The exclusive enclaves of Cheras

Many consider Cheras (both the Kuala Lumpur and Selangor portions) as old and congested.

However, while many are familiar with the decades-old terraced housing estates here, they may not be as familiar with the more exclusive sections of Cheras.

Mainly situated on elevated land, many of the high-end landed housing projects in Cheras are just a few years old and heavily gated-and-guarded. While the average transacted price of landed homes in Cheras KL hovered around RM1.32 million, and RM618,095 for Cheras Selangor as of 3Q2016 according to TheEdgeProperty.com’s data, the average asking prices of luxury homes there can go as high as RM7 million a unit on the secondary market! These projects mainly cater to upgraders in Cheras.

TheEdgeProperty.com has shortlisted five exclusive enclaves based on their locations in prime areas of Cheras and on their average transacted price of RM2 million and above. The projects are Bayu Segar, Masera Bukit Segar, Villa 33 @ Bukit Manda’rina, One Legenda and The Royale. All of them were completed less than 10 years ago. It should be noted that these properties are located at the KL and Selangor borders of Cheras.

Bayu Segar and Masera Bukit Segar are both located in Taman Segar while Villa 33 @ Bukit Manda’rina is located next to Taman Connaught.

One Legenda is located next to Taman Segar Perdana while The Royale is within Taman Segar Perdana. 

Bayu Segar was developed by IJM Land Bhd. It comprises 96 units of semi-detached homes and four bungalow units with built-ups of between 4,320 sq ft and 5,900 sq ft. Completed in 2009, the average transacted price for Bayu Segar homes based on two transactions in 2016 was RM3.35 million.

Masera Bukit Segar comprises 38 units of bungalows with built-ups of 7,000 sq ft onwards. Developed by PPB Hartabina Sdn Bhd, a wholly-owned subsidiary of PPB Group Bhd, the project was completed in 2008. Based on two transactions in 2016, the average transacted price was RM5.73 million.

Meanwhile, Villa 33 @ Bukit Manda’rina, which was also developed by IJM Land Bhd, consists of 33 units of bungalow homes with built-up sizes from 3,560 sq ft to 4,790 sq ft that were completed in 2012. Based on TheEdgeProperty.com’s data, there was only one transaction in 2016, which changed hands at RM3.62 million.

Completed in 2012, One Legenda is developed by Nova Legend Development Sdn Bhd, a subsidiary of Mah Sing Group Bhd. The development comprises 26 units of 3-storey bungalows with built-ups ranging from 5,700 sq ft to 6,754 sq ft.

Located not too far from One Legenda is The Royale, which was developed by LYL Group Sdn Bhd. It has 37 bungalow units with built-ups of between 5,610 sq ft and 6,272 sq ft. A 3-storey unit with a built-up of 4,908 sq ft was transacted at RM4.1 million in 2016, based on TheEdgeProperty.com’s data.

What these properties have in common

There are several common characteristics among these luxurious landed home projects. They are all located on hillsides or elevated land, are gated-and-guarded and are extremely limited in terms of units offered, property consultants have noted.

Generally, prices of these luxury landed homes have remained stable during the current market slowdown due to their high absolute prices. Rahim & Co International Sdn Bhd’s Cheras branch manager William Ng Mun Kin foresees prices to maintain in the near future.

“It is a good buy if you get a good price for these properties as there are limited units available and you cannot deny their exclusivity,” he says, noting that buyers may be able to find these properties being sold at below market value if owners do not have enough holding power.

According to Ng, the oldest landed luxury residential project in Cheras is Taman Bukit Segar, which has been around for more than 10 years.

Based on TheEdgeProperty.com’s data of three transactions in 2016 for 2.5-storey semi-detached homes in Taman Bukit Segar with an average built-up of 2,914 sq ft, the average transacted price was RM1.9 million.

Meanwhile, Metro Homes Sdn Bhd director See Kok Loong says it is now a good time for upgraders to look around for these high-end homes.

“Some homeowners might be willing to sell off their houses at a lower price, causing property valuations to be more realistic.

“Therefore, those with some extra cash in hand should consider upgrading their homes for their own stay,” he says.

Rahim & Co’s Ng also notes that the low-density, gated-and-guarded facilities offered by developers are very attractive to upgraders.

