Things are bound to get more exciting for Puchong in 2016. This year will see the completion of six additional LRT stations running through the major town, bringing the total to eight. The existing Alam Sutera and BK5 LRT station will soon see their sister stations; Puchong Jaya, Pusat Bandar Puchong, Taman Perindustrian Puchong, Bandar Puteri, Puchong Perdana and Puchong Prima – all which would cater to Puchong’s population of 400,000.
Echoing the excitement in Puchong, Stanley Toh, Executive Director of LaurelCap Sdn Bhd says that the township has seen tremendous developments over the past 10 years. In 2005, Puchong was still mainly a suburban residential enclave and was limited from Puchong Jaya, up to the Bandar Bukit Puchong toll plaza (Puchong South Toll). It has now extended beyond that as Puchong South reaches areas like Cyberjaya and Putrajaya. These new areas include Taman Lestari Perdana, LamanGranview, Taman Saujana Puchong, Bandar Bukit Puchong, Taman Lestari Putra, Bandar Putra Permai, Taman Equine, D’ Alpinia, Taman Mutiara Indah, The Atmosphere and O2 City Puchong.
Sarkunan Subramaniam, Managing Director of Knight Frank Malaysia describes Puchong as one of the fastest growing areas in the Klang Valley and it is home to established townships such as Pusat Bandar Puchong, Bandar Puchong Jaya, Bandar Puteri Jaya and Bandar Bukit Puchong.
“It was voted as the top property hotspot for H1 2013 in the property industry survey conducted by the Real Estate and Housing Developers’ Association (REHDA) in H2 2012,” he adds.
According to Ahmad Nazree Omar, a town planning and property development consultant and Director of Jururancang NazreeOmar Sdn Bhd, most of the land in Puchong is leasehold as it was a mining area and government-owned.
However, he affirms that properties in Puchong have been gaining high demand due to its prime location and sustainable surroundings.
He added, “A small majority of Puchong residents are workers from Cyberjaya and Putrajaya because it is very much cheaper than renting a property in Southern KL. Depending on the location, the rental for an average landed property of about 1,000 sqft is about RM1,000 per month – as opposed to an average 700 sq ft apartment in Cyberjaya where the rental fetches more than RM1,200”.
Puchong is a township that gives the same experience to city living, where it is alive during the day and livelier at night. Residents would not want for more in terms of conveniences with the abundance of existing malls and hypermarkets.
In terms of facilities and amenities, Sarkunan says that Puchong has it all – shopping centres and hypermarkets such as Tesco Extra Puchong, Giant Bandar Puteri Mall and Aeon Big Puchong Utama; educational institutions comprising 24 primary schools, 13 secondary schools, 3 colleges/university colleges and 1 international school as well as commercial centres including IOI Boulevard, IOI Business Park and Setia Walk.
“Puchong also has various affordable housing products, both landed and stratified that caters to the low, low-medium and medium-upper income population,” he says.
RISING CAPITAL APPRECIATION
Toh says over the past 10 years, Puchong has seen the entry of serviced condominiums, SoHos and hotels. “The scarcity of developable land as well as the burgeoning population, have led to significant increases in land value. Developers are now moving towards higher density projects and commercial developments”.
As an example, he cited the Four Points Hotel by Sheraton was recently opened while MTree Hotel will begin operations end of this year and Hilton Garden Inn is currently under construction.
He commented that the prices of landed properties especially double-storey terraced houses have been on an uptrend, albeit at a lower curve was observed from 2014-2015.
The same pattern was observed for apartments where even though prices continue to increase, the past year showed lower growth as compared to the 2013-2014 period.
For shop-offices, the capital growth was strong between 2013 to 2014 for PBP and BPJ, while a slowdown was observed between 2014 to 2015. Toh explains that this is mainly because the rental rates can no longer sustain a yield which is economically viable for an investor. Therefore, average transacted prices did not rise much year-on-year as vendors were more realistic over the market scenario. Nevertheless, shop-offices with good access, visibility and exposure are still in demand.
BPP recorded higher percentages of transacted prices in the 2014-2015 period for double storehouses and shop-offices as well as a steady growth in apartment prices. This area is considerably newer than its surrounding neighbours, hence, demand remains strong for properties in BPP.
