| June 2023 | June 2024 | Growth | |
| Demand Index | 9.29 | 12.2 | +31.3% |
| Demand Median Price Per Sq Ft | RM477.12 | RM502 | +5.2% |
| Rental Yield | 4.33% | 5.35% | +23.56% |
Discover the dynamic growth in Malaysia’s high-rise residential buildings. Read on as we look at factors driving their appeal, most searched residences in these areas, new developments, and why these areas could be set for further growth.
In this article:
- Kepong, Kuala Lumpur
- Sungai Besi, Kuala Lumpur
- Gelang Patah, Johor
- Kulai, Johor
- Why Are These Four Areas Poised for Growth?
Ups and downs are part and parcel of life, and it’s no different in the property market. As property seekers, we would naturally look for areas with existing or upcoming growth potential. With that, let’s take a look at the emerging areas.
Poring over PropertyGuru’s Data Software and Solutions (DSS)’s data insights, we spotted four areas demonstrating robust demand and positive rental yields year-on-year (YOY). They are Kepong and Sungai Besi in Kuala Lumpur, Gelang Patah and Kulai in Johor.
From urban hubs to suburban retreats, each area offers distinct opportunities that appeal to both investors and homeowners due to their unique attributes. Drilling further down into our data, one property type stood out in these areas – serviced apartment/residence.
This finding corresponds with Knight Frank Malaysia’s The Real Estate Highlights 1H2024 report, which reported a significant growth in apartment/condominium and serviced apartments in the Klang Valley. These categories recorded 2,937 transactions worth RM2.51 billion in 1Q2024, a growth of 37% in volume and 49.8% in value (1Q2023: 2,144 transactions valued at RM1.68 billion).
What about Johor? When the RTS reached 50% completion in April 2023, the demand index for residential properties in Johor Bahru increased by 17%, and serviced residences appeared as the most transacted high-rise property in JB, recording a 20% year-on-year (YoY) growth in median asking prices.
Let’s explore the growth drivers and most searched residences for the four emerging areas for serviced apartments/residences.
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Don’t miss out on exclusive offers and exciting activities—click here to pre-register & win an RM 10 Touch ‘n Go Voucher!*1. Kepong, Kuala Lumpur
Kepong is located in northwest Kuala Lumpur, at the fringe of the city centre, and is a popular neighbourhood in places such as Mont Kiara, Sierramas, Country Heights Damansara, and Sri Damansara.
Kepong is one of the more mature and densely populated neighbourhoods in the Klang Valley. It has a mix of residential and commercial developments, and many new high-rise residential developments have recently been seen in the area.
The district is also home to attractions such as the Kepong Metropolitan Park and Forest Research Institute Malaysia (FRIM), which offer recreational spaces in the urban landscape.
With Jalan Kuching, Duta-Ulu Kelang Expressway, North-South Expressway, Selayang-Kepong Highway, and Damansara-Puchong Expressway (LDP), Kepong has good road connectivity to the Kuala Lumpur city centre, Petaling Jaya, and other parts of the Klang Valley. The completion of Setiawangsa-Pantai Expressway (SPE) at the end of 2023 has also helped spur more development and redevelopment in Kepong.
Additionally, there are seven stations in Kepong along the Mass Rapid Transit (MRT) Sungai Buloh-Serdang-Putrajaya Line 2.
Such connectivity has attracted developers to build there. They include Kiara Bay by UEM Sunrise, M Series projects by Mah Sing, The Henge Kepong by Aset Kayamas Sdn Bhd, United Point Residence by UOA Development Bhd, Lake Park Residences by JL99 Development Sdn Bhd, and Fortune Centra by Asian Pac Holdings Bhd.
Newer developments like these have improved Kepong’s profile and appeal, moving towards high-rise, high-density developments.
Growth for Serviced Residences in Kepong
Source: Data Software and Solutions (DSS)
From a price point of view, properties in Kepong are affordable compared with other nearby areas like Mont Kiara and Desa Park City. Property investors might have also enjoyed the spillover effect from Desa Park City in the last few years, as evidenced by the growth in rental yield from 4.33% in June 2023 to 5.35% in June 2024.
