City & Country: Prices of link homes continue to rise

If you are thinking of buying a link house on the secondary market in the Klang Valley, you are not alone. Real estate agents and negotiators dealing with the sexier addresses in both the established and upcoming enclaves in Kuala Lumpur and Selangor say that of late they have been receiving more calls from prospective buyers than sellers.

The strong market interest has translated into rising values, especially for the relatively more affordable link houses. Consequently, million-ringgit link homes are no longer rare in the Klang Valley, such as those in Kuala Lumpur’s Desa ParkCity as well as the super link homes in Selangor’s Mutiara.

At the recently held The Edge Investment Forum on Real Estate 2010, Ho Chin Soon, director of Ho Chin Soon Research Sdn Bhd, said an Adiva 2-storey link house in Desa ParkCity enjoyed a capital appreciation of 8.9% from 2003 to 2010. He also said a 2,023 sq ft unit, valued at RM541,000 in 2003, is now valued at RM980,000.

According to Ho, 3-storey super link houses in Mutiara Damansara’s Phase 1F have enjoyed 15.5% capital appreciation per annum. Priced at RM1.2 million in 2007, they are now going for RM1.85 million. Bandar Utama in Selangor is also popular.

“Judging from the way things are moving, like hedging against inflation, low interest rates and so on, those who want to buy terraced houses should not miss the boat,” says Vincent Ng, CEO of Kim Realty. Ng tells City & Country that the values of houses — such as those in Desa ParkCity — have increased, thanks to the gated and guarded features.

Meanwhile, the older township of Taman Tun Dr Ismail (TTDI) remains attractive to buyers, as reflected by its values.  A real estate negotiator says TTDI appeals to those who want to upgrade because the township is well planned and highly accessible.

CBD Properties’ L F Chin says prices in the newer phases of Setia Alam, Shah Alam, have risen 20% within three to six months. Chin says the township is well planned, has amenities and is easily accessible, contributing to the rise in demand.

“The area is in the toddler stage of development,” adds Chin who believes the upcoming Setia City mall and other developments in the township will only enhance its value.

Bandar Sunway is well received, says a negotiator, as owners can rent their premises to students and medical personnel, thanks to the presence of educational and medical centres there. Meanwhile, USJ in Subang Jaya seems to attract young professionals and those with young families because of the prices of property there, according to Charlie Jo of MS Properties.
Does this rise in demand for landed properties mean that owners should stay put instead of cashing out?

Landserve Sdn Bhd managing director Chen King Hoaw says, “If you have found an alternative property investment that is capable of giving you higher capital or rental returns, then it may be the right time for you to sell. 

“However, more thinking is needed if you are living in the house that you are considering selling, especially if you are not sure where to relocate to as prices elsewhere have gone up considerably as well.”

Read on for what terraced house owners in the Klang Valley are asking for their properties.  — Compiled by Wong King Wai.

(Note: The photos used are general location shots and the properties photographed are not necessarily the ones referred to. All the properties mentioned here are freehold unless otherwise stated.)

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 805, May 10-16, 2010.

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