Selangor’s Ampang, the country cousin

ONCE synonymous with tin mining, Ampang is now distinctly divided into two by the Middle Ring Road II (MRR2), with the east side bearing a Selangor address and the west side a Kuala Lumpur one.

The Ampang municipality in Selangor is a mass housing area and one of the oldest residential estates in the Klang Valley. In terms of non-landed housing, there are many old low-cost flats scattered about the area while the more upmarket ones are focused around the Kelab Darul Ehsan golf course and along Jalan Ampang, close to the Kuala Lumpur end of the road.

Kuala Lumpur’s Ampang is a modern, vibrant commercial and high-end, high-rise residential address. It’s also known as a diplomatic quarter, having a number of high commissions and embassies. Other landmarks include the Social Security Organisation headquarters, Gleneagles Intan Medical Centre, and the soon-to-be-demolished Ampang Park Shopping Centre.

Ampang, Selangor, on the other hand, often conjures a very different image to Ampang, Kuala Lumpur. The property scene here is rather subdued by comparison for a number of reasons. In its analysis of non-landed residential transactions in Ampang, Selangor, in the 12 months to 3Q2014, theedgeproperty.com covered the areas bounded by the MRR2 in the west (excluding Pandan Indah, Pandan Jaya, Pandan Perdana and Pandan Mewah), from Taman Tun Abdul Razak and other housing estates around the Kelab Darul Ehsan golf club in the north, to Taman Bukit Teratai and Taman Putra in the south.

While this side of Ampang is generally seen as an area for the mid-range group, addresses like the Ukay area and Taman Tun Abdul Razak (next to Kelab Darul Ehsan golf club) offer more exclusive properties.

People living there often come from families who have been living here for generations and continue to stay close to the clan. Others who live here hail from other states, and have come to seek their fortune in Kuala Lumpur’s Golden Triangle, as housing here is definitely more affordable than in the city centre.

Affordability

Chen King Hoaw (pictured, right) managing director of Landserve Sdn Bhd, says that Ampang, Selangor, has attracted more people to live here because of its relatively affordable property prices compared with other KL suburbs.

According to theedgeproperty.com’s analysis of transactions, the affordable price range of RM200,001 to RM300,000 accounted for the largest share of transactions (20.7%) in the 12 months to 3Q2014, while some 11.7% were for properties priced between RM500,001 and RM1 million. Only about 0.7% of transactions were for homes above RM1 million.

Chen notes that Ampang’s accessibility to the city centre has improved with the completion of the Ampang–Kuala Lumpur Elevated Highway (Akleh), the Middle Ring Road II and the Ampang LRT Station.

Sukyie Loh, a property agent with Total Realty Sdn Bhd, says most non-landed residential property in Ampang are a mix of freehold and leasehold apartments. “The buyer portfolio here comprises mainly owner occupiers,” she adds. “Depending on location, the apartments and condominiums here are usually priced between RM250,000 and RM400,000.”

According to theedgeproperty.com’s analysis, the least expensive projects by average transacted price per unit were led by the old low-cost flats in Taman Ampang Mewah (RM70,308); Taman Ampang Hilir (RM71,500); and, Taman Mulia Jaya (RM71,700). Often, the average price per unit of these flats is driven down by auction sales, notes theedgeproperty.com.

In the more upmarket segment, Ukay Bayu was the most expensive at an average transacted price of RM709,000 in the period under survey. Completed in 2008, this project sits on a hilltop at the edge of the Ampang Forest Reserve and boasts expansive views. This condominium has just 65 units in eight blocks with sizes ranging from 1,119 to 3,196 sq ft.

Menara Indah was the next-most expensive project by average transacted unit price, at RM701,000. Sandwiched between a golf course and the forest reserve, it offers a quiet, green environment and spacious units between 1,098 and 3,210 sq ft.

This was followed by Ampang Putra Residency (RM562,000); Menara Kayangan (RM525,833) and One Ampang Avenue (RM506,000). Ampang Putra Residency and One Ampang Avenue are located just off Jalan Ampang, and recorded the highest number of transactions during the period under survey.

Ukay Bayu was also the most expensive address by average price psf in 3Q2014, with a price tag of RM502 psf, followed by Axis Residence at RM501 psf. A rather new development, Axis Residence is part of the Axis Pandan mixed-use development that also includes a three-level retail podium.

