Where can development go when it is almost fully developed?
Subang Jaya, a 583-ha development that began in 1974, is today a fully self sufficient township. From sizable properties to basic amenities and conveniences like hospital, banks, schools, malls and more, it is by far one of the most successful developments in Klang Valley.
On the property front, landed homes have dominated the landscape ever since it began. Back in the early 1990s, a double storey link home was at an affordable RM200,000 a piece while a semi detached unit was below RM500,000 and a bungalow fetching less than RM1 million. According to Reapfield Properties Sdn Bhd’s Subang Jaya specialists, Head of Sales Division Onesimus Kam and Senior Real Estate Negotiator George Tan, “Those who have bought it then would have doubled their investment by now.”
But that was about a decade ago. Question is, do they remain as an investment choice today? Not quite the case unfortunately.
“In fact owners who have purchased their (landed) houses five years ago have not seen much capital appreciation,” says George. This is largely due to the fact that development has reached its maximum geographical capacity, deterred by the congested traffic and competition from newer neighboring estates like Putra Heights, Puchong, Ara Damansara, Kota Kemuning and Kemuning Utama, to name a few.
While you can’t stop competition from taking place in the free Malaysian economy, other measures have been deployed to improve the appeal of Subang Jaya once again. Specifically, there have been major refurbishments on roads leading to and within Subang Jaya over the years, the latest being the New Pantai Expressway and the now under-construction Subang-Kelana Jaya Link, scheduled to be ready in September 2009. Thanks to these new infrastructures, Subang Jaya’s viability has been given a boost and there is now a sudden surge as far as property development goes, the multi-storey condominiums and apartments!
Yes, there are now active developments across Subang Jaya and most are going vertical like Boulevard Subang, First Subang, Empire, Subang Avenue, Jana Tower. But does “new” necessarily translate to great investment?
“Well yes because there hasn’t been any condos including the high end ones here and developers have discovered this as a niche segment with great potential,” confesses Onesimus. He adds that the younger generation in the vicinity has also spurred the interest for these high rise projects.
Another contributing reason is the influx of expatriates into this part of the Valley. Those who are engaged by multi-national corporations in Subang Jaya, Shah Alam and Klang have found this award winning township an endearing place to call home. Not only is it a self sufficient neighborhood with a comprehensive selection of amenities but also one that boasts the convenience to house a family across generations. We’re talking about the availability of schools for growing up children from nursery right up to the tertiary level; a thriving mall like Subang Parade and Carrefour Hypermarket to serve your every need from daily groceries, fashion, amusement, food to IT gadgets; shop offices that fit perfectly for small and large enterprises whilst creating employment opportunities all at the same time.
Given the rapid vertical developments, which among them would be the fairest of them all?
Both Onesimus and George believe Boulevard Subang is the unrivalled champion at the moment. Nestled within the quiet enclave behind Holiday Villa Subang and the gated and guarded residence of Wangsa Baiduri, it has attracted matured and professional buyers and renting tenants from all walks of life including the expatriates since it became fit for occupation in February 2007. The recommendation is largely attributed to its high rental value and the profile of its professional tenants, shares Onesimus.
Most people are attracted to the Boulevard by the gated privacy and safety, convenient facilities like swimming pool and gym, its scenic view of the adjacent lake and golf course as well as the dazzling bright lights of Sunway Pyramid and even as far as the Petronas Twin Towers (KLCC) for those on the upper floors.
In terms of rental income, it now range from RM1,800 for the 1,227 sq ft unit to RM4,000 for the 1,776 sq ft unit, easily striking within the 8% to 10% bracket and this holds true even for its smallest unit of 1,227 sq ft!
“For those who have bought it directly from the developer years ago, the annual appreciation has even gone higher to 12%,” George discloses.
What’s worth noting also is that the lease hold status of Boulevard has just been renewed this year, gaining an additional seven years for all owners! Now if that’s not music to the ears!
Published in the 2nd Anniversary (May-June) Edition 2008.
The above article has been prepared in association with Reapfield Properties Sdn Bhd. Facts and figures in relation to the properties are based on Reapfield’s proprietary information and professional services. It does not hold itself to be an investment advice for the said properties and location. Some degree of variance is expected from the information above compared to present day values.
Onesimus Kam
Head of Sales Division The only property you’ll get in Subang Jaya with great facilities, environment and panoramic view.
George Tan
Senior Real Estate Manager Invest now and you’ll own the property within 10 years! Why Boulevard Subang? Rental income. Ready demand including younger generation and expatriates. Renewed lease hold this year to 99 years, gaining 7 years in the process. Matured professionals are current tenants. Privacy and security.
Maintenance cost, RM0.15psf inclusive of sinking fund.
What’s There Now? Branches of major banks. Subang Parade, Carrefour Hypermarket, Sunway Pyramid, Giant, Mydin. Major food outlets. Sheraton Subang, Holiday Villa Subang, Sunway Lagoon Resot Hotel and Summit Hotel. Primary & secondary public & private schools, private colleges. Sunway Lagoon Theme Park, Subang Ria Parks, Saujana Golf & Country Club, Kelab Golf Negara Subang; bowling, ice-skating and futsal centers. Subang Jaya Medical Centre, Sunway Medical Centre.
Coming Soon? LRT Subang-Kelana Jaya Link.
Convenience? Federal Highway, KESAS, NKVE, ELITE and New Pantai Expressway leading to Petaling Jaya, Kuala Lumpur, Shah Alam, Klang and Kuala Lumpur International Airport. KTM train station.
How Did Subang Jaya Come About? Former palm oil plantation. Developed by the Sime Darby Group.
What’s Great About Subang Jaya? Winner of FIABCI Prix d’Excellence Award for Best Masterplan. Self sustaining matured suburb. Business friendly. Tertiary education institutions.
