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Saturday, December 8, 2007

Segambut set to soar

Neighbouring Mont'Kiara, Segambut starts to draw more attention from property developers

With limited land left in the neighbouring Mont’Kiara and its slightly lower land cost, some developers are turning to Segambut for their high-end projects. Metro Homes Sdn Bhd director See Kok Loong believes the profile of the area would rise due to these upcoming niche-market developments, hence increasing the value of existing properties there.

He said the prices of both freehold and leasehold terraced houses in the area would gradually increase by between 3% and 5% within the next one to two years. “However, those that are located close to these new high-end developments may appreciate as much as 10% within the same period,” he told PropertyPlus.

He explained that these projects, which mainly comprise gated and guarded communities, would set new pricing benchmarks in the area, thereby causing secondary market property prices in Segambut to adjust accordingly.

Upcoming projects in the area include Gadang Holdings Bhd’s Taman Seri Bukit Segambut, and Anjung Tiara by Alam Jati Development Sdn Bhd and Rolling Acres Sdn Bhd. The former consists of 54 units of 3-storey link homes while the latter comprises 44 semi-detached units,
both in gated and guarded neighborhoods.

“These projects would set new trends by bringing in lifestyle living into the area,” See said.

Despite the availability of land in the area, he noted that developers are only acquiring small parcels for their projects, which are located on the side closer to Mont’Kiara and Kepong.

Segambut is divided into two parts, separated by Sungai Keruh, the KTM railway track and the Plus Highway, with the other side closer to Kuala Lumpur via Jalan Ipoh.

“The area closer to Mont’Kiara is the more active side of Segambut, where most of the newer schemes like Bukit Segambut and Bukit Prima Pelangi are located at,” he said.

Besides these new high-end projects, See also attributes the appreciation in property prices to the changing trends of the industries in the area. He foresees the industrial sector in Segambut transforming into a commercial hub within the next 10 years or so.

“Segambut is mainly an industrial area with the likes of Tan Chong Motor and GBH Ceramic in its vicinity.

However, most of them might not be able to sustain rising labour costs and increasing land values and might be forced to move to other parts of town.”

He said this would create higher demand as well as increase the value of the residential properties in the area, similar to how property prices in the vicinity of PJ’s Section 13 have appreciated due to the upsurge of commercial properties there.

According to theSun/Metro Homes Segambut housing price monitor for the August to October 2007 period, a freehold 2-storey terraced house in Bukit Prima Pelangi with a lot size of 20ft by 70ft and a built-up of 2,000 sq ft was priced between RM365,000 and RM380,000.

Meanwhile, a leasehold 2-storey compact house in Taman Segambut Damai with a lot size of 14ft by 50ft and a built-up of 800 sq ft was transacted at between RM170,000 and RM185,000.

Two-storey homes more popular among buyers in Segambut

In the secondary market, See said 2-storey homes are more popular among buyers in Segambut, in particular those with freehold tenure.

“Although prices for homes with freehold or leasehold status could vary from 10% to 15%, the former are usually preferred although buyers also go for leasehold properties if there is a long lease term remaining (least 60 years or more),” he stated.

He said government-initiated infrastructures improvements such as the widening of Jalan Segambut and construction of a connecting bridge to Mont’Kiara would further increase the value of properties there. “Currently, only certain portions of the upgrading have been completed and there is still traffic congestion in the uncompleted parts. However, demand for properties in the area remains the same regardless of where they are located as residents are
already putting up with it (the congestion),” he added.

See said the rental market in Segambut is fairly active due to its competitive rates, which are lower than those in neighbouring Mont’Kiara and similar to those in Kepong. “Most of the tenants in Segambut work in KL and chose the area due to its proximity and easy access to the city centre,” he says.

A freehold 2-storey terraced house in Taman Segambut Indah with a lot size of 18ft by 60ft and built-up of 1,200 sq ft can be rented out for between RM700 and RM800 a month. In Segambut Bahagia, a leasehold 2-storey terraced house with a lot size of 20ft by 65ft and builtup of 1,400 sq ft is tenanted for between RM600 and RM850 a month.

By theSun (by Yap Yew Jin)

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