Semenyih: Property Figures

Semenyih: Property Figures

The neighbourhood which saw the highest number of residential property transactions is Bandar Rinching (98) followed by Bandar Teknologi Kajang (51).

Commenting on the appeal of Bandar Rinching, Aziz Ahmad, Founder of hartanahguru.com says that the neighbourhood is popular mainly due to its strategic location and the many conveniences in the area. Located just at the exit of the newly opened Lingkaran Lekas-Ecohill Link, Bandar Rinching is neighbours with the ongoing Setia EcoHill 1 development. The new link is a boon to the residents of Semenyih, Rinching and Beranang as it enables for quicker travel between Kajang and Rinching /Beranang by 15 to 30 minutes.

Bandar Rinching consists of 4 sections and there are quite a few ongoing developments within Section 1 and Section 4. The Semenyih town centre and Tesco Semenyih are located within a mere 10-minute drive away from the neighbourhood. There are numerous eateries, retail stores and banks in the area. Other localities within a 3km radius include EconSave, The Store and the University of Nottingham Malaysia Campus.

The neighbourhood’s affordability is the main reason buyers are purchasing properties there. Purchasers are able to obtain a single-storey terrace house for less than RM300,000 and a double-storey terrace house for less than RM400,000.

The past year has seen big players such as S P Setia (Setia EcoHill), EcoWorld Development (Eco Majestic) and Country Garden (Diamond City) marking their presence around the neighbourhood. This will definitely lend a hand to the capital appreciation growth of properties in the neighbourhood.

Similarly, there are many new residential projects coming up around Bandar Teknologi. These include Kajang East and Kajang 2 by MKH Bhd. The neighbourhood is also bordered by Taman Nadayu 92, a mature neighbourhood which received an overwhelming response when it was launched in 2013.

According to Aziz Ahmad, Bandar Teknologi is located smack in the middle of Semenyih, Kajang and Bandar Baru Bangi (BBB), providing its residents with easy mobility.

The neighbourhood will also soon see better accessibility – at the moment, a flyover from Persiaran Bangi through Jalan Reko to Kajang 2, Nadayu 92, Tropicana Heights and straight to Bandar Teknologi Kajang is being constructed. Once completed in October 2017, the flyover would ease traffic congestion considerably as vehicles from Bandar Teknologi travelling to BBB and to the KL city centre will not have to go through Kajang. Other infrastructure plans include the existing bridge in Bandar Teknologi Kajang being upgraded from a single to dual carriageway with the addition of a new bridge.

The residential properties in Bandar Teknologi are mostly freehold and are a mixture of terrace houses, semi-detached houses, apartments and low-cost flats, providing potential homebuyers with a wide range of options. A single-storey terrace house in the area could be purchased for from as low as RM 200,000.

The neighbourhood is served by the LEKAS and SILK Highways and the upcoming Kajang MRT station is located about 10km away.

The building type that registered the highest number of units sold was Terraced Houses (370), Flats (108) followed by Semi-Ds (51).

Aziz Ahmad added that Semenyih still has a lot of land banks and there is not much demand for high-rise properties. All the new developments coming up in the area consists of landed homes as well, with the exception of a high-rise component in Setia EcoHill 1.

He commented that the most popular category at the moment is double-storey terrace houses (secondary properties) where the average price is less than RM400,000. The older low-cost flats in neighbourhoods such as Bandar Tasik Kesuma and Bandar Riching are popular among purchasers from the lower-income group.

The total number of transactions for landed properties in Semenyih was 436 with an average price per sq ft of RM251.

Aziz Ahmad attributes the steady increase in average price per sq ft to the new townships in the area. Semenyih will continue to see steady growth as an increasing number of home buyers will be drawn to the area’s new townships.

The total number of transactions for landed properties in Semenyih was 121 with an average price per sq ft of RM137.

Aziz Ahmad predicts that the non-landed market will maintain a stagnant trend in the next few years as the ongoing and upcoming landed residential projects in Semenyih will take center stage for the next 5 years or so.

Aziz Ahmad opines that the rental growth in Semenyih will be slower as compared to the capital appreciation growth. Currently, the average rental rate for sub-sale landed properties is approximately RM1,000. With the completion of new developments in the area over the next few years, Aziz Ahmad predicts that the rental rate would not exceed RM1,500.

On the other hand, there will be growth in terms of capital appreciation as Semenyih will be experiencing better connectivity in the near future. Eco World Group is planning to build a dedicated LEKAS-Eco Majestic Interchange, which is about 5km from the current Semenyih Toll (Exit 2012A). Once completed, this interchange will reduce travel time from Eco Majestic (and the surrounding neighbourhoods) to the KL city centre by 30 minutes.

Moving forward, Aziz Ahmad believes that Semenyih will undergo substantial changes in its property scene. The upcoming townships in the area, namely Setia EcoHill and Eco Majestic have led to improvements in road connectivity and infrastructure. Before this, many people are hesitant to purchase homes in Semenyih due to the traffic congestion in the area. This is bound to change with the new interchanges which will enhance Semenyih’s accessibility KL city centre, Putrajaya/Cyberjaya, and Seremban.

On the new townships in the area, Aziz Ahmad stated that the market response has been strong as the gated-and-guarded concept is relatively new in Semenyih. In addition, new and unique designs of upcoming residential projects appeal to the younger generation. For instance, Diamond City’s Spanish-themed villas have garnered much interest from working professionals and young families.

Aziz Ahmad also foresees that Setia EcoHill could be the ‘next Setia Alam’ in the next 5-10 years as it is being constructed using a similar model. As the township develops, components such as a mall, convention centre, medical facilities will be gradually added, making it a self-sustaining township. Similarly, the integrated Eco Majestic township, which is designed as a ‘Work, Live and Play’ development will encourage the urbanite population to shift southwards from the KL city centre.

Conclusion

Semenyih’s growth is inevitable. In comparison to 2014, there has been a marked decrease in new residential property launches in Selangor for 2015. However, it was the opposite for Semenyih, which saw an increase in new launches – 2015 saw 6 new projects coming into the market.

Disclaimer: The source of data on brickz.my is from the Valuation and Property Services department (JPPH) which officially records a property transaction once the stamp duty for the Sales and Purchase is paid. Analytics are based on the data available at the date of publication and may be subject to revision as and when more data becomes available.

This article was first published in the iProperty.com Malaysia June 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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