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Prices of 2-storey terraced homes in established neighbourhoods in the Klang Valley are on an upward trend on the secondary market, say real estate agents. Potential homebuyers, they add, may have to bite the bullet and make a firm decision if they are keen on a house because giving it a miss would only mean higher prices in the future.
Although we are only three months into 2011, says Kim Realty’s principal Vincent Ng, the prices of these homes have risen fairly quickly.
“For every unit sold, the next unit in the same location has a higher price tag on the market,” he says. “For example, if A sells his home for RM800,000, his neighbour is selling his for RM850,000. After almost every transaction, the price goes up.”
Ng also mentions the value appreciation of a semi-detached house in Damansara Jaya. It was worth less than RM2 million in early 2010 but now it is going for RM2.3 million, he says.
SANG Associates’ principal Sarah Lim says landed properties going for good prices were snapped up last year. There is limited stock on the market now while demand remains high, she adds.
Ng believes buyers are willing to fork out huge sums for homes in mature neighbourhoods such as SS2, Kota Damansara, Mutiara Damansara and TTDI as they are genuine investors looking to upgrade.
“It you don’t buy now, you will miss the boat,” he says, adding that interest rates are still relatively low in Malaysia while construction material prices are going up, pushing up the prices of new properties.
Chen King Hoaw, managing director of real estate consultancy Landserve Sdn Bhd, points out the hot spots for landed terraced homes in Petaling Jaya are Section 17, Damansara Jaya, SS2 and Damansara Utama while Taman Tun Dr Ismail is at the top of the list for Kuala Lumpur.
“Despite the steady increase in the prices of such properties, the rate of appreciation varies with the location of the property. Sustainability of demand for such properties is also uncertain.
“It depends on the buyer’s objective. If it’s for owner occupation, the choice must be suitable and convenient for the buyer. Then it’s worth buying, but if the property is bought for investment purposes, there are options in other areas,” he explains.
Chen says new hot spots will emerge along the planned mass rapid transit (MRT) system as easy transport will attract investors.
Real estate agent Alex Lee of Reapfield Properties says Damansara Kim is becoming more popular with buyers because of its attractive business and commercial centre while most of the homes there are occupied by families. According to him, the prices of properties in the area have gone up by 30% since the end of 2009. “An intermediate unit was selling for RM450,000 in 2009 but now its price has gone up to RM730,000.”
Lee says Kota Damansara is most popular with buyers because of its gated and guarded community living concept but few of its residential units are for sale.
In Mutiara Damansara, says Calvin Law of Tech Realtors, the residential properties are constantly on the radar screen of homebuyers as these are quite new and freehold. They are also conveniently located near shopping malls such Tesco, Ikano Power Centre and The Curve. Law estimates the values here to have gone up by 20% to 30% in the past few years.
Real estate agent Ken, also of Kim Realty, says the SS2 area in Petaling Jaya continues to be a popular area because of its proximity to commercial centres and schools.
“One terraced house there that was going for RM680,000 in late 2009 was standing at RM730,000 by January 2010,” he says.
According to Vincent Yim of Urban Realty, demand on the secondary market for semidees and terraced houses in Bukit Jelutong is very strong as there are no new affordable launches in the area, only those of high-end bungalows.
“Demand, especially for homes in the lower range, is very high as there is limited supply,” he says, adding that most properties in the area can easily fetch 50% more than their launch prices.
Yim, who specialises in the Bukit Jelutong area, says houses priced between RM500,000 and RM600,000 get snapped up in a week or two. These houses, he adds, are mostly owner-occupied. “People who buy in Bukit Jelutong are usually married with children.”
Check out the asking prices for terraced homes in the Klang Valley below.
This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 850, Mar 21-27, 2011
