PROPERTY SNAPSHOT 1: Underrated Taman Desa

This is the first in a series of four snapshots on Taman Desa. Look out for part two tomorrow.

This week's spotlight falls on non-landed residential properties in the affluent and mature township of Taman Desa in Kuala Lumpur.  

• Based on theedgeproperty.com’s analysis of transactions, prices of non-landed properties in Taman Desa appreciated steadily in the review period of 2012–2014. The average transacted price per square foot (psf) reached RM479 in 3Q2014, up 8.7% y-o-y. In the preceding year, the average price grew at a slightly faster pace of 12.4% y-o-y.
   
• Given the lack of new completions in Taman Desa from 2012–2014, the growth in the average transacted price reveals that local home values have been appreciating steadily. The most recent project in the database is Papillon Desahill, which was completed in 2011. The completion of the exclusive Desa Eight by UOA Development Bhd at the end of 2014 is yet to be reflected in transaction data.
   
• Projects currently under construction include Desa Green and Desa Business Suites, both also by UOA. The first two towers at Desa Green were reportedly launched at over RM600 psf, while the third tower was reportedly launched at closer to RM800 psf.
   
• The secondary market price growth and premium prices of new launches shows that buyers have been quite keen on Taman Desa. Besides its proximity to Mid Valley Megamall, Bangsar and Brickfields, the proposed development of Bandar Malaysia, which is located just across the East-West Link Expressway, is likely to spark renewed interest in Taman Desa.
   
• Although prices have been growing steadily, transaction volume for the 12 months to 3Q2014 declined 35.2% y-o-y from 318 to 206 units, due mainly to a relatively low number of new launches in the area.

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.