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The changingface of KepongProperty experts believe that the area — one of Kuala Lumpur'soldest suburbs will attract younger residents and investors withthe new infrastructure projects and more modern developmentsthat have come up in recent years. What can potential buyers lookforward to? See Hannah Rafee's story on Page 4.Hannah Rafee':
Improvedconnectivityto spurdevelopments
B Y HANNAH RAFEE
With a predominantly Chinese population, Kepong is hometo many traditionalshops, heritage shopsand familystyle res
taurants. During weekends,city dwellers head for Kepong to enjoy the localdelicacies, such as the famous MeeKepong, and seafood dishes.
The suburb is also known for its
greenery, as well as a variety of recreational spots. The Forest ResearchInstitute of Malaysia's Canopy Walkoffers hiking in the treetops whileTaman Rekreasi (Lake Gardens) Bandar Manjalara and Bulcit Sri Bintanghave scenic views to enjoy. The 223acre Kepong Metropolitan Park offersrunning and cycling tracks and plenty
of playgrounds.Although Kepong has a number
of modern, contemporary developments, it still has a reputation as oneof the more oldfashioned spots in theKlang Valley. Established in 1860s, thearea around the former tin mine has
seen much growth as developmentswere built and property values soaredover the years.
The older townships in Kepong include Bandar Menjalara, Taman SriBintang, Desa Aman Puri, Desa Jaya,JinjangUtara.Jinjang Selatan, KepongBaru, Kepong BaruTambahan, TamanBukit Maluri,Taman Bulcit Desa,TamanDaya, Taman Ehsan, Taman Fadason,Taman Indah Perdana, Taman Kemacahaya and Taman Kepong.
More recent developments include
Desa ParkCity by Perdana ParkCity SdnBhd, Bandar Sri Damansara by Sri Damansara Sdn Bhd, Metro Prima by Magna Prima Bhd, Plaza Menjalara by UOAGroup, Fortune Perdana by Asian PacFloldings Bhd and Laman Rimbunanby Rimbunan Melati Sdn Bhd.
Brem Mall, Tesco and AEON arethe gotoplaces for shopping and TheWaterfront in Desa ParkCity offers entertainment. There are also the Crystal Crown Hotel, several mosques,Chinese temples and churches.Thereare a number of schools in the area,such as The International School @ParkCity, Sekolah Menengah Kebangsaan Kepong and Sekolah MenengahKebangsaan Sinar Bintang.
Kepong straddles Kuala Lumpur
Headline The changing face of KepongMediaTitle The EdgeDate 06 Jun 2016 Color Full ColorSection City & Country Circulation 23,635Page No CC1,CC4,CC5 Readership 70,905Language English ArticleSize 1897 cm²Journalist HANNAH RAFEE AdValue RM 22,308Frequency Weekly PR Value RM 66,924
and Selangor."Kepong is located on the fringe of
Kuala Lumpur and is roughly bounded by Jalan Kuching, Jalan Ipoh andSelayang to the east, Sungai Buloh tothe north, Bukit Lanjan to tire west andSegambut to the south. Part of Kepongis located in Kuala Lumpur and part ofit is in Selangor," says Tang Chee Meng,chief operating officer of Henry Butcher(Malaysia) Sdn Bhd.
The suburb's reputation has beensomewhat marred by its image ofbeing an "old" neighbourhood. "Kepong is one of the earliest townshipsin Kuala Lumpur's history. In the earlyyears, it comprised mainly villagetypedwellings, traditional shops,godownsand factories, with the populace engaging in numerous trades and businessesand manufacturing activities," saysChen King Hoaw, managing directorof LandServe Sdn Bhd.
"Kepong is now a mature locality.It is generally regarded as an older,predominantly Chinese neighbourhood and its image is not as sexy as,say, Mont'Kiara or even Petaling Jaya.This is why some developers tried todisassociate their projects from Kepongwith their names and built a different
image for their products, for exampleBandar Sri Damansara and Desa Park
City," says Henry Butcher's Tang."A few sizeable developments came
up in Kepong in the early 2000s, suchas Metro Prima, an 86acre mixeduse
development by Magna Prima, TamanFadason by Fadason Holdings Sdn Bhdand Fortune Perdana. Subsequent tothese more sizeable developments,newlaunches in Kepong were mainly pocketdevelopments comprising condominiums, apartments and shophouses."
