A look at the latest launches of condominium in the Klang Valley showed that prices range between RM100,000 to several million ringgit. But can Malaysians afford them?

S.K Brother Realty chief executive Charlie Chan said the slew of upmarket condominium launches had given the wrong impression that condominium were getting more expensive.

"We have to weigh the affordability of condominium from the current per capita income level as well supply as and demand among Malaysians.

"Despite the many upmarket launches in the Klang Valley this year, condo prices are generally not too expensive because of its fairly stable relationship with current household income level," Chan said.

The Report & Survey and Draft Structure Plan of the Petaling District revealed that 29% or 101,974 household will have monthly income levels exceeding RM5,000 by 2005 and 34.6% or 121,665 household will earn between Rm2,000 and RM5,000.

From the number of condominium launches in the country seen in the second half this year, the trend forward seems to indicate a drop in the number of offering ,but its value is heading towards the high-end segment( refer to bar chart and table).

However, what are the factors that determine the value of a condominium? Is the location, size ,security features or amenities?

Chan said: "People want to buy a house that is close to their work place."

Therefore, central business districts like Kuala Lumpur Sentral, Kuala Lumpur City Centre ,Damansara ,Cheras and Puchong  will have potential for more high-rise condos. Especially those that are near light railway transit stations, said Chan.

But Chan said, developers had to seriously examine the issue of the provision of car parks bays for buyers. As Malaysia has one of the highest rates of vehicle owners in the region, insufficient car park space is becoming a problem among existing condominiums.

"Developers who provide more car park bays to buyers will win their hearts ,"he added.

Khong and Jaafar Sdn Bhd managing director Elvin Fernandez said it was vital that a proper management corporation is established for condominium to retain their value, both in terms of capital appreciation and rental returns.

"Condominium mean community living and is usually accompanied with a high level of social facilities. And the maintenance of such facilities needs constant supervision and financial support from existing tenants.
"Tenants ' participation in the management corporation is essential," Elvin said