Budget hotels contributing to shoplot demand

Post date: Jun 23, 2013 12:13:52 AM

Posted on December 17, 2012

The shop house market is vibrant and values are at a record high, according to a group of leading real estate agents at the recent Malaysian Institute of Estate Agents’ (MIEA)2013 Outlook for Malaysian Property press conference (read full article).

“Shophouses in premium locations like Bukit Bintang, Masjid India, Brickfields and Petaling Street are in very strong demand,” said Govin Bala of GDS Properties. “Prices are ranging from RM5mil to about RM20mil in these places. For example, in Bukit Bintang, it’s about RM20mil for a normal 20×70 shoplot.”Shoplots in residential areas such as Bangsar, SS2 square, Damansara Heights, Hartamas, 1 Utama and the lower part of Tuanku Abdul Rahman, meanwhile, are trading at about RM6mil to RM10mil per shoplot.Govin has also noticed that leasehold tenures are today less of an issue. He attributes this to the younger generation who are now more active in the property market. “Youngsters are buying and selling properties much faster. They come in and exit at a faster pace. So leasehold vs freehold doesn’t make much of a difference.”“It appreciates very well and there are good returns,” he says, although he does express concern that yields may support loans taken out. “There are two types of buyers. One is the passive investor who buys to generate income out of rentals. The other is the end user. As you can see, more and more budget hotels popping up in the city centre.”Disclaimer: All data and information provided on this site is for informational purposes only. Starproperty.my makes no representations as to accuracy, correctness, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. All users are strongly encouraged to seek professional advice before relying on any data and/or information provided on this site.