Serviced apartments were popular in Kuala Lumpur during the early 1990s, a time when there was an influx of expatriates and the country’s economy was thriving. That market however dried up when the Thai baht collapsed bringing with it, the rest of the region’s economies.
There has been a resurgence lately as developers rush to meet the upswing in demand which stemmed primarily from real estate investors’ search for investment opportunities. The new developments however are those which offer condominium units or “serviced residences” for sale, and buyers are given an opportunity to place their units into a rental program to defray the cost of owning them. In most of the cases, participation in the rental program is strictly at the election of the unit owner.
For this type of development, the Ministry of Housing has tracked a total stock of 2,710 units in Kuala Lumpur currently, with another 2,704 units which are in various stages of planning and development. Serviced apartments which are owned and run by hoteliers or other corporations as an alternative to hotel accommodation, make up another 2,197 units from 16 existing developments and are reported along with hotel properties under the Leisure Property Stock Report published by NAPIC (Q4, 2003).
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Look under the 'Hot Property' header of the article above (link provided).
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