Property Shortage?!!

This morning, I just read an article from one of the reputable property portal. It stressed on the following:-

REHDA warns on housing shortfall
KUALA LUMPUR: Real Estate and Housing Developers' Association Malaysia president Datuk Seri Michael Yam has warned of an imminent "serious" housing shortage if the current supply is not increased.

"There has been a latent shortfall of 100,000 houses in the market every year since 2009, mainly due to lifestyle changes, legislation and infrastructure. And there is going to be a serious shortfall if we don't increase supply in the market," he said in his presentation on "Financial Freedom through Property Investment – The 2013 Market Outlook" at the Malaysian Annual Real Estate Convention 2013 here on 7 March.

"And we're not talking about backlogs."

He said the completion of housing units from 2009 to 2011 was 100,000 per year while the start of housing projects was also 100,000 units a year, thus contributing to the shortage of houses.

He said government legislation like the build-then-sell concept as well as the 3% deposit of the gross development cost for developers' licence as opposed to RM250,000 now is definitely leading to increased costs for developers.

"We think there is at least 40% to 50% shrinkage in supply in the market because the developers' balance sheet is not strong enough."

He added that land has also become increasingly scarce in urban centres with increasing inward migration and economic development.

Coupled with the increasing influence of a high income nation by 2020 as well as the rise of housing population from the increase of marriages and divorces, the trend towards nuclear family (consisting of parents and children) compared with extended family under one roof has also increased the demand for housing.

Hong Leong Investment Bank analyst Sean Lim agreed with Yam on the housing shortage, particularly in the Klang Valley, due to the combined effects of urban migration, new household formations, and diminishing incoming supply of new residential projects.

"We continue to reiterate this sector view that landed housing projects in key locations in Klang Valley will continue to outperform high rise projects in 2013," Lim told a popular English daily.

Meanwhile, Minister in the Prime Minister's Department and Performance Management & Delivery Unit CEO Datuk Seri Idris Jala, who opened the event, called for the enforcement of standards in the real estate industry.

"Pemandu will have discussions with the Malaysian Institute of Estate Agents (MIEA) and relevant agencies to improve the standards," said Jala.

He said of 6,000 key standards that run across various industries, only 6% is complied with.

"Under the 51 strategic reform initiatives, one of it is the adoption and enforcement of standards so that the quality of services rendered in the service sector is improved."
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Therefore, from my personal view and consensus with the article, the property price will still continue to increase down the road due to shortage of housing supply; increase of development costs; increase of housing demand; and so forth.

Property Investment - Scott Garden SOHO

In year 2010, a new property appeared in the neighbourhood of Mid-Valley City. The design and concept of this property is wonderful.

The perspective of this building is like this:-

Scott Garden Perspective

Wow..... this is the word that I told myself when I saw this perspective! Not many properties within KL, PJ, even in Selangor have this kind of property.

It is a Duplex SOHO, which is located along the Old Klang Road (another name of road is named as Jalan Kelang Lama). I believe many local people knows about this property.

Yes! It is The Scott Garden in KL.

What is the wonderful side of this property as there are so many other properties around?

First of all, I believe many Property Gurus or Property Investors always talk about "LOCATION! LOCATION! and LOCATION!". Yes, the location is great in terms of accessibility in which can be easily reach to any place from North to South of PJ, Subang, Shah Alam, KL, and so forth.

Secondly, the Amenities. Let's look at the micro side, at the bottom Scott Garden is occupied by the anchor tenant of Tesco Hypermarket and other anchors like CIMB Bank, restaurants, convenient shops, and so on. A mile stone away is one of the biggest shopping mall - Mid-Valley Shopping Mall.

Tesco @ Scott Garden

Mid-Valley MegaMall

Thirdly, the facilities. Scott Garden reserved quite a gentle landscape area in the facilities podium. The flow of "Chi" flowing from one angle to another. The water features also play an important role in the podium area as well.

Landscape @ Scott Garden SOHO

Pool view @ Scott Garden SOHO

The facilities floor look great right?

 

Last week, I just passed by this building and took a quick snap from the highway.

P/S: Please don't do that because it's very dangerious. But I can't control myself of its beauty!

 

ACTUAL VIEW of Scott Garden SOHO

This property is very suitable for Small Businesses / Virtual Offices / Resident Accommodation / and so forth.

 

We are acting on behalf of our partners for the leasing / renting / sales of this property.

 

Whoever interested, please contact us at
+6012-669 7766 or
+6012-203 2909 or
+6012-980 3606 for any enquiries.