Real estate in a number of developing areas in the Klang Valley has risen in popularity despite the economic uncertainties in recent years.
Although there were many successful launches with units snapped up within a weekend or two, they did not indicate the growth of a developing hotspot, says C H Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen.
There had been instances of people buying on “herd instinct” similar to the stock market, where prices were already too high or when sales were driven by rumours or market manipulation.
“Sometimes, the market activity is due to genuine market forces but it is difficult to be certain,” he says. “Rather, it is the fundamentals that drive the upcoming of real estate in an area.”
PA International Property Consultants (KL) Sdn Bhd head of agency Wendy Tong points to infrastructure development as a key factor in bolstering property growth. “Developments near the upcoming light rail transit (LRT) and mass rapid transit (MRT) lines are likely to comprise stratified residential and smaller mixed-use components,” she says. “As accessibility is a big issue for buyers and investors, the mantra seems to be to choose properties where train stations and highways are built,” Malaysian Institute of Estate Agents president Siva Shankar says.
However, there are exceptions to the general “rule”, he adds, where some hotspots do not seem to be location-driven. “We have seen many locations that were previously perceived as “disconnected”, such as Bangsar South - previously Kampung Kerinchi - but developers have transformed it into an urban and lively locale. This has changed perceptions as to its attractiveness as a hotspot,” he says.
Foo says well-planned developments will be self-sustaining as they are developed with a clear and solid objective.
Foo says such localities will sell fast with facilities and amenities such as education, healthcare, leisure, entertainment and security.
In the residential market, with affordability being a key factor, more developments continue to trend towards smaller units – keeping the quantum pricing competitive to appeal to a wider target market of purchasers and investors, Tong says. “With more land bank activities in the fringe or upcoming suburbs due to land scarcity in the city, we expect to see more property launches – particularly landed residential schemes – in new areas at the fringe of the Klang Valley,” she says. Property consultants expect better performance in the secondary market. “Buyers are expected to turn to the secondary market for bargains on choice locations with immediate rental yields,” Tong says. - By The Star