IN THE last decade, an increasing number of Singaporeans have turned to real estate overseas as they become more affluent and globalised.
Here’s a look at two neighbouring residential property markets which have traditionally captured Singaporeans’ keen interest, according to a July report by realestate group Debenham Tie Leung (DTZ) .
KUALA LUMPUR
The residential sector continued to experience a recovery in the first half of this year, as evidenced by good take-up in the recent launches of several luxurious residential properties in Kuala Lumpur.
However, the overall average price of high-end condominiums in Kuala Lumpur decreased by 3 per cent quarter-on-quarter, to RM552 (S$238) per sq ft in the second quarter of this year. Average rents fell marginally to RM3.53 per sq ft per month after being stagnant in the last two quarters at RM3.56 per sq ft per month due to the high level of new supply.
Substantial future supply of about 12,000 prime condominium units is pending completion between this year and 2012. About 630 of these units, in developments such as The Troika and Hampshire Place, are in the KLCC area and are expected to be ready by the end of this year.
Demand for new landed residences remains overwhelming in well-sought-after locations. For example, the Sunway Damansara unveiled its Sunway Rymba Hills and 50 per cent of the 80 three storey bungalow villas (priced between RM3.04 million and RM3.9 million) were booked within two weeks of the launch of registration.
JAKARTA
The estimated future supply of condominiums is 3,650 units, coming from projects such as Casa Grande, The Wave, and Verde Apartment. All are currently under construction, with the earliest completion expected to be at the end of this year.
By the end of the first half of this year, average prices for middle-grade two-bedroom condominiums in the secondary market in Jakarta CBD stood at 12.5 million rupiah (S$1,863) per sq m. For three-bedroom units, the average asking prices in middlegrade and upper-grade condominiums were 11.4 million rupiah and 17.4 million rupiah per sq m, respectively.
Meanwhile, the average monthly rental for apartments in the central business district was US$14.1 per sq m for two-bedroom units and US$13.53 per sq m for three-bedroom units.
Overall demand for rental accommodation is expected to remain soft.
Source : my paper – 13 Oct 2010