Bukit Jalil’s impressive run

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BUKIT Jalil in Kuala Lumpur came into prominence when it was chosen as the location for Malaysia’s National Sports Complex, the venue of the 1998 Commonwealth Games. The global sports event catalysed the construction of slewof apartment blocks in the area to accommodate athletes.

The Bukit Jalil neighbourhood has gradually evolved since then. While it continues to be the nation’s premier sports hub, it has also attracted educational institutions to set up campuses there, including Asia Pacific University (APU; formerly known as APIIT); International Medical University (IMU); FTMS (Financial Training & Management Services) Global College and TPM (Technology Park Malaysia) College.

Various condominiums and serviced apartments have also been developed here over the years, and dramatic changes are expected in its landscape as new lifestyle integrated developments such as the 50-acre Bukit Jalil City are completed in the near future.

Bukit Jalil’s popularity lies in its proximity to Kuala Lumpur city centre and the fact that it is sandwiched between well-established areas such as Cheras, OUG and Sungai Besi, and Puchong, Seri Kembangan and Putrajaya. It is easily accessible via Shah Alam Expressway (Kesas), Bukit Jalil Expressway, Maju Expressway (Mex) and the KL-Seremban Highway. In its vicinity are two light rail transit stations, namely the Bukit Jalil and Sri Petaling LRT stations, with two upcoming ones along the Ampang LRT line extension.

Berjaya Land Bhd became a pioneer developer in Bukit Jalil when it obtained approval for the masterplan of its 400-acre freehold parcel there in 1985, with the first launch being bungalow lots in the early 1990s.

Today, that parcel holds an 18-hole golf course and clubhouse, primary and secondary schools, the Calvary Convention Centre, and retail, commercial and residential properties that include bungalows and high-rises. Its high-rise residences include Savanna and Savanna 2, KM1 East and West, Greenfields, Arena Green and Green Avenue.

Its latest launch was Phase 1 of The Link 2 mixed-use development in 2014, on a 4.75-acre land next to Calvary Convention Centre. The phase comprises 22 units of 4 and 6-storey shops, 178 units of shoplets as well as 539 condominium units. Phase 2 is still in the planning stages.

Strong rental market

Property agents say Bukit Jalil attracts an almost-even mix of owner-occupiers and buy-to-let investors. Many property investors look to rent their units to students while most homebuyers are from the more mature neighbouring areas such as OUG and Cheras.

Director of Metro Homes Sdn Bhd, See Kok Loong, notes that owner-occupiers tend to be young families living in their first own home.

Meanwhile, head of sales at Global Link Properties Ken Kong says investors are looking to buy properties that are located near LRT stations to rent to students and working adults.

According to research by theedgeproperty.com, the top 10 non-landed residential properties with the highest indicative asking rental yields as at June, 2015, are mostly older developments. Sri Rakyat Apartment has the highest indicative asking rental yield at 8.3%, due to its low capital value (RM175 psf) and compact unit sizes (a typical three-bedroom unit is about 670 sq ft).

With average asking monthly rents at RM790 or RM1.20 psf, Sri Rakyat Apartment is the only non-landed property in Bukit Jalil where rental is under RM1,000 — making it the least expensive non-landed property in that area, both in the rental and sub-sale markets.

The next top-performing property based on indicative asking rental yields are Vista Komanwel B and Vista Komanwel A with yields of 5.9% and 5.2%, respectively. Arena Green’s and Savanna 1’s indicative asking rental yields are 5.1%, while Vista Komanwel C’s is at 5%.

C N Liew, senior real estate agent at GS Realty, notes that there are generally two categories of tenants in Bukit Jalil: the newer, higher-end condominiums attract working professionals while the older, more affordable condos attract students.

“The nearer the condominiums are to the colleges, the better their prospects are at getting students,” he says.

The Vista Komanwel condominiums were initially built to house athletes during the 1998 Commonwealth Games, and they are now among the non-landed residences located close to the higher learning institutions. Research by theedgeproperty.com shows that these condos have generated decent rental yields of between 5% and 6%, which can be attributed to their proximity to IMU and an LRT station.

Global Link Properties’ Kong also notes that there are a number of university students who choose to continue to stay in Bukit Jalil after completing their studies.

“Homebuyers in Bukit Jalil are mostly from the younger generation looking at high-end properties. They are attracted to the freehold titles of these homes and their proximity to amenities such as highways,” he says. “There will be a new shopping mall, Pavilion 2 in the Bukit Jalil City project soon, so this is an upcoming area for lifestyle and leisure,” he adds.

Bukit Jalil City is a 50-acre freehold integrated development with a gross development value of RM3.5 billion, jointly developed by Malton Bhd and Ho Hup Construction Co Bhd. It will be developed over four phases and scheduled for completion in 2019.

Phase 1, which has 112 units of three- and five-storey shop offices, has been fully taken up. Phase 2, offering The Park Sky Residence was launched in June with 500 units of serviced apartments released for sale from RM775 psf. The project comprises a total of four blocks of serviced apartments with 1,098 units. It will feature 2-bedroom, 3-bedroom and dual-key units, with a built-up area of between 868 sq ft and 1,565 sq ft.

Phase 3 will involve the development of the regional shopping mall currently dubbed Pavilion 2, while Phase 4 will either be a hotel or a corporate office tower.

The Treez Jalil Residence, Sri Rakyat Apartments and Jalil Damai Apartments are the closest high-rise homes to the upcoming Pavilion 2 mall.

Rising values

Compared with five years ago when the average launch price of new non-landed homes was just slightly over RM300 psf, new launch prices have since jumped to as high as RM800 psf, says Kong.

