PROPERTY SNAPSHOT 4: What’s hot in USJ?

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

•    Today, we look at price growth and indicative asking rental yields for non-landed residences in USJ. Based on analysis of transactions by theedgeproperty.com, average prices grew 16.8% y-y to RM411 per square root (psf) in 3Q2014. Newer projects such as Main Place Residence and USJ One Park contributed to the growth of the average transaction price.

•    However, on closer examination, the older existing properties have charted the highest growth in prices, dispelling the myth that capital appreciation stagnates in older non-landed projects. This is likely due to their low starting pricing, and the spillover benefits of new pricing benchmarks and additional retail amenities in newer integrated developments.

•    The mid to lower-middle segments saw the highest growth in home values, led by Goodyear Court 2 (up 37.1% y-y to RM291 psf), Goodyear Court 9 (up 34.7% y-y to RM378 psf) and Arcadia (up 26.2% y-y to RM396 psf).

•    Rental rates are higher at well-located condominiums such as Casa Subang and Impian Meridian, or at mixed developments such as Rhythm Avenue and Main Place Residence. However, their rental potential has already been priced into their capital values and yields here are fairly average. The highest rental yields are at Goodyear Court 10 and USJ One Avenue (5.4%).

•    In the future, renters would be spoilt for choice. The Kelana Jaya LRT will improve connectivity with 4 new stations at USJ 7, Taipan, Wawasan and USJ 21. The newly operating Bus Rapid Transit also services local residents at USJ 1 and USJ 7. Also, many of the existing and upcoming projects in USJ such One City, Empire Remix, You One, Da Men, Rhythm Avenue and Main Place have retail components and would suit those who enjoy the convenience and vibrancy of mixed developments.

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.

Related stories:
PROPERTY SNAPSHOT 1: USJ secondary market takes off
PROPERTY SNAPSHOT 2: What’s affordable in USJ?
PROPERTY SNAPSHOT 3: What are developments priced at in USJ?