A diamond in the rough

 A diamond in the rough

Of all townships in Malaysia, particularly within the greater Kuala Lumpur region, perhaps few are as extensively and intensely discussed as Puchong. Few municipalities can claim to have experienced such immense growth as this former meagre mining town in a relatively short period of time. A single two-lane road running through estates and villages in the 1960s has now given way for major highways connecting commercial, industrial and residential hotspots with more than a fair share of high rise residences, business complexes, shopping malls, schools, universities and factories.

A bustling conurbation

Puchong serves as a residential hub for surrounding cities including Kuala Lumpur, Subang Jaya and Petaling Jaya. In the 1980s, as developers sought more development land beyond these cities, they naturally headed towards Puchong. This momentum was compounded with the development and announcement of Putrajaya as the federal administrative capital and rise of adjacent Cyberjaya. Infrastructure and accessibility was also improved with the implementation of a network of highways such as the Damansara-Puchong Highway (LDP), the Shah Alam Highway (KESAS) and the South Klang Valley Expressway (SKVE). By the 1990s, Puchong had become a centralised location surrounded by Putrajaya, Cyberjaya, Subang Jaya, Petaling Jaya, Bukit Jalil and Kuala Lumpur. The rest, as they say, is history.

A Mecca for developers

Given the proliferation of growth here, one could be forgiven for thinking that this vast development has seen better days. However, Puchong’s growth is showing no signs of letting up. With its expansion, new townships began to emerge within the greater Puchong area from once-abandoned lands and former plantations, resulting in a population boom unlike any other.

In recent times, the continued development within the Klang Valley has led to a scarcity of land. This, along with a slew of other cost-push factors including inflationary pressure, subsidy rationalisation and the implementation of minimum wage, led to the escalation of land costs, especially within the KL and PJ area. This has driven developers to focus their developments in localities further south into the Klang Valley, including Puchong.

 A prime freehold investment opportunity

The continued growth of Puchong in recent times has naturally placed it as a prime investment opportunity, not only for developers who have thronged to the vicinity to further tap into undeveloped areas, but also for investors and individuals who have seen some handsome return on investments in recent years. It is not surprising to see investors setting their sights on fast emerging townships within the greater Puchong area. One such booming development is the township of Bukit Puchong, developed by Bukit Hitam Development. The township already has a good track record of yielding handsome returns on its property. In the last three years alone, freehold property prices in the area have increased by more than 30%, and this figure is expected to hit the 60% mark within the next ten years. This forecast is largely due to the fact that the greater Puchong area is poised for even further growth, thanks to the continued investment of already long-time developers such as Bukit Hitam Development, which is, incidentally, the last remaining freehold developer in the Puchong – and quite possibly the greater KL area.

With a track record leveraging over 100 years of experience, the developer has been a pioneer in the Puchong area, having already built properties in the vicinity which has yielded steadily increasing returns over the years.

Bukit Hitam Development is also in the midst of further developing the Bukit Puchong township which is poised to become a self-sustaining township on its own. With recently launched projects such as BP Newtown, Epic Suites and Foreston, future projects are already in the pipeline.

Bukit Puchong has already caught the attention of major commercial and educational players, who have made Bukit Puchong their new “home”. For instance, the Taylors Educational Group has set up a multifaceted international school within the township, while retail giants such as Tesco have made their mark in Bukit Hitam.

Conclusion

So while property prices continue to escalate in PJ and KL, there remains tremendous opportunity for freehold investment in hidden gems within the Southern Klang Valley, which may appeal to a new generation of homeowners, especially in the younger age bracket. Owning a brand-new piece of prime freehold property in the greater KL area, with an almost guaranteed prospect of handsome returns, may not be as implausible as some may think.

This article was first published in the iProperty.com Malaysia May 2016 Magazine. Get your copy from selected news stands or view the magazine online for free at www.iproperty.com.my/magazine.  Better yet, order a discounted subscription by putting in your details in the form below!

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