• Today we look at price growth and indicative asking rental yields for non-landed residences along Kuala Lumpur’s Jalan Ipoh.
• Prices in Jalan Ipoh appear to have surged in the past two years. An analysis of transactions by theedgeproperty.com reveals that all of the developments surveyed have recorded positive price growth.
• The older and lower-priced developments have enjoyed much stronger capital appreciation, as the area is being increasingly rejuvenated by new developments and new benchmark pricing levels.
• Sri Intan 1 saw the highest growth of average price per square foot (psf), up an impressive 31.3% y-y to RM315 psf in 3Q2014. Other developments that enjoyed strong growth are Pelangi Indah (up 25.9% to RM252 psf), Menara Megah (up 21.4% to RM307) and Sri Intan 2 (up 20.1% to RM271 psf).
• Most notably, the average prices of these developments are still below the Jalan Ipoh average of RM395 psf in 3Q2014, suggesting that affordable homes located close to the city will continue to enjoy strong demand.
• Upcoming integrated developments, such as Lakeville Residences by Mah Sing Group Bhd and EcoSky by EcoWorld Development Group Bhd are likely to buoy prices of existing properties.
• Based on asking rental prices, Jalan Ipoh is also affordable, with rental rates generally ranging from RM1.20 psf to RM2.40 psf per month. The most expensive is Viva Residency with an average asking rent of RM2.44 psf.
• Despite the low rental rates, yields are still decent, especially for the older properties. Based on asking rental rates, Pelangi Indah generates the highest indicative annual asking rental yield at 6.5%.
The Analytics are based on the data available at the date of publication and may be subject to further revision as and when more data is made available to us.
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