Nanyang Siang Pau, 05 September 2014 - Land prices go high

05 September 2014

LAND PRICE TO GO HIGH

According to an unofficial investigation, new housing areas in the southern region of Kuala Lumpur, have been selling very well.

These areas are in Kajang, Bangi and Semenyih. Many large developers are not only rushing to buy land but are also rushing to build new houses.

For example Mah Sing Group launched the Southville Township, and later announced that it has purchased a piece of land in Rantau, Negri Sembilan for RM359.56 million. This is the largest land bank purchased, comprising of 1051.3 acres, with plans to develop a RM 7.5 billion mega township project.

SP SETIA SPENDS HUGE SUM TO PURCHASE 2,000 ACRES OF LAND

Country Garden from China is also launching a project in Semenyih.

Earlier in 2011, SP Setia had already bought a large piece of land that spans from Kajang to Semenyih. Currently it has developed 2,000 acres of land to build Setia Alam and another township.

In addition, UEM Sunrise, MKH and Tropicana also joined in the competition, hoping to have a slice of the cake.

Next, in Kontan Emas, the Camellia Residence in Semenyih will launch its sales this Saturday.

One research analyst said, earlier buyers feel that areas like Kajang and Semenyih are underdeveloped and lack good facilities and amenities.

ULU LANGAT RUSHING TO CATCH UP WITH KUALA LUMPUR AND PETALING JAYA

Research analysts said that the prices of single storey houses in Ulu Langat have overtaken prices in Kuala Lumpur and Petaling Jaya.

According to NAPIC, during the first quarter of this year, prices of terrace houses in Kuala Lumpur and Petaling Jaya as compared with Ulu Langat has increased to 121% and 65% respectively.

DEMAND IN HOUSES WITH GATED AND GUARDED

As such, researchers believe that the huge difference will push more people to buy properties in the “Kajang – Semenyih corridor”.

Because of the demand, a supply of gated and guarded services has grown rapidly.

Since the government announced the Sungai Buloh – Kajang MRT project, the land in Kajang and Semenyih has been in great demand by developers.

Being the second highest area in demand in Selangor, coupled with an increase in the population, the sales of properties has risen sharply.

Seeing that there is an increase in the number of people moving towards the southern region of Kuala Lumpur, the developers in Kajang and Semenyih would not want to be left out and they are all rushing to purchase land there.

MRT COMPLETED IN THREE YEARS

As such, one researcher has pegged Kajang and Semenyih as “hot” areas.

He said, “We believe that in the next few years, Kajang and Semenyih will be one of the hottest areas, it will be even more attractive when the MRT project is completed in 2017.”

THREE ATTRACTIONS IN KAJANG

The quiet Kajang area needs an urgent injection to push up its property market.

One prominent property insider said that since the Government has announced that it will build three MRT stations, many listed property developers have rushed to buy land there.

“Property developers agree that Kajang is one of the best places to develop into a township because it not only borders Kuala Lumpur, it also offers affordable houses and provides many basic amenities.”

EDUCATION HUB WITH ADVANCE TRANSPORTATION

As such, many huge developers such as SP Setia, Mah Seng Group, UEM Sunrise, Eco World and Tropicana, are all rushing to join the competition, all hoping to enjoy a slice of the cake.

A researcher pointed out that the three main attractions of Kajang include its education hub, the ease of transportation and a fast growing population.

He said, Kajang is considered an education hub because there are a number of educational institutions there; these include New Era University College, Universiti Kebangsaan Malaysia, University Putra Malaysia, Nottingham University, Universiti Tenaga Malaysia, the German Malaysia Institute and the Australia International School. At the same time, there are many huge express highways such as SILK, NKAV, Cheras-Kajang Express and SKVE, which link to the major towns of the Klang Valley.

Following the trend of more and more people moving to the outskirts of the Klang Valley, Kajang has become the area with the fastest growth population.

SELANGOR HAS THE FASTEST GROWTH IN POPULATION

According to Malaysia’s census, in 2010 Kajang had a population of 8 million people, which represents 15% of the total population of 54 million people in Selangor. While the Kajang Municipal office estimated that the population for last year has increased to 10 million people.

HIGHER INCREASE THAN NORTHERN KUALA LUMPUR

In the Northern areas of Kuala Lumpur, the prices of land in areas such as Sungai Buloh, Petaling Jaya, and Kota Damansara have already risen much faster than those in the Southern areas.

However, with the construction of the Kajang - Semenyih MRT project, the whole situation may change.

In fact, compared to three or four years ago, the price of land in Kajang - Semenyih has already doubled.

ELECTRIC COMMUTER TRAIN

Researchers used to compare Kajang (the Ulu Langat area) and Sungai Buloh (the Petaling Jaya area) because both these areas have about the same population size and public transportation facilities.

“Kajang and Sungai Buloh are the two most popular areas in Selangor as currently both these places have KTM facilities.”

At the same time, both these areas will also have MRT stations, which are due to be completed in 2017.

However, these two areas have a huge price difference in property value, obviously the northern area is much more prosperous than in the southern area.

Researchers believe that the Sungai Buloh – Kajang MRT, once completed, will narrow the price gap between these two areas, as most people will consider house prices as their main concern.

CAPTION 1:

In the past, few people were interested in areas on the outskirts, but recently these areas have attracted many Selangor residents to migrate.

CAPTION 2:

Many huge developers rush to buy land in the southern region, and to develop at a fast pace with new concepts.

CAPTION 3:

Developers are bringing a new lifestyle concept to the second line of townships; apartments and commercial lots are in great demand.

CAPTION 4:

Sungai Buloh –Kajanag MRT Map

CAPTION 5:

Easily accessible transportation has helped to double the prices of land in the southern region.