“If you notice, these properties are located in a centralised location in Cheras so they are close to many amenities. Besides, most properties in the subsale market in Cheras are single and double-storey terraced homes whereas these luxury properties are usually 2.5 storeys and above.

“These projects target buyers or upgraders who want exclusivity,” he tells TheEdgeProperty.com.

See concurs and adds that the main concerns of high-net-worth individuals are privacy and security.

He also points out that most of these developments are done on pocket lands and one does not need to be concerned about a high-rise building coming up next to them.

“[Although expensive] there is still a market for these semi-detached and bungalow homes. These kind of exclusive homes still have some demand provided they are well kept,” See adds.

Ng adds that properties with a KL address are able to fetch at least 20% more in their selling price.

Bayu Segar

According to him, Bayu Segar is the best performing project among the five in terms of capital appreciation, as it is a newer development and more accessible compared with the other four.

There were eight subsale transactions for Bayu Segar from 1Q2012 to 3Q2016, according to TheEdgeProperty.com’s data, and Ng says that the prices of Bayu Segar homes have appreciated about 30%. There were two transactions of RM3.2 million and RM3.5 million in the second and third quarter of 2016, respectively.

Masera Bukit Segar

On Masera Bukit Segar, Ng says there were fewer than 40 bungalow units in this project and they were all sold out.

“[Masera Bukit Segar has the] best location in Cheras, situated on top of a hill with unblocked views [of the city]. Currently, a bungalow unit with a swimming pool has an asking price of about RM7 million,” notes Ng. Based on TheEdgeProperty.com’s data, there were two transactions in 1Q2016 and 3Q2016, changing hands at RM6.25 million and RM5.2 million, respectively.

Villa 33 @ Bukit Manda’rina

Villa 33 @ Bukit Manda’rina, Ng says, is also attractive to buyers because of its location near Taman Connaught. However, the project’s leasehold status might hold some buyers back, he adds.

On the other hand, See feels that the leasehold status of the project may not be much of a deterrent if the security and facilities offered are good as many homebuyers today give priority to these aspects, especially when Cheras has old and small housing areas that do not offer gated-and-guarded schemes or facilities like clubhouses.

“Therefore, even though [Villa 33] Bukit Manda’rina is a leasehold project, it is still doing very well,” he adds. The same goes for The Royale, a freehold project situated on elevated land, which had an average asking price of RM2.96 million per unit as of end-2016 based on three listings on TheEdgeProperty.com.

One Legenda

Out of the five projects, only One Legenda has no transaction data yet on the secondary market. A spokesperson from Mah Sing Group Bhd told TheEdgeProperty.com that the 26 bungalow units of One Legenda had been fully sold out in 2015. The launch price of One Legenda was about RM3.6 million, according to the developer.

However, One Legenda’s location is slightly more secluded than the other four projects, Ng notes.

New high-end projects

When asked to identify the most promising new high-end landed developments in Cheras, Ng names The Peak at Bukit Prima Cheras due to its affordability. “There is still room for property prices there to grow,” he says.

The Peak at Bukit Prima Cheras is developed by Yuk Tung Development Sdn Bhd and currently fetches an average asking price of RM2.25 million, based on five listings on TheEdgeProperty.com.

Meanwhile, Metro Homes’ See says the market will need time to absorb these luxury homes.

“For high-end properties, their market may recover only after 2018,” he predicts, adding that in future, developers can no longer build such products — at least not on a large scale in Cheras due to land scarcity and rising cost.

See adds that Cheras is an area that is already almost fully developed and densely populated, hence the more affordable non-landed homes are expected to perform better in the more prime locations in central Cheras.

“So if people want [more affordable] landed homes in Cheras, they may want to look further in areas like Sungai Long or Kajang, or even Semenyih,” he adds.

One of the newer landed developments in central Cheras is Tiara Hills in Taman Taynton View by Modern Age Development Sdn Bhd, which is said to be developed on the last few undeveloped land parcels within Cheras KL.

The starting price for its super semi-detached units is RM3.5 million and RM2 million for its 2.5-storey and 3-storey superlink houses. The freehold, gated-and-guarded residential development is also located on elevated ground.

This story first appeared in TheEdgeProperty.com pullout on March 3, 2017. Download TheEdgeProperty.com pullout here for free.