Due to its accessibility to the Kuala Lumpur City Centre, KL Sentral, Bukit Bintang, and the Tun Razak Exchange, Kepong has also seen increased demand and take-up from a younger demographic.
Top 5 most viewed high-rise projects in Kepong
The list below is based on searches as of June 2024.
| Property | Demand Index | Demand Median Price | Demand Median Price Per Sq Ft |
| Lake City | 2.13 | RM680,000 | RM668.40 |
| M Zenya | 1.07 | RM418,000 | RM548.60 |
| M Nova | 1.02 | RM318,100 | RM454.40 |
| Enesta | 0.93 | RM428,000 | RM450.90 |
| Fortune Avenue | 0.75 | RM475,000 | RM378.20 |
M Nova and M Zenya are expected to be completed in 2028, while Enesta and Fortune Avenue are completed properties. Aradia Residence has been completed for Lake City, while Baron Residence’s structural framework topped out in July 2024.
Other popular properties are The Herz, Greenview Apartments, The Henge, Mizumi Residences, and First Residence (Residensi Unggul).
Looking to invest in a newly launched high-rise property in Kepong?
Here are two options with expected completion in the next few years.
a. M Zenya, Kepong
M Zenya is Mah Sing’s fourth development in Kepong, following Lakeville Residence, M Luna, and M Nova.
| Developer | Mah Sing |
| Property Type | Serviced Residence |
| Tenure | Leasehold |
| Total Units | 619 |
| Built-up | 762 sq ft – 1,067 sq ft |
| Expected Completion | H12028 |
| Selling Price | From RM420,000 |
M Zenya is a mixed residential development located 1km from M Luna, 3km from M Nova, and 5km from Lakeville Residence. It is next to Keponggi Square and adjacent to the Kepong Metropolitan Park, which comprises a 4km jogging path surrounding a 140-acre lake.
Spread across 4.88 acres, M Zenya will comprise a 38-storey tower with 619 residential units ranging from 762 sq ft to 1,067 sq ft, with two—to four-bedroom layouts. Units are priced from RM420,000 and have a maintenance fee of approximately 30 sen per sq ft.
M Zenya will feature Japanese-inspired biophilic designs, including tea and bamboo gardens. Multi-generational facilities at M Zenya include bicycle racks, linear bonsai gardens, swimming pools and a Jacuzzi.
The development will also incorporate green features such as LED lighting, EV charging stations, and solar-powered electrical appliances for common areas.
b. Residensi ZIG, Kepong
Residensi ZIG is the second and latest phase of the award-winning township of Kiara Bay by UEM Sunrise.
| Developer | UEM Sunrise Berhad & Melati Ehsan Group |
| Property Type | Serviced Apartment |
| Tenure | Leasehold |
| Total Units | 1,126 |
| Built-up | 450 sq ft – 1,198 sq ft |
| Expected Completion | Q4 2027 |
| Selling Price | From RM340,888 |
Residensi ZIG embraces the concept of a 20-minute neighbourhood to ensure that amenities such as educational institutions, clinics, hospitals, hypermarkets, and more are located nearby.
There are a total of 1,126 units in three blocks with up to 50 and 56 levels. Units range from 450 sq ft to 1,198 sq ft, with choices from studio to four-bedroom units. The larger units feature four bedrooms, three bathrooms, private gardens, and terraces. Some units also offer flexible, adaptive spaces.
Facilities at Residensi ZIG include a sky-dining hall that can accommodate 100 guests, a 50-meter lap pool, a playground, yoga decks, and more.
There are also two levels of home-work sky pods located on Level 35 and Level 37, and sky decks with two distinct concepts – Celebration and Sweat Out – allowing residents to socialise, exercise, or take in the views.
