So I cancelled my plans for the day and skipped lunch as I couldn’t leave… Noone came. After lunch I left a message asking what was going on. Still today, no response. As typical, failure of expected functions followed by requiring multiple contact by me. Lousy communication provided by agent. Leaving me stranded with no one showing up. Leaving me stranded without functioning equipment.

Is this just lousy service and response. Or is this typical?

Should I just go buy a new fridge and deduct that from my next rent payment?

I did know I was taking a risk believing the claims of the agent that they would provide good service. They seemed capable and seemed to have a business based upon service clients that would expect good service (so had a reason to build a business that provided it). And I was really tired and just wanted to be through looking for a place (I probably was a fool to just give in, but I did it so I have to live with it).

Paragon Residences @ Straits View

New condo developments are being built and delivered with great frequency in Johor Bahru these days. The Paragon Residences are new luxury condos being built in the Danga Bay area.

Not only are many whole new condos being built, both Straits View and Molek Pine have been adding a tower in the last year.

I am not sure on when these units are suppose to be delivered. My best guess would be sometime in 2013.

Straits View Condos Available: RM 2,500/m to RM 4,000/m

See our overview of the Straits View Condos.

Currently there are numerous condos available at the Straits View condos in the Permas Jaya. The opening of the new highway makes commuting to Singapore much easier now (as well as just getting to the Johor Bahru central business district.

One thing you have to keep in mind when looking for a place to live in Johor Bahru is that many available units are not listed online. A few places, like Straits View and Molek Pine have a larger percentage listed online (given that that are targeting expats and also that they are more expensive, real agents representing them are more experienced and have more tools available, etc.).

iProperty is a good site to find available Straits View Condos, some current listings:

  • RM 2,800/m – 3 + 1 bedrooms, 3 bathroom, 1,650 square feet, low floor. Jaccuzi in master bathroom.
  • RM 2,500/m – 3 bedrooms, 2 bathroom, 1,500 square feet.
  • RM 3,300/m – 3 bedrooms, 2 bathroom, 1,650 square feet. Short term rental available (at higher monthly rate).
  • RM 3,500/m – 3 + 1 bedrooms, 3 bathroom, 1,650 square feet.
  • RM 8,000/m – penthouse, 4 + 1 bedrooms, 4 bathrooms 2,950 square feet.

Wadihana Condo: RM 2,000 to RM 2,500 per month

Wadihana condos are large condos in Johor Bahru CBD with only 6 units on each floor.

The Johor Bahru market continues to favor renters. If you are looking to rent feel free to take your time and compare what options you have. And feel free to bargain for what is most important to you (if you want some improvements made to the unit or furnishings, or a reduced price…).

Most all condos expats are looking at come fully furnished. A few are partially furnished. You should always check, but normally the listing will make it very clear if it isn’t at least, largely furnished.

See our overview of the Wadihana condo.

  • 1,667 square feet, 3 bedrooms, 3 baths, RM 2,500 per month
  • 1,852 square feet, 3 bedrooms, 3 baths, RM 2,500 per month
  • 1,750 square feet, 3 bedrooms, 3 baths, RM 2,000 per month

2, of the 6, penthouse condos are currently for sale, both for RM 1,100,000. They are 2 story condos with over 3,300 square feet. Regular units are about RM 450,000.

Iskandar Housing Real Estate Investment Considerations

When investing in real estate, rental price checks help avoid investing in bubbles. No investment strategy is perfect. If you invest in a new area early, it can be that rental prices do not yet reflect long term value (say rental prices near an announced MRT station but one that won’t actually be in service for 5 years). But ignoring rental prices is risky (just believing long term things will keep going up – this was a big part of the problem in the USA bubble – prices way out of line with rental values).

For this reason, I am skeptical, of investing without rental market checks (including vacancy rates). It is also true I think it is not yet a fully functioning rental market in the new housing estates in Johor Bahru. It will likely be at least 3-5 more years to get a decent idea of where rental prices will be going and how much rental demand there is.

