I posted a little blog post about KL's Property Hotspots on Monday, which received some very interesting responses. I received some comments on that blog post - which prompted me to do a reply to those comments yesterday - with regards to Mont Kiara. On Monday, @Patchay also posted up my recommendations on LYN - and then of course, he posted up HIS own opinions as well.
@Patchay's list included...
1. KLCC (include certain areas within KL City)
2. Mutiara Damansara/Bandar Utama
3. Desa ParkCity/Damansara Avenue
4. Puchong/Kinrara
5. Taman Tun Dr Ismail (for secondary market)
6. Bukit Jalil
7. Bangsar/Pantai area
8. Setia Alam in Shah Alam
9. Cyberjaya
10. Mont Kiara/Sri Hartamas
11. Damansara Utama/Uptown/Jaya/SS2
12. Old Klang Road
13. OUG/Kuchai Lama
14. Damansara Perdana/Kota Damansara
15. KL South/Cheras North
16. Setapak
17. Kelana Jaya
18. Subang Jaya/USJ
19. Seri Kembangan/Jalan Sungei Besi
20. Sentul
21. Desa Melawati/Dato Keramat
Potential areas for next BOOM:
1. Section 13/14 PJ
2. Section 52 PJ
3. Kelana Jaya
4. Ampang Hilir (for concept development only)
5. Areas between Shah Alam and Klang, in particular the catalyst will be Setia Alam
2. Mutiara Damansara/Bandar Utama
3. Desa ParkCity/Damansara Avenue
4. Puchong/Kinrara
5. Taman Tun Dr Ismail (for secondary market)
6. Bukit Jalil
7. Bangsar/Pantai area
8. Setia Alam in Shah Alam
9. Cyberjaya
10. Mont Kiara/Sri Hartamas
11. Damansara Utama/Uptown/Jaya/SS2
12. Old Klang Road
13. OUG/Kuchai Lama
14. Damansara Perdana/Kota Damansara
15. KL South/Cheras North
16. Setapak
17. Kelana Jaya
18. Subang Jaya/USJ
19. Seri Kembangan/Jalan Sungei Besi
20. Sentul
21. Desa Melawati/Dato Keramat
Potential areas for next BOOM:
1. Section 13/14 PJ
2. Section 52 PJ
3. Kelana Jaya
4. Ampang Hilir (for concept development only)
5. Areas between Shah Alam and Klang, in particular the catalyst will be Setia Alam
_________________
I admit that to some of the locations - I would agree with him. But a few others... unfortunately I dont. There will be some which will be in-betweens, but anyways, this just prompted to work on this Part 3 of the KL's Property Hotspots posts.
KLCC area is already one of my favourite hotspots, together with Mutiara Damansara and Damansara Perdana. Desa ParkCity is also a good location too. Most of these places have extremely high growth potential - and I would recommend the mentioned locations to any investor who is interested to invest in some form of property around here.
Bandar Utama.
I would say there is plenty of potential in Bandar Utama - however, the potential is not as impressive as I would say. Linkhouses used to be sold for RM500,000 here years ago, sold overnight, through balloting and so on. Today it is still the same - but at 3 times the price. There was only one developer - See Hoy Chan Holdings and I would say they planned the whole township very well. Today, the link houses can fetch even RM1.5million for some of the 2.5 storey types.
However, I would say, the area is a victim of their own success. The location of One Utama in the heart of Bandar Utama has made the area overly congested and every weekend, it is practically a nightmare getting into the area. With its strategic location and good connectivity (it connects Mutiara Damansara, Kota Damansara, Ara Damansara and so on) of over 50,000 homes within its radius, the infrastructure in Bandar Utama needs to be upgraded.
That being said - I would say that current prices of RM450-RM550 psf (built-up) would easily go up to hover at about RM800 psf (built-up) in 2012. It is still everyone's favourite location - and most would kill just to stay there... I wont stay here, but I would invest here.
Puchong/Kinrara area.
This area has benefited a lot from the development of Putrajaya. With the LDP that cuts right across Puchong area (with a slip-road to Kinrara) and heads direct to Putrajaya, Puchong is in a very prime location. The investment potential in this area is tremendous, but do bear in mind that you need to get the right part of Puchong to benefit from this. I would say, your property would need to be as close as possible to the Sunway LDP toll. Puchong is also a victim of its own success... today's residents are all fuming everyday due to the ridiculous traffic jams going in and out of Puchong.
Current prices hover between RM280 - RM350 psf for a decent apartment. I think this price would probably manage to get about RM400 psf by 2012. That is not much, but unless the authorities is planning to resolve the traffic solution permanently - I would say this would remain the main concern for Puchong investors. I would also bet on the LRT extension to help to grow Puchong's investment potential further - but that... would take some time.
Taman Tun Dr Ismail.
The investment potential in TTDI area is good, but not great. There is technically no more land available for development in TTDI area already, so whatever you see now, thats about it. Properties in TTDI area have been on a steady increase over the years; rental yields would be good as well, but thats would probably be that.
The other problem with TTDI is the same as Bandar Utama's - the congestion problem is a major issue. But TTDI has an advantage - it carries a Kuala Lumpur address, but a Petaling Jaya (off the peak KL) location.
Setia Alam area.
Two of the country's largest developers have major projects here - namely S P Setia as well as Mah Sing. If you were to consider the location of Setia Alam carefully, you'll find that the area is actually closer to Klang than Shah Alam. There is some room for expansion for this part of 'Shah Alam' though. It will take time though.
Based on what I see on the maps, there is an abundance of land around here, and it can expand in so many different directions. Houses are currently sold at RM650,000 upwards for a 2,700 sf built up unit - about RM 240 - 260 psf (built up). I think the prices should be able to reach RM750,000 by end of next year; in terms of appreciation, perhaps an inflation-adjusted 15% would be realistic.
The other locations??? Like I mentioned, Old Klang Road / Kuchai Lama and OUG areas are existing matured neighbourhoods that I would put my money on, KL South area would need more time though. As for Setapak / Wangsa Maju area - the potential is there, but nothing great about it. Rental yields there are good because of the TAR College students though. I see a lot of potential in Kelana Jaya as it still has certain small tracts of undeveloped land.
As for Subang Jaya and USJ... I think lets not look in this direction yet. Subang Jaya, USJ, and its new fringe townships Putra Heights as well as USJ Heights represent a massive area to be developed - and I'm just hoping it wont become a situation of oversupply here. As for Seri Kembangan area - plus Balakong as well - there is some potential here as well. This place should also enjoy a good 20-25% appreciation over the next 1-2 years. Sentul has been a location that I havent touched on - but it has plenty of potential.