Despite the current weak marketsentiment, demand for propertiesin Kepong remains consistent. "InKepong, the demand is still good forlanded properties. However, it is important to note that new supply islimited. Demand for strata residential
properties, on the other hand, is stillgood for those priced below RM500 psfbut slower for those priced at RM700psf and above," says Tang.
"Since the announcement of the
alignment of the MRT2 line, with fourstations in Kepong (Kepong Sentral,Metro Prima, Jinjang and Sri Delima),prices for all types of properties inthe area (or near the stations) haveincreased," says James Wong, managing director of VPC Alliance (Malaysia) Sdn Bhd.
LandServe s Chen says,' The proposed Sungai BulohSerdangPutrajaya MRT2 line will also have
stations in Kepong and its surroundings. We expect this to further boostdemand for landed and nonlanded
homes in Kepong."Other than Jalan Kuching and
Jalan Ipoh, which connect Kepongdirectly to the city centre, the area isalso served by the Middle Ring Road(MRR2), the DutaUlu Klang Expressway (DUKE),Lebuhraya DamansaraPuchong (LDP), Jalan Kuala Selangor andthe NorthSouth Expressway.There arealso two KTM stations in the suburb
— Kepong and Kepong Sentral on theKTM Komuter RawangSeremban route.
"Its strategic location on the northern fringe of Kuala Lumpur, which isserved by a network of modern highways and roads, has been the key driver for the suburb's growth in recentdecades."
A growing community"Prices of [landed] residential projectscontinue to increase steadily whilerents have more or less stayed flat.For instance, prices of houses inArecaResidence have increased sharply fromRM1.8 million in 2011 to RM3.05 mil
lion this year.That represents a 69.4%
increase. However, rental yields arelow, averaging 2%," Chen says.
"Yields are low because such properties [in Kepong] cannot commandmuch higher rents than those of condominiums in the same locality.Unlikeother areas that are popular among expatriates, these properties do not fetchhigh rents. Locals will not pay highrents for such properties in Kepong.
"On the other hand, prices of unitsin First Residence condo have in
creased by 23.1% over the same periodfrom RM520,000 in 2011 to RM640,000this year.Their yields are higher, at 5%,than landed homes in Kepong. Suchcondominiums cater for low to mediumincome households. There is
demand among Malaysians for suchproperties as the rents are more affordable. Given their lower prices, suchrents offer higher yields."
VPC's Wong says,"Price appreciationfor terraced homes in Kepong is not ashigh as that of highrise residentialdevelopments."
Chen says the prices of terracedhomes, especially the older ones, havesort of peaked in today's market. "Highrise residential developments are much
more affordable, attracting greater demand from a larger pool of homebuyers and investors.The market needs a
stronger push before the prices of suchlanded homes will go up as rapidly asin the past."
According to data from VPC andJabatan Penilaian Dan Perkhidmatan
Harta, from 2011 to 2015, one andtwostorey landed homes in TamanSri Kepong Baru have recorded thehighest price appreciation of 84.2%from 2011 to 2015, followed by housesin Jalan Antoi in Kepong Baru (79.3%),Bandar Manjalara (66%) and TamanMegah Kepong (48.9%). The lowestgrowth rate of 29.8% was recordedat Taman Bukit Maluri.The yields ofthese landed homes range from 2.1%to 4.1%.
Among nonlanded homes, Fortune Court saw the highest growthof 109.8%, followed by Casa Magna(87.1%), Vista Mutiara (86.7%), FortuneAvenue (84.0%) and Casa Prima (76.6%).The yields range from 3.4% to 4.3%.
"The bestselling property typesin Kepong are one and twostoreyterraced houses and highrise apartments," Wong says.
"As families residing in Kepongare more traditional, the preferredresidential property type is landedproperties. However, due to the lackof new supply of landed residences,house buyers in Kepong settle for highrise condominiums and apartments.The most popular type would be themediumcost condominiums pricedaround RM500 psf or less," says Tang.
"As Kepong is easily accessible toKuala Lumpur and Petaling Jaya via various highways and has mature amenities, the target market is mostly peoplewho work in Kuala Lumpur, PetalingJaya and Shah Alam," VPC's Wong says.
