iProperty.com.my data shows that high-rise property values across Malaysia were significantly impacted by Covid-19 last year. Pandemic aside, we filtered through subsale residential activity in 2020 to unearth investment properties with the best capital gains. Findings are based on the latest transaction data from brickz.my.
The top 8 residential properties below are ranked according to the highest year-on-year growth in property value/capital appreciation in 2020 compared to 2019. We also share the median capital appreciation figures for all the condominiums/serviced residences in that specific location, to showcase how well each winner fared in comparison to the neighbourhood’s overall performance.
Before we dive into the winners’ list, let’s address the frequently asked questions regarding capital growth for residential investment property in Malaysia.
How much does residential property usually appreciate per year?
Do keep in mind that house price appreciation depends on various factors and performance varies across property types and locations. According to NAPIC data, when the economy was experiencing an upturn in 2012, the average house price appreciation topped 13.9%! During normal market conditions, a capital appreciation of 5%-7% would be optimum.
With the economy taking a beating in 2020, the average capital growth figure for Malaysian residential property last year was close to zero, at 0.6%. In Q12021, the figure actually dipped into the negative region.
How is the current property market in Malaysia?
The Covid-19 pandemic has put a dampener on Malaysia’s economic growth. The property market especially took a hard hit as the various Movement Control Orders have restricted mobility, which is necessary for property viewings and sales. Market sentiment is deemed to be low in the near to medium term as many consumers tighten their belts amidst various business shutdowns and job losses/cuts. On the flip side, many Malaysians are more inclined to rent now as:
- It is a renter’s market; tenants are now in a better position to negotiate prices.
- Renting provides a lower point of entry for aspiring homeowners who have put purchasing on hold.
Another question on most property investors’ minds is, will house prices in Malaysia drop? Read Will Malaysia’s house price increase in 2021 amid COVID-19? to find out.
What is the best investment property to buy?
The best one is obviously a property that gives an investor the maximum amount of income, which is measured by rental yield (short term) and capital growth (long term). These 2 matrices are very subjective and depend heavily on market conditions and surrounding developments
Typically, properties with a low entry point will offer the highest rental yield returns. A residential investment property which fits the following criteria will have capital appreciation potential:
- Within walking distance to public transportation nodes (MRT, LRT)
- Amenities located nearby (shops for groceries, eateries, etc)
- Plenty of jobs available close by (business centres, universities and hospitals).
Now, let’s get down to business and take a look at the 8 high-rise residential properties in Malaysia which came out tops in 2020. Admittedly, the capital growth figures are nowhere near as impressive compared to the past couple of years, but they still performed when benchmarked against the national 0.6% average. To provide some perspective for investors, Bank Negara Malaysia reported that fixed deposit rates for commercial banks in Malaysia averaged at 1.56% between February – April 2021.
1. Residensi 22, Mont Kiara, Kuala Lumpur
Capital Growth: 7.28%
- 2020 Median PSF: RM914.03
- 2019 Median PSF: RM852.00
- Number of transactions: 11
- Mont Kiara’s Capital Growth: -7.82%
(2020 Median PSF: RM625)
Residensi 22 is a high-end condominium located in Mont Kiara, the neighbourhood well-loved by expats. With a completion date in 2018, this strata residential building by UEM Sunrise is fairly new and boasts a low-density setting. Four towers housing 543 units (1,900 sq ft – 3,043 sq ft) are spread out across 6.66 acres of land.
Besides the usual swimming pool and gymnasium, residents are in for a treat as Residensi 22 provides premium facilities including a dining pavilion, nursery, sculpture garden, relaxation lounge, function rooms, sunbathing deck, 50-metre lap pool, yoga & pilates room and a meditation lawn.
The development is easily accessible with two entry and exit points via Jalan Kiara 3 and Jalan Kiara 4. It is also within walking distance to the Garden International School, Arcoris Mont Kiara and the Plaza Mont Kiara mall. Other amenities located nearby include Mont Kiara International School, GDM Specialist Centre, Kiara Medical centre and 1 Mont Kiara Mall.
