Today’s property market is dominated by condominiums in a number of ways for a number of reasons. If you are considering condo living, you may wonder if it is the right choice for you, depending on your desired lifestyle, present life status, and future goals. The purpose of this article is to help you get a sense of direction and inspiration, primarily if you are still shilly-shallying on your decision.
Let’s get started, shall we?
What is a Condominium?
What’s the first thing that comes to your mind when you hear “condominium”? Crowded, luxurious, or packed with facilities? Typically, condominiums are high-rise developments housing residential units or retail or office space.
Units in condos are typically owned by different individuals, where the owners may have allocated parking spaces for their vehicles. Moreover, security is generally available 24 hours a day. This is a good choice for home buyers who value privacy and security.
Due to the common facilities offered by condominiums for all their residents, they create a community atmosphere.
The JMB (Joint Management Body), MC (Management Corporation), or even the residential community of the condominium will take care of the condominium’s environment and facilities’ functionality, such as swimming pools, gymnasiums, playgrounds, BBQ areas, and parking lots which common condominiums feature in Malaysia.
High-rise Property Market in Malaysia
The general Malaysian economic performance and the financial sector have improved, according to Bank Negara Malaysia’s Financial Stability Review in H12021. However, the huge number of unsold property units continues to be a major concern for the Malaysian housing market in 2022.
In the Malaysian property industry, there were more than 180 thousand housing units remain unsold, indicating that pre-existing affordability concerns were exacerbated by the Covid-19 pandemic and post-pandemic. According to the report’s High-Rise Property Sale Price Index, prices for stratified properties declined 0.23% quarter on quarter in Q12022, while rising 0.51% year on year.
Yet, the supply of high-rise properties surged by 3.25 % qoq and 18.24 % year on year. This showed a price disparity when compared to Malaysian property buyers’ demand for other aspects such as good location, building features, and transport accessibility.
Nevertheless, the High-Rise Property Rental Price Index increased by 0.91% quarter on quarter and 0.20% year on year, while the High-Rise Property Rental Demand Index increased by 6.08% quarter on quarter and 111.23% year on year.
As a result, although the Malaysian property market had some improvement over the period, Malaysian homebuyers are being hampered by the limitation of affordability, the struggle to obtain financing support, and the job opportunities and stability during the current Malaysian general economic performance in 2022.
5 Pros of Condo Living
A variety of facilities
In recent times, most condominiums have facilities that cater to multiple generations. For example, a Tai Chi area for the seniors, playgrounds for youngsters, and so on. Additionally, if you want to swim or join a gym, you don’t have to travel far or spend a penny as most condominiums offer these amenities. Quite easily, you can enjoy some leisure activities right at your doorstep, either for a little time out for yourself from your day-to-day grind or even as a family activity that brings you closer together.
Easy to manage
Think about being a buyer looking for a place with little maintenance and comfortable living space. When you own a condo, your home is relatively small which means you can spend more time on other aspects and don’t have to devote as much time to home improvement. Cleaning your home would also take less effort and time, which would be ideal for adults with busy schedules.
Low utility costs
Condominiums have less electricity usage than landed properties because condominiums have smaller sizes.
Condominiums with good insulation are more energy-efficient because you don’t have to heat or cool your living area. So you can save money by living in an energy-efficient condo. The best part about an economical condo is to help you cut down on your monthly electricity bills.
Common condominiums in Malaysia have secure entrances and are well-protected by surveillance cameras. Many of these properties are gated and have 24/7 private security.
You can relax in the safety of knowing your family and friends are safe, even in the common areas. You are also assured that your home is well-secured and maintained by a professional management team like JMB (Joint Management Body) or MC (Management Corporation).
Condominiums are usually spacious, luxurious, and conveniently located near public transport systems. Modern condominiums in Malaysia are usually located in the city center, where a number of amenities can be found nearby. It does not take much time to travel from where you live to work or buy groceries.
Some condominiums are usually located in the heart of the city and can be purchased at a reasonable price. You can also expect to get a good return on your investment when you purchase a condominium.
5 Cons of Condo Living
Limited parking spaces
Convenient parking is usually a common issue in condominiums. There may be times when you want to invite your family and friends to have a party or BBQ feast, but they would have difficulty finding parking.
Many condominiums have restrictions regarding the number of vehicles allowed in parking spots for residents or visitors.
Parking lots, parking garages, and street parking are often available, but you’ll have to pay monthly or annually for these spots, and you need to add additional fees.
High management fees
In condominium ownership, you should consider the cost of monthly maintenance fees. You may be unable to afford them if you’re buying a higher-priced unit or a newer condominium project in Malaysia due to the increasing demand for condominiums.
Although investment properties can generate income, there are also high costs to consider, such as security and upkeep.
