Kajang still sizzles

KAJANG, famous for its delicious satay, has more to offer than the tasty meat skewers.

Located at the south of Kuala Lumpur, Kajang’s property market is gaining growth momentum. This is supported by its population growth. According to the Department of Statistics, Kajang’s population was close to 800,000 in 2010, or 15% of Selangor’s population of 5.4 million.

Kajang has been a popular choice for homebuyers looking for spacious property in the mid to affordable price range especially landed homes.

Compared with urban areas such as Kuala Lumpur and Petaling Jaya, residential properties in Kajang are definitely more affordable but prices have seen significant growth over the years.

According to TheEdgeProperty.com’s data, the average selling price of terraced houses in Kajang had climbed to RM303.75 psf in 2015 from RM260.50 psf in 2012, an increase of nearly 17%.

Property consultancy firm MacReal International Sdn Bhd founder Michael Kong says Kajang town has been growing exponentially on its own due to many positive factors. One is of course the upcoming Kajang-Sungai Buloh Mass Rapid Transit (MRT) Line.

“The MRT Line will give a further boost to the property values here as we expect demand to rise when it starts operating,” he tells TheEdgeProperty.com.

                        

The 51km MRT Line which links Sungai Buloh in the northwest with Kajang in the southeast, is slated to be completed by 2017.

It will have 31 stations, including 16 with park-and-ride facilities and four interchange stations. Notably, there will be a park-and-ride facility located at the Kajang MRT station which connects to the Kajang KTM Komuter Station, which is an interchange station to the Seremban KTM Line.

Kajang is easily accessible via several major highways, including the Kajang Dispersal Link Expressway (SILK), the Cheras-Kajang highway, the North-South Expressway, the new South Klang Valley Expressway (SKVE) and the Kajang-Seremban Highway (LEKAS).

“Kajang is also in a unique and much enviable location. It is a short distance to major strategic and important places. For instance, it is situated less than a 15-minute drive from Putrajaya and Cyberjaya, and a 30 to 40-minute drive from the Kuala Lumpur city centre and the Kuala Lumpur International Airport,” offers Kong.

He notes that Kajang town is also supported by many local industries which have their operations in industrial estates such as in the Bukit Angkat Industrial Area, the Bandar Teknologi Kajang industrial precincts and other major industrial estates in the surrounding areas of Bangi and Semenyih.

Apart from this, the town is also close to numerous educational institutions such as New Era University College, Infrastructure University Kuala Lumpur, Universiti Kebangsaan Malaysia in Bangi, Universiti Putra Malaysia in Serdang, Nottingham University Malaysia campus in Semenyih, Universiti Tenaga Malaysia in Bangi and the German-Malaysian Institute in Kajang.

Semenyih spillover

iProp Realty Sdn Bhd managing director Victor Lim says the robust development in neighbouring Semenyih lately is bringing even more value and sustainable growth to Kajang as the attention of homebuyers is drawn by the myriad of new development offerings in these areas south of Greater KL.

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

S P Setia’s Setia EcoHill township development in Semenyih, which is about a 20-minute drive from Kajang town, had received overwhelming response from property buyers when it was first launched in 2013.

The development, which has a gross development value (GDV) of RM4 billion, has seen the first three phases fully sold and the last phase, launched in 3Q2015, 70% taken up.

Following the success of Setia EcoHill, the developer had unveiled the Setia EcoHill 2 development in June. The 1,010-acre freehold development is located just 3km away from Setia EcoHill.

Lim notes that even though the housing prices in Kajang have increased a lot over the past five years, there are still upside potentials as its population keeps rising while public transportation infrastructure is improving.

“Developers are expanding their footprint to the southern parts of the Klang Valley due to land scarcity in city centres. Newer gated and guarded developments as well as better infrastructure and amenities have attracted homebuyers’ attention to this area,” he explains.

However, heavy traffic and floods may make homebuyers think twice about buying a home here.

Kong says the town has been growing organically over the years. “Proper town planning was often an oversight. This resulted in massive traffic jams during rush hours, severe flooding problems during heavy rains and a chronic lack of car parking space.

“With the impending completion of the MRT system, it is hoped that it will alleviate the horrendous traffic situation in the town centre,” he says. Nevertheless, he adds, there are currently widening and embankment strengthening works on Sungai Jeloh, which runs through the centre of the town.

Consultants’ picks

Kajang was traditionally the home ground of MKH Bhd (formerly known as Metro Kajang Holdings Bhd). In recent years, it has seen the entry of other major property players such as Tropicana Corp Bhd, Naza TTDI Sdn Bhd, Protasco Bhd and Mutiara Goodyear.

The township developments include Tropicana Heights Kajang, Kajang East, Jade Hills by Gamuda Land, Mutiara Heights, Kajang 2, TTDI Grove Kajang and Nadayu 92.

Kong from MacReal International says investors could look at properties around Bandar Teknologi Kajang and other newly completed projects with unique concepts.

“I believe the commercial precinct in Section 1 of Bandar Teknologi Kajang is an ‘unpolished gem’ and primed for success in the near future. It was completed in the late 90s but did not take off commercially due to the lack of critical population mass.

“From a bird’s eye view, you will notice that Section 1 of Bandar Teknologi Kajang fronts the main trunk road between Kajang and Semen-
yih. More interestingly, you will find that massive housing developments are mushrooming around it,” he explains.

These newly completed and ongoing housing projects include Nadayu 92, Hillview, Kajang Hillpark Homes, Kajang 2, Goodview Heights and Tropicana Heights Kajang.

He notes that upon full completion, there would be about 2,000 homes or more in the immediate vicinity of Section 1 which will eventually create the critical population mass needed for future growth.

Meanwhile, Lim says property investors and homebuyers could also look at properties located in older residential areas near the Kajang town centre or the developments near or in Semenyih.

“Setia EcoHill, Eco Majestic, Puncak Saujana, Mutiara Heights and Kajang 2 could be good choices due to their strategic locations, modern designs and good township planning as well as proximity to various amenities,” he adds.

In terms of rental, Lim says popular places for rental in Kajang include areas close to educational institutions.

According to TheEdgeProperty.com, the asking rental for a terraced house in Kajang averages RM1,400 a month or RM1.04 psf, which translates to a rental yield of about 4.1%.

For semi-dees and bungalows, the asking rental averages RM3,144 (RM0.90 psf) and RM2,676 (RM0.93 psf), respectively.

This story first appeared in TheEdgeProperty.com pullout on Sept 23, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.