Online reviews are positive across the board, with most residents/visitors praising the condominium’s good security and facilities maintenance. The only issue with Residensi 22 is that residents have to deal with traffic during peak hours.
2. Seringin Residences, Old Klang Road, Kuala Lumpur
Capital Growth: 5.70%
- 2020 Median PSF: RM610.90
- 2019 Median PSF: RM577.99
- Number of transactions: 15
- Old Klang Road’s Capital Growth: -4.56%
(2020 Median PSF: RM395)
This freehold condominium located in Happy Garden, and just off Old Klang Road was completed in 2013. Seringin Residences consist of 542 housing units within two, 24-storey residential towers. With built-up sizes ranging from 1,707 sq ft – 6,760 sq ft, the huge residential units offer a unique proposition to wealthier urbanites and families.
Residents can enjoy an extensive array of facilities such as a 50-metre pool, floating gym, lifestyle pavilion as well as several unique ones which are not typically available at other high-rise residential buildings. These include a 1km bicycle track and the adjoining Sustainable Application of Green Energy (SAGE) building. The latter is a green recreational centre housing a function room, a herb garden and an eco-discovery centre with comfortable lounge areas as well as a library with a study and tuition room.
The developer, See Hoy Chan, has also installed solar panels on top of the S.A.G.E building. The harnessed power provides roughly 50% of utility usage for residents. Children and adults alike are encouraged to spend their time outdoors as Seringin Residences feature various eco attractions such as picnic grounds, ponds and composting grounds.
Residents can easily drive over to the Kuchai Business Park or Kuchai Entrepreneurs Park, located 1.3km and 2km away, respectively. Here, they can find a wide selection of restaurants and local eateries, saloons, clinics, mini markets, boutiques and more. Other nearby amenities include Assunta Hospital, SJK (C) La Salle and NSK Hypermarket.
3. Mutiara Condominium, Bukit Mertajam, Penang
Capital Growth: 5.49%
- 2020 Median PSF: RM257.14
- 2019 Median PSF: RM243.76
- Number of transactions: 26
- Bukit Mertajam’s Capital Growth: 2.72%
(2020 Median PSF: RM264)
Compared to the first two properties, Mutiara Condominium is on the low end of the price spectrum, with much more compact homes – 3 bedrooms are housed within 700 or 800 sq ft units. Located within Bandar Baru Perda, this old, freehold building offers 24-hour security, a swimming pool and a clubhouse. Although the units are smaller than average, the condominium has generous grounds, covering 3.26 acres of land.
Reviews online are mixed – facility maintenance is subpar and the building exterior appears rundown but residents praise the tight security. Mutiara Condominium’s appeal lies in its low price points, purchasers are able to own a 3-bedder for as low as RM165,000. Numerous cheap eateries, mini-marts and banks are available within a few minutes drive away, providing a touch of convenience to its residents. The secondary and primary schools – SK and SMK Bandar Baru Perda are within walking distance too.
Amenities located within a 10 km radius include Mydin Mall Bukit Mertajam, Auto-City, Sunway Carnival Mall and KPJ Penang Specialist Hospital. Meanwhile, the Penang Bridge is a mere 10 minutes away.
4. Villa Wangsamas Condominium, Wangsa Maju, Kuala Lumpur
Capital Growth: 4.57%
- 2020 Median PSF: RM370.52
- 2019 Median PSF: RM354.33
- Number of transactions: 20
- Wangsa Maju’s Capital Growth: 4.18%
(2020 Median PSF: RM399)
Villa Wangsamas opened its doors in 2010, providing property purchasers with over 1300 units for sale, spread across 9 residential towers. This high-density development offers 3 types of built-up – a standard sized unit at 1,267 sq ft (3+1 bedrooms), 1,834 sq ft (4+1 bedrooms) and 2,562 sq ft (5+1 bedrooms). One plus point for the ground floor residents is that they are privy to their own private garden.
