• Is there an uptrend signalling good news for property owners? And have newly- completed projects spurred rental yield post-Covid-19?

More than 150 years ago, during the 1870s, the foundation of what is today recognised as Bangsar South took root as an urban settlement known as Kampung Kerinchi. From its modest origins, it has matured into a thriving district boasting a nexus of technological advancement, architectural brilliance, and cosmopolitan living.

When UOA Holdings Bhd purchased a 60-acre plot there in 2005, it initiated a journey of development that has led to the valuable real estate it has become today.

Other developers have also come into the mix, such as Suezcap Capital Sdn Bhd, BON Estates Sdn Bhd, Weida Properties Sdn Bhd and KL Eco City Sdn Bhd.

Tech marvels and an urban haven

Today, the area predominantly features transit-oriented developments (TODs), seamlessly integrated with top-tier Grade A office skyscrapers and towering residential high-rises.

Noteworthy tech enterprises, ranging from burgeoning start-ups to established giants like Alibaba, TNG Digital, Honeywell and Razer, have opted to strategically establish their offices in Bangsar South.

This has not only drawn in an expanding workforce but has elevated Bangsar South to a preferred residential destination among expatriates.

Median transaction prices for homes have increased

The average rental and selling prices for properties in Bangsar South have seen capital appreciation over the years, especially integrated developments and high-rises. This has undoubtedly attracted a vibrant mix of affluent and middle-class residents into the area.

Based on EdgeProp’s transaction insights on Bangsar South, the higher-price range (RM750-RM1,000 psf) non-landed properties saw a spike in its market share in 2022. 

Properties contributing to increased transactions in higher-price range

On one end of the spectrum, there is Novum Bangsar South, a serviced residence with 729 units ranging from 647 sq ft to 1,429 sq ft built-ups and a median unit price of RM1,048 psf. The project was completed in 2019.

Older projects like The Park Residences by UOA Group, completed in 2011, have built-up areas ranging from 1,260 sq ft to 2,095 sq ft and a total of 470 units across two blocks.

The most recently completed project in the area, SouthLink Lifestyle Apartments, also by UOA Group, offers a total of 1,422 serviced residence units with built-ups from 452 sq ft to 904 sq ft.

In stark contrast, The Estate’s smallest unit starts from 2,346 sq ft and reaches up to 3,110 sq ft. With a modest 328 unit count, The Estate by BON Estates is differentiated from the surrounding offerings with its spacious family-sized units – a scarcity in the city. The development was completed in 2021.

According to EdgeProp’s transaction data, a number of new developments have also recorded substantial growth post-pandemic. Notably, The Estate showed an attractive 18% gain from its launch price of RM700 psf to its current median sold price of RM823 psf.

Large-sized, family condo units a trend?

While compact 1- to 2-bedroom residences traditionally capture the spotlight for property investments, owner-occupiers tend to gravitate towards larger spaces, with emphasis on functionality and luxury.

Within the Bangsar South enclave, the availability of larger units remains confined to a select few within each project. 

With The Estate in the mix, buyers and tenants can now have the option of family-sized units. A fully-furnished 4+1-bedroom unit at The Estate is listed at RM2.5 million as at mid-August on EdgeProp.my.

According to EdgeProp’s project insights, rental yield is at 7.31%* with monthly rentals between RM4,000 and RM14,000. 

Similar-sized high-rises for sale in neighbouring Bangsar would command a price of 900 to RM1,400 psf.

*Based on asking rental data in the last 12 months.

Source: All data are proprietary insights from EPIQ, powered by EdgeProp

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!

SHARE
RELATED POSTS
  1. Matrix Concepts seals second JV with NS Corp to develop MVV2.0 land in RM436m deal
  2. Iskandar Investment partners TM-Nxera to develop RM9 bil AI-ready digital infrastructure in Iskandar Puteri
  3. KTI Landmark to launch two residential projects in Sabah with GDV of RM600m by 2028