By Khalil Adis
As Selangor is located just outside Kuala Lumpur and away from the city, it is home to many Selangorians as property prices here are reasonable. The average price psf (per square foot) can range between RM400 and RM600, although prices in some areas can be considerably less.
The average quantum price for homes here are from RM600,000 and below. Selangor’s population is predominantly local, where many own properties for a long-term stay. As such, the prices here are well-controlled and do not fluctuate as much as in Kuala Lumpur, where “flipping” (buying and selling within a short time frame) among locals and foreigners is common.
In my opinion, Selangor offers the most value for money as the various infrastructure projects – such as the KVMRT Line and Circle Line, plus interchange stations in Kajang and Sungei Buloh – will enhance property values along the lines.
Areas near the MRT extension, spanning from Sungei Buloh to the Kajang Line are expected to be popular among locals as it will shorten their travel time to the Klang Valley, where many job opportunities are available.
In addition, there are many affordable properties in this vicinity which are priced below RM600,000 – within the range of locals. As such, you should study where the MRT lines will be set up and target properties within the vicinity.
One township where you can still find affordable properties is in Semenyih, called Albury, developed by UMLand. Semenyih is similar to how Puchong was in 2005 when it was still a relatively up-and-coming township.
Back then, houses in Puchong were priced at around RM190 psf. However, as the area became more developed, prices rose to around RM700 psf in 2013. With the Ampang LRT Extension Line now opened, and five of them serving the vicinity: IOI Puchong Jaya, Pusat Bandar Puchong, Taman Perindustrian Puchong, Bandar Puteri and Puchong Perdana; property prices there are expected to rise further.
Check out PropertyGuru’s #MyHome Puchong:
Similarly, the Southern Corridor of Klang Valley will be moving in the same direction as Puchong, with many developers like UMLand building new township developments there. If we follow the success story of Puchong, prices of homes in Semenyih, which are now at around RM270 to RM300 psf, will likely reach RM600 psf as the area becomes more and more developed.
And as in the case study of Puchong and the trend towards transit-oriented development, it is likely that we will see new infrastructure developments within Semenyih once the township’s population has hit a critical level. With the upcoming Kajang MRT serving this vicinity, this means we will likely see a future BRT or extensions of the MRT Line 1 and Line 2 within Semenyih.
Remember, affordability is the keyword for the property market in 2016, to ensure you get the most capital appreciation from your property. However, the track record of the developer is also important. Do your own due diligence by buying from a listed developer, where the buyers’ needs are always kept in mind with quality finishings and timely delivery of homes.
UMLand, for example, is one of the top ten listed developers in Malaysia, so you can sleep easy, knowing your homes will be delivered on time.
However, I would also like to give you a word of caution when buying properties outside Kuala Lumpur. As Selangor is a huge area encompassing nine administrative capitals, not all areas will be suitable for you.
For example, you can find cheap and affordable properties in the outlying areas in Sabak Bernam and Kuala Langat, but your property may not appreciate in value as the areas there are still relatively undeveloped with no major economic activities and poor infrastructure. Remember to refer to my checklists!
Buyer’s Profile and Income Level
Selangor is primarily driven by the local market. The average income here ranges from RM2,000 to RM8,000 per month. For locals, buying a property near the upcoming MRT stations will increase the overall desirability, rental attractiveness and the capital values, as the properties will have higher demand once the MRT line is completed in 2017.
I would urge you to study the affordable homes that are being offered by both the state and federal governments. There are plenty of good deals, even below RM100,000.
As part of Budget 2016, government-linked companies (GLCs) have been tasked to build affordable homes in Selangor. In all, 800 affordable homes will be built close to the MRT lines. With the Ampang LRT Extension Line now open from Sri Petaling all the way to Putra Heights, plus future extensions along the Kelana Jaya Line to the BRT Line in Sunway, I would urge you to study and look for housing projects in and around these up and coming areas. In my opinion, Kwasa
Damansara is another hot area to watch out for as it will contain two stations within the township: Kwasa Damansara and Kwasa Sentral.
For foreigners, properties in Selangor are not appealing. This is because there seems to be some sort of anomaly in Selangor’s property market, as the minimum purchase price for foreigners has been increased to RM2 million effective 1 September 2014 in Zones 1 and 2. The two zones include the Petaling, Gombak, Hulu Langat, Sepang, Klang, Kuala Selangor and Kuala Langat districts.
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For Malaysians: Selangor is preferred by first-time homeowners as this area is driven by genuine home buyers and prices are relatively affordable. In addition, buying a property near the upcoming MRT stations will increase the overall desirability, rentability and capital value of your property.
For foreigners: As Selangor is located outside the Klang Valley, the minimum purchase price here should be similar to Kuala Lumpur’s, as not many foreigners will need a big space just to qualify for the RM2 million ruling. In view of this, foreigners will preferably purchase houses in Kuala Lumpur where the entry price is around RM1 million.
More Economic Drivers Planned
There are so many economic drivers planned all around Selangor that there are pockets of golden opportunity to be sought for first-time property buyers. Here are the low-downs on major infrastructure projects in the pipeline.
Sungei Buloh and Kajang will be the end stations for the MRT line. Each station will serve as the transit station – Sungei Buloh and Kajang will be connected to the Sungei Buloh and Kajang KTM stations respectively.
There are altogether 14 MRT stations in Selangor: Sungei Buloh, Kwasa Damansara, Kwasa Sentral, Surian, Mutiara Damansara, Bandar Utama (before going into the Klang Valley area), Taman Suntex, Sri Raya, Bandar Tun Hussein Onn, Bukit Dukung, Taman Operasi Cuepacs, Sg. Kantan, Bandar Kajang and Kajang.
2. Circle Line
Also known as MRT Line 3, this is the final line that will comprise of a “wheel and spoke” system to connect to MRT Line 1 and Line 2. Line 3 is expected to be completed in 2025. Collectively, all three lines will be integrated with the current trains systems forming the Klang Valley Integrated Train System.
3. PJ Sentral
PJ Sentral is a RM2 billion mixed-use development with a GDV of RM10 billion spread across 68 acres. Located within the administrative district of PJ Selatan, PJ Sentral is part of an urban regeneration programme to transform the decaying township. The project is believed to be the first in the vicinity to include sustainable development designs such as the Green Building Index (GBI) Gold for the individual building and U.S. Leadership in Environmental and Energy Design
(LEED) Neighborhood and Township Development Gold rating for the overall development. The development will enjoy easy access to the Taman Jaya LRT station.
4. Kwasa Damansara
This RM50 billion township spread across 2,330 acres is, in my opinion, a hot area to watch out for. Affordable housing is in the pipeline in Kwasa Damansara with two MRT stations (Kwasa Damansara and Kwasa Sentral) in the township that is connected to the Sungei Buloh – Kajang MRT line. Kwasa Damansara will be highly accessible via the NKVE, Guthrie, NSE and ELITE expressways. There is also a planned DASH highway.
Image credits: go2homestay.com, starproperty.my, propertyinsight.com.my, mynewshub.cc, thestar.com.my, malaysiazine.blogspot.my and ajm.com.my
Adapted from “Property Buying for Gen Y” by Khalil Adis