Categories
Analysis Condominium Mortgage Rental

Rentals near Schools

People are willing to pay 40% higher rental to be near school. This is the rental psf vs distance to school for Apt & Flat, housing for the poor in cities. See the orange line. RM1.40 near school vs RM1 psf if >3km from school Who says the poor don’t care about education?

If you look at condominium and serviced residence market, the distance to school has no bearing to condo rental rate. We suspect that the condo are for the singles and young families. In fact, serviced residence has direct relation with distance to school. the further, the higher. interesting.

Categories
Analysis Condominium Property Public Transport

Moving 5 train MRT stops away from a KL Sentral train station can strip more than RM500K off property prices

It is not hard to see why residential property located near to train stops is highly demanded. Among the benefits living near to MRT stops are convenience, cutting short travelling time and, saving money from paying tolls and car parking fee. However, like many other great things in life, it cost money.

As per our previous analysis suggests the closer the property to train station, the higher the price is (click here). Nevertheless, what is more important to home price is the distance of the nearest train stations to the city center. The closer the stations to the transportation hub of KL Sentral, much higher the price is. It carries far greater influence to home price. In these article we will focus on distance of the stations to the city center rather than the property distance to nearest train stations.

What we cover in this analysis is how property price within one kilometer to train station changes according to distance and time taken to travel to KL Sentral. For this purpose, we have divided MRT SBK lines into two parts- Muzium Negara to Kajang and, Muzium Negara to Sungai Buloh. As for now, we only cover property price near the stations of south-east bound MRT SBK line from Muzium Negara station to Kajang station.

*Note: Muzium Negara station is connected to KL Sentral station by short walking distance. First, let’s look at the overview of MRT SBK line.

MRT SBK (Sungai Buloh – Kajang)

MRT SBK line started its operation on the first alignment from Sungai Buloh to Semantan on Dec 2016. The entire alignment was completed and started its full operation from Sungai Buloh to Kajang on Jul 2017.

Source : https://www.mymrt.com.my

Highrise residential property price near MRT stops.

We have gathered the current asking price of residential properties within 1 kilometer radius from MRT stations for this analysis. In order to make comparison easier, we put all property units into a common denominator of 1,000 square feet unit and we calculated the median price. Why we use 1,000 square feet is because it is a reasonable size of a decent sized dwelling of 3 bedrooms.

Unlike Singapore or Hong Kong, Malaysia is not land-scarce nation, where options for housing aren’t that many. In Malaysia, we have many land banks and increased in transportation connectivity has given us many more options to choose from.

The analysis

As depicted by the chart below, it is clear that the price of property near MRT SBK stations is strongly correlated to the distance of nearest station to Muzium Negara.

Click chart to enlarge

Total travel time from Muzium Negara to Kajang is around 51 minutes and cost you less than RM4 for one way. Along the the train line, the prices reduce relative to the distance to Muzium Negara. You can rarely find 1,000 feet homes with price below RM800K around city center stops ( Muzium Negara, Merdeka, Bukit Bintang and Tun Razak Exchange ). As you travel further down south to Cochrane station the price drops to below RM700K. If you go further to another stop to Maluri, the price starts to drop around RM500K. All it takes is 19 minutes from Muzium Negara and cost you RM2.60 before discount for one way. If you don’t mind adding more time to your commuting, you can see 1,000 square feet homes price at below RM300K at some of the stops at the end of the MRT SBK line.

Everyone wants a better life. Being closer to work place is convenient and give you more personal time. The question is, how much additional premium would you pay to have that? Or, should I put it the other way around, how much additional time you can spend commuting in order to save a lot of money? We leave it to you to ponder. Good financial management or live the most convenient life or anything in between?

The map

Map below illustrates MRT SBK stops in the analysis. Click on the link for interactive map.

Map of property near train station. Click her to view dashboard

As such, that’s it for now. We are a social entrepreneurs that aims to help home buyers to make smarter decision. Our articles are data driven, factual and transparent. We promise to deliver you more in depth analysis. Please subscribe to our newsletter to receive future articles in your mailbox.

