The Rise of CondominiumsJune 26, 2020
Nowadays skylines across major cities in Malaysia are decorated with silhouettes of high-rise buildings where many of them comprise of condominiums. Condominiums are preferred for many different reasons. Some prefer them for convenience and security while some prefer them for lifestyle choices.
As opposed to landed property titles, a strata property is defined as development or scheme where the building or land is carved out into different lots. Strata title owners will then be given ownership of only that particular lot or “parcel”. If you have been surveying the property market, most high-rise buildings will come with a strata title.
Let us talk about why condominiums have become a sought-after choice for both staying and investment purposes. Looking at the major cities in Malaysia such as Georgetown and Kuala Lumpur, economic growth has driven demands in the property segment. As people flock to these cities to look for career opportunities, it creates a demand for housing supply. When these people eventually settle down, they turn from being renters to purchasers.
Before we talk about how condominiums have become so popular, we need to take a look at the buyers. A significant portion of home buyers nowadays is made up of millennials. Lifestyle choices and convenience are important elements. However, median prices of houses near the city center are way above the average. Condominiums offer housing options in a place where landed properties and such are out of the budget. Developers are also taking advantage of this trend as they are able to squeeze in more units per square acre of land area.
Back then, condominiums used to be just high-rise homes. Nowadays, lifestyle changes have driven condominiums to consider accessibility and facilities to attract buyers. Condominiums that are near LRT stations and transportation hubs are in high demand compared to isolated suburban units.
In addition, people are also turning to condominiums due to increased security. Compared to landed properties, most modern condominiums have double or even triple gated access systems. 24-hour security makes condominiums a much safer choice of environment to raise a family too. Condominium communities also get to enjoy an array of facilities. Common ones include gyms, swimming pools, saunas and others that would otherwise be very expensive in standalone landed properties.
Ultimately, the rise of condominiums in the Malaysian property market is caused by factors such as demand and buyer preferences. With better security, amenities and attractive prices have made them prime choices for both investors and homebuyers.