As Malaysians becomes more prosperous, they wouldn’t think too much of spending money on the finer things in life like real estate, according to Siva Shanker, the former president of the Malaysian Institute of Estate Agents (MIEA), in an article written for the New Straits Times.
“This changing trend has also affected the way we invest in properties. The generation before us were ecstatic if they could just afford to buy any property. A simple single or double-storey terraced house was an achievement. If you somehow were successful enough to buy a semi-detached or detached house, you were considered by your peers to be super successful.”
“This trend of 40 years ago has gradually changed. With different thinking and mind sets come different wants and needs. A plain, simple house is no longer attractive. Location is no longer the prime motivator when buying a property. Look and feel, amenities and branding become equally important, if not more so,” said the property expert.
This has compelled developers to adapt with the changing times by incorporating these needs and wants into their residential projects. “It is no longer enough to just build homes to sell to the market. A whole lot of other things have to come into play before a project will sell successfully,” noted Shanker.
One of these is being part of iconic developments or being close to one. For example, he explained that units in developments near the Petronas Twin Towers command a higher market price, especially units overlooking the towers. These iconic buildings also often achieve much higher valuation than their neighbours thanks to their famous architects and designers.
Another type of project that sells well are those built by reputable and well-known developers. Even if there’s a slowdown in the market, these companies can sell many units due to their strong brand name and solid reputation for building high-quality homes and commercial spaces.
Shanker also noted that integrated developments are popular and sought-after as they allow people to live, work and play without the hassle of travelling too far.
“In the past, most developments were stand-alone. An office block was just an office block, while a condominium was a single tower by itself.” Now, it’s not uncommon to see a shopping mall, office tower, condominium and hotel, all rolled into a single development.
He also shared that there is strong demand for transport-oriented projects like those a few steps from an MRT or LRT station, as well as developments featuring a wide-array of amenities and facilities.
Shanker reckons that it’s no longer enough to just provide parking lots, security and a swimming pool. Consumers want more, and nowadays, there are even some projects boasting over 70 facilities.
Furthermore, wealthy buyers now prefer to live within the heart of the city.
“In the old days, the rich worked in the city and lived in the suburbs. Bangsar and Petaling Jaya were popular residential areas of the rich and affluent. Only the poor lived in the city centre, in squatter homes or state housing, such as the numerous DBKL flats found everywhere. But that has changed, with thousands of high-end units being built in the city centre with amazing speed. The take-up of these have been nothing short of phenomenal,” added Shanker.
Among properties that are in demand:
3. The Mews
Image sourced from Invest Smart
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email firstname.lastname@example.org