Ampang’s classy section, Taman U-Thant

MENTION Taman U-Thant in Ampang, Kuala Lumpur and images of posh mid-rise condominiums and the numerous foreign embassies located there will immediately pop up in our minds. Established in the 1960s, Taman U-Thant was named after the former United Nations secretary general, U Thant, who served from 1961 until 1971. With the hefty price tags attached to the affluent location, it remains one of the most exclusive and hottest addresses in the Kuala Lumpur city centre and is located approximately 10 to 20 minutes away from the Petronas Twin  Towers depending on traffic conditions.

According to Reapfield Properties head of sales Matt Tian, it is important to note that Kuala Lumpur’s Ampang is made up of two main areas, namely Ampang Hilir and Taman U-Thant, more commonly known as the Embassy Row.

“New condos at Ampang Hilir are priced at an average of RM900 to RM1,000 psf while condos located just next door near the Embassy Row area such as those on Jalan U-Thant are being priced at around RM1,200 to RM1,300 psf,” says Tian.

According to data from TheEdgeProperty.com, transacted prices of non-landed residential properties in Taman U-Thant peaked in 1Q2014 when non-landed homes were transacted at RM839 psf, up 29.28%, compared to 1Q2013 at RM649 psf. Since its peak, there were price movements up and down, generally stabilising above RM750 psf in 2014 and 2015. As of 2Q2016, data showed non-landed residences in Taman U-Thant transacted at an average of RM795 psf, representing a 3.4% growth compared to RM769 psf a year ago. Meanwhile, transaction volume for non-landed residences hit its peak at 36 units in 4Q2013 but subsequently dropped to the range of tens from 1Q2014 to 4Q2015.

Zerin Properties head of research and consultancy Roja Dani Applanaidu says residential properties in Ampang had recorded price growth over the past five years despite a drop in the total number of transactions.

“The drop in transactions was generally due to the overall market slowdown and the cooling measures, including stringent loan approvals,” she adds.

Roja notes that although there has been a decline in sales of non-landed homes due to the property market slowdown, prices continue to escalate on the back of rising costs, including the implementation of the Goods and Services Tax (GST). Besides, developers are also launching fewer units than before.

Knight Frank executive director of research and consultancy Judy Ong also agrees that the market for high-end residences in Ampang KL has been affected by the current slowdown while stringent lending guidelines continue to curb property sales. “This is evident from the lower ratio of loan approvals to applications. The approval rate was 50.2% in 2015 compared to 52.9% in 2014, according to Bank Negara Malaysia,” cites Ong.

Best-performing condos

The highest transacted price in 2015, according to TheEdgeProperty.com’s data, was netted by 78 LAD, a low-density condominium, nestled between Holiday Villa and the Russian Centre of Science and Culture. Transacted at an average of RM2.85 million, 78 LAD condos have large built-ups of up to 6,082 sq ft.

The next highest transacted average prices were recorded at luxury condominiums Sastra U-Thant and Seri Ampang Hilir at RM2.41 million and RM2.38 million, respectively. Sastra U-Thant, which was developed by CapitaLand and Juta Asia Corp Sdn Bhd, has an average built-up of 1,884 sq ft while Seri Ampang Hilir by Tan & Tan Developments has an average built-up of 2,454 sq ft.

According to the Kuala Lumpur Structure Plan 2020, it is stated that the existing international character of the high quality and low-rise residential areas around Jalan Ampang and Jalan U-Thant will be enhanced with low-density control and prohibition of high-rise developments. This applies to Taman U-Thant, Jalan Damai, Jalan Semarak and Titiwangsa residential areas.

“The maximum height for a project development in the U-Thant area is limited to 10 storeys,” says Reapfield’s Tian. This low-density character of the place adds to its appeal.

Meanwhile, on an average price psf basis, Sastra U-Thant recorded the highest price psf at RM1,280 followed by Seri Ampang Hilir and Embassyview. Embassyview is a low-density luxury condominium developed by Sime Darby Group and Brunsfield International Group offering units with an average built-up of 1,899 sq ft.

