Southern KL promises greater property value

Southern KL, property value

By BUSINESS TIMES

THE southern region of Greater Kuala Lumpur promises to show the biggest growth in landed house prices over the next 10 years. According to experts, this would be the best time to buy or invest in properties in the area. Hartanahguru.com founder Abdul Aziz Ahmad said Greater Kuala Lumpur was still developing and could see aggressive growth in the future. “The area offers the most value for money if buyers or investors decide to make purchases now as prices are still within the affordable range,” he said in an interview with Business Times recently. The Greater Kuala Lumpur southern hotspots can be divided into three areas — Sepang, Bangi-Nilai and Kajang-Semenyih.

According to property author and journalist Khalil Adis, the growth corridor of Kajang-Semenyih holds the most promise for first-time house buyers as properties there are still affordable and have the greatest potential for capital appreciation. Aziz said landed residential properties in Kota Warisan and Salak Tinggi, Sepang, were also within the affordable range. Furthermore, the areas were sandwiched between Putrajaya, Cyberjaya and the Kuala Lumpur International Airport (KLIA).

“KLIA serves as an economic driver which will boost the airport’s surrounding areas. It will also boost surrounding properties as the KLIA Aeropolis takes shape,” he said.

Economic drivers
Spanning over 404.7ha, the KLIA Aeropolis is expected to deliver about RM7 billion in foreign and domestic investments. Aziz said like KLIA Aeropolis, other economic drivers in the southern part of the country, such as Iskandar Malaysia in Johor and neighbouring Singapore, were the “gravity” that was pulling developments and population down south.

Malaysia Vision Valley (MVV), a multi-billion ringgit central region development plan, which is expected to generate investments of more than RM417.6 billion by 2045, will create an additional gravity force. The 108,000ha MVV will encompass the towns of Nilai, Seremban and Port Dickson in Negri Sembilan. Former minister in the Prime Minister’s Department Tan Sri Abdul Wahid Omar said Labu, located between Nilai and Seremban, would be the central business district of MVV.

Most landbanks in Labu are owned by Sime Darby Bhd. The MMV hotspots will follow the examples of Shah Alam, Damansara, Puchong and Subang Jaya, which have been enjoying aggressive growth in property value once investments start coming in.

All four are situated between major economic drivers of Port Klang and the city centre, here. United Malayan Bhd (UMLand) group managing director Dennis Ng said southern Greater Kuala Lumpur had grown to become the country’s leading property hotspot because of the geographical advantage and spillover effects from the country’s economic activities.

“The strategic location also puts it in the centre between the nation’s main business, administrative and technology hubs of Kuala Lumpur, Putrajaya and Cyberjaya. “Kuala Lumpur’s southern corridor now has a population of almost half a million as a result of its commercial and employment opportunities.

Its population growth has created an unprecedented demand for commercial and residential properties,” he said. The corridor also included an education hub comprising colleges and universities such as Kolej Universiti Islam Selangor, Universiti Putra Malaysia and Universiti Kebangsaan Malaysia, Ng added.

United Malayan Bhd group managing director Dennis Ng says population growth in Kuala Lumpur’s southern corridor has created an unprecedented demand for commercial and residential properties.

Mode of transportation
Highways and upcoming public transport such as the mass rapid transit (MRT) and the Kuala Lumpur-Singapore high-speed rail (HSR) networks are other advantages for Greater Kuala Lumpur hotspots, which will appreciate in value in the future. The highways include North-South Expressway Central Link, North-South Expressway and Maju Expressway (MEX). MEX, which connects Kuala Lumpur City Centre and Putrajaya, will be extended to KLIA.

In a recent report, Wahid revealed the proposed extension of the West Coast Expressway to Pontian, Johor, passing through KLIA. Aziz said there was also speculation that the Sungai Buloh-Serdang-Putrajaya MRT Line would be extended to KLIA from Putrajaya.

The HSR, meanwhile, will consist of eight stations, namely Bandar Malaysia, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat, Iskandar Puteri and Singapore, and will be another main booster to property values in the southern region of Greater Kuala Lumpur.

The HSR link is expected to be operational in 2026. Khalil said a property within a kilometre from a train station was highly desirable and could generally command a five to 10 per cent premium in asking price.

Big boys are there
Top local developers with global footprints have made their mark on the hotspots, coming up with unique projects to attract buyers. These developers include Eco World Development Group Bhd (Eco Majestic and Eco Forest in Semenyih), SP Setia Bhd (Setia EcoHill in Semenyih), UMLand (Albury in Semenyih and Bandar Seri Putra in Bangi) and IOI Properties (Avista near Kota Warisan).

Others are Sime Darby Property (Serenia City near Kota Warisan), UEM Sunrise Bhd (Serene Hills in Bangi) and Mah Sing Group Bhd (Southville City in Bangi). Ng said the presence of many well-known developers in the southern corridor fitted nicely with what property buyers wanted. “Real demand will continue to be strong from property buyers who are looking for a place of their own or for investment purposes.

This is especially true for southern Greater Kuala Lumpur due to its geographical advantage,” he said. Despite the challenging market conditions, many developers were confident of delivering sustainable financial performance, supported by a solid track record, right market positioning as well as a healthy liquidity profile, Ng added.

– Malaysia Property News

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