HE strategic location of Old Klang Road between Kuala Lumpur and Petaling Jaya has paid dividends for its redevelopment potential. Being near the self-contained mix-use integrated development of Mid Valley City and the transportation hub of KL Sentral, the mature locality of Old Klang Road continues to transform.
According to Research and Consultancy Knight Frank Malaysia, this mature city fringe area has seen many new high-rise developments in recent years due to the scarcity of residential land. The projects are generally well received because more people are looking for lifestyle facilities at locations that offer easy accessibility and good connectivity.
Developers have come up with integrated or mix-use projects where the lower levels usually feature commercial and retail components for the convenience of residents. End-users occupy the higher floors within the developments.
The newer projects generally command higher price points due to the development concept, unit specifications, level of facilities and amenities offered, and other factors. They are targeted at professionals, young couples and families.
Knight Frank Malaysia has identified several completed high-rise projects along Old Klang Road such as Southbank Residence (completed in 2017), Avantas Residence (2016) and The Petalz (2016).
Notable on-going projects that will add to the future supply include The Nest Residences (2019), Avara Seputeh (2020), Millerz Square (2021) and Kuchai Sentral (2022). In the short term, Knight Frank Malaysia claims that the property market in the locality is expected to remain relatively stable.
Convenience and challenges
Both landed and high-rise residential units in Old Klang Road have continued to appreciate in value over the years due to its strategic location and ease of accessibility. New developments with improved products and better specifications that come with higher prices help to raise the profile of the area. The established locality is further supported by a wide range of amenities and facilities available in the immediate surroundings.
The upcoming MRT Line 2 with a station at nearby Kuchai Lama is expected to further spur demand for housing in Old Klang Road. Slated to be operational by 2022, it will enhance connectivity to the city centre and other areas in the Klang Valley.
Traffic congestion has been the norm in Old Klang Road, especially during peak hours. According to Knight Frank Malaysia, an increase in the number of high-density developments could worsen the traffic situation in the future.
Road dividers along the two-way Old Klang Road have inconvenienced motorists who need to travel some distance before making a U-turn to change direction. This weakness may be mitigated when the MRT Line 2 is completed.
Maxxan Realty Sdn Bhd senior negotiator David Ting Boon Hoe said that potential buyers or investors should consider housing units at the inner region of Old Klang Road instead of those along the main road.
“We have a surplus of high-rise developments offering units of less than 1,000sf coming up in the area, hence house prices will not be going up anytime soon,” he said, adding that capital appreciation is a viable goal but in the long term.
Ting looks to Kuchai Lama as a growth area, stating that the prices of medium-size units of 1,500sf to 2,000sf should appreciate quickly due to limited supply. As for property transactions, he said condominiums (depending on their age) could fetch an average price of RM450psf to RM620psf at Taman OUG and Kuchai Lama.
Ting sees Seringin Residence, a luxury condo of about RM920,000 to RM1.6mil (1,523sf to 2,638sf), at Happy Garden as a good buy because of its layout.
“It is estimated that Old Klang Road has around 20% undeveloped land left; this scarcity is an indication that property prices will rise,” he added.
According to Tech Realtors Properties Sdn Bhd senior negotiator Adeline Teh Seok Khim, Old Klang Road attracts buyers mostly from other areas such as Petaling Jaya, Subang and Cheras.
She attributes this to its location which gives residents easy access to highways such as the NPE, Federal Highway, North-South Expressway and Kesas. Amenities are also plentiful, such as vernacular Chinese schools, a medical centre and the reputable Mid Valley Megamall which is just a few minutes’ drive away.
However, tenancy rates for office spaces along Old Klang Road will be affected because they are unable to compete with those offered at Mid Valley Megamall. “Usually, it’s the small and medium enterprises that set up shop in Old Klang Road,” Teh said, adding that multi-national corporations prefer a high-end location.
Kuchai Lama and Taman OUG are predominantly Chinese while Taman Desa enjoys a diverse community, including Japanese and Korean expats.
In Taman Desa, Teh recorded average transactions for high-rise units at RM550psf to RM730psf and landed houses from RM1.2mil to RM1.45mil (1,870sf to 1,980sf).
She observed that leasehold commercial spaces in Danau Desa and the Kuchai Business Park enjoy good tenancy rates and a steady supply of customers. This is mainly due to the scarcity of commercial spaces in the surrounding area.
On property types, Ting said that Taman Yarl, for example, consists mostly of old bungalows while Taman OUG is made up of landed properties. Happy Garden maintains a mix of condominiums and landed properties.
“Now is probably the best time to buy property because prices are low,” he said, adding that the market will soon recover and prices shall pick up again.
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