Sri Petaling to continue to enjoy growth

PETALING JAYA (May 14): Sri Petaling’s property market is expected to continue to enjoy growth on rising demand from developers looking for land beyond the city centre, said property consultants.

“I think landed properties in Sri Petaling will continue to enjoy appreciating values while the shopoffices will be able to generate good rental yields in the medium to long term,” said JS Valuers Research and Consultancy Sdn Bhd director Chan Wai Seen.

He also noted that terraced houses are popular, while semi-detached homes and bungalows will find it harder to change hands in the current market.

Landserve Sdn Bhd executive director Tan Kim Seng noted that prices of landed homes have risen by 5% to 25% per year over the past five years, propped up by more expensive properties in neighbouring residential areas.

For instance, typical 1-storey homes with land area of 1,733 sq ft and built-up of 976 sq ft were going for an average of RM500,000 last year, up from RM390,000 in 2010, while average prices of 2-storey units with a land area of 1,755 sq ft and built-up of 1,360 sq ft rose to RM850,000 from RM500,000.

Meanwhile, 2.5-storey terraced homes that cost RM800,000 in 2010 are going for RM1.1 million today, while average prices of 2-storey detached and semi-detached houses are RM3.5 million and RM2.5 million respectively, up from RM2.5 million and RM1.1 million five years ago.

Tan also noted that there is high demand for shopoffices in Sri Petaling’s thriving commercial district in Jalan Radin Bagus.

However, there are many newer shopoffices that have come onto the market in recent years and occupancy levels are slow to pick up, although consultants believe that the situation will improve over time.

The rental yield of an intermediate 3-storey shopoffice is about 4% to 4.5%, which is comparable to similar commercial properties nearby.

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For the full report, read the May 16 issue of City & Country, the property pullout of The Edge Malaysia. Subscribe here for your personal copy.