IJM defines affordability

An artist’s impression of Danau Perintis apartments in Kuala Selangor. The units are selling from RM347,000 each.

Affordability is a relative term. A buyer may find a house at RM500,000 affordable, while another buyer may find a RM250,000 property too expensive.

IJM Land managing director Edward Chong says: “In Bandar Utama, the houses may be priced at between RM1.3mil and RM1.5mil, and there is this particular house going to RM800,000 in the market.

“People will grab it. So affordability is not cast in stone that it must be RM500,000 and below,” he says.

He says developers can build RM500,000 and below but the built-up is about 500 sq ft.

“This means affordability in absolute terms. This is important, but on a per sq ft basis, it may be more expensive.

“If affordability, on the standpoint of absolute sum is important, this takes us Hong Kong and Singapore where RM500sq ft is a luxury.

“But how long will that property last you?

If you look at the overall property market today, developers are starting to make it affordable (in terms of absolute price).”

Chong says land prices and construction cost have not gone down.

If developers were unable to do it before, they will not be able to do it going forward unless they make the units small. This means a higher price in terms of per sq ft but cheaper in absolute terms.

Or the units may be far away.

IJM is offering Danau Perintis in Shah Alam 2, Puncak Alam for under RM500,000.

Salient points:

> Single block of 15 storeys, with three wings, with a total of 252 units

> Typical built-up area: 889 sq ft, with three bedrooms and two bathrooms

> Selling price: RM347,000 (intermediate), RM367,000 (corner), with two parking bays

> Expected launch: September 2016

> Completion date: September 2019 - The Star

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