Condominium Rental performance in Kuala Lumpur

This report extract from Oriental daily some time ago. It tells the KLCC luxory properties performance in the past few years

Chart 1:
Blue colour basically tells cost of ownership has been increased since 2006 from 800psf to 1200psf but black colour rental income not much chancges in year 2006 & 2009~2011. For those who bought in year 2007~2010 may probably suffers in rental income or perhaps they need to revise their expectation in return accordingly.

Chart 2:
It tells the rental ROI drops from year 2006 6%+ to year 2011 close to 5%. The rental return is sort of stagnent in year 2009~2011.

My personal intepretation of this chart: Followers* should wake up from always asking real estate agent to look for you something rental 6% or some even funny asking want to have 7% return.  I will only say this industry is getting more competitive, player needs more skills to outperform others. Good time people makes money, bad time people also makes money, the key is you know or you dont know**.

* I always refer those attend few investment seminars, listen to some friends and self recognise is an investor type of buyer.

** I have seen someone who know, but choose to cut lost.