Completion of catalyst projects a boost for price hikes


 > >  TRANSACTION By Ng Pau Ling pauline@thestar.com.my   After decades of vigorous growth, an even brighter future awaits Bukit Jalil with...

> >  TRANSACTION By Ng Pau Ling pauline@thestar.com.my   After decades of vigorous growth, an even brighter future awaits Bukit Jalil with the completion of more high-profile projects T wo decades of development, the continuous upgrade on amenities, as well as the mushrooming of new concept developments are set to transform Bukit Jalil into a vibrant and robust township.

The combination of recreation, leisure and lifestyle have given Reapfield Properties (Bukit Jalil) Sdn Bhd senior real estate negotiator Prabu Jai Balan reason to be optimistic over Bukit Jalil’s prospects.

Following the improved road networks connectivity, an increase of public transport options, competitive pricing and positive capital appreciation, as well as the Bukit Jalil City integrated project, Prabu believed that these two years would be the best timing to invest in Bukit Jalil.

He anticipated that the market would experience another round of price hikes once the catalyst elements are realised.

StarProperty: Tell us about Bukit Jalil.

Prabu: The National Sports Complex (NSC), completed in 1998, has been the factor driving the development in Bukit Jalil.

Among the earliest residential projects in the area are Vista Komanwel A, B and C.

It was once the Athletes Village of Commonwealth Games 1998.

After 20 years of development, Bukit Jalil has now grown into a self-sustained neighbourhood located on the southern part of Klang Valley, catering to the middle and upper-middle class residents.

Unlike the mature neighbourhood of OUG and Sri Petaling, Bukit Jalil is a young township with endless possibilities.

StarProperty: Tell us more about the resident population of Bukit Jalil.

Prabu: The resident population of a place varies based on its surrounding amenities.

The apartments located closer to the Bukit Jalil Stadium, such as Vista Komanwel and Arena Green are mainly occupied by students and working professionals.

It is also home to institutions of higher education such as IMU and APU, as well as the Technology Park Malaysia (TPM) and Astro.

The LRT facilities offer travel conveniences for working professionals.

While the Bukit Jalil Recreational Park is an attraction for residents living with families, there are also retirees or empty nesters from OUG and Sri Petaling who relocate here because of the recreational facilities.

The upper-class residents, on the other hand, are concentrated at the Bukit Jalil Golf and Country Resort, with some expats staying nearby to the Asian Football Confederation (AFC).

For example, the Savanna condo facing the golf course is sought after among expats.

StarProperty: How is the occupancy rate in Bukit Jalil? Prabu: I define the occupancy rate by the lights at night.

The older projects in Bukit Jalil is generally 80% occupied due to the lower rental price.

The occupancy rate for the newer projects built within these five years is about 60%.

Investor accounted for half of the buyers.

Also, the higher housing price has led to a higher rental rate, and the market needs time to digest the volume.

StarProperty: The influx of developers into the region has raised concern among some residents who believe that Bukit Jalil might be facing a situation of oversupply.

Do you think the market could cope with the new supplies? Prabu: From 2013 to 2018, the property prices in Bukit Jalil have increased by about 30%.

The primary market has seen a positive take-up rate even with a flurry of launches flooding the market within a short span of time.

The secondary market has been equally buoyant with the average price for condos rising from RM300 to RM800 per sq ft, between 2012 and 2016.

Looking back, Vista Komanwel with a total of 1,500 units had created a short-term oversupply in the fledgling market in 1998 when the Commonwealth Games ended, and all the athletes left.

However, TPM and Astro soon moved in, and the rental market started to pick up from the rising demand of the working professionals.

Though it is one of the oldest development in Bukit Jalil, the market price of Vista Komanwel is about RM400,000 while the rental rate can be as high as RM3,000.

The current plateau in the property market has somewhat slowed the price acceleration in Bukit Jalil.

However, the exciting upcoming developments, continuous upgrades on connectivity and the shortage of land for development at the Centre Business District (CBD) has given me a reason to anticipate that the market will continue to go up in the coming five to six years, assuming that everything goes as planned.