Toh cites that buyers tend to gravitate there as the newer projects not only have better designs but they also require very little if none maintenance and renovation. Also, BPP’s connectivity is slightly superior to that of the other localities(PBP and BPJ) as BPP is nearer to the access roads heading out to the city centre.
Commenting on the downside of Puchong, Nazree Omar says that the only problem with Puchong is the lack of connectivity to ease the traffic, as seen in the current situation where there is always congestion along the LDP during rush hour. Once all the LRT stations are up and running, the traffic congestion may ease slightly but not without an impact.
Once up and running, four of LRT stations in Puchong are positioned along the LDP and like other transit stations in Kuala Lumpur and other townships, the LRT system may or may not cause more bottleneck situations along the presently congested expressway.
Raine & Horne International Sdn Bhd’s 2016 property market outlook report highlights Puchong as one of the nine areas to watch out for this year. New residential projects include D’Island Residences by LBS Bina Group Bhd and IOI Rio City by IOI Properties Sdn Bhd.
James Tan, Associate Director of Raine & Horne clarifies that the current LDP interchange will be upgraded to free flow interchange without traffic light to make way to seamless flow to and from LDP. The access roads in Bandar Puteri Puchong will be widened to a 3-lane carriageway both ways.
Besides that, upcoming developments in Puchong include the Serdang-Kinrara-Putrajaya (SKIP) Expressway. The proposed expressway is about 17.5km and it is demarcated into 2 sections, where the first section will pass through selected townships and housing areas including Taman Kinrara 5, Kinrara Golf Course, Taman Damai Utama, Kinrara Residence, Taman Puncak Jalil, Taman Desminium and Taman Lestari Perdana. The second section, on the other hand, will pass by areas such as Taman Lestari Perdana, Taman Puncak Jalil, Taman Universiti Indah, Pusat Perdaganan Seri Kembangan and Taman Serdang Jaya.
Sarkunan notes that with the improved accessibility, Puchong is expected to attract more investors and homebuyers with its well-occupied townships and industrial parks as well as vibrant commercial precincts; all which caters to a wide market catchment.
In regards to Puchong’s future development, Sarkunan believes that the entry of leading and reputable developers into the Puchong – Puchong South locality, with their well-planned townships and integrated developments, augurs well for its future growth. “These developers bring with them innovative product offerings that cater to a wide target market comprising first-time home buyers, upgraders and investors; building confidence in terms of the potential for capital appreciation,” he says.
Adding to this is Nazree Omar, who opines that although Puchong is a mature neighbourhood, highrise properties there are still more affordable than those in Subang Jaya and Petaling Jaya.
On another note, Tan says that even though Puchong ticks all the boxes in terms of connectivity, leisure facilities, hospital amenities, and schooling options, potential home buyers should take into account the finer details when purchasing properties. For instance, look out for areas that are prone to flooding as certain areas in Puchong are known to suffer from flash floods.
Toh’s advice to potential investors is to look out for commercial properties such as shop-offices and shophouses. The population in Puchong South is on the rise and commercial lands pretty sparse in the area. He also highlights one important note; most of these shop-lots actually have fantastic positioning in terms of good frontages and exposure to human traffic brought on by existing and up and coming highways.
Overall, the outlook for Puchong’s property market is optimistic as the demand for housing and commercial products remains strong. Also, as noted by Sarkunan, there is the potential upside in prices supported by the on-going and upcoming infrastructure projects which would further enhance Puchong’s connectivity and accessibility in the short to medium term.
PUCHONG’S FINER POINTS – RESIDENTS’ SNAPSHOT
Chin Poh Yoke
Office Manager at Messrs.Teh, Kiu & Partners
AR. P. Ravi
Director of Architecture & Design Management at HMSK Associates Sdn Bhd
DISCLAIMER: The opinion stated in the article is solely of the contributors (Stanley Toh, Sarkunan Subramaniam, James Tan, Ahmad Nazree Omar, AR. P. Ravi and Chin Poh Yoke) and is not in any form an endorsement or recommendation by iProperty.com. Readers are encouraged to seek independent advice prior to making any investments.