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Luxury Properties in Auction

More luxury properties are expected to be put on the auction market after the moratorium ends, according to Property Auction House Danny Loh.

“Owing to the Covid-19 pandemic and travel restriction on foreigners, these units are not occupied and thus not generating recurring income for their owners to meet their monthly obligations.

“Also, the holding costs of such properties, such as monthly maintenance charges and obligations to the banks, are too expensive,” Loh says.

He notes that the absence of foreigners, owing possibly to the suspension of the Malaysia My Second Home programme, has slowed down activity in the subsale market. “When owners are unable to dispose of their properties in the secondary market, these properties will eventually end up in the auction market.”

Loh says some of the luxury properties available on auction are located in prime addresses such as KLCC and the auction house recently concluded three sales of such high-end units in August.


The said units are at Four Seasons Place, a 2.7-acre mixed-use development comprising a hotel, retail space and residences in Jalan Ampang and adjacent to Suria KLCC. The units that were sold fetched a bargain of 20% to 30% against its market value.

“Of the four serviced apartments at Four Seasons Place that were put up for auction, three were sold,” says Loh. He adds that these units had previously undergone three rounds of auctions and were first auctioned at their market value.

The first unit, measuring RM1,700 sq ft, had a reserve price of RM3.59 million and market value of RM4.93 million. It was sold at RM3.64 million.

The second, a 1,570 sq ft unit, was sold at RM3.52 million from a reserve price of RM3.2 million. Its market value was RM4.4 million.

The third, a 1,346 sq ft unit, had a reserve price of RM2.69 million and was transacted at RM2.92 million. Its market value was RM3.7 million.

Loh says these units were already put on the auction market prior to the Movement Control Order and the new buyers were Malaysians. “Four Seasons Place is a premium development in a sought-after location and is still quite new. The properties mentioned have undergone four rounds of auctions and their buyers have fetched good bargains.

“Although such big-ticket items are generally not easy to sell and despite the gloomy market outlook, we still see high-net-worth buyers who are ready to acquire such properties at the right price,” Loh adds.

 

Another two units at Four Seasons Place are still available on the auction market — a 1,571 sq ft unit with a reserve price of RM3.21 million and a 1,345 sq ft unit with a reserve price of RM2.99 million.

Based on a quick search on lelongtips.com.my, other luxury properties on the auction market at the time of writing included a 6,028 sq ft unit at Marc Serviced Residence in Jalan Pinang that has a reserve price of RM6 million; a 3,972 sq ft condominium unit at The Pearl @ KLCC in Jalan Stonor going for RM2.8 million; a 2,282 sq ft condominium unit at The Troika in Persiaran KLCC whose price starts at RM2.6 million; a 2,852 sq ft serviced apartment at Verticas Residensi, Jalan Ceylon, going for RM2.4 million; a 3,298 sq ft unit at Icon Residence Mont’Kiara in Persiaran Dutamas whose price starts at RM2.06 million; and a 2,691 sq ft unit in Kiara 9 Residency in Jalan Kiara 3, Mont’Kiara, going for RM2.1 million.

 

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