#The Edge Forum* Accessibility and amenities vital for value creation - Researcher

KUALA LUMPUR: Ample accessibility and amenities are two factors for value creation of a property development, cited Ho Chin Soon, director of Ho Chin Soon Research Sdn Bhd during The Edge Investment Forum on Real Estate 2010 held on April 10.

Based on a sampling of six development locations namely Mutiara Damansara, Taman Tun Dr Ismail, Mont’Kiara, Desa ParkCity, Setia Alam and Bandar Puchong Jaya / Bandar Puteri in Puchong, all in the Klang Valley, Ho revealed capital appreciation data for some of the properties in these areas and how accessibility and amenities played a role in the robust capital appreciation in these areas.

Townships with amenities such as hospitals, shopping complexes, educational facilities, as well as its accessibility to major highways were essential for capital appreciation, he said.

He cited for example the Adiva 2-storey linked homes within Desa ParkCity in Kuala Lumpur which saw 8.9% capital appreciation per year. “The 2,023 sq ft was RM541,000 in 2003 and its current value has increased to RM980,000. The 3-storey linked homes there were RM678,000 in 2003 and the current value is RM1.3 million. That’s a 9.7% increase in capital appreciation per year,” he said. As for Mont’Kiara, he said the area has grown 16% per annum on compound yield.

He also named a few future growth locations/townships, ranging from 50 to 300 acres including Equine Park and Kemensah Heights in Kuala Lumpur.

For the full coverage of The Edge Investment Forum on Real Estate 2010, read the April 19 issue of City & Country, the property pullout of The Edge Malaysia.