Semenyih’s growth spurt

SEMENYIH, a small town whose name originated from the Malay word “Sembunyi” (hidden place), is no longer such a place. With robust development taking place, Semenyih, located south of Greater KL just outside Kajang, is steadily revealing its charm to homebuyers and property investors.

Located in the Hulu Langat District of Selangor, Semenyih is well known to nature lovers for its scenic Broga Hill located 7km away from Semenyih town or 4km away from Nottingham University (Malaysia Campus) — one of the area’s major landmarks.

Kampung Baru Semenyih Federal Village Safety and Development Committee (JKKKP) chairman Datuk Koh Ah See tells TheEdgeProperty.com that vigorous property development activities over the past five years in the area have changed the appearance of the once quiet town. The prices of landed homes here, he adds, have also climbed rapidly.

“A double-storey terraced house in Taman Semenyih was selling slightly above RM10,000 about 30 years ago, but a double storey terraced house in a new development just a few kilometres away is selling at above RM600,000,” cites the 60-year-old village headman who has witnessed the changes in Semenyih over the past few decades.

Koh notes that Semenyih used to be filled with rubber estates some 30 to 40 years ago. As the demand for rubber decreased, the local economic activity diverted to other agricultural activities such as fruit orchards and small-sized industrial activities.

“There are some industrial activities scattered around Jalan Bangi Lama and the Beranang area. Most business owners were originally from Kuala Lumpur or Petaling Jaya. They moved their factories to Semenyih due to rising operating costs in those cities,” he adds.

According to data collated by TheEdgeProperty.com, the average selling price of terraced houses in Semenyih reached RM310 psf in 1Q2016, from RM257 psf in 1Q2015, a year-on-year (y-o-y) jump of about 21%.

Listings on TheEdgeProperty as of August 2016 show that terraced homes in Semenyih are asking for between RM344,113 and RM965,000 while semi-dees and bungalow homes are asking for between RM404,000 and RM1.38 million.

Land prices have also increased significantly.

“A 1-acre land facing the main road would have cost about RM200,000 about 30 years ago but now a plot of land of the same size could ask for as high as nearly RM2 million,” he says.

A land sale listing on TheEdgeProperty.com in May this year showed that a piece of commercial land measuring nearly 30 acres located in Semenyih was asking for RM48.9 million, or about RM1.63 million per acre.

Raine & Horne International Zaki + Partners Sdn Bhd executive director Lim Lian Hong says Semenyih has attracted the attention of homebuyers as it is a quiet yet self-contained town, suitable for growing families.

“It’s definitely a liveable place with lots of good food and a good living environment as well as amenities for daily needs including wet markets, supermarkets such as The Store, Econsave and Mydin, as well as a Tesco hypermarket,” he says.

Big developers such as S P Setia Bhd, I&P Group Sdn Bhd, Eco World Development Group Bhd, SYF Development and Country Gardens Properties (M) Sdn Bhd have spotted opportunities in this town and have been expanding their footprint to the southern corridor of the Klang Valley.

“Driven by higher development costs and land scarcity in more urban areas in the Klang Valley, big players have shifted their attention to Semenyih for its cheaper land prices. Most developers are looking for large pieces of land for comprehensive developments rather than small pockets, so Semenyih fulfils that criteria,” he explains.

Township projects are viable as developers could offer commercial, retail and education components as well as medical and hospitality elements into the development, creating a township where people can live and work.

However, the infrastructure cost may be higher while a lot more emphasis on the security aspects may be required.

Real estate agent and currently Axis REIT Managers Bhd head of investments Siva Shanker says the presence of the big developers will certainly help to elevate the attractiveness of Semenyih.

“Semenyih is a quiet town situated in between Kajang and Seremban; the other two towns have seen massive development over the years, but Semenyih remained almost untouched till recently,” he adds.

He notes that as most income earners cannot afford to purchase a property in urban centres such as Petaling Jaya and Kuala Lumpur, more people are choosing to move away from high density and more expensive places to suburbs which are currently being transformed such as Semenyih.

Booming business activities

The development activities have injected new vibrancy to Semenyih which now also sees more business and industrial activities thus creating more job opportunities for the local population.

“The industrial, tourism and housing development activities have attracted more young people to stay and work here,” Koh explains.

But, he notes that the rapid rise in housing prices is also making it more difficult for first-time homebuyers. “Houses are no longer cheap in Semenyih, it’s quite hard for a young income earner who earns less than RM4,000 a month to buy a new house here,” he says.

Siva concurs that Semenyih has seen a significant price increase over the past five years, but the price is comparatively lower than more urban areas as the new developments offer a lot of value-added goodies, such as nice landscaping, good living environment, are often gated and guarded, and come with clubhouse and wellness facilities.

                   

“If I am a salary earner with about RM600,000 budget for a home, I would choose to buy in Semenyih. With improved accessibility via highways, it is not a bad idea to stay there and commute to work in Kuala Lumpur for instance,” he explains.

However, Lim says the disorganised traffic system could be a deterrent as during peak hours, a drive to KL city centre may take about two hours compared with the usual 40 minutes.

Koh explains that Semenyih used to be an alternative road for people who wanted to escape the tolls heading to or from Seremban and Bangi.

“Since 10 years ago, Semenyih has been facing traffic congestion especially during the weekends. But the traffic condition had improved after the Kajang-Seremban Highway (LEKAS) began operation in 2008,” he says.

Currently, Semenyih is accessible through the Kajang Dispersal Link Expressway (SILK), LEKAS and the Cheras-Kajang Expressway.

The opening of Lingkaran Lekas-Ecohill Link in August last year has also benefitted about 52,000 residents in the areas of Semenyih, Rinching and Beranang — shortening travel time between Kajang and Rinching/Beranang by 15 to 30 minutes.

‘Little golden mountain’ of southern Selangor

From investors’ perspective, Semenyih is attractive due to its future potential. Siva is positive on this.

“For those who still think that Semenyih is very far from KL, they will change their perception in the near future. I expect that in less than three years, Semenyih will emerge to be another popular place to live, for leisure and for work,” he explains.

He notes that the 51km Sungai Buloh-Kajang Mass Rapid Transit (MRT) Line that stops in Kajang will be the main catalyst for Semenyih as those who work in KL city could park and ride at the Kajang MRT station.

“Property development is moving from the established centre to the southern parts of Selangor. Semenyih is just the beginning. They [developers] have no choice as city areas are too expensive to build,” Siva adds.

Meanwhile, Lim says although Semenyih is a liveable place, in the current slow market condition, housing prices are considered on the high side and there is not much upside that can be seen at the moment.

He notes that investors may need to wait five or 10 years for the infrastructure to be more developed, especially the traffic and public transportation systems.

“It is a good place for owner-occupiers so I will encourage young starter families to consider staying here,” he says.

As for village headman Koh, Semenyih — a former mining and rubber plantation village — has brought fortune to the locals and will remain their “little golden mountain” in the Southern corridors of Selangor.

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This story first appeared in TheEdgeProperty.com pullout on Aug 19, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.