PROPERTY SNAPSHOT What’s hot in Setapak?

Today, we look at price growth and indicative asking rental yields for non-landed residences in Kuala Lumpur’s Setapak area.

• Prices in Setapak have surged in the past two years on the back of new launches with higher prices. Based on analysis of transactions by theedgeproperty.com, average prices grew 12.5% y-o-y to RM389 psf in 3Q2014. The new projects have also benefited older developments, which have enjoyed stronger appreciation due to their lower price base.

• Teratai Mewah Apartment saw the highest growth of average price per square foot (psf), up 28.7% y-y to RM286 psf in the 12 months to 3Q2014. Other top performers include Medan Intan Apartment, Genting Court and Sri Kinabalu.

• Upcoming developments such as the SkyArena and the Residensi Gombak 126 serviced apartments may further boost property prices. The former is one of the largest new projects in the area, located on 28 acres.

• The rental market is sustained primarily by the strong student population attending the Tunku Abdul Rahman University College. Affordability is one of the main concerns among student renters, hence units with lower average monthly rent tend to enjoy higher demand from students.

• From observation of asking rental prices, the condominiums with the highest indicative asking rental yields ironically also have the lowest average asking monthly rents. They are led by Idaman Sutera with an indicative asking rental yield of 5.7% per annum.

• Similarly, at Sri Pelangi, the asking monthly rent is rather low at RM1,300. However due to the compact unit sizes here, the average rent per square foot (psf) is RM1.77 psf, which returns decent asking yields of 5.4%.

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.

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