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Monday, March 31, 2008

Attractive land price, availability the pulling factors

The cheaper land price and availability of land in the Klang-Shah Alam corridor will continue to attract developers and house buyers to the property market there.

Henry Butcher (M) Sdn Bhd property consultants said transaction prices for residential title land for bungalows in Klang was relatively lower than Shah Alam and other first-tier cities in Malaysia.

Bungalow vacant lands were transacted between RM50 and RM60 per sq ft in Teluk Pulai, Klang, and RM65 to RM80 per sq ft in Bukit Jelutong, Shah Alam.

Newer townships such as Bandar Botanic was transacted from RM70 to RM80 per sq ft and Kota Kemuning had the highest transaction price from RM80 to RM100 per sq ft.

Meanwhile, transaction prices in Setia Alam in Shah Alam was from RM80 to RM90 per sq ft.

The Glenmarie-Saujana-Subang corridor and newer areas in Petaling Jaya such as Mutiara Damansara was transacted from RM220 onwards per sq ft.

Ho Chin Soon Research Sdn Bhd managing director Ho Chin Soon said: “It is a natural progression for people to move away from Kuala Lumpur to Petaling Jaya, Subang Jaya, Shah Alam and finally, to Klang as land become more expensive and scarce.”

With population growth at 4.8% per annum in the Klang Valley, developers are hard-pressed to move to second-tiered cities.

PPC International Sdn Bhd executive director Thiruselvam Arumugam concurred that land price was relatively cheaper and the built up of the properties was bigger in Klang.

“We believe Klang will continue to develop rapidly over the next three to four years, especially in the north,” he said.

Residential projects in Klang due for completion this year include D'Anjung in Teluk Pulai, Bayuemas, Taman Selat Damai in Pandamaran, Bandar Botanic and Glenmarie Cove.

Many new townships in Klang that which were launched in several phases consist of 70% residential units in view of higher demand for houses, he said, adding that property owners in Klang are cash-rich and price cautious.

According to PPC International Sdn Bhd executive director Kamarud-zaman Saad, property owners prefer Klang to Shah Alam, thanks to the freehold status.

He said WCT Land Bhd's Bukit Tinggi township, which is freehold, had led to the opening of Jaya Jusco and hypermarkets like Tesco and Giant. This has transformed Klang into a lively town with better facilities.

The landscape in Klang had gradually changed with the development of Bandar Botanic in the south by Gamuda Bhd that had also led other developers to promote similar lifestyle concept living, he noted.

Kamarudzaman said capital appreciation in Klang averaged from 10% to 15%, with good locations reaching up to 20%.

Meanwhile, Setia Alam township by SP Setia Bhd, which occupied 4,000ha in Shah Alam, is expected to trigger more new developments in north Klang, he said.

“The Setia Alam township will have a positive impact in Klang and Shah Alam,” he said, adding that the mixed development project was expected to complete in 10 to 15 years.

Reapfield Properties Sdn Bhd president David Ong said Setia Alam was the new growth area in Klang-Shah Alam corridor.

The new residential projects in Shah Alam are Kemuning Utama, Bukit Jelutong, Alam Impian, Alam Suria, Setia Eco Park and Subang Permata.

On the property market outlook, Kamarudzaman said the current volatile stock market would lead buyers to become more cautious in buying properties.

“We expect another year of slowdown in local property market in tandem with worldwide property market,” he said.

By The Star (by Shannen Wong)

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