PROPERTY CASE STUDY: Rés 280
Hello everyone! Today we'll be talking a little bit about Rés 280, situated in mid-urban Selayang. This particular development comes with a full array of leisure facilities to wind down after a hard day's work. It boasts a healthy green lifestyle which many of us seek to escape from the bustling city life. Despite its perks though, rés 280 continues to be a struggle for rental seekers.
NOW, WHY IS THIS SO?
Selayang, although strategically located close to the city centre and a number of famous nature reserves is just a little too far from what would be considered ‘prime areas’. Therefore, the targeted demographics for properties in this newly developing township vary vastly. This coupled with the influx of newly completed properties at the vicinity of rés 280 has created a highly competitive market. The supply is overwhelming, yet the demand is simply not on par.
WHAT DOES THIS MEAN TO YOU, THE INVESTOR?
Due to its highly competitive nature, your potential customers (tenants) are spoilt with choice. With the ease of online property portals, they are able to shop around without much effort and end up choosing the cheapest available property in the area. This of course only negatively effects your rental returns as you are caught in a price war where hundreds are competing.
HOW CAN YOU OVERCOME THIS?
Be different! Whilst the competition is engrossed in the price war, you, the wise investor should find new means to win your potential customers hearts. This can be done upgrading your product (the property) to stand out from the competition and indirectly creating a niche market following.
Sell convenience instead of an empty property. For instance, a hassle-free home that’s move-in ready! If everything is provided, it means your customers don’t have to fork out more cash just to make the unit 'liveable'. Don’t forget, they already need to allocate 3.5 times the monthly rental value up front which is in itself already quite a sizeable sum.
However, providing just the essentials wouldn't quite work. Imagine walking into a mishmash of old dingy furniture. Instead of being hassle-free it would only end up giving your customers more work to get it back in shape. Your product has to be aesthetically pleasing too. In all honesty, who wouldn’t want to live in a great-looking home? This is a strategy that’s centuries old and is still heavily employed today in all hospitality industries.
WHAT DO YOU GET IN RETURN?
If you've got it all right, we're 100% sure your unit will move much faster than the rest and possibly with better rental rates too! Well, after all, you did get yourself out of the price war. 😊
Think we could save you the hassle of furnishing your property for rent? Drop us a message!
We're here to help, in The Klang Valley and JB. 😁