PROPERTY SNAPSHOT 1: Kota Damansara gets increasingly attractive

•     This week, the spotlight falls on the secondary market of non-landed residences in Kota Damansara. Located at the periphery of Petaling Jaya in Selangor, Kota Damansara neighbours the established townships of Mutiara Damansara at the East and Tropicana at the South.

•     While Kota Damansara was originally developed as a low- to medium-cost housing estate, the neighbourhood is on the property investor’s radar due to its proximity to the heart of Petaling Jaya and next to the future Kwasa Damansara township.

•     The newer developments are centered around Persiaran Surian and the commercial hubs at The Strand and Dataran Sunway. Persiaran Surian will welcome two new MRT stations along the Sungai Buloh-Kajang line due in 2017.

•     Based on TheEdgeProperty.com’s analysis of transactions, the average transacted price of non-landed homes has jumped significantly in 2014 to reach RM382 per sq ft in 1Q2015. This represents a 39% y-o-y growth from RM275 psf in 1Q2014, following a mere 4% y-o-y growth in the preceding year.

•     The average price appreciation was driven by the completions of Cascades and I Residence and by the lack of transactions within the lower ranges.

•     Correspondingly, transaction activity has fallen, with a noticeable lack of transactions in the lower-end. Transaction volume for the 12 months to 1Q2015 retreated a slight 47.5% y-o-y from 417 units to 219 units.

•     Kota Damansara is becoming increasingly attractive with new upscale developments such as Sunway Nexis, improved connectivity with the upcoming Sungai Buloh–Kajang MRT line and its strategic location.