Generally we do not recommend purchase of Serviced
Apartments or variations as they come under the
Classification of commercial properties. This means
higher assessment, higher quit rent, higher utility
rates and of course it does not come under the
ambit of the Housing Developers Act which reduces
your legal recourse in event of any contractual
matters. More over, using a commercial property for
residential purposes is against the National Land
Code and as such, DBKL has also freezed the
development of serviced residences.
A very important factor as fancy layouts and IDs
might get dated very quickly and might not last. Go
for layouts and finishes that are tested over time
or even development that use great
Architects
A good review of the developer's track record and
also financial capacity is important.
(In our case, we measure it as 5 minutes walk from
Suria KLCC). Views are important but more
importantly isthat the development is physically
accessible in the shortest walking time. I think
this, together with product (i.e. layouts and
finishes) are the most crucial elements in your
decision making.
Pricing that allows you to ride the wave and not
pricing that is already reflective of any capital
appreciation. We generally think that prices would
indeed reach the RM1000psf mark but developers who
are pricing it above RM800psf are already taking
the cream with the development. Pricing is crucial
as well.