Residensi ZIG is close to key arterial routes such as the Middle Ring Road 2 (MRR2) and Jalan Kuching, which enables easy access to major highways and expressways, including the Damansara-Puchong Highway (LDP), Duta-Ulu Kelang Expressway (DUKE), and North-South Expressway (NSE).
Discover more new projects in Kepong here!2. Sungai Besi, KL
Sungai Besi was home to many heavy industries such as steel manufacturing, waste steel plants and many other steel-based industries. Because of its industrial background, properties in the area are still relatively affordable, despite being just 20 minutes from the Kuala Lumpur City Centre and the rapid increase in amenities and conveniences over the years.
In fact, Sungai Besi neighbours some of the most mature neighbourhoods in the Klang Valley, such as Cheras, Kajang, Old Klang Road, and Bukit Jalil.
Sungai Besi’s location also provides accessibility to major highways and roads in the Klang Valley, such as the Sungai Besi Expressway (Besraya), the North-South Expressway (PLUS) and Middle Ring Road 2 (MRR2).
Additionally, Sungai Besi is home to the Terminal Bersepadu Selatan at Bandar Tasik Selatan (TBS-BTS), a transportation hub with bus depots, train stations, and the KLIA Express.
For trains, the Sungai Besi MRT line and the Sungai Buloh-Serdang-Putrajaya LRT Line service Sungai Besi.
Growth for Serviced Residences in Sungai Besi
| June 2023 | June 2024 | Growth | |
| Demand Index | 13.85 | 19.21 | +38.7% |
| Demand Median Price Per Sq Ft | RM569.48 | RM506 | -11.1% |
| Rental Yield | 4.86% | 5.34% | +9.88% |
Source: Data Software and Solutions (DSS)
Sungai Besi is also home to international schools such as Sri Desa International Secondary School, USCI International School, Campus Rangers International School, and Cempaka International School.
There are also a few medical centres in Sungai Besi, including the University Kebangsaan Malaysia Medical Centre, Sunway Velocity Medical Centre, and iHEAL Medical Centre.
Affordability remains the main factor driving property buyers’ decisions, perhaps one of the strongest factors for properties in Sungai Besi.
According to DSS data, the median price per sq ft hovered around the RM450k mark in August 2023, which is highly attractive considering the strategic location and accessibility.
Sungai Besi’s proximity to the thriving Kuchai Entrepreneurs Park and Bukit Jalil bodes well for the area. Newer developments in Sungai Besi include Desa East Residences by Radium Development Bhd, The Leafz by EXSIM, Quaver Residence and Aricia Residences by Chin Hin Group, and Lake Side Homes by Lim Seong Hai Group (LSH Group).
The Bandar Malaysia project, a mixed-use mega-development situated on the former RMAF site in Sungai Besi, will significantly enhance the area. With an estimated gross development value of RM140 billion, this project is expected to drive substantial growth in local property values.
Top 6 viewed high-rise projects in Sungai Besi
The list below is based on searches as of June 2024, and all five properties are completed.
| Property | Demand Index | Demand Median Price | Demand Median Price Per Sq Ft |
| Razak City Residences (RC Residence) | 8.44 | RM364,500 | RM393 |
| One Residences | 2.8 | RM699,000 | RM630.60 |
| The Vyne | 2.36 | RM455,000 | RM478.30 |
| Trion 2 | 2.1 | RM680,000 | RM848.50 |
| Midfields | 1.85 | RM450,000 | RM370.10 |
| Kenwingston Avenue | 1.72 | RM378,000 | RM569.20 |
Other properties in Sungai Besi that are popular with iProperty’s readers are Midfields 2, The Leafz, Central Residence, Petaling Indah Condominiums, and Trinity Aquata.
Want to purchase a newly launched high-rise property in Sungai Besi?
Take a look at Vista Adesa (Residensi Desa Timur).
| Developer | Radium Development Berhad |
| Property Type | Apartment |
| Tenure | Leasehold |
| Total Units | 1,218 |
| Built-up | 800 sq ft |
| Expected Completion | December 2027 |
| Selling Price | From RM300,000 |
There are two components in the development of Desa East Residences. One is Radium Adesa Residence, and the other is Vista Adesa Residensi Wilayah.