StarProperty: What is the market trend of the housing in Bukit Jalil? Prabu: High-rise residential developments priced between RM500 and RM700 per sq ft are the most sought-after property type in Bukit Jalil.

The Z Residence, Kiara Residence, Vista Komanwel, Jalil Damai and The Treez are doing pretty well in the sub-sale segment.

The Jalil Damai completed in 2006 was launched at RM170,000, and now the prices have gone up to RM550,000 For the primary market, The Park Sky Residence, Park 2@Bukit Jalil City and SkyLuxe are among the most expensive projects in Bukit Jalil, with prices ranging from RM750 to RM900 per sq ft.

For the commercial segment, the three-storey commercial units in Bukit Jalil City priced from RM4.8mil and the five-storey new shop lots by Ho Hup with the highest price at RM9mil are sold out.

StarProperty: How about the landed property in Bukit Jalil? Prabu: The supply of landed properties in Bukit Jalil is limited and mostly owner-occupied, which has resulted in less transaction activities in this market segment.

The landed properties in the township include Jalil Sutera, Sri Jalil and Taman Esplaned.

The sub-sale price of 2.5-storey terrace starts from RM1.5mil while the semi-Ds are fetching prices from around RM3mil.

The rental for landed properties starts at RM3,000.

A decade ago, the 2.5-storey houses in Jalil Sutera were launched at RM200 per sq ft or RM500,000.

Those properties now command a price of up to RM1.8mil.

StarProperty: What are the pull factors of Bukit Jalil’s properties? Prabu: 1.

Excellent connectivity through highways: The location is well connected with road networks.

The township has immediate access to major highways including Bukit Jalil Highway, KESAS, MEX, MRR2, KL-Seremban Highway and the LDP.

Easy access to other parts in the Klang Valley has contributed significantly to the growth in the area.

2.

Convenient public transportation options: Two new LRT stations namely Awam Besar and Muhibbah station have started to serve the township following the operation of the Ampang LRT extension line in Oct 2015.

Awan Besar Station is also the terminal for RapidKL buses en-route to Kuala Lumpur city via Sri Petaling, OUG, Kuchai Lama and Old Klang Road.

Furthermore, two stations away from Bukit Jalil station is the Terminal Bersepadu Selatan (TBS).

The integrated public transportation hub includes the interchange stations to LRT, MRT, KTM, KLIA Express Rail Link (ERL) and long distance express buses travelling to the south, east and northern part of Malaysia.

It has increased the number of transit-oriented developments (TOD), and also the general rise in demand for rental and purchase stemming from the new transport options.

3.

Bukit Jalil City project We have seen successful commercial malls increasing the value of its surrounding properties, such as Mid Valley Megamall, One Utama and IOI Mall Puchong.

Bukit Jalil is expected to benefit from the development of Bukit Jalil City.

The mixed development by Malton Bhd and Pavilion Group is expected to draw in crowds, residents and business opportunities into the region.

Bukit Jalil has a potential to grow into a happening wine-and-dine place just like Bangsar shortly.

It will be an attractive place for young crowds looking for trendy F&B.

StarProperty: From an investor’s point of view, what are the types of property that they should invest in considering the rate of capital appreciation in Bukit Jalil? Prabu: I would recommend investors to buy commercial properties in Bukit Jalil, as this is the underserved market.

There is no issue of oversupply here.

The existing commercial units are catered specifically for the attached residential project and are reasonably well tenanted.

If you have the holding power, the commercial unit in Bukit Jalil City would be a good investment.

StarProperty: What is the prospect of the Bukit Jalil property market? Prabu: Properties in Bukit Jalil have a relatively fair price compared to other mature townships such as OUG, Sri Petaling and Puchong.

These one-to-two years is the best time to buy property in Bukit Jalil.

Let me put it in this way: Think Puchong before IOI Mall.

Think Seputeh before Mid Valley Mall.

What is the price then and now? I foresee that there will be a price hike when Pavilion Bukit Jalil is completed in 2020.

Prabu Jai Balan Prabu Jai Balan is the senior real estate negotiator of Reapfield Properties (Bukit Jalil) Sdn Bhd with over 10 years of experience in the industry.

He currently focuses on the Bukit Jalil market.

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