Facilities at Villa Wangsamas include 24-hours security, a swimming pool, cafeteria, gymnasium, playground, jogging track, squash court and a business centre. Although the development is quite concentrated, the surrounding area exudes serenity serene as Villa Wangsamas is built on elevated land and has greenery all around. Recent online reviews reveal that the surroundings are peaceful and there is a sense of community among residents. They even have their own Facebook Group!
One can access the Sri Rampai LRT station, located 850 metres away although the walking route might be hampered by private roads. Accessibility to the development is not an issue as Villa Wangsamas is serviced by Jalan Jelatek, DUKE, MRR2 and AKLEH. There are various shopping malls located roughly 5-10 minutes away too such as Aeon Big Wangsa Maju, Wangsa Walk, Setapak Central Mall and Melawati Mall.
5. The Z Residence, Bukit Jalil, Kuala Lumpur
Capital Growth: 2.81%
- 2020 Median PSF: RM502.42
- 2019 Median PSF: RM488.69
- Number of transactions: 17
- Bukit Jalil’s Capital Growth: -9.46%
(2020 Median PSF: RM450)
With its attractive pricing and generous layouts, Z Residence aims to provide young urbanites with affordable lifestyle homes in the city. Completed in 2014, this freehold condominium consists of 1,136 units across 4 residential blocks. The living environment might be high-density, but an attractively priced home in a convenient location takes precedence for its residents.
One is able to secure a 1,236 sq ft unit with 3-bedrooms from as low as RM590,000 whereas the asking rent for the same unit is RM1,500 (partially furnished). Facilities at the development are comprehensive enough to satisfy the needs of millennials or small families – besides a swimming pool and gymnasium, residents have access to a sky lounge, reflexology path, Tai Chi lawn, sauna, BBQ pit, gazebo, kindergarten, launderette and mini market.
The developer Trinity Group has also committed to designating 50% of the entire project with greenery. Trees and lush landscaping are abundant throughout Z Residence. Resident reviews are mostly positive – many share that the development is peaceful, clean and well-maintained.
One sore point might be the traffic congestion experienced in the area, which gets worse during peak hours. However, one can easily access other areas in KL and Selangor easily via the network of highways servicing Bukit Jalil – these include KESAS, LDP, MEX, NPE and Old Klang Road. Amenities located less than 10 minutes away include Pavilion Bukit Jalil, Bukit Jalil Recreation Park, International Medical University (IMU) and Tzu Chi International School.
6. OUG Parklane, Old Klang Road, Kuala Lumpur
Capital Growth: 2.70%
- 2020 Median PSF: RM400.00
- 2019 Median PSF: RM389.47
- Number of transactions: 37
- Old Klang Road’s Capital Growth: 5.63%
(2020 Median PSF: RM507)
Similar to the Z Residence, OUG Parklane is another high-density development with very fair prices. A 950 sq ft home with 3 bedrooms bear the low price tags of RM310,000 – RM400,000. There are 11 blocks in total, housing 4,225 serviced apartment units and 204 commercial units, the latter are shops located on the ground floor of each block.
Due to its massive scale and the variety of retail units available including eateries, launderettes, 24-hours clinics and minimarts, OUG Parklane is pretty much a mini township of its own. Facilities at the development are standard – with a swimming pool, wading pool, children playground and landscaped garden.
Its biggest appeal lies in convenience – various amenities are literally at the residents’ doorstep and popular suburbs and business centres such as Kuchai Entrepreneurs Park, Sri Petaling, Bukit Jalil, Mid Valley City and Bandar Sunway are 10-15 minutes away. Traffic can be a chore in the area but OUG Parklane is well connected as Jalan Puchong directly links to the Shah Alam Expressway, connecting residents to the NPE and MRR2.
It should be noted that some of the recent online reviews do not paint a pretty picture – there have been complaints about cleanliness, difficulty securing parking and bad condo management.