Housing prices in Bukit Jalil have certainly recorded an impressive run lately. According to research by theedgeproperty.com, the average transacted price psf for non-landed homes in Bukit Jalil rose 19.3% to RM444 in 3Q2014 from the previous year. This follows an even higher growth of 25.1% during the preceding year. Transaction volume for the 12 months to 3Q2014 slipped just 5.1%, showing steady demand even in a general market slowdown.

theedgeproperty.com’s research also reveals that the top five most expensive non-landed residential properties by average price psf in Bukit Jalil as of 3Q2014 were the newer developments that were completed over the past three years, with KM1 by Berjaya Land identified as the most expensive at RM649 psf.

This project sits on a 3.67-acre freehold site with two 26-storey towers of 350 units in total and a 4-storey car park podium. The units have a built-up area of between 1,331 sq ft and 1,508 sq ft. Facilities include swimming pool, playground, gymnasium, tennis court, half basketball court, pool deck, multi-purpose hall and sauna. The first tower, KM1 (West), was completed in March last year.

The next-most expensive non-landed homes were The Treez Jalil Residence at RM647 psf (developed by Exsim Group of Companies), Covillea at RM581 psf (developed by Berjaya Land), Kiara Residence at RM535 psf (a joint-venture between Aston Villa and YAKIN) and The Z Residence at RM520 psf (developed by Trinity Group).

The most affordable non-landed residential property in Bukit Jalil in 3Q2014 according to theedgeproperty.com’s analysis was Sri Rakyat Apartment at RM175 psf, which also had the highest average price growth of 30.7%.

The second-most affordable non-landed residential property in Bukit Jalil as of 3Q2014 was Bukit OUG Condominiums at RM294 psf, followed by Vista Komanwel B (RM358 psf), Vista Komanwel A (RM364 psf) and Arena Green (RM401 psf).

The lower pricing of some of these properties has also presented opportunities for price growth due to their relatively lower entry price barrier. After Sri Rakyat Apartment, the next non-landed property with the highest average price annual growth was Vista Komanwel C at 24.3% (RM403 psf), followed by Bukit OUG Condominiums at 21.4% (RM294 psf), Jalil Damai Apartments at 16.8% (RM407 psf) and Anjung Hijau at 16.7% (RM455 psf).

According to ExaStrata Solutions Sdn Bhd chief real estate consultant Adzman Shah Mohd Ariffin, Bukit Jalil is becoming more popular among owner-occupiers due to its location, improving infrastructure, and its relatively lower property prices compared with more mature areas in the Klang Valley.

“Bukit Jalil attracts young families who are looking for their first home of their own occupation due to its relatively lower prices,” he says.

GS Realty’s Liew says the sub-sale value for homes in Bukit Jalil are, in general, 10% to 15% higher than bank valuations due to the strong overall demand for the properties here, for both owner occupation and rental.

Traffic congestion and future outlook

On the flipside, the high student population here may deter some homebuyers. “There are owners who don’t like to stay in Bukit Jalil because of the student population and the traffic congestion,” says Liew.

Traffic congestion in Bukit Jalil is notorious and gets even worse when there is an event at the National Sports Complex.

“The traffic is very bad at that area, especially if there is an event at the stadium. Many owner-occupiers have moved away from this area because of this reason, even though there are many facilities and schools here,” Liew adds. “If the road system here can be improved, there would be more people who would choose to stay here.”

Metro Homes’ See notes that the Ampang LRT line extension that is scheduled for completion in the next two years would make areas such as Puchong more accessible to Bukit Jalil residents. The nearest station of the LRT extension to Bukit Jalil is the Awan Besar station, which is located near the Awan Besar interchange and Bukit Jalil Golf & Country Club. The scheduled upgrade of the Bukit Jalil Expressway is also expected to reduce the traffic congestion there.

He says the current property trend in Bukit Jalil is towards high-end/high-rise residences, which he foresees will continue due to rising demand as well as the higher plot ratio allowed in Kuala Lumpur.

With more non-landed residential projects scheduled for completion over the next three to four years, will there be an oversupply situation in Bukit Jalil?

“[Oversupply] might be a concern in the short term when the projects are delivered at the same time but it should be alright in the longer term,” says See. “Condominiums with full facilities and close to the LRT are a norm here. As integrated developments with shopping malls or commercial elements are developed, Bukit Jalil can become a self-contained community.”

ExaStrata Solutions’ Adzman Shah concurs as he expects demand to rise with population growth as well as from the positive spillover from KL city centre and the Old Klang Road area.

On the outlook for Bukit Jalil, he expects property prices to rise gradually due to rising costs as well as from the overall higher demand for properties close to LRT/MRT stations and highways.

“New supply in Bukit Jalil will be in the form of high-rise strata apartments to cater for the growing population in the area [at] prices within reach of middle income households,” he says. Among the non-landed residential projects scheduled for completion in the next three to four years include Casa Green, The Rainz, Parkhill Residences and Twin Arkz.

This article first appeared in property+, a section of the digitaledge Daily, on Aug 14, 2015. Get the full property+ here and view the video here.

For a quick and brief analysis of the property market in Bukit Jalil:
PROPERTY SNAPSHOT 1: Bukit Jalil growth spurt
PROPERTY SNAPSHOT 2: What’s affordable in Bukit Jalil?
PROPERTY SNAPSHOT 3: What are developments priced in Bukit Jalil?
PROPERTY SNAPSHOT 4: What’s hot in Bukit Jalil?