PROPERTY SNAPSHOT 1: Setapak sees steady growth

•     This week, the spotlight falls on the secondary market of non-landed residences in one of Kuala Lumpur’s oldest suburbs, Setapak. Areas covered span from Taman Melati at the north and bounded by the Duta-Ulu Kelang Expressway (DUKE) at the south.

•     Based on TheEdgeProperty.com’s analysis of transactions, the average transacted price of non-landed homes has been steady at RM363 per square foot  (psf) in 1Q2015. While this is a 4% fall from the peak of RM378 psf in 3Q2014, it is up 38.3% from 1Q2014. The average price remains higher than the levels observed in 2013.

•     The upward price momentum has been sustained by the completion of more upmarket condominiums. As secondary sales of these units begin to register on the database, their higher prices have boosted the overall average price. Among these projects are 222 Residency, 288 Residency and Platinum Lake PV 20 completed in 2013 and The Loft Serviced Residences atop Setapak Central Mall completed in 2014.

•     Meanwhile, transaction activity has remained muted since 2014, with transaction volume for the 12 months to 1Q2015 falling 42.7% y-o-y from 1,122 units to 643 units. Buying activity may have been drawn to the primary market. Among the upcoming projects are KL Traders Square and Ascenda Residence, which are expected to contribute 1,170 and 650 new units respectively.

•     Overall, there are reasons to be optimistic about Setapak. The former KL Festival City has been rebranded as Setapak Central Mall and has Swedish retailer H&M among its tenants. The neighbourhood is also set to welcome mixed development Sky Arena, which will include a RM133 million sports complex, while a new Giant Setapak Hypermarket will open this year.

Click here for the price trends at 222 Residency.

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