AWong Investment: Avalon II @ USJ Heights by Sime Darby Property

Project name:

Avalon II
Area:
USJ Heights, Subang Jaya

Developer:
Sime Darby Property

Type:
Bungalow

Tenure:
Freehold

Price range:
from RM3,200,000
Size range:
from 4,979 to 7,566 ft2

Price/ft2 range:

from approx. RM574 to RM653/ft2

Total Units:
14 units
*Above info @ Sept. 2011

You can get more info from following website:
http://www.simedarbyproperty.com/property_view.aspx?productID=9166e294-408f-4cdc-b11c-1874d660c4e6
http://www.iproperty.com.my/developments/developmentreview.aspx?pid=2232

The developer:

Sime Darby Property [Website] is a subsidiary of Sime Darby [Website] which is listed on KLSE with a current share price of 9.74. Sime Darby Property is a famous developer in Malaysia and made its mark by delivering property developments in Singapore, Australia, Vietnam and China.

Location:

USJ Heights is within Subang Jaya which is not far away from KLCC and is close to Petaling Jaya (PJ). Subang Jaya is a city with the highest population in Klang Valley (based on 2010 info).

Google Map

Price:
Compare with Condo development in Subang Jaya:

Olives Residence ~ price from approx. RM498/ft2 (price info @ Nov. 2011) ~ Avalon II is approx. 15% higher [Read My revious Blog]

Compare with Condo developments in PJ:

Boulevard Residence Damansara ~ price from approx. RM472/ft2 (price info @ April 2011) ~ Avalon II is approx. 22% higher [Read My revious Blog]
Neo Damansara @ Damansara Perdana ~ price from approx. RM537/ft2 (price info @ Aug 2011) ~ Avalon II is approx. 7% higher [Read My Previous Post]
Sé terra ~ price from approx. RM573/ft2 (price info @ Oct 2011) ~ Avalon II is approx. similar [Read My Previous Post]

Compare with other Bungalow developments:

20 Trees @ Melawati ~ price from approx. RM442/ft2 (price info @ Sept 2010) ~ Avalon II is approx. 30% higher
Cubist ~ Bangalow @ Twin Palms Kemensah, Ulu Klang ~ price from approx. RM535/ft2 (price info @ June 2011) ~ Avalon II is approx. 7% higher [Read My Previous Post]
Kinrara Residence @ Puchong ~ price from approx. RM566/ft2 (price info @ Sep 2011) ~ Avalon II is approx. 1% higher
Alvarez @ Laman Granview in Puchong ~ price from approx. RM623/ft2 (price info @ Aug 2011) ~ Avalon II is approx. 8% lower [Read My Previous Post]
The Reserve @ Puncak Kayangan Kemensah ~ price from approx. RM757/ft2 (price info @ July 2011) ~ Avalon II is approx. 24% lower
Nadayu @ Melawati ~ price from approx. RM855/ft2 (price info @ Jun 2011) ~ Avalon II is approx. 33% lower

My View:

Please note that RM574/ft2 is based on Type B Bungalow which cost from approx. RM4,280,000 for 7,458ft2.

The lowest price RM3,200,000 (Type G Bungalow) is for 5,197ft2 = RM616/ft2.

The price/ft2 is approx. 7% to 22% higher than Condo developments in Subang Jaya and PJ (excluding Sé terra which is about the same price/ft2). That's the premium to have a Bungalow.

The price/ft2 is approx. 1%, 7% and 30% higher than Kinrara Residence @ Puchong, Cubist ~ Bangalow @ Twin Palms Kemensah, Ulu Klang and 20 Trees @ Melawati. That's the premium to have a Bungalow in a mature location.

Based on 90% loan for RM4,280,000, say BLR6.6%-2.4% = 4.2% interest per annum, for 30 years. The monthly repayment is approx. RM18,836. If you are planning to buy & rent out for investment, you need to take these into consideration:

Will ppl willing to pay more than RM18,836 per month to rent a place in Subang Jaya?

Don't forget the approx. monthly repayment of RM18,836 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)

Buy & rent market, this is not a really good investment opportunity as you are targeting smaller group of people especially expat to rent it.

Although the location is good for long term investment plus freehold tenure, I still believe the property prices in Klang Valley are too high at the moment and should collapse soon (maybe after 2012 election). Unless you are desperately to invest now, we shall keep more cash in hand for rainy days.

Other developments with similar RM/ft2: