20Trees Apartment Asking Price (as of today) ....

I've been looking at the 20Trees Apartment asking prices over the last 2 months by looking at Star Property and iProperty. Mind you these are all asking prices and not transacted prices. Here's some of the asking prices for the Apartment units. I've removed duplicates (same agent) as best as I can.

• Sep 1, iProperty, 1854sf, rm410/psf
• Sep 1, iProperty, 1854sf, rm496/psf
• Sep 1, iProperty, 1854sf, rm400/psf
• Aug 27, Star Property, 1854sf, rm393/psf
• Jul 3, Star Property, 1854sf, rm480/psf
• May 31, Star Property, 1854sf, rm500/psf
• May 14, Star Property, 1854sf, rm512/psf

Obviously there is not enough data for sampling but you will notice some obvious trends. The asking price psf has gone lower from May till September 2010. Now this could be because the response to the higher asking price has been less than enthusiastic OR the higher asking prices are for units which have a better view of the Melawati Quartz Ridge. I suspect it's somewhere in between.

The other thing I noticed is that in Star Property, an agent that used to specify the asking price has begun to omit the asking price in his/her ads. This is either to save money on the ads (since this particular agent has been advertising for a few months) or to keep the pricing vague depending on the conversation with the caller. We'll never know I guess.

Based on the limited sample, it seems that the asking prices for the 1854sf apartments range from between RM393/psf (RM728,622) to RM512/psf (RM949,248). Let's put another price point between these 2 price points, RM453/psf, for comparisons sake. Original buyers bought units from SDB between RM300/psf to RM340/psf, depending on unit and timing.

So, how much will the original buyers profit based on these price points ?

Conservatively, an early buyer should make easily RM100K to RM200K, depending on which price point you look at. Not too shabby !

My take on all this analysis is this - I believe the prices for the Apartment units will go up significantly once Melawati Heights is more complete. This will probably happen in 2 to 2.5 years time when Rydgeway and Contours is completed. 20Trees West will also be almost complete then. Nadayu will have some phases completed by then.

By that time, the other buyers / investors will see Melawati Heights in its more "mature" state with infrastructure, well manicured trees, matured landscaping, nicely tarred roads, the view of the Quartz Ridge (now the view is competing with all the construction works) and high-end gated and guarded developments all around.

Then and only then ** famous last words :-) ** will the prices of the apartments go up significantly. There are no other apartments being built in Melawati Heights. Period. Most developers would have "wisen" up to the fact that building bungalows in this area will probably be better for the bottom line.

Today, the Apartments provide the lowest entry price point into this area (i.e. below RM1Mil, if you discount the Duplex unit). All the other properties in Melawati Heights, are way above RM1Mil.

Besides, in this part of town, there are no other developments like this. As I indicated in one of my earlier posts, there are very, very few Gated and Guarded developments in Ampang, Wangsa Maju and Melawati, and I believe Melawati Heights is filling that gap in this part of Klang Valley. Plus it's located on a hill with great views and fresh air to boot. Near to the city center too.

Hence I believe, the only way it can go is up. Time will tell.