Developer makes so much money… Is this true? Part 2.
Why can’t developer build RM200,000 property instead of RM400,000 “affordable homes”? If that could be done, it won’t be so much borrowings to spread over a long repayment period of 40 years!
However, where can you get RM200,000 property in busy cities of Malaysia? May be flats! And soon, even RM200,000 also cannot get a decent flat! A small apartment (1,000 sqf) in Hong Kong can cost up to RM9.9 mio (1 HK$ = 0.53 RM), so 500 sqf apartment (1 room) the price is RM5mio!
You can say, well… Hong Kong is an island. So, there is no land. That is why it is so expensive! Okie… How about Shenzhen? Then, you cannot say it is an island anymore. The price per square meter is 54,185 Yuan (which is RM3,020 or 5,034 Yuan per sqf) [1 Yuan = 0.6 RM]. Therefore, for a 500 sqf unit in Shenzhen, it is around RM1.5 mio.
Well, you can say… China is China. Their population is so big! We Malaysia is a small country. But the truth is we also prefer cities. That is the reason that cities has high rise buildings, and expensive properties. Yet, people choose to stay in big crowded cities.
Partly, the reason is because of CBD – is a commercial centre. People make a living out of it.
Tomorrow, we continue this case.