PROPERTY SNAPSHOT 1: Ara Damansara and Subang property markets diverge

This is the first in a series of four snapshots on Ara Damansara and Subang. Look out for part two tomorrow.

• This week's spotlight falls on non-landed residential properties in the upmarket neighbourhood of Ara Damansara and the adjacent Subang area. In this study, Subang covers the region from Taman Subang Pelangi and Taman Desa Subang in the north to Taman TTDI Jaya in the south, and is bounded by the Guthrie Corridor Expressway in the west.

• Based on theedgeproperty.com’s analysis of transactions, the combined prices of properties in Subang and Ara Damansara remained fairly stable in 2012 and 2013, averaging just under RM300 per square foot (psf), before shooting up to RM384 psf in 3Q2014. This represents a 29.8% y-o-y growth from RM294 psf in 3Q2013. Meanwhile, total transaction volume for the 12 months to 3Q2014 declined 35.8% y-o-y from 559 to 359 units.

• On closer examination, it appears that while Ara Damansara and Subang are neighbours, the markets have diverged, with Ara Damansara enjoying rapid development while Subang has stagnated.

• Ara Damansara is already an upmarket township and is becoming increasingly popular, especially with the addition of amenities such as malls, a medical centre and retail developments. The surge in the average price at the beginning of 2Q2014 can also be attributed to the completion of Pacific Place in Ara Damansara, a sizeable integrated development.

• Meanwhile, the decline in transaction volume was due to fewer transactions in Subang. Both property markets are likely to continue to perform differently, especially as connectivity improves at Ara Damansara, which is set to receive a new LRT station with the Kelana Jaya line extension.

The Analytics are based on the data available at the date of publication and may be subject to revision as and when more data is made available to us.