PROPERTY SNAPSHOT 4: What’s hot in Brickfields?

•     Today, we look at price growth and indicative asking rental yields for non-landed residences in the district of Brickfields. From analysis of transactions by TheEdgeProperty.com, the average transacted price for non-landed residences in the secondary market was RM623 per square foot (psf) in 1Q2015, retreating 6.9% y-o-y.

•     Older projects appear to benefit from the newer high-end projects which have set local price records. As such, growth in property prices are led by the existing projects from the mid-end segment.

•     The highest relative price growth can be found at Villa Scott within the heart of Brickfields. The average price here has gained 26.4% y-o-y or RM125 psf to reach RM600 psf in the 12 months to 1Q2015. However, prices here are still lower than the surrounding newer projects, which include the adjacent Scott Sentral (RM638 psf) and the opposing 633 Residency (685 psf).

•     Within the luxury condominium segment, Suasana Sentral Condominium gained an impressive RM92 psf or 11.5% to reach RM889 psf in 1Q2015.

•     Brickfields has an active rental market due to its proximity to its strong transport infrastructure. However, with typical monthly rentals ranging from RM3,000 to RM4,000 for a 2-bedroom unit within KL Sentral, residents in KL Sentral are limited to expatriates and well-earning executives.

•     Asking rental rates as observed in June 2015 start at about RM2.50 psf for the mid-range properties and between RM3 psf to RM4 psf for the upmarket condominiums.

•     Indicative annual rental yields are decent, ranging from 4.2% to 6.5% per annum. The highest yields are found at Menara Pelangi at 6.5% per annum.