SetiaWalk Serviced Apartments

The Ambitious SetiaWalk Project

The serviced apartments in the Brio Tower, the central tower of the 3 tower blocks residence apartments from the ambitious Setia Walk project, were selling like the hot cakes ever since it was launched on Oct 09. Apparently only 2 units from the total of 254 units were left when I made a visit this morning.

According to the sales representative in the SetiaWalk Galleria, the developer will be launching the remaining block (The Vio Tower) for sales by March this year. It is expected to launch with a 10% appreciation from the previous Brio tower. Phased launch is definitely a brilliant move from the developer even though all the 3 blocks of serviced apartments are all in the same development stage, about 20% of completion now.

The smart developer is inviting the potential buyers to attend the Chinese New Year celebration on 26th Feb 09 for the potential goodies in terms of Angpau of up to RM1ok for purchase of the apartment in the forth-coming Vio Tower. However the developer may be reducing the benefits offered under "The Best for the Best Setia Homeownership Package" for buyers which the developer will bear the legal fees for SPA, legal fees for loan agreement, stamp duty on MOT & loan agreement, 0% interest during the construction period of 36 months.

I have been considering purchasing a property in the rapidly growing Puchong area for investment purpose. This serviced apartment fits into my expectations in terms of the strategic location (with the LRT station to be built opposite near Tesco hypermarket, under the LRT extension project), reputable developer with good track record and the layout of the apartment. However the budget seems far from favourable. The serviced apartment with the built up area of 1138sf will be selling at RM450K (after the 10% appreciation) is definitely on the higher end. To achieve a rental yield of 6%, the serviced apartment would need to be rent out at the rate of RM2,250 per month, which I feel is too high for the middle class living in this area.

I would give it a pass as it does not fit my personal investment purpose.