City&Country: Klang housing outshines industrial properties

The Klang residential property market has been quite active in recent years, outshining the industrial segment that has been historically the area’s strongest sector due to the nearby port activities, says Phua Chee Kok, head of sales at Reapfield Properties (Klang) Sdn Bhd. This has something to do with the mushrooming of several satellite townships there, such as Bandar Bukit Tinggi and Bandar Botanic, coupled with the emergence of amenities like the AEON Bukit Tinggi Shopping Centre.

A 45-minute drive from the Kuala Lumpur city centre, Klang remains one of the main gateways to Malaysia via Port Klang. Despite its distance from the city, certain parts of this town are seeing good demand from property buyers, especially owner-occupiers due to the improved accessibility and good infrastructure, says VPC Alliance (M) Sdn Bhd managing director James Wong.

Klang’s population in 2000 was 643,436, compared with 406,994 in 1991. This represented an annual growth rate of 5.23% against the national average of 3%, he adds. The current population is about 1.2 million.

Property experts say the population growth is due to people migrating here from other parts of Selangor, and even other parts of the country. While some come in search of employment, others are attracted by the new gated and guarded homes, which are more affordable than those in Kuala Lumpur and Petaling Jaya. Accessibility has also improved.

Divided into Klang North and Klang South, Klang was the state capital before the seat of the Selangor government was moved to neighbouring Shah Alam in 1977. Klang is accessible via the Kesas Highway, the Federal Highway and the New Klang Valley Expressway (NKVE).

Property experts say that since 1998, the focus of development in Klang has moved to Klang South due to the traffic congestion in the town centre. New housing projects, like those in Bandar Bukit Tinggi and Bandar Botanic, are mainly in Klang South.

The opening of AEON Bukit Tinggi Shopping Centre, Tesco Hypermarket and Giant Hypermarket in Klang South has also drawn more people to set up home in this part of town, says Reapfield’s Phua.

Residential sector
He tells City & Country that the development in Klang South started with Bandar Botanic, a project by Gamuda Land Bhd, offering buyers gated and guarded community living in certain phases. The township planning as well as the gated and guarded community living concept attracted buyers.

The 1,247-acre freehold Bandar Botanic is the first waterfront parkland township with a self-sustaining urban stormwater management system in the country. Ambang Botanic, which is part of Bandar Botanic, has high-end properties such as bungalows and semi-detached homes. It is said to be the first fully gated and guarded community in Klang, according to the developer’s website.

Another popular township is the integrated and self-sufficient Bandar Bukit Tinggi. Developed by WCT Land Bhd, Bandar Bukit Tinggi is a 1,346-acre mixed development with over 18,400 residential and commercial properties completed.

VPC Alliance’s Wong agrees that the more notable residential areas that are offering good value are Bandar Bukit Tinggi and Bandar Botanic due to the better township planning and good accessibility.

“New phases of development are in progress in these areas and these will expand existing supply by 20% to 30%. Over the past one to two years, prices of properties in these areas have appreciated by about 20%. Property purchases here are primarily for owner-occupation rather than investment,” he tells City & Country.

The Klang district comprises the towns of Klang, Meru and Kapar. The parcels of land alienated in the district before 1957 are freehold, while the rest are leasehold. Residential and commercial land has a 99-year lease, while industrial land has a 40 to 60-year lease, Wong says.

The Klang district also comprises several islands — Pulau Ketam, Pulau Kelang, Pulau Tengah, Pulau Selat Kering, Pulau Selat Gedung, Pulau Che Mat Zin and Pulau Indah, he adds.

“Based on the Klang Local Plan 2002-2015, the municipality of Klang covers an area of 63,235ha, with a 53.75km coastline, which has been demarcated into 10 zones,” Wong says. The 10 zones are Kapar/Meru, Pandamaran, Bukit Raja, Port Klang, Bandar Klang, Sementa, Klang Selatan, Pulau Indah, Sentosa and Pulau Pulau.

The industrial areas in the municipality are concentrated in Bukit Raja, Selat Klang Utara, Pelabuhan Klang Utara, Meru, Klang Selatan, Pandamaran and Kapar. The types of industries found here are food, textile, clothing, wood and furniture, paper and printing, transport and logistics, plastic goods, basic metal and construction material industries, he adds.

“The commercial sector has also expanded and become more active in the past few years, but this is yet to be reflected in the number of transactions,” says Wong.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 814, July 12-18, 2010

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