It is not often that you can own a place where it is literally ranked among the jewels in the crown. But when you do own a piece of Landed Property in Bandar Utama, consider yourself one lucky owner!
When it first started back in the early 1990s, double storey link houses were the only property type on offer. Today, it also comes with 2.5-storey link homes. So, which among the two is the best to invest in?
“Well, both the double and 2.5 storeys are just as good. The demand is always there and they both command very good returns,” says Emily Bong, Senior Real Estate Negotiator of Reapfield Properties Sdn Bhd, Bandar Utama’s Specialist with the agency.
In terms of price, the four bedroom double storey home measuring 22’ x 75’ and 22’ x 85’ (comes with a backyard), was then a mere RM200,000 each but in 2007, about 15 years later, they were already fetching RM500,000 to RM510,000 averagely, that’s an annual appreciation of at least 6.75%. The record sale last year was even higher and this belongs to a fully renovated unit, sold at RM640,000 and pushing the annual appreciation towards 8.66%!
More compelling however are the five-bedroom 2.5-storey homes. Considered a relatively new breed in Bandar Utama, it was only started in 2004 in BU7 and BU11. They were then priced higher than its smaller siblings, approximately RM550,000 at BU7 and RM400,000 at BU11. By September 2007, prices shot through the roof with BU7 averaging at close to RM700,000 while BU11 inched closer to RM600,000. The annual appreciation? Approximately 8.37% and 14.47% respectively!
But that’s not all, the latest 2.5-storey introduced last May in BU6 which comes with a bigger built-up area and a rooftop garden was tagged at approximately RM800,000 each. By September, it had already appreciated to between RM880,000 to RM900,000, 10 to 12.5% appreciation within four short months! And according to Emily, those fronting the fields can further command another RM50,000! Mind boggling?
But what really makes it such a lucrative investment?
“Basically it is due to its great location and the age of the properties. The oldest properties here are still considered very young at only about 15 years old compared to the surrounding suburbs. This age factor saves buyers from huge renovation and repair bills.”
“Another factor is 1 Utama Shopping Centre. Shoppers used to be able to park RM1 for a full day,” muses Emily. Parking rate aside, the award winning shopping mall has made life truly liveable for the mall-loving-Malaysians as it caters to the needs of everyone from students, bachelors, married couples to even families.”
Availability of schools is yet another prime factor. More than 10 schools are now housed within the boundaries of Bandar Utama, that’s about one school in each phase!
But when it comes to making a choice between the double or 2.5-storey, price is often the main determining factor although some would also consider the purpose of acquiring the additional half-a-floor for a home theatre or a gym, says Emily.
More than just a residential estate, Bandar Utama has over the years transformed itself to be a popular destination among KL-ites as well as tourists. If it started with only rows of houses, schools, a shopping mall and TV3’s broadcasting station, today this 1,000-acre suburb boasts of a 70,000 population, a hotel, an office tower, a college, a central park, a regular celebratory fireworks display destination and even a proposed LRT line in time to come. The offerings are truly unprecedented, making Bandar Utama a real jewel of KlangValley!
Published in the Mar-April 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.
“Emily,Bandar Utama, good investment for own dwelling!”
Why Double or 2.5-Storey? Capital appreciation. Continuous demand. For own dwelling. Double storey – price factor; favored by newcomers to Bandar Utama. 2.5-storey – favored by Bandar Utama upgraders; sees a purpose with top floor.
Where Can You Find Them? Double storey – BU1 to 10. 2.5-storey – BU6, 7, 11.
Values and Returns? (Up to Sept ’07) Double storey Average yield since early 1990s – 7.07% annually (if bought at RM200,000). Average value in 2007 – RM500,000 to RM510,000. Highest value in 2007 – RM640,000. Lowest value in 2007 – RM440,000 (BU11, BU12); RM475,000 to RM480,000 (BU1 to BU10). 2.5-storey Average yield since 2004 – 11.42% annually (excl. BU6). Average value in 2007 – BU7 at RM700,000; BU11 at RM600,000.
What’s There Now? 1 Utama Shopping Centre. Centrepoint. One World Hotel. 12 schools in total (primary and secondary with 1 Chinese primary school). 1 college. Community centre with cafe, soccer field, badminton courts between BU3 and BU6. At least 1 playground in each phase except BU4. Central Park near BU3. TV3’s broadcasting station.
Coming Soon? LRT line. Hospital near park.
Convenience? NKVE, LDP, Penchala Link, Sprint Highway. 1 Utama Shopping Centre, Centrepoint, One World Hotel, The Curve, Ikano Power Centre.
How Did Bandar Utama Come About? Former palm oil plantation and Indian settlement. Part of See Hoy Chan Group’s real estate development after Damansara Utama and nearby Damansara areas.
What’s Great About Bandar Utama? Strategic location between KL and PJ. 1 Utama Shopping Centre Expansion, winner of FIABCI Prix d’Excellence Award for Retail Category. Enhanced security as each phase is guarded, collectively agreed and funded by the residents.
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