7. Mutiara Ville Serviced Residence , Cyberjaya, Selangor
Capital Growth: 1.64%
- 2020 Median PSF: RM477.44
- 2019 Median PSF: RM469.74
- Number of transactions: 17
- Cyberjaya’s Capital Growth: -7.17%
(2020 Median PSF: RM488)
Mutiara Ville is a mixed development comprising 7 residential towers, a business centre and a 4-storey retail complex, Gem-in Mall. Purchasers have several layouts to choose from – there are studio units (500 sq ft), 3 bedders at 1,000/1,100 sq ft and 4-bedroom units sized at 1,280 sq ft. The development has not lost its new sheen as it was only completed at the end of 2017. Residents have a cafeteria and mini market at their disposal on top of a gym, swimming pool, jogging track, squash court, sky lounge, nursery and playground.
The condominium’s winning point is will be its strategic location – various hotspots in Cyberjaya are located nearby including Cyberjaya Lake Garden, DPulze Mall and Shaftsbury Square. Moreover, Mutiara Ville is surrounded by a slew of educational institutions are – Cyberjaya University of Medical Sciences (CUCMS) is located just down the road (free shuttle service is provided) while Multimedia University (MMU), Kirkby College, University of Cyberjaya and LimKokWing University are within a 7km radius.
This would make Mutiara Ville a top choice for student accommodation, making it an attractive option for investors. There are already various units being listed as short-term accommodation properties on online platforms as well, which proves its investment appeal.
The one fly in the ointment is Gem-in Mall – Unfortunately, recent reviews reveal that the mall is deserted and not much is offered to consumers, aside from a gym and sports complex on the top floor.
8. Westside Three, Desa ParkCity, Kuala Lumpur
Capital Growth: 1.07%
- 2020 Median PSF: RM881.52
- 2019 Median PSF: RM872.18
- Number of transactions: 13
- Desa ParkCity’s Capital Growth: 1.41%
(2020 Median PSF: RM862)
Completed in 2019, Westside 3 is the latest edition in the popular Desa ParkCity condominium series. Located right next to Westside 2, this high-end, freehold condominium is a stunning 47 storeys high and comprise 469 units with built-up sizes ranging 1,077 sq ft to 1,927 sq ft.
Facilities are spread out across 2 levels – Street Level and Level 6. Some of them include a sun deck, tennis court, jogging track, jet pool, jacuzzi and barbeque area. There are a few fun facilities to keep children entertained as well – a water amusement park, adventure playground, kids’ fun zone and a secret garden.
Each unit comes with high-quality interiors and fully-furnished kitchens. For added security, each unit at Westside 3 is connected directly to the guardhouse via an intercom. The development is currently being managed by Henry Butcher, a well-known property management company in Malaysia.
Desa ParkCity is an upscale, self-contained borough, popular with families and couples in the higher income bracket. The master developer has done a great job in crafting a liveable township – DPC has a few landscaped parks, a neighbourhood mall, an international school, its own medical centre, a state of the art clubhouse, community centre and a business centre, Plaza Arkadia.
1) Capital growth is calculated as = Median PSF in 2020 – Median PSF in 2019 / Median PSF in 2019. Median Per Square Foot (PSF) is used to calculate capital growth due to various built-up sizes being transacted.
2) Only properties that have more than 10 transactions in 2019 and 2020 were selected to negate the effect of any spikes.
3) The data system from JPPH officially records a property transaction in Malaysia once the stamp duty for the Sales and Purchase Agreement is paid. Analytics is based on the data available at the date of publication and may be subject to revision as and when more data becomes available.
DISCLAIMER: The opinions stated in the article is not in any form an endorsement or recommendation by iProperty.com.my. Readers are encouraged to seek independent advice prior to making any investment. Brickz.my is an independent property website. It is not a valuer, and cannot give direct property valuation. The content on www.brickz.my is provided “as is” for general information purposes only. You should not rely on any of this content without first seeking financial advice from a professionally qualified expert.