Desa East Residences is a 9.77-acre development in Sungai Besi, just 5 kilometres from the Kuala Lumpur City Centre.
Two blocks (Block D and Block E) at Vista Adesa offer 1,218 units under the Residensi Wilayah (also known as RUMAWIP) affordable housing scheme. The 800 sq ft units, which have a 3-bedroom, 2-bathroom layout, are priced at RM300,000 each.
On the other hand, Radium Adesa Residence comprises 3 blocks, with a total of 1,218 units. The units’ built-up sizes range from 850 sq ft to 2,560 sq ft, and configurations are from 3 bedrooms to 4+1 bedrooms.
The development offers access to and from various parts of the Klang Valley, including Cheras via East-West Link, KL via SMART Tunnel, KL-Seremban Expressway, and Sg. Besi Expressway; Petaling Jaya via East-West Link; and Putrajaya via MEX Highway.
Desa East Residences is also close to public transportation, including KL Sentral, the Salak Selatan and Cheras LRT stations, Bandar Malaysia Selatan and Salak Jaya MRT stations, and Seputeh KTM station.
Are you curious about transacted prices for residential properties in Sungai Besi? Check them out here3. Gelang Patah, Johor
Gelang Patah has risen from a rural area to an increasingly attractive one. It is part of Iskandar Malaysia and located about 25km from Johor Bahru City Centre. It has River Pulai to the west and the Straits of Johor to the south.
The Second Link Expressway travels through Gelang Patah, connecting Singapore, Iskandar Puteri, and Johor Bahru. Additionally, links to the Malaysia Federal Route 5 provide connectivity to the west coast.
Demand Index for High-Rise in Gelang Patah
| Property Type | June 2023 | June 2024 | Growth |
| Serviced Residence | 0.14 | 0.23 | 64.3% |
| Condo | 0.07 | 0.2 | 185.7% |
| Apartment | 1 | 1.27 | N/A |
Source: Data Software and Solutions (DSS)
Top 5 transacted high-rise projects in Gelang Patah
Based on iProperty.com.my’s transacted prices from April 2023 to March 2024, the median price for residential properties in Gelang Patah is RM580,000, while its median price per sq ft is RM332 per sq ft.
Looking at high-rise residential properties, Denai Nusantara, The Pines Residence, and Seri Mengkuang are the ones with the highest number of transactions.
As Gelang Patah continues to grow and attract investment, good properties there will likely benefit from the area’s rising prominence, making it a noteworthy consideration for investors and homebuyers.
First-time homebuyers, young couples and families upgrading from neighbouring suburbs like Pontian, Pulai, and Pekan Nanas, might be looking to purchase properties in these new townships, helping to lift demand for properties in Gelang Patah.
Overall, the outlook for Gelang Patah remains positive. Ongoing projects such as Tropicana Uplands and Setia Eco Gardens and planned investments are expected to drive growth.
The most high-profile development is likely the controversial Forest City, which is supposed to transform the nearby coastline. While the project faced significant challenges, it points to the level of ambition in developments around Gelang Patah.
In April 2024, Johor’s Chief Minister, Onn Hafiz, revealed that the Johor-Singapore Economic Zone would be closely linked with the Forest City Special Financial Zone (SFZ). This is expected to bring more investment opportunities, job creation, and development projects to Johor, benefiting residents and businesses.
Looking for newer properties in Gelang Patah?
Then, take a look at these two developments – Tropicana Uplands and Setia Eco Gardens.
a. Tropicana Uplands
Tropicana Uplands is a 314-acre sustainable township with convenient access to the Causeway and the Second Link Expressway. Its prime location and modern features will appeal to locals, Malaysians working in Singapore, and Singaporeans.
Tropicana Uplands features 19 acres of Central Park and a landscape garden, and nearby educational institutions include Tenby International School and EduCity Iskandar.
