PROPERTY SNAPSHOT 4: What’s hot in Taman Desa?

This is the final part in a series of four snapshots on Taman Desa.

•    Today, we look at price growth and indicative asking rental yields for non-landed residences in Taman Desa.

•    From analysis of transactions by theedgeproperty.com, all of the projects surveyed charted strong annual gains in average price per square foot (psf) in the 12 months to September 2014.

•    The highest growth in capital values can be found at Danau Impian, with the average price here up 26.2% to RM474 psf. This could be due to its location, close to shops and eateries, or its pricing. With practical unit sizes between 918 and 1,000 sqft for a 3-bedroom unit, the price quantum for units here fall within the RM400,000 – RM470,000 range.

•    The Abadi Indah Apartments also displayed significant gains in average price (up 24.3% to RM359 psf), albeit from a low base.

•    Interestingly, projects such as Faber Ria (up 23.9% to RM528 psf), OBD Garden Tower (up 20.4% to RM593 psf) and Danau Permai (up 19.7% to RM563 psf) are fairly dated, but continue to enjoy good capital growth.

•    From observation of asking rentals as at June 2015, Danau Murni appears to generate the highest asking rental yields at 6.1% annually. This is both due to its attractive location within walking distance to shops, and its compact unit sizes which translates into higher rents on a psf basis. It has a low capital price (average transacted price of RM377 psf), with asking monthly rental of RM1.91 psf or just under RM1,400 for a typical unit.

•    Other projects that generate good asking rental yields are apartments such as Iris Apartment (5.9%) and Abadi Indah Apartments (5.9%). Rental yields in Taman Desa are quite good, with most condominiums and apartments yielding above 5%.

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