According to the Population Census 2010 published by the Departmentof Statistics, Kepong — which coversJinjang and Kampung Kepong — hasa population of 14,155. Most of the residents in Kepong are Chinese."The target market for landed
homes in Kepong is mainly familieswho have either been living or working in Kepong or its surroundings. Itscondominiums and apartments catermore for young families and singles,"Chen says.
"One of the catalysts for the growthof Kepong would be wellplannedtownships with better infrastructure.This would certainly boost prices andvalues in the area, such as Desa Park
Headline The changing face of KepongMediaTitle The EdgeDate 06 Jun 2016 Color Full ColorSection City & Country Circulation 23,635Page No CC1,CC4,CC5 Readership 70,905Language English ArticleSize 1897 cm²Journalist HANNAH RAFEE AdValue RM 22,308Frequency Weekly PR Value RM 66,924
City and Sierramas," Wong says.Most of the buyers are owneroc
cupiers. "The newer condominiumsare designed to cater for small,youngfamilies and firsttime homeowners.
Although they are also investors, webelieve most buyers are those buying for their own occupation," saysChen. "However, as Kepong is set tobenefit from the proposed Sg BulohSerdangPutrajaya MRT line, weforesee there will be more investorsin the future."
"We are seeing more launches ofcondominiums in Kepong, with moremodern designs and a range of facilitiesto cater for the younger generation ofresidents, who are now grown up andin the market to buy their own homes.They often have higher expectations,especially those who are in a positionto upgrade from their previous homes,"says Henry Butcher's Tang.
A good longterm investmentWong says living in Kepong has itsperks. "Residents have easy access tothe LDP, New Klang Valley Expressway, MRR2 and Jalan Kuching.Andthere are also plenty of ready amenities and infrastructure as well as
the proposed stations along the newMRT2 line. But the cons include nar
row roads, old housing areas and haphazard development."
He adds that one of the key challenges in Kepong is that most developments are not gated and guarded.
Tang believes people still see Kepongas an "old" neighbourhood. "Kepongneeds an image change to attract theyounger house buyers who are morebrand, status and location conscious.
"Kepong is a fairly mature areathat is already quite well developed,although there are still opportunities in the form of small pockets ofland available for development.Thelocality is popular with house buyers, especially the Chinese in thearea. In the future, it will be servedby the MRT2 line.This will enhancethe livability of the area and attractmore interest, which could then lead
to higher property values and rents,"Tang says.
"Price appreciation in Kepong hasnot been dramatic, unlike other areaslike Mont'Kiara,but it has shown stable growth. Prices and rents are stillaffordable. We foresee further capitalappreciation once the MRT2 line is inoperation and when people begin tosee Kepong in a different light with thecompletion of the newer, more modern developments," Tang says, addingthat Kepong is not a market for speculators. It is more for owneroccupiersand longterm investors.
Chen sees a positive outlook forKepong. He believes the suburb willbenefit tremendously from developments in Kuala Lumpur, particularlythe MRT2 line."We also expect pricesof landed and nonlanded homes in
Kepong to increase, in view of the limited parcels of land that are availablefor development," Chen says.
Upcoming residential projects inKepong include Kepong 5 @ NorthKiara in Jalan Lang Emas — a condominium by QO Properties Sdn Bhd,Enesta @ Jalan Kepong — condominium and RumaWIP (Federal TerritoryAffordable Housing Policy) by AmonaLand Sdn Bhd, Residensi Kepongmas
and The Henge — a RumaWIP andcondominium by Sinerjuta Sdn Bhdand VIM3 Menjalara — a small office,home office by VST Development SdnBhd. RumaWIP was first introduced in
2013 to enable city folic, especially thoseresiding in Kuala Lumpur, Putrajayaand Labuan, to purchase homes at affordable prices.
"Investors and owneroccupierslooking to purchase and rent in Kepongmust take note of the locations of the
proposed MRT2 stations and how theline's alignment is going to affect theproperties there.As for those who wishto purchase or rent a nonlanded home,such as a condominium or apartment,the quality of maintenance and man
agement is another factor to take intoaccount to ensure the sustainability oftheir investment," Chen says.