Its residential developments comprise Aster Heights, which was completed in June 2024. Fraser Heights, which will offer 2-storey and 3-storey terrace houses, is expected to launch soon.
To date, Fraser Heights has been compared with KSL (Ethos Residences, Azalea), Gadang Land (Laman Citra, Ayera Residence), and S P Setia (Setia Eco Gardens).
b. Setia Eco Gardens
SP Setia Berhad first launched this mixed development in 2007. Setia Eco Gardens and Tropicana Uplands are about 2.3km apart, so they enjoy the same conveniences and amenities in the area.
Some of the more recent launches include semi-detached houses (Rayden), and double-storey terrace houses (Arell, and Maple 1 & 2).
Searching for a property in Johor? Explore the latest projects today!4. Kulai, Johor
Kulai is a town about 29km from Johor Bahru and 8km from Skudai. It sits along the old trunk road linking Kuala Lumpur and Johor Bahru. Before the North-South Expressway opened in 1994, it was a motorist stopover point.
One of the main sectors in Kulai is agriculture, as there are numerous rubber and oil palm plantations around it. As for property, Kulai’s growth potential could be courtesy of the spillover effect from Greater Johor Bahru.
Although Kulai is not as developed as more mature areas closer to Johor Bahru City Centre, it has several advantages, such as a cheaper land bank and connectivity from north to south, the Second Link Highway and the Senai Desaru Expressway, which connects Senai in western Johor to Desaru in the east.
Kulai’s other attractions include Johor Premium Outlet, Kelapa Sawit’s Wall Murals Cultural Streets, and Gunung Pulai Recreational Forest.
Growth for Serviced Residences in Kulai
| June 2023 | June 2024 | Growth | |
| Demand Index | 1.15 | 1.72 | +49.6% |
| Demand Median Price Per Sq Ft | RM423.55 | RM425 | +0.34% |
Source: Data Software and Solutions (DSS)
The biggest catalyst would be the data centres there. Southern Johor’s proximity to Singapore, spillover effects of the US-China trade war, and cheaper water and power are expected to bring in more tech opportunities.
Major data centre players like Nvidia, AirTrunk, GDS International, YTL Power and Princeton Digital Group have set up operations there. Microsoft has reportedly purchased land in Kulai to open a data centre. Two of the biggest industrial parks in Johor are the 745-acre Sedenak Tech Park (STeP) and 509-acre Nusajaya Tech Park.
There’s KTM and the Senai International Airport for accessibility. New mixed-use developments in Kulai, such as Eco Botanic Kulai by EcoWorld and Saujana Jaya by Glomac, could transform the Town into a thriving township and further boost the property market.
Top 5 viewed residential projects in Kulai
The list below is based on our data as of June 2024.
| Property/Township | Demand Index | Demand Median Price | Demand Median Price Per Sq Ft |
| Bandar Putra | 8.81 | RM580,000 | RM303.60 |
| Bandar Indahpura | 3.61 | RM648,000 | RM336.40 |
| The Senai Garden | 0.95 | RM330,000 | RM423.50 |
| Taman Lagenda Putra | 0.57 | RM608,000 | RM292.80 |
| Taman Senai Utama | 0.45 | RM438,000 | RM259.70 |
From the list, The Senai Garden is a serviced residence, while the rest are landed properties. The other two apartments in the top 10 are Sri Putra Apartment and Rose Villa Apartment.
Interested in new properties in Kulai?
Let’s take a look at Freesia @ Saujana Jaya, the first phase of a 174-acre mixed development featuring double-storey houses. The development offers easy connectivity to the neighbouring townships of Sedenak and Kulai via the Federal Route of Johor Bahru-Kuala Lumpur.
Freesia offers units ranging from 1,750 sq ft to 1,830 sq ft, with 4 bedrooms and 3 bathrooms.
