Menara U2 @ Seksyen 13, Shah Alam

Project name:          
Menara U2
Area:                       
Seksyen 13, Shah Alam
Developer:               
Kenari Sukma Sdn Bhd
Type:                             
SOHO

Tenure:                   
Leasehold (Commercial land title)
Price range:             
from RM238,000
Size range:              
from 450 ft2

Price/ft2 range:         
from approx. RM529/ft2

Total units:               
474
Maintenance Fees:               
RM0.20/ft2
*Above info @  July 2011 

 

You can get more info from following website:
http://www.iproperty.com.my/developments/1498/Menara_U2_-_SOHO

The Developer: 
Kenari Sukma Sdn Bhd is a member of HR/Yuk Tung Group (http://www.hr-group.com.my/index.php), which incorporated since Feb 1997 (14 years in business).

The Group of Companies focus on property development in the Klang Valley and is currently working on several mixed development projects in Shah Alam, Bangi, Cheras, Sg. Besi, Mont Kiara and Jalan Yap Kwan Seng, Kuala Lumpur (KLCC area).

Location:

Distance away from KLCC is about the same as Seri Kembangan or Subang Jaya as shown below. The only difference is that Shah Alam has been well developed.

Google Map

Map DataMap data ©2012 MapIT, Tele Atlas - Terms of Use

Google Map

Map DataMap data ©2012 MapIT, Tele Atlas - Terms of Use

Price:
Compare with other developments within Shah Alam:

• 591 Damansara SA @ Shah Alam, section 24 ~ SOHO ~ price from approx. RM560/ft2 (price info @ May 2011) ~ Menara U2 is approx. 6% lower

                           

My View:

The price/ft2 is about the same when compare with 591 Damansara SA @ Shah Alam (shown above).

Menara U2 advantage:

• Squash Court
• Multi Purpose Hall & Badminton Court

591 Damansara SA advantage:

• Freehold
• less units; only 84 units whereas Menara U2 has 474units
• operated by world famous, Best Western International
• guarantees you an excellent investment with a 6.5% nett per annum rental yield for the first 3 years, with no maintenance fees during the leaseback period (you need to get more details from the developer as normally you might not get the exact 6.5% back)

Based on 90% loan for RM238,000, say BLR6.6%-2.2% = 4.4% interest per annum, for 30 years. The monthly repayment is approx. RM1,072. If you are planning to buy & rent for investment, you need to take these into consideration: Will ppl willing to pay more than RM1,072 per month to rent this?

Don't forget the approx. monthly repayment of RM1,072 excludes following items:
a) Maintenance fees
b) Assessment tax
c) Quit rent
d) Interest rates increased for the loan (this is the main risk as BLR still low at the moment)

Grade A office space normally rent out approx. RM6/ft2. So for 450ft2, you might get rental approx. RM2,700/month. This estimate is on the high sides as don't forget the space you have is smaller compare to most of the Grade A office, therefore you will not get large companies as your tenant.

SOHO is still a new sector within Malaysia Property Market, so you might want to wait and see the response from investor before moving into this sector.

For RM529/ft2, I think most self-owned small business people will prefer to use their own house or condo which they can buy with less than RM529/ft2. What do you think??