"Despite the current poor marketconditions, lack of confidence, tightening credit facilities and various government measures to curb speculation,the Kepong market is expected to remain optimistic in terms of values,driven by the scarcity of land in KualaLumpur, affordable pricing and improving infrastructure such as the fourMRT2 stations," Wong shares. "Generally, with more new affordable housing that will be launched in Kepong,and the affordable prices of highriseand landed residential properties, wesuggest buyers purchase for their ownstay due to affordability."
According to Wong, property pricesin Kepong are relatively low, especiallycompared with highrise developmentsin other parts of Kuala Lumpur. "Thereis an opportunity for investors to buyfor capital appreciation." B
Headline The changing face of KepongMediaTitle The EdgeDate 06 Jun 2016 Color Full ColorSection City & Country Circulation 23,635Page No CC1,CC4,CC5 Readership 70,905Language English ArticleSize 1897 cm²Journalist HANNAH RAFEE AdValue RM 22,308Frequency Weekly PR Value RM 66,924
Tesco, one of the gotoplacesfor shopping in Kepong
Transacted prices of existing terraced housesNAME OF PROJECT STOREY LAND AREA TRANSACTED TRANSACTED YIELDS GROWTH
(SQFT) PRICES IN 2011 PRICES IN 2015 (%) RATE(RM) (RM) (%)
Jalan Antoi, Kepong Baru 1 1,604 343,000 615,000 3.1 79.3
Taman Megah Kepong 2 1,400 638,000 950,000 4.0 48.9Taman Bukit Maluri 2 1,700 655,000 850,000 2.4 29.8
Bandar Menjalara 2 1,647 565,000 938,000 2.1 66.0
Taman Sri Kepong Baru 2 592 190,000 350,000 4.1 84,2
Transacted prices ofexisting highrise residential developmentsNAME OF PROJECT FLOOR TRANSACTED TRANSACTED YIELDS GROWTH
AREA PRICES IN 2011 PRICES IN 2015 (%) RATE (%)(SQFT) (RM) (RM)
Casa Prima 1,150 235,000 415,000 3.7 76.6
Casa Magna 936 210,000 393,000 3.4 87.1
Fortune Court 915 123,000 258,000 4.3 109.8
Fortune Avenue 1,137 250,000 460,000 3.9 84.0
Vista Mutiara 1,001 225,000 420,000 3.7 86.7
Headline The changing face of KepongMediaTitle The EdgeDate 06 Jun 2016 Color Full ColorSection City & Country Circulation 23,635Page No CC1,CC4,CC5 Readership 70,905Language English ArticleSize 1897 cm²Journalist HANNAH RAFEE AdValue RM 22,308Frequency Weekly PR Value RM 66,924
Established in the
1860s, Kepong hasseen much growth.
Property values havesoared over the years
Chen: The proposed Sungai BulohSerdangPutrajaya MRT2 line will alsohave stations in Kepong. We expect thisto further boost demand for landed and
nonlanded homes in Kepong
Headline The changing face of KepongMediaTitle The EdgeDate 06 Jun 2016 Color Full ColorSection City & Country Circulation 23,635Page No CC1,CC4,CC5 Readership 70,905Language English ArticleSize 1897 cm²Journalist HANNAH RAFEE AdValue RM 22,308Frequency Weekly PR Value RM 66,924
Wong: The target market in Kepong ismostly people who work in Kuala Lumpur,Petaling Java and Shah Alam
Tang: New launches in Kepong weremainly pocket developments comprisingcondominiums, apartments and shophouses
Headline The changing face of KepongMediaTitle The EdgeDate 06 Jun 2016 Color Full ColorSection City & Country Circulation 23,635Page No CC1,CC4,CC5 Readership 70,905Language English ArticleSize 1897 cm²Journalist HANNAH RAFEE AdValue RM 22,308Frequency Weekly PR Value RM 66,924
Headline The changing face of KepongMediaTitle The EdgeDate 06 Jun 2016 Color Full ColorSection City & Country Circulation 23,635Page No CC1,CC4,CC5 Readership 70,905Language English ArticleSize 1897 cm²Journalist HANNAH RAFEE AdValue RM 22,308Frequency Weekly PR Value RM 66,924