Properties can sell to investors from Singapore (and many other places) that buy the properties to use as vacation homes, retirement homes… for their long term plans). This can even be sustainable over the long term (a significant portion of units bought this way) BUT it is much riskier as an investment than if the units bought for investment are rented out and a fair market rate can be determined to evaluate purchase prices.

To me the key to the investment potential of JB real estate is most importantly, JB having jobs that allow people to buy or rent these houses. It seems to me at the current time there are not enough of those jobs. The second key is Singaporean’s buying (and working in Singapore – commuting). The 3rd pool of users of the real estate are retirees (Malaysians, Singaporeans and others). I would put vacation homes… as 4th, after all those others.

At the current time many sales seem to be going to investors. Those investors can sell to other investors but that is not a sustainable model for increasing prices. Investors have to sell (or rent) to users of the properties.

The most important strategies for Malaysia to encourage the real estate market in the Iskandar region therefor to me are:

  1. attracting high paying jobs is important for high cost housing (much of the housing stock being built is high cost)
  2. making it easy to commute and travel between Singapore and Johor Bahru. This is important for both those that want to commute and for say Singaporeans that want to retire to JB (or buy their parents a place in JB) – For some commuting times are important for others they just need it convenient for say weekly trips.
  3. making it reasonable for foreigners to invest: both making it reasonable for foreigners to buy real estate (increasing demand) and reasonable for large investments (factories, back office high rises…) that will create high paying jobs. It seems to me a big way to get things moving quickly is to get companies in Singapore to move some back office jobs to JB (so far there has been less of this that I think would be wise in the market – I think companies are still not convinced relations will remain very strong, though it is getting closer.). This can both decrease the companies cost and provide good paying jobs in JB. It also is a big incentive for those people working in Johor Bahru to live in JB. Many people commute from JB to Singapore but some don’t want to do that; if their high paying job can be located in JB that would make more happy to live in JB.

For several of these education for kids would be useful. Good local schools would encourage high income workers that want schools for their kids to consider the area (sending kids to school in Singapore is an option but the long commute is a drawback). Medical care would be good both for providing high paying jobs and especially for retirees (and young families).

Another thing to consider for the Iskandar region for attractive tenants (for Johor Bahru properties) are MM2H expats. The MM2H visa is an attractive option that isn’t really available in Singapore (unless you are [B]very[/B] wealthy). Right now many MM2H live in Kuala Lumpor or Penang, but Johor Bahru is a very attractive option (especially with the proximity to Singapore). It seems to me, at this time, few MM2H expats are not really considering JB. I think there could be a very large increase in this demand over time.

Danga View and Adamai Condos: RM 2,000 to RM 4,000 per month

Adamai condo is a new mid-rise condo in JB town with only 47 units in the building. Danga View condos are located in the Danga Bay area and provide smaller units.

The Johor Bahru market continues to favor renters. If you are looking to rent feel free to take your time and compare what options you have. And feel free to bargain for what is most important to you (if you want some improvements made to the unit or furnishings, or a reduced price or whatever).

Most all condos expats are looking at come fully furnished. A few are partially furnished. You should always check, but normally the listing will make it very clear if it isn’t at least, largely furnished.

See our overview of the Adamai condo.

  • Multiple units available with your choice of 1389; 1410; 1485; or 1528 square feet, 3 (+1) bedrooms, 3 baths, partially furnished for RM 3,200 per month, fully furnished starting at RM 4,000 per month.

See our overview of the Danga View condo. Units available now include:

  • 1,038 square feet, 3 bedrooms, 2 baths, RM 2,000 per month
  • 1,038 square feet, 3 bedrooms, 2 baths, RM 2,500 per month


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SOURCE: SOURCE: REMMOMT.COM
http://johor-bahru-real-estate.com/tag/condos/page/3/

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