Thursday, August 28, 2014

Property Market Slowing Down - Not in Nusajaya!

My wife and I attended the launching of Grand Medini service apartment by Grand Global, (http://grandglobal.com.my) on 23 August 2014. I have attended several service apartment showrooms but not during the 1st day launch. The sales office is in Medini Hall which is next to Legoland. The trouble to go here is the parking lot is too far away from the Medini Hall.


We arrived at about 11.30 am but the showroom was already full of people. The price was very expensive which is more than RM1000 psf! This price is already like buying a service apartment in the middle of Kuala Lumpur. But, if you buy a service apartment in Kuala Lumpur, the surrounding area is already full of development with some matured areas. In some areas, there are LRT, shopping complex or large office buildings. But it is not so in Medini. Most of the buildings in the surrounding areas are under development especially hotels and apartments.


There are 208 units for sales for Tower B. Once completed, there will be three towers named Tower A, B and C. The company selling points for such expensive price is because the apartment is about 400 meters to Legoland and Medini Hall. Across the road of the apartment, another developer is going to develop Gleaneagles hospital with about 5,000 beds. The apartment is also about 5km to Educity where about 10 international institutions will be located, 3km to Puteri Harbor and Nusajaya administrative center. Since Medini is the center of Nusajaya, LRT station or High Speed Train station will be built somewhere in the area. I believe LRT station is possible but HST is still unclear.

With such high prices and immature area, I was not expecting the sales will be good. In addition, it is difficult to get loan after several Bank Negara new regulations. So, after looking around the kitchen, bedroom, bathroom and the models being displayed, we had our lunch first before we ask for more details. Below is the types of apartments being sold. I have not bought any service apartment before. So, the type of apartments made me wonder who are the actual target market. They are a bit different than most of service apartment shows I have attended.


To my surprise, by 1pm, there are only about 61 units left. 70% of Tower B is sold! Who's saying the property market is slowing down? It seems now the report made in several newspapers that property market all over Malaysia already slowing down is not true. There are several reasons why the slowing down in property market is not affecting Medini, Nusajaya:

1. No RPGT
2. All properties are international status
3. Freehold
4. No minimum RM1million price ceiling

To make it worst for those who did not realize these factors, the other two towers are only on sale in Singapore in near future. If you are planning to buy one, you should hope there are some leftover which are not attracted to Singaporeans!

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