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Monday, April 28, 2008

Puchong developments going up-market

With property prices in the developed areas of Petaling Jaya and Subang Jaya having appreciated sharply, young families who are keen to own landed properties but face limited budgets are venturing into the Klang Valley's southern corridor. This is especially in the popular Puchong neighbourhood.

“From standard terrace units and high-rise apartments, Puchong folks have since graduated to high-end homes such as semi-Ds and bungalows set within themed gardens and landscaped environment as well as upmarket condominiums with all the trappings of modern luxury,” SP Setia Bhd group managing director Tan Sri Liew Kee Sin said.

He said that as developments moved further away, developers were compelled to stand out from the clutter and market their offerings with value-added features and innovative designs to woo buyers who didn’t mind a slightly longer drive as long as the new development offered more enticing proposition.

Property consultants said rising land prices in central Klang Valley had spurred property buyers to look for better bargains in the southern corridor that still had relatively affordable properties to offer.

“With house prices having climbed in other areas, neighbourhoods like Puchong, Seri Kembangan and other parts of the southern corridor are becoming more popular for those looking for more affordable housing,” said PPC International Sdn Bhd executive director Thiruselvam Arumugam.

Thiruselvam Arumugam

SK Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng said the southern corridor was a good area for developing landed housing units such as double terrace houses, semi-detached units and bungalows for families.

Chan Ai Cheng

She said transaction prices of property had also shown steady growth over the years.

“People normally buy the properties in Southern Klang Valley for own stay,” she added.

According to Chan, there is a good mix of buyers in the area in terms of race and income.

Double-storey terrace houses in prominent existing projects such as Putra Heights, Bandar Puteri, Bandar Bukit Jalil, Taman Puncak Jalil, Bandar Kinrara and Bandar Puchong Jaya are sold from RM200,000 to RM750,000.

Thiruselvam said the rental for a standard double storey terrace house in these areas ranged from RM400 to RM2,000 per month.

He said the rental appreciated only by 2% to 3%, whereas capital appreciation for houses was good with prices rising 100% over the past decade.

According to him, Southern Klang Valley units are mainly for residence, rather than bought for speculation or investment.

Reapfield Properties Sdn Bhd president David Ong said the main draw to Southern Klang Valley was affordable house prices although factors such as value investing and property speculation could not be easily discounted.

“Prices of houses have peaked significantly in the central region of the Klang Valley, giving rise to an outward flow of the purchasing population to both the north and south of the Klang Valley,” he said.

Many buyers have sought investment opportunities by purchasing large bungalow plots, bungalows and semi-detached homes in this area on expectation that prices will increase significantly over the course of the next decade.

“While property prices can be said to be affordable or cheaper here than in the prime city areas, the high petrol prices and higher toll rates have started to cause a reverse migration effect,” Ong said.

Many buyers who bought in the fringe or secondary areas of the Klang Valley are starting to drift slowly back to the city as the benefits of lower housing instalments become significantly offset by higher price of fuel and toll rates.

“It now makes sense to some people to buy smaller apartments or flats in strong city locations rather than pay for cheaper houses outside central Klang Valley but end up bearing increased living expenses via higher fuel prices and increasing toll rates,” he said.

By The Star

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