As mentioned previously, I am currently searching for an investment property, and I’ll be sharing my journey and analysis along the way. My main objective is cash flow.
The property viewing I attended last week was Enlace @ Pantai Sentral Park. This is a pre-built property, meaning it is still under construction and I would be purchasing directly from the developer. The expected completion date is Sep 2029.
The project has 2 buildings, Enlace Suites 1 and Suites 2. Enlace Suites 1 has more units while Suites 2 is more luxurious. This project is part of the masterplan of Pantai Sentral Park, located at Bangsar South/ Kampung Kerinchi. This masterplan started 10 years ago and was expected to complete in 10 to 15 years and now the expected completion date has been pushed to 2040.
The main selling point of this project is its direct link bridge to the Forest Reserve and future MRT3 train station.
This project has more than 10 layouts.
In this analysis, I will use the layout B (Enlace Suites 1).
Details of Enlace Suites 1:
| Completion Year | 2029 Sep |
| Tenure | Leasehold |
| Size | ~560 sqft |
| Layout | 1 Bed/ 1 Bath |
| Developer | IJM Land |
10 criteria for Selecting an Investment Property
| Criteria | Details | |
|---|---|---|
| Well known developer | IJM Land | ☆☆☆ |
| Scarcity | Link bridge to Forest Reserve and future MRT3 | ☆☆ |
| Mutiple tenant target | Young Professions/ Expats | ☆ |
| Price | Type B : RM1,071 psf RM600,000 | ☆ |
| Accessibility | Highways: NPE Train Station: Future MRT3 | ☆ |
| Layout | B: 1 Bed/1 Bath | ☆ |
| Cash Flow | Current rent : Rm 1,700; monthly cash flow of -RM1,175 | ☆ |
| Catalyst for potential Capital gain | Completion of MRT 3, More offices moving in to the masterplan | ☆☆ |
| Big Shopping Mall/ Business Districts nearby | Shopping Mall: Mid Valley Business District: Bangsar, KL Sentral | ☆☆ |
| Rental Yield | 3.4% | ☆ |
| Overall | ☆ |
Simulation
The asking price for the property is RM600,000 after discounts/rebates.
Purchase costs include:
- Interest payments during the construction period
I plan to take partial mortgage insurance coverage, which costs approximately 2% of the purchase price.
As a new owner, I would also need to bear utility deposits for:
- Other utilities
- Water
- TNB
- Indah Water
To remain conservative in my calculations, I also included vacancy risk.
After completion, I will need to get a defect check and request developer to do the repair as well refurbish the unit before listing.
The average asking rent in the area is also around RM1,700, so I assumed there could be a 12-month vacancy period after handover, given that it is in the city center.
Total downpayment would be around RM53,000 and I would need to borrow around RM690,000.
With a loan interest of 3.7% and 35 years tenor, the monthly mortgage would be RM2,414.
Monthly Cash Flow Analysis
Average asking rent is RM1,700 per month. I have listed down all the monthly expenses:
- Quit rent and assessment tax – paid twice a year and I calculated the monthly cost
- Insurance – house insurance is needed, in case of a fire, etc
- Maintenance fee – RM0.50 psf including sinking fund
- Property management fee – I will be doing it myself thus RM0
- capital expenditures – in case there is any repair or replacement of furnitures needed
Overall, the money going out of my pocket will be mortgage (RM2,414) + total expenses (RM377), which a total of RM2,791.
Total money flowing in would be the rent, RM1,700.
In total, I will be losing ~RM1,172 each month or RM13.093 annually.
Annual cash flow divided by the total invested capital will bring a negative rental yield of 24.70%.
My objective is to achieve positive cash flow, so this property is clearly a NO for me.
Capital Gain = Icing on the cake
Assuming this project appreciates by 1% annually and I sell it after 10 years, the estimated total profit would be around RM10,974, translating to an annualized return of 2.071%.
The total return is too low, comparing to the stock market of an average of 10% return. Thus, this is a big NO.
Concerns About the Masterplan
Another concern is the density of future developments within Pantai Sentral Park.
The area will eventually include:
- Additional residential towers
- Offices
- Retail lots
- A future hospital
While mixed-use developments can create vibrancy, I question whether the growing number of high-rise buildings may eventually dilute the “forest living” concept that is heavily marketed today.
The masterplan appears increasingly packed with towers, which raises questions about future supply and competition among landlords.
Furthermore, I reviewed the performance of an earlier completed project within the same township, Secoya Residensi, where many owners appear to be struggling to generate satisfactory returns.
During my visit to the sales gallery, I also passed through the nearby Rumah WIP area. The contrast in infrastructure quality and overall environment was immediately noticeable. Whether this affects long-term property values remains to be seen, but it is certainly something potential buyers should consider.
Finally, the masterplan’s completion timeline has already been extended multiple times. Given this history, there is always the possibility of further delays or changes to future phases.
Final Thoughts
Enlace @ Pantai Sentral Park is undoubtedly an attractive project on paper. It offers a reputable developer, future MRT connectivity, access to a forest reserve, and proximity to major employment hubs such as Bangsar South, KL Sentral, and Mid Valley.
However, investing is ultimately about numbers, not marketing materials.
At RM600,000, the rental income simply does not justify the purchase price. Even under optimistic assumptions, the property generates substantial negative cash flow and offers limited upside from capital appreciation. In addition, future supply within the masterplan and uncertainty surrounding project completion timelines add further risks.
For owner-occupiers who value the lifestyle proposition and are willing to pay a premium for it, Enlace may be a reasonable choice. As an investment property focused on cash flow, however, it does not meet my criteria.
For now, my search continues.
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