According to Tian, residents in the Ampang area mainly comprise expatriates and foreigners working at the various embassies in the area, such as the Embassy of the Republic of France, Royal Thai Embassy and the Embassy of Switzerland, oil and gas companies and multinational corporations with offices in Kuala Lumpur City Centre.

“Locals who are staying here constitute generations from old families or parents with grown-up children to young couples and single professionals. In addition, there are families with children who send their kids to the international schools nearby,” Tian adds.

Some of the international schools in the area include the Sayfol International School, Fairview International School and the Mutiara International Grammar School. In addition to that, The International School Of Kuala Lumpur (ISKL) is targeting to relocate its primary and secondary campuses, which are currently situated in Melawati and Ampang, to the U-Thant area.

“On top of that, the area has excellent accessibility via several highways such as AKLEH, MRR2 and the Duta-Ulu Kelang Highway (DUKE),” offers Tian.

In terms of public transport, U-Thant residents have access to the KLCC and Ampang Park LRT stations of the Kelana Jaya Light Rail Transit (LRT) Line which leads all the way to Gombak on one end and Putra Heights on the other.

“There is a wide range of amenities and facilities such as shopping malls and medical centres nearby. One of it is the new annex at the Gleneagles Kuala Lumpur, which was completed last year, providing a one-stop health screening centre, 51 specialists’ consultation suites and 23 retail lots,” Ong elucidates.

However, Zerin’s Roja highlights some downsides to living here. “It is a crowded area because of the large working population in the city centre and there is constant traffic congestion. Residents face noise and vehicle pollution.”

Rental and asking prices

The rental market in most locations, including Ampang KL, has been generally flat since last year, says Roja.

“The rentals for non-landed homes in the area range from RM2.30 to RM4.20 psf. Properties in Ampang Hilir have witnessed some decline in rentals due to the increase in supply. Some of the completed projects last year include Rimbun @ Embassy Row KL, Damai 88 and A Residency D’Suria. The Ampang Hilir/U-Thant area will also see upcoming projects such as the NOVO Ampang serviced apartments with expected completion in 2018, Astoria Ampang serviced residences @ Ampang in 2020 and 28 Boulevard in 2019,” she points out. More new projects have been announced recently, including Artisan Development Sdn Bhd’s 54 units of landed homes in a gated and guarded community.

In terms of asking prices, as at Oct 16, based on listings on TheEdgeProperty.com, luxury condominium 7 U Thant commanded the highest asking price at RM6.14 million followed by Madge Mansions and Amarin Wickham at RM5.57 million and RM5.54 million, respectively. Meanwhile, also as at Oct 16, luxury condominium Sastra U-Thant commanded the highest indicative rental yield at 10.7% followed by The Katana Residences and Desa Angkasa at 5.3% and 5.1%, respectively,.

On development land available in Ampang KL, Knight Frank’s Ong notes that Hong Kong-based Nan Fung Group is reportedly putting up for sale two parcels of land on Jalan Ampang measuring 6.35 acres in total, one located near the Thai Embassy at 4.017 acres and the other near the Chinese Embassy at 2.329 acres.

On the outlook of the non-landed homes in the area, Roja says the properties in the area will continue to be in demand.

“Residential properties, particularly those located near higher learning institutions and with excellent connectivity, will continue to do well,” she notes.

Tian highlights that prices of properties in the area are slowly catching up with prices in the KLCC area. Besides, he notices that there has been some relocation of Korean expats from the Mont’Kiara area to Ampang, while more upcoming projects are drawing greater attention to this exclusive enclave.

“In the short term, prices will still be going through adjustments. But in the long term, as roads are widened and traffic flow improves, prices in this area will only continue to go up further,” Tian opines.

This story first appeared in TheEdgeProperty.com pullout on Oct 21, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.