More affordable housing making its way to market
Kenanga Research says the property sector continues to improve based on what it sees dissipating concerns over affordability...
Over the years, there have been many suburbs that have seen a surge in property value and market demand due to a host of factors such as the introduction of infrastructure developments, retail developments that draw in a crowd as well as unique residential and commercial developments that add to the profile of the location.
StarProperty takes a look at the eight suburbs that are showing promises for the near future based on Compound Annual Growth Rate (CAGR) of terraced houses, shop lots and condominiums as well as existing and incoming infrastructure developments.
Kota Damansara
Kota Damansara has been an increasingly popular choice over the years due to its number of condominiums and connectivity to shopping malls and offices within the TTDI, Mutiara Damansara and Bandar Utama area. Kota Damansara has also seen an influx of office spaces but it is the residential developments that are thriving with terraced houses enjoying a staggering 6.5% CAGR increase in the same period.
Damansara Heights
Damansara Heights has always been known for its luxurious catalogue of bungalows stacked along windy roads that are home to affluent individuals. The residential houses within the area have always had a huge price tag with even smaller units running into the millions.
In the beginning of 2016, terraced houses saw a dip in price under RM1,000 per sq ft (psf) until the MRT Line 1 was launched later in the year. As of 2019, the average price has returned to over RM1,000 psf and is on a steady incline.
Taman Tun Dr Ismail (TTDI)
TTDI has a reputation for quality neighbourhoods that have stood the test of time mostly consisting of terraced houses. Over recent years, there have been an influx of office towers like Menara KEN TTDI and Menara LGB, boasting tenants that include Deloitte and CIMB.
Shop offices here have seen a 1.5% CAGR increase between 2015 and 2019 with an average transacted price of RM4.75mil. TTDI’s reputation for residential developments is further reinforced by the 1.6% CAGR increase in the same period. The influx of businesses is further complemented by the accessibility to the MRT Line 1.
Mont Kiara
This township went from an isolated rubber estate to a condominium haven within 30 years. Mont Kiara is a unique location with the large number of expatriates residing there, namely from South Korea and Japan. Despite the large number of condominiums within the area, these developments are still holding their value and seeing price appreciation. Between 2015 and 2019, the average transacted price for a condominium increased by 1.3% CAGR lingering above the RM650 psf mark.
Shop offices here have seen a 2.5% CAGR increase within the same period. Mont Kiara is, however, an evolving location that is expanding on its reputation as a condominium hub with the entry of projects like The MET Corporate Towers, a Grade-A stratified office tower, set to be completed in 2022.
Kepong
Formerly recognised for tin mining until the emergence of Desa Park City that transformed this suburb into an upper class neighbourhood. Although the surrounding developments are not as refined or conceptually sound as those in Desa Park City, they have enjoyed an increase in property value.
For instance, shop offices in Bandar Manjalara saw a 2.3% CAGR increase in average transacted price between 2015 and 2018. Additionally, terraced houses here have seen a 4.6% CAGR increase to approximately RM600 psf. Things are looking even better with the introduction of Kiara Bay, a RM15bil mixed development and the incoming MRT Line 2.
Sri Hartamas
Sri Hartamas is one of the smaller townships on this list, but one with solid landed residential developments and excellent connectivity especially to the NKVE and Penchala Link.
Recognised as a high-end community with luxurious developments, the introduction of Somerset Sri Hartamas, a serviced apartment with 308 units, is expected to spur demand further. The existing number of condominiums within the area have enjoyed a 2.4% CAGR increase between 2015 and 2019 while terraced units have increased at the same amount within the same period.
