Property Hunter Magazine Property Hunter Magazine Issue 50 - January 2014 | Page 42

/// Hot Topic /// HOT TOPIC The New Lifestyle is to Go Vertical Astaka @ Bukit Senyam, Johor Bahru Jesselton Twin Towers, Kota Kinabalu High Rise Living Housing is a basic need and the increase in population and income has lead to the rise of housing demand. The 1991 Population Census Report showed that Malaysian population has increased with an average yearly rate of 2.7% per year, from 13.74 million people in 1980 to 19.35 million in 1991, followed by 20.69 million in 1995 and increase to 23.27 in year 2000. The rapid rate of urbanization, increase in demand for housing and the scarcity of land for development of landed residential properties in major urban areas such as Penang, Kuala Lumpur, Selangor, Johor Bahru and Kota Kinabalu, has resulted in the prompt development of high rise residential schemes in these high density areas. Viewed from the end of 2000, the property outlook suggests that with land prices experiencing an upward trend, strata properties, particularly 42 www.PropertyHunter.com.my Jesselton Twin Towers, Kota Kinabalu affordable schemes, continue to receive encouraging demand in the local housing market. High rise living in urban centers is a logical response to soaring land prices. This has been successfully implemented in Singapore and Hong Kong where the traditional lifestyle is high density, high rise living. According to statistics obtained from the National Property Information Centre (NAPIC), it is estimated that there were at least 780,176 units of strata properties inclusive of flats, condominiums and apartments already completed nationwide by the end of 2002 and the number is growing yearly. The concept of high rise or strata living in this country is not new. It was introduced in the seventies. The rate of construction of condominiums in Malaysia keeps increasing while the number of dilapidated and abandoned condominiums also increases. Some are converted for other incompatible uses, which may hinder the prospect of the city’s socio-economic development. According to Cathrine Anson, Assistant Sales and Marketing Manager of Bina Puri Properties, “Since the demand of condominiums and apartments has increased over the years, people have higher expectation especially when it comes to safety and quality issues, plus the facilities that are provided by the developer. In order to remain competitive in this industry, a developer has to be creative and take initiatives to improvise and make their products suit the market demand.” The Up Side Condominiums and high rise apartments are without doubt cheaper than landed houses. They are also very popular with foreigners and well to do young adults wanting to make it on their own. Apartments and condominiums tend to have a much lower resale value than landed houses so it is better for buyers wanting to leverage on rental. Not many people would want to rent an entire landed house and those that do would be affluent enough to rent one in an upscale neighbourhood. A condominium attracts a larger group of interested parties, is easier to maintain and is certainly easier to market. As long as the unit is presentable, fairly priced and conveniently situated to amenities, buyers most often will be able to find a tenant, provided that is it marketed well. Condominiums are also great as long term investments and buyers can fetch a tidy sum in the long run, given how dense cities are becoming these days. High rise living is also becoming more attractive due to its exclusivity. Buyers these days are more