Klang Valley landed properties still resilient

KUALA LUMPUR: Prices of landed residential properties on the secondary market in popular areas in the Klang Valley have been resilient so far.  

According to Regroup Associates managing director Allan Soo, prices of landed homes in areas such as Bangsar, Taman Tun Dr Ismail (TTDI) and parts of Puchong are expected to hold up despite the current economic downturn.

However, even these areas will be affected if the downturn is protracted, although not as greatly as the impact on high-end high-rise residential properties, he said.

The resilience of the landed homes in these areas is due to the lack of supply while demand continues to be steady, Soo explained when presenting The Edge/Regroup Klang Valley Housing Property Monitor for 4Q2008.

In Q42008, prices remained relatively unchanged for landed properties in TTDI, Bandar Utama in Petlaing Jaya, Bangsar and Bandar Sri Damansara although there were fewer transactions compared with the previous quarter.

For example, asking prices for two-storey terraced houses in TTDI's Jalan Datuk Sulaiman and Zaaba areas were still high at RM800,000 and RM580,000 respectviely while monthly rents were unchanged at RM1,800.

In Bangsar, prices for single-storey terraced houses in Bangsar Park went up slightly to RM550,000 from 3Q2009 although rents dropped to around RM1,400.

Overall, Klang Valley is not facing an oversupply situation except in the high-end-high-rise segment in certain locations.

In the high-end high-rise residential property segment however, the KLCC and Mont'Kiara areas are witnessing a rapid drop in asking prices in some developments.

The tenancy market was weaker as well in these two areas compared with the previous quarter as rents declined.  

Read the full report on the Housing Monitor in the March 30, 2009 issue of City & Country, the property pullout of The Edge Malaysia.
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