With rapid development in Malaysia and the ever increasing population, much land area has been cleared for commercial and residential projects. This has led to dearth of land which resulted in the upsurge of high-rise residential buildings - apartments and condos. Though high-rise living has become quite popular in recent years, some still prefer to live in landed properties such as terrace houses, semi-detached and bungalows. In fact, each property, condo or landed, has its own benefits and shortcomings.

Discovering Opportunity in Uncertainty The keyword here is "opportunity” and a buyer will still need to assess whether an area represented good value, whether they are buying at the right price and if they are buying for the right reasons. Prospective buyers have an edge in a down market when property sales are slow and there is a glut of homes for sale. Amid faltering demand, buyers get the opportunity to pick up a house on the cheap. But this doesn't mean that they are guaranteed to make money from the properties they buy. (Source: http://www.mr-stingy. com/good-time-buy-property-malaysia/)

The demand for landed property has increased in the last few years but with the limited access to land areas, one might find that the transaction for condo/apartment is higher as it appears to be more affordable and there are sufficient supplies of condo. However, with the subdued land space, the capital gain will be higher.

Landed vs Condo - Which Is Better? Let's say you have RM800,000 to make a property investment, which would be better? A landed property or a condominium? While there are many who would probably choose the condo due to demand and availability, let's devise the pros and cons of a landed property versus a condo.

For RM800,000 you're probably looking at a 3 bedroom, 2 bathroom, and at least 1,100 sq. ft. condo in a good residential area, at most, with no additional space for a garden. However, a landed residence costing RM800,000 in a good residential area will probably get you a 4 bedroom, 3 bathroom, approximately 1,900 sq. ft. and sufficient land outside for a garden and a backyard.

Resale Value In terms of resale value, a landed residence almost always appreciates. In the years to come, when the land becomes scarcer, the property (house and land) will appreciate more than high-rise condos. Although some condos in certain strategic areas may appreciate twice in value, the resale value will most definitely be lower. For a condo, maintenance is the shared responsibility of all its residents. Hence, if a large number of residents do not pay their maintenance fees, the condo may become rundown over the years. For these two reasons, landed properties generally have a better resale value compared to condos.

Maintenance Fee Many condos are built with common areas such as garden and other facilities which need to be maintained. The monthly maintenance fee is charged to residents on a monthly basis (the fee usually ranges from RM0.20 per sq. ft. to RM0.35 per sq. ft.). Some may find it a little unfair to pay the high cost of maintenance when they hardly use the facilities. Since owners of landed properties maintain their own house and land, they need not worry about paying monthly maintenance fees.

Privacy and Space Landed properties often come with a small plot of land which you are free to use as you please. It can be turned into a beautiful garden, a recreational area for your kids or an extra parking lot.

Terraced houses are separated by walls, while the semi-detached houses and bungalows have more space between each house. Thus, residents are less likely to hear noises from their neighbours which is a common complaint for condo units due to close proximity living. With more space and privacy, landed property is generally a better choice for big families or families with children.

Facilities Condo and high-rise residences may lose out in space compared to landed properties but it compensates with common facilities within the condo compound which is accessible to residents only. However, residents of landed properties will need to travel to different locations to access different facilities unless you have a bungalow with all the built-in facilities.

Safety and Security One of the top reasons mentioned for choosing high-rise over landed properties is the safety and security of the property, as most of the high-rise properties are gated and guarded. Nonetheless, many residential areas also feature their own security system, such as house alarms and CCTVs. Having a dog around the compound can also be beneficial when it comes to security. Pets are generally not allowed in condos.

Conclusion In terms of long-term value, maintenance, facilities and equipment, and safety, a condo is definitely ideal, but if you're looking for privacy and more space for the same amount of investment then a landed property is the better option.