Malay Reserve Land and Bumi Lot: What Are The Differences Between Them (A Quick Look at Rencana Royale)? Part 2
Now that we have know the details of Malay Reserved Land and Bumi Lot from the previous part of this article. Let’s explore the key differences between these two land types, challenges and considerations of purchasing these properties and explore how Rencana Royale positions itself to capitalise on these advantages.
Key Differences Between Malay Reserve Land and Bumi Lots
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1. Ownership & Rental Restrictions
- Malay Reserve Land: Exclusively for Malay owners, with no possibility of selling to non-Malays. Can be rented on a short-term basis to any tenants regardless of race and ethnicity.
- Bumi Lot: Primarily reserved for Bumiputeras, but with the possibility of selling to non-Bumis under certain conditions. Can be rented on a short-term basis to any tenants regardless of race and ethnicity.
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2. Legal and Investment Implications
Malay Reserve Land has long-term ownership restrictions, which might limit liquidity in the market. However, these properties often come at a lower price, offering strong rental yields that are more competitive compared to other types of lands.
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3. Market Value
The market value of Malay Reserve Land generally is seen as lower compared to other types of lands. However, as projects like Rencana Royale demonstrate, these properties are in prime locations. Coupled with the fact that its location at TTDI which is primarily lived in and prospered by Malay residents, it potentially attracts affluent Malay buyers, potentially increasing the value of properties and most importantly, providing attractive rental yields and attractive rental rates for potential tenants, no matter the race and ethnicity.
For comparison purposes, a list of comparable condominium development projects in 2024 have been gathered within the TTDI area for your reference:
| Projects | Size (Sq ft) | Land Title | Estimated Price (RM) | Estimated Price per sq ft (RM) |
|---|---|---|---|---|
| Rencana Royale | 472 | Malay Reserve Land | 383,900 – 459,900 | 610 – 805 |
| Condo Project @ Damansara | 421 | Leasehold | 330,000 – 360,000 | 783 – 855 |
| Condo Project @ Damansara Perdana | 420 | Leasehold | 330,000 – 360,000 | 783 – 855 |
| Condo Project @ TTDI | 530 | Freehold | 650,000 – 795,000 | 1226 – 1500 |
| Condo Project 2 @ TTDI | 721 | Leasehold | 810,000 – 900,000 | 1123 – 1248 |
| Condo Project 2 @ Damansara Perdana | 375 | Leasehold | 305,000 – 350,000 | 813 – 933 |
| Condo Project @ Sri Damansara | 499 | Freehold | 450,000 – 481,000 | 901 – 963 |
Challenges and Considerations for Buyers
Buying either a Bumi Lot or Malay Reserve Land comes with specific challenges, particularly in terms of financing and resale. Many buyers worry about the restrictions on reselling Malay Reserve Land, but it’s important to note that in areas like TTDI, there is strong demand among the local Malay community. This demand can help mitigate concerns about liquidity, especially as urban areas like TTDI attract affluent Malay buyers who value both the exclusivity and long-term potential of these properties.
For investors, the primary challenge is understanding the legal framework around ownership restrictions and potential resale limitations. For instance, Malay Reserve Land can only be resold to Malays, which narrows the buyer pool. However, this exclusivity can also be a strength in prime locations, where demand remains high. It’s also essential for buyers to understand that financing options may differ slightly for Malay Reserve Land, with some banks offering specialised loan products tailored to these purchases.
In addition, financial institutions offer competitive mortgage options tailored to buyers of Malay Reserve Land, making it easier to finance these purchases. Interest rates for such properties are generally comparable to standard properties, but buyers should seek professional advice on the best financing options, especially if they are first-time buyers. In fact, some developments, such as Rencana Royale, also provide rental management services, further enhancing the investment potential and addressing concerns over liquidity and ease of managing rental properties.
Why Choose Rencana Royale for Malay Reserve Land?
Rencana Royale, located in the prestigious TTDI area, is a unique development on Malay Reserve Land that stands out for several reasons:
- Prime Location: TTDI is one of the most sought-after residential areas in Kuala Lumpur, known for its affluence and proximity to key amenities such as schools, hospitals, and shopping centres.
- Investment Potential: Due to its location on Malay Reserve Land, the initial purchase price is lower, but with high rental yields due to the unquestionably more attractive pricing and potentially stronger demand from affluent Malays. Plus, with facilities like rental management services, buyers can maximise their investment without hassle.
- Luxurious Facilities: Rencana Royale offers premium features like a sky lounge, infinity pool, and dedicated business spaces, making it a versatile option for both living and working.
Your Gateway to Exclusive Ownership at Rencana Royale TTDI
For Malay buyers looking to invest in prime property, understanding the differences between Malay Reserve Land and Bumi Lots is crucial. Malay Reserve Land, like Rencana Royale, offers exclusive ownership rights with excellent investment potential, especially in high-demand areas. Whether you’re looking to live, work, or invest, the right property could set you on a path to financial growth and stability.
Rencana Royale is strategically located in Taman Tun Dr. Ismail, Kuala Lumpur. The project is located only 5 to 10 minutes away from major shopping centres like Publika, Mont Kiara, 1 Utama, and The Curve just to name a few. Log on to Rencana Royale to discover more.
