PETALING JAYA: Seven units of high-end completed villas in the famous address of Bukit Damansara were snapped up after the developer dropped prices by up to 25%.
Apart from the seven villas, about 20 bungalow and semi-detached units, also located in Bukit Damansara, were sold substantially below market value in the last three weeks.
The units are located in the Seri Beringin and 9 Beringin developments in Bukit Damansara that was built by Island & Peninsular Bhd which is now under SP Setia Bhd
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The seven villas had been in the market since 2016 and the original selling prices were between RM9.5mil to RM11.5mil. Island & Peninsular developed the properties under the build and sell concept.
“However only one of the villas was taken up since it was ready in late 2015. After the developer dropped prices by up to 25%, all the units were taken up within days.
“It just shows that buyers are waiting to snap up properties that goes for a bargain,” said a property agent.
As for the 20-odd bungalows and semi-detached properties, it was built by Island & Peninsular for rental purposes some 10 years ago.
During the good days of oil and gas boom, expatriates used to fork out some RM15,000 per month for the units. However now the take up is low, prompting SP Setia to put the units up for sale.
An agent said that the properties were sold substantially below market value by about 30%.
“The prices are lower than what the market had anticipated. It is below market value and is seeing over-whelming response,” said a buyer who has been scouting around the Bukit Damansara area since 2016.
Only the villas were developed with the intention to sell after it was completed. The development of the villas started in 2012 and completed end 2015. Out of the eight villas, only one of it was sold in the last three years.
“So the developer decided to drop the price to clear the old stock. It is a corporate sale,” said an agent.
As for the bungalows and semi-detached properties, it was constructed solely for the purpose of renting out to expatriates. Because of its original concept to cater for expatriates, the bungalows and semi-detached units comes with a double security system with club-house.
“It is built to cater for an exclusive living with high security. It was opened up for sale and the response is strong,” said an agent.
The agent also pointed out that there were no original selling price for the bungalows and semi-detached properties, which means that the developer did not drop prices.
However the agent said that the units were snapped up fast because it is generally up to 30% lower than a similar unit for sale in the vicinity.
A property-valuer said that the sale of properties by corporations such as Island & Peninsular should not be viewed as the benchmark for the price of properties.
Kong & Jaafar managing director Elvin Fernandez viewed such sales as corporate sales and it is based on different decision compared to sale of individual units.
“Can’t say if the price is the new benchmark. Many developers got big inventory and unsold units. If it is a corporate decision to drop prices, it cannot be the new bench mark,” he said.