Categories
Analysis Condominium Serviced Apartment

House Hunting Clues For Affordable Homes Of RM 500K And Below

Rising cost of living and acceleration of house appreciation over the last 2 decades have made many Malaysian low and middle income earners cannot afford to buy a home for their families.  Young graduates in particular, that earn entry level salary and having minimal credit history , stand a low chance of buying the home of their dreams in prime areas. Nevertheless, the options are still there. They can still find smaller places further away from prime areas that they can call their own. We at RED ANGPOW feel for their predicament and by using technology  we aim to help as much as we can to assist them find find best deal around. As such, we have developed data driven analysis and search tools of property below RM 500,000 in order to help them scan the areas that they might find properties that fit their criteria.

Charts below illustrate the overview of property for sale (online) in Klang Valley  – price of below RM 500K against above RM 500K.  Properties above RM 500K is definitely more than below RM 500K by a huge margin. Condominium represents the highest number of property type for sale while flat and apartment are among the lowest type of property available for sale. In recent times developers are in favor of building more expensive type of properties due to bigger profit margin and higher land acquisition cost. Similarly, banks are gunning for higher property loan as it inline with their preferred segments of higher income customers.  One question left unanswered by the property industry and authority- is there a huge mismatch of population demand between property price?  Well, we reserve this serious topic for another day with deeper analysis on the topic.

Note: The data used for the analysis does not represent the entire industry.  However it is sizable enough to tell an accurate picture of what is happening in the industry.

Number of property for sale for the price range of 500K and below is only around 29% of total while majority of population can only afford below this threshold.  No of property for sale for the price range of 500K to 1M represents around 36% of the market. Ideally, to buy 500K property you need RM 7,500 gross monthly income and to buy 1M property you need RM15,000 gross monthly income (using 30% of income rule as suggested by World Bank researchers). How many friends that you know earns monthly income of RM15,000 or above? Who is buying RM 1M dollar properties? Are Malaysians stretching their loans to max?

Properties on sale in Selangor, Kuala Lumpur and Putrajaya

 

Now let’s focus on properties of 500K and below.

Geographical location of affordable homes

Map below tell us there are locations where we can likely find properties below RM 500K. Areas with darker red color offer more affordable properties. The map is interactive and built by our in house expert and for you to use it for free. Best things in life are free isn’t it 😄.  Click here to view full page interactive map.

Map of property below RM 500K fir sale in Klang Valley

 

Key statistics

In term of average size for properties below RM 500K –  town house, link house and bungalow & semi-detached houses in outside prime areas have bigger built up. Serviced residence and condominiums have smaller built up as they are priced higher per square feet and predominantly placed in prime locations. As for apartment and flat, the built up and price per square feet are lower because they are meant to cater for lower income segment of home buyers.

Top areas for affordable homes

We have selected top 30 areas that offer property RM 500K in charts below. Charts shows composition of property type by area, price per square feet, average size and average number of bedrooms. Damansara Perdana has the highest number of affordable properties. For Damansara Perdana we have also includes adjacent neighborhood of Mutiara Damansara and a smaller part of Kota Damansara that includes Pelangi Damansara and Palm Spring Damansara in order to make the area sizable for more meaningful analysis. Damansara Perdana area offers predominantly condominium, serviced residence and apartment with smaller built up with higher price per square feet.  In second place, comes Cyberjaya that offers similar property type as Damansara Perdana. However, Cyberjaya has bigger built up and lower price per square feet relative to Damansara Perdana. Based on our research, Cyberjaya home profile is more geared towards students and expatriates. Below are the charts for you to explore.

 

Affordable homes by area

As a rule of thumb, for homes of RM 500K and below the closer the distance to KL City center the smaller the built up and thus the lesser number of bedroom it has. In order to keep the price relatively affordable, developers in the prime areas especially those that are closer to KL city center have built smaller property size to make within reach or larger group of population.

Affordable homes by size and distance to Kuala Lumpur City Center

More clues on affordable property by category and areas.

Aparment and Flat in Klang Valley by Area

Link House below 500K in Malaysia

 

Listings of Property for Sale Near Train Stations in Selangor, Kuala Lumpur and Putrajaya

The interactive map below helps home buyers to search for property near train station complete with drill down to the listings of property for sale. Home buyers are able to search by train lines (LRT/MRT/Komuter) and property type (Condo+Serviced Residence, Apartment and Flat). You can interchange the base map to satellite view with a push of a button. You can scan amenities, access roads and points on interest nearby by on map, and have bird’s eye view of the surrounding. With this tool, great deals are hard to miss!

Please click here to view to full page the map below.

Affordable property for sale near train station in Klang Valley

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