> > TRANSACTION By Vicky How T he place that we now call Bukit Jalil previously consisted of 1,800 acres of estate rubber plantation.
In 1998, Malaysia proudly staged the Commonwealth Games opening ceremony at the National Sports Complex in Bukit Jalil.
Since then, there has been an influx of supplies of property developments (Vista Komanwel) in Bukit Jalil, which initially was meant to accommodate the athletes.
That same place later became a prime area for the many executives working at the notable corporations nearby such as the IMU, Technology Park Malaysia (TPM) and APU.
The strategic location and excellent accessibility of Bukit Jalil also contributed to the high demand for the property there. Bukit Jalil has a direct exit from the KESAS Highway and is located very close to the SMART Tunnel, shortening the travel time to the Kuala Lumpur city centre.
It is also located within proximity to Puchong, KLIA, Putrajaya and Cyberjaya. The Rapid KL Bus and LRT stations have also eased the traveling time for the public to travel in and out of Kuala Lumpur and the surrounding areas.
Due to the high demand of space in Bukit Jalil in the last few years, the top players in property development have been eyeing the last few pieces of land there. The demand for land has pushed up the value of the land price, causing the end purchasers to pay a hefty price for a serviced apartment, flat or condominium. Is Bukit Jalil worth investing? To answer this question, we did a little research on the existing properties and the future supplies.
The table below is a compilation of the names of current and ongoing projects and the number of units due for completion in Bukit Jalil and the surrounding region: There is a concern of oversupply with over 10,000 units of residential properties in the vicinity due for completion from 2018 to 2022.
The table excludes the projects that are in the planning stage and the three mega-developments, Paradigm City Garden, Bukit Jalil Sentral and Bukit Jalil City.
The sudden spike in supply from the year 2015 to 2017 has jeopardised the residential property market in Bukit Jalil.
As per table 2 above, the prices in Bukit Jalil has been either stagnant or falling in value.
However, there are also some developments that enjoyed some incremental capital appreciation.
The fall in price for both The Treez and The Z Residence is due to the implementation of the Developer Interest Bearing Scheme (DIBS).
Another reason is the 0% low payment package that was introduced years ago by the government but is now no longer available.
It is vital that the price equilibrium is met and the developers need to address the high demand by developing units in Bukit Jalil in order to prevent “property overheating” in the area.
It is also crucial for the developers to control demand by not overly supplying units in Bukit Jalil and regulating its current and future launches.
It is foreseeable with the current trend that there will come a point where the oversupply will lead to traffic and human congestion in the near future.
Alternatively, the developer should also explore other methods to improve the lifestyle of the residence in Bukit Jalil, such as building amenities like international schools, medical centres and other family-friendly amenities.
In conclusion, the author is concerned that there will be an oversupply of units in Bukit Jalil which will result in price stagnation and traffic congestion in Bukit Jalil for the foreseeable future.
Vicky How Sr.
Vicky How is the founder and principal of Propedia Consultancy.
Propedia Consultancy is a property consultant company that offer services such as sales and lease of property, property management, and valuation.
How is also a guest speaker for special events and a trainer for real estate agencies.
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