From ordinary homes to industrial factories, commercial shops to universities and management schools, you name it, Shah Alam has got it!

For a city that houses 500,000 people and still growing, the need for real estate is ever present and according to Norashikin Kamarudin, Principal of Reapfield Properties (Shah Alam) Sdn Bhd, “Shah Alam is a good place for investment especially in the medium range properties.”

From an investment standpoint, Shah Alam properties behave rather differently across the board, even if they are of the same genre. For instance, “Those who bought landed link houses in areas like Section 7 to 13 about 10 to 15 years ago at RM150,000 can rent out at RM1,000 a month for a return of about 8%,” discloses Nora. “Newer houses bought at about RM250,000 five years ago are also rented at the same rate, yielding a return of about 5%.”

Lower returns aside, Nora feels link houses, both new and old, are still among the best in terms of rental returns in Shah Alam, standing alongside rental gems like apartments in Section 7 to 13 and shop units in Section 7, 13, 18 and Bukit Jelutong.

As an illustration, apartments purchased five years ago at approximately RM100,000 can now be rented out at RM900 per month, yielding a handsome 11% rental returns per annum. Today, the newer apartments are sold between RM100,000 to RM150,000 but rental still hovers around RM900 per month. Despite the similar rate, the return is still commendable at 7% annually.

Over at the shop segment, demand is increasing at a healthy pace in Section 7, 9, 13 and 18 or dubbed as Central Shah Alam. A ground floor shop in Section 13 worth RM400,000 is now rented out at RM3,000 while those in Section 7 of the same purchase price can be rented out at about RM5,000, that’s up to 15% returns per year!

The rosy interest is largely driven by the stratified ownership of the shops where every unit can now be owned by a different owner, attracting investors and buyers of all levels. According to Nora, shops at Section 13 are filling up fast while Section 7 is enjoying the inclusion of some newly completed units.

Northern Shah Alam

In terms of capital appreciation, the investment target five years ago were residential properties in Bukit Jelutong as those who bought then would have pocketed RM100,000 easily. Today, the influx of development has somewhat created an oversupply atmosphere although many are still coming on stream. Appreciation has dropped since to about RM50,000 per unit. “Nevertheless, its free hold status is edging out the rest of the competition from Shah Alam Central to Northern Shah Alam,” shares Nora. The Northern region encompasses Bukit Jelutong to areas along Guthrie Highway towards Sungai Buloh.

Based on Nora’s observation, demand for shop units in Bukit Jelutong is likely to increase as the area is already well populated. Avid investors should also know that shops in Bukit Jelutong are offered with a larger floor space, making it more appealing than conventional ones in the Central region. Despite the higher price, the foreseeable demand more than compensate for the premium price.

Whether it is at the Central or Northern region, Shah Alam’s popularity is largely contributed by its convenient access via major highways, adequate presence of tertiary education institutions and the abundance of job opportunities from small-medium enterprises, large corporations to civil departments operating across offices and factories within the capital city itself. Its appeal has also been boosted by the emergence of a bigger middle class among the Malay community, the dominant residents of Shah Alam.

Through the years, this 290km² city has had its fair share of glorious moments including the birth of Malaysia’s first national car Proton Saga, the largest mosque in the country (Sultan Salahuddin Abdul Aziz Mosque) and real estate darling such as SetiaEcoPark. If such records are anything to go by, Shah Alam is perhaps the ideal investment hotspot for those yearning for a quality lifestyle amidst the serene surroundings of nature and fed by the increasingly innovative real estate products all within the KlangValley itself!


A view from Shah Alam Lake Gardens

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.