Overall, theedgeproperty.com’s analysis of transactions shows that both prices and transaction volumes of non-landed residences in this area generally softened in 2014 since hitting their peak in 4Q2013 — mainly due to the lack of new launches, and the market-cooling measures introduced by the government.

During its peak in 4Q2013, the average price for non-landed residential properties in Ampang, Selangor, stood at RM289 psf, before diving to RM256 psf the following quarter. The average price then slightly recovered to RM272 psf in 3Q2014, a marginal 2% y-o-y appreciation from 3Q2013.

Meanwhile, D’Casa Condominium in Taman Sri Watan saw the highest gain in average price in the 12 months to September 2014, gaining 36.6% to RM275 psf, from RM201 psf the previous year. Typical units here are between 883 sq ft and 958 sq ft. D’Casa also saw an indicative asking rental yield of 6.7% as of mid-2015. The next project with the highest annual average price growth is The Chancellor in Taman Kosas, which grew 30.4% y-o-y, from RM202 psf to RM263 psf. In the review period, typical 1,378 sq ft, 3-bedroom units were transacted at between RM220 psf and RM280 psf.

Although growth in the non-landed segment may have slowed, it has been healthy over a five-year period. Based on Landserve’s analysis, as of mid-2015, average prices of existing condominiums and apartments in selected developments in Ampang, Selangor, range between RM240,000 and RM790,000, representing increases of between 25.4% and 99.2% from price levels recorded in 2011. [See chart 1]

“In terms of price psf, the prices equate to between RM204 psf and RM554 psf,” Chen says.

According to GS Realty real estate negotiator Aaron Wong, the more popular residential locations in Ampang, Selangor, are those along Jalan Ampang and in the Ukay area, being nearer to KL city centre.

“In the older part of Ampang, Selangor, the properties are mostly in the mid-range segment,” he added. “There is still demand for residences in the older part even though it is congested and unstructured because people who grew up there want to continue staying there.”

As one of the oldest urban colonies in the Klang Valley, the area’s seemingly haphazard town planning is unsurprising. Being a mature residential area also means ready amenities. “Most people stay because of its amenities, and [have not bought their properties] for investment,” adds Wong.

These amenities include KPJ Ampang Puteri Specialist Hospital, Hospital Ampang and Ampang Point Shopping Mall, International School of Kuala Lumpur as well as various primary and secondary schools.

Wong notes that property prices in Ampang new village and Bandar Baru Ampang are rising, as developers buy land from the state government and owners to develop individual projects there. New developments can now be seen in the midst of the new villages.

“Those new properties include condominiums, a few bungalow units and semidees. However, there are still a lot of small [family-run] factories and wooden houses. The surroundings are unstructured and the roads are narrow,” he says. This situation has contributed to the lack of new developments and hampered property price growth here.

In term of asking rental yields, as at June 2015, the Ampang municipality in Selangor also saw above average figures, with indicative yields ranging between 5% and 7.2% per annum, theedgeproperty.com’s research revealed. The rental market is supported by the area’s proximity to the city centre. Projects with the highest yields are those on Jalan Ampang, such as Tiara Ampang (7.2%) and Kojaya (7.0%), which enjoy quick access to Akleh and the city centre.

Outlook

Landserve’s Chen is optimistic about Ampang’s future. He notes that land prices will continue to trend upwards as land for development becomes increasingly scarce. Building stratified developments such as condominiums and apartments would help ensure prices of homes stay within reach of the low and medium-income groups.

“Besides, landed homes in Ampang, Selangor, are mostly old houses. The limited supply of newer landed homes at affordable prices in Ampang would inevitably lead buyers to opt for new stratified properties like condominiums and apartments,” he says.

While the area already has easy access to the city centre, he added that the proposed Sungai Besi–Ulu Kelang Elevated Highway (Suke) and the East Klang Valley Expressway (EKVE) are expected to bring Ampang into easier reach of other parts of the Klang Valley, provided traffic is managed. The outlook for non-landed residential properties in Ampang is positive.

Curious about the value of your home? Click here at The Edge Reference Price to find out.

This story first appeared in The Edge Property pullout on Oct 23, 2015, which comes with The Edge Financial Daily every Friday. Download The Edge Property here for free.