To the north of Freesia is Kulai Toll Plaza/Sedenak Toll Plaza (about 9.5km away), which connects residents to Melaka. The Electrified Train Service (ETS) by Keretapi Tanah Melayu Berhad (KTMB) is about 9.8km away, while the Second Link Expressway via the North-South Highway is about 8.7km away, and the Senai-Desaru Highway (SDE) is about 19km away.
The ETS has extended its service. The expansion is part of the larger Gemas-Johor Bahru Electrified Double-Tracking Rail Project (Gemas—JB EDTP), which is expected to be fully completed by 2025.
The 192 km Gemas-JB EDTP will have 11 stops. It will pass through four major Johor districts, including Segamat, Kluang, and Kulai, before ending at JB Sentral station in Johor Bahru.
Find Your Dream Home with Us Today!Why Are These Four Areas Poised for Growth?
Simply put, they have all the right elements, such as increased accessibility, MRT and LRT stations, mature surrounding neighbourhoods, and catalyst projects in the area.
Each area has several or all of these market drivers, but one factor stands out the most—affordable property prices. This could be attributed to the fact that these four areas are still rapidly developing compared to a fully mature area.
These areas are at the fringe of the Kuala Lumpur and Johor Bahru City Centres, respectively, and the growing presence of several big developers in these areas also suggests growth potential.
Growth of serviced residences in emerging areas
| Area | Demand Median Price Per Sq Ft | Rental Yield Growth |
| Kepong | RM502 | 5.35% |
| Sungai Besi | RM506 | 5.34% |
| Gelang Patah | N/A | N/A |
| Kulai | RM425 | N/A |
Based on the most viewed properties in the lists above, the price range of these properties are from RM300 per sq ft to RM500 per sq ft, or RM320,000 to RM600,000. These price ranges are lower than prime real estate areas in the Klang Valley or Johor Bahru City Centre, which are often priced from RM550 per sq ft or above RM600,000.
According to CBRE | WTW Malaysia, properties priced between RM500,001 and RM700,000 are the second largest category or 15 per cent of all the overhang units in Klang Valley.
The biggest number of overhang units, at 28 per cent, are those priced at RM1 million and above. They opine that many developers are looking at a price bracket of about RM500,000 to RM700,000 and thinking it’s a sellable product.
The average urban household income in 2022 is RM8,479, while the median household income is RM6,338. A quick calculation on the iProperty Home Eligibility Calculator shows that a household with a monthly income of RM6,000 could borrow up to about RM699,000, with a monthly repayment of approximately RM3,300.
If one follows the 80/20 rule, where 20% of gross income goes towards savings (paying yourself first), then that would mean RM1,200 should go to savings. This leaves RM1,500 for monthly expenditures for the borrower and his/her family. Would that amount be sufficient? That’s a question that only the borrower can answer.
Housing affordability remains a key concern
The affordability issue is a thorny subject. Real estate consultancy firm Rahim & Co International Property Consultants Sdn Bhd said it is largely driven by a disparity between supply and demand, particularly in residential properties priced below RM500,000, alongside sluggish income growth.
The firm also pointed out that assuming that only affordable properties will sell is no longer accurate. In contrast, the higher-end ones won’t, as the market dynamics now depend on factors such as product quality, location, and target market.
The government’s focus on raising Malaysia’s income level to bring the country out of the middle-income trap through initiatives like the Economic Transformation Programme needs to be sustained, as it is crucial for the property sector and the general market.
AmInvest Research also said the potential for more robust growth in high-priced residential properties hinges on factors such as increased income levels and the creation of high-value job opportunities under the New Industrial Master Plan 2030.
Positive trends in emerging areas
The positive trends in Kepong, Sungai Besi, Gelang Patah, and Kulai highlight the diverse opportunities within Malaysia’s property market. Strategic infrastructure projects, robust economic activities, and attractive living environments drive these areas’ growth.
These emerging areas are set for continued expansion, offering promising prospects for investors and homeowners.
Ready to take a trip to these emerging areas? Go forth and explore!
Note: The 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.
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