The neighbourhood which saw the highest number of residential property transactions is Taman Sepakat Indah (121), followed by Bangi Avenue (70) and Taman Kajang Utama (60).
According to Haridash Ramasamy, Head of Mergers & Acquisitions of Zerin Properties, these areas are popular due to their proximity to public transportations. Taman Sepakat Indah and Taman Kajang Utama are both located a mere 10 minutes away from the Kajang KTM station as well as the future Kajang MRT station, which is scheduled to be opened in 2017. Bangi Avenue, on the other hand, is located just adjacent to the Bangi KTM Komuter station.
In addition, within the vicinity of the three neighbourhoods are numerous higher education institutes, namely Nottingham University Malaysia campus, New Era College, Universiti Kebangsaan Malaysia and the German Malaysian Institute, There are also commercial and industrial areas surrounding the three neighbourhoods.
Thus, attracting owner-occupiers, either parents who buy residential properties for their children or teaching staff and property investors who invest in properties to rent out to the huge catchment of students.
Haridash highlighted that it is not surprising that the capital appreciation and rental values in these areas are increasing.
According to him, Taman Sepakat Indah was the best performer as the medium cost apartments in the area received high interest from buyers. One of them was Plaza Indah, which had an indicative rental yield of 6.5% – 7.5% and an average price per sq ft of RM249.
Another popular project was Taman Sepakat Indah Apartments – its indicative rental yield was 13.26% while its average price per sq ft stood at RM128. Meanwhile, Sri Ria Apartments had an indicative rental yield of 6.5% -7.0% and an average price per sq ft of RM 196.
As a whole, Taman Sepakat Indah registered an indicative average price per sq ft of RM252 for landed properties (terraced houses) and RM 250 for nonlanded properties. Taman Kajang Utama, on the other hand, recorded an overall indicative average price per sq ft of RM180 and an indicative rental yield of 4.5%. Bangi Avenue’s overall indicative average price was at RM370 per sq ft and its indicative rental yield was 2.05%.
In the period of January – October 2015, the building type that registered the highest number of units sold was Terraced Houses (507) followed by Flats (213) and Apartments (181). Developers have been flocking to Kajang in the few recent years due to it strategic location on the outskirts of the KL city centre as well as for its high growth potential. Haridash notes that the future MRT Line 1 has been the major catalyst for Kajang’s property market. The area will become an increasingly viable place to live with the completion of the MRT Sungai Buloh-Kajang Line in 2017. Kajang is set to receive three MRT stations in Saujana Impian, Bandar Kajang and Jalan Reko.
Moreover, the ever increasing property prices in the city centre have made Kajang a popular choice for homebuyers/investors due to its affordable properties coupled with on-going improvements to infrastructures and connectivity. For instance, the Kajang SILK Highway and the Kajang bypass have enhanced Kajang’s connectivity tremendously. The high transaction activity, particularly for terraced houses and flat/apartments is mainly because Kajang has become an alternative for homebuyers to purchase affordable homes. Residential properties in Kajang will continue to enjoy high demand due to its proximity to Cyberjaya, Putrajaya as well as the presence of institutes of higher education which will be further enhanced by the future MRT Line 1.
The total number of transactions for landed properties in Kajang was 678 with an average price per sq ft of RM273. The price trend of landed properties recorded continuous growth in terms of the average selling price per sq ft from the second half of 2015 onwards, which indicates growing demand for such properties. Landed properties in Kajang will continue to perform well with increased demand from potential homebuyers due to its affordability and influx of quality gated neighbourhoods by reputable developers.
Kajang has many international schools and private hospitals to cater to the demands of the upper-middle class. As a result, the recent high-rise developments here are mainly upmarket ones, setting new benchmark prices which give a boost to the local secondary market as well. Among the upcoming developments in Kajang include Saville @ Kajang and MKH Boulevard by MKH Berhad and Jadite Suites by Gamuda Land. Moreover, the accessibility to the area will be greatly enhanced upon the completion of the three future MRT stations (Saujana Impian, Bandar Kajang and Jalan Reko). This will be a major pulling factor for potential homebuyers.
The non-landed property market recorded 409 transactions and an average price per sq ft of RM196. Overall, the performance of non-landed properties remains steady throughout the review period. Nonlanded properties in strategic locations such as near education centres and public transports recorded high selling price and rentals. The recent high-rise developments in Kajang are mainly upmarket ones, thus setting new benchmark prices and boosting the local secondary market as well. Non-landed properties in good locations will witness growing demand both from potential buyers/investors and tenants.
However, the downside of the influx of high-rise developments will be in the form of worsening traffic congestion as it is anticipated that there will be substantial population growth in the next few years in Kajang.