Condominiums are becoming increasingly popular among young professionals who value convenience, accessibility, and affordability.
Poor sound insulation
Your luck can play a role in condo unit purchases. Having a condominium means sharing walls and roofs with your neighbours.
If neighbours always have gatherings and feasts with their friends or acquaintances, their noise will influence your day and living quality, especially for economical condominiums.
If you grew up living in high-rise properties, then you will not have a hard time getting used to the living environment. But, if you are looking for a tranquil environment for your family and kids, condominiums would not be your top choice.
Space-constrained living spaces
There’s no doubt that condo units are more affordable, but it comes with a trade-off. Compared to a house, a condo has a smaller size. Despite its ease of cleaning, a smaller space can also feel cramped and compact. There’s no room for maneuvering and it’s often suitable for minimalists.
It may seem like a great idea at first, but if you’re severely claustrophobic, it might not be worth it. It may not be the right choice for you if you dislike being confined to small spaces.
Some condo complexes accept pets, but many restrictions may be imposed. Not all condos require you to pay a deposit for your pets, so it’s essential to verify before making any decision. If there are too many complaints from other residents, you may need to move or otherwise relocate your pet.
It is important to find out if condos are a good environment for your pet too, so you know what to expect before moving in. Your pet must be under control at all times, it cannot leave the unit without your permission, and the pet cannot damage the property or common area.
7 Considerations before Buying a Condo
Spaces needed for now and future
You’ll need to plan with your spouse or your family when choosing the right unit type for you. This is a really important area that will add to the allure of your home. Units with one bedroom are amazing for a young professional but might not be so fitting for your marriage and baby plans in the future. A duplex or two-family condo might be a better fit long-term. It is crucial to visualize the space, how it will fit with your idea of what furniture and fittings you want, and, importantly, how you envision yourself living in that space.
Unit’s floor level
The lower level means you will have easy access to your home because it is close to the ground floor.
Lower floor prices are usually accompanied by an increase in noise levels, as you’re closer to the development’s entrance and possibly the infrastructure such as busy roads.
The view is more impressive on the higher floors than on the lower floors. Because you can clearly see a wider view of a city from a higher floor. Some condo buyers bought a unit on a higher floor purely for the view.
As you live on a higher floor level, the view is better, and the noise level is lower.
Public transportation and connectivity
Having access to public transportation or nearby roads that can take you to your destination is important when buying a home.
It’s great to think about what you value in life and how much you’re willing to pay to save time by travelling.
If you’re commuting to work every day into the city, having good access to public transport will be a significant advantage to your daily commute.
The best location for your new home is to build a north-south-oriented building with your living room facing north. Your home will then avoid direct sunlight during the day.
Properties with this orientation are likely to be more valuable and in-demand than other properties that do not have the condition.
If you have a west-east orientation, you’ll likely struggle to cool off in Malaysia’s hot weather, and you could easily spend much of the day sweating in the sweltering heat.
When it comes to rental properties, maintenance costs are particularly important. However, they are just as important in your overall decision-making when it comes to buying a property.
If you’re looking for a condo that has a pool on the rooftop and an infinity pool next to the rooftop barbecue pit, along with state-of-the-art security features, you might have to shell out a little more for it.
Condominiums have their own rules and regulations, often based on the community where the condos are located.
This is the developer, the JMB, or the MC who decides what happens in the covenants, by-laws, rules, and other conditions that bind all owners.
Most rules have been around for a long time, but they are still in effect today, whether you know it or not. There are so many that they often go unnoticed.
Failure to follow the rules or ignoring fines and penalties, in combination with complaints from local authorities about seizures, can result in an owner’s property being seized.
It’s common for people to complain about condo noise, but it’s important to know that the source of the noise may not only be your neighbour’s dog.
Condo residents share walls, floors, ceilings, hallways, entrances, and parking areas with their neighbours.
Your condo unit is right across from a busy main road. You might often wake up to loud music and loud laughter at midnight sometimes. It disturbs your sleep and makes it difficult to enjoy your home.
It is not nice when inconsiderate residents affect the lives of those around them. However, living in a condominium means you must also have a little bit of tolerance to be there.
In conclusion, neither condos nor any other type of house is perfect. The choice is a matter of personal preference and depends on several factors: location, type of housing, budget, and lifestyle.
We compiled all the pros and cons of condo living, so you can take them into account when you consider the condo lifestyle. The decision to have a condo lifestyle is depending on the ideal lifestyle you imagine for the rest of your life.
First, are you planning on selling the house? If so, are you planning on moving out of the city or to the suburbs? Do you plan on having children? All of these factors will influence your decision. If you want to live in a condo, you must take its pros and cons seriously because one decision buying a property will influence up to 35 years of your life.