It was only about a decade ago when Puchong was tucked away like a monastery hidden in a rain forest or up in the mountains. It was a part of Klang Valley not many would go unless tin mining was your business. Little did anyone know it had the capacity to propel itself to modern real estate glory.
This former tin mining and rubber plantation town today boasts a mixed range of properties, residential, commercial, industrial, retail, recreational, Puchong has it all. In fact, Edmund Chuah, Registered Real Estate Agent of Reapfield Properties (Puchong) Sdn Bhd, confesses that “Puchong is still growing and the prospects are bright.”
Among the more popular properties are the 22’ x 75’ double storey link houses and the commercial shop offices. Demand for the double storey landed home is nothing new in Malaysian real estate, it is a domestic preference rather than innovation driven. And since it was not among the more sophisticated suburbs back then, prices were affordable, which attracted many buyers to its doors.
As an example, a double storey link home in Bandar Puchong Jaya was only about RM130,000 ten years ago. The same property today fetches around RM260,000, a 50% appreciation over a decade and about 7.18% per annum.
Crossing over to another residential estate at Bandar Kinrara, the same property was going at about RM220,000 to RM270,000 five years ago. Today, it is in the range of RM400,000, a cool 32% to 45% appreciation and between 10% to 16% annually.
“The impressive numbers are due to the great infrastructure, accessibility to neighboring suburbs, better design homes and the more spacious layout compared to those in USJ.”
Thanks to main expressways like the Damansara-Puchong Expressway (Lebuhraya Damansara-Puchong), it is now only 5 minutes to Bandar Sunway, 10 minutes to USJ, 15 minutes to Subang Jaya and half an hour to KL. Even the southern part expressways are now conveniently connecting Bukit Jalil, Cyberjaya and Putrajaya to Puchong.
Edmund also attests that people in these surrounding neighborhoods frequent Puchong for their daily errands from grocery shopping to banking and even meals like dinner and supper because of its convenience, variety and better price points.
In the commercial space, prices were scaling even greater heights. A 2.5-storey Capitol Square shop office at Bandar Puchong Jaya for instance was sold between RM588,000 to RM600,000 in 2002 and 2003. It can today command up to RM1.2 million. Its bigger 3.5 storey sibling on the other hand can ask for RM1.4 million today. It was sold then at only about RM799,000, gaining a capital appreciation of 92% and about 9.8% per year.
Bandar Metro Puchong
Certainly, such dramatic atmosphere has pushed prices upwards and with developments going round the clock, where would be the best places to invest in right now?
“In terms of residential, the western side of Puchong or known as Bandar Metro Puchong as it is currently undergoing tremendous growth,” says Edmund adding that growth is also pushing south towards Cyberjaya and Putrajaya.
As he points to the map, Bandar Metro Puchong is tucked behind retail malls like IOI Mall and Tesco Hypermarket. It is strategically linked to Jalan Puchong, the main trunk connected to LDP. Its potential has led some of the country’s leading developers there. Among them are YTL Land and Development Bhd, Malton Bhd, Glomac Bhd and Austral Development Sdn Bhd.
BMP is also opportune to succeed due to the high profile commercial developments taking place along Jalan Puchong, stretching from Bandar Puchong to Bandar Puteri. In terms of landmark, this is referring to IOI Mall to Setia Walk. IOI Boulevard and Setia Walk, developed by elite developers IOI Properties Bhd and SP Setia Bhd respectively, are also among them. Puchong’s flagship retail mall, IOI Mall, is also undergoing expansion currently and it is certain to spur prices further.
“They are all taking shape now. In three to five years, they will all be ready and it will mimic Bandar Utama and the Ikano Power Centre area in Mutiara Damansara. It will be very hot!”
Over at the commercial shop offices, Edmund recommends secondary commercial shop offices along the active stretch of Jalan Puchong if your initial outlay capacity is not as high. The potential appreciation is almost certain and perhaps even greater since it will have a helping hand from IOI Boulevard, Setia Walk and IOI Mall. In fact, in Bandar Puteri, supply is abundance where investors can really take advantage of at the moment although prices are on the higher side, says Edmund. Rentals are said to be good and are fetching at about RM4,000 to RM4,500 per month for an intermediate ground floor unit.
Puchong’s urbanization does not look like it is going to stop anytime soon. With a promising growth pattern in the next three to five years, its fairy tale will continue to unfold and mystify everyone!
Columbia Asia Hospital
Kenari Business Centre
Tesco Hypermarket
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
Published in the Sep-Oct Edition 2008
“Edmund, Puchong is a vibrant township and well linked. I see the future of Puchong and properties here will appreciate!”
Why Double Storey Link Homes?
Malaysian favorite.
Affordable back then but now very developed.
Buyers mostly buy for own dwelling and will upgrade in the same area. Hence, almost 100% occupancy rate.
Prices are already rivaling surrounding areas like USJ.
Values and Returns?
Bandar Puchong Jaya
RM130,000 ten years ago, now around RM260,000.
50% capital appreciation, 7.18% annually.
Bandar Kinrara
RM220,000 to RM270,000 five years ago, now about RM400,000.
32% to 45% capital appreciation, 10% to 16% annually.
BK5, BK6, Bandar Kinrara
Developer’s price now, RM418,000 to RM438,000, surpassed secondary market prices in USJ.
Bandar Puteri
Now launching at RM438,000, surpassed secondary market prices in USJ, 40% to 50% expected capital appreciation.
Where can you find them?
Conventional popular ones are Bandar Kinrara, Puchong Jaya, Wawasan (Pusat Bandar Puchong), Bandar Puteri.
Potential with great prospects in 3 to 5 years, Bandar Puteri and Bandar Metro Puchong with bungalows and semi-detacheds.
Why Commercial Shop Offices?
Heavy human traffic.
Rental still commands good value.
Prime vacant units are quickly snapped up regardless of number of vacant units.
Values and Returns?
Capitol Square, Bandar Puchong Jaya
2.5-storey, RM588,000 to RM600,000 in 2002 and 2003, now RM1.2 million.
50% to 94% capital appreciation, 8.9% to 12.6% annually.
3.5-storey, RM799,000 in 2002 and 2003, now RM1.4 million.
92% capital appreciation, 9.8% annually.
Where can you find them?
Conventional popular ones are Kenari area at Puchong Jaya, Prima I, Prima II, Capitol Point, Capitol Square, Cosmo Point, Bandar Puteri’s Puteri Avenue and Puteri Square.
Potential with great prospects in 3 to 5 years, IOI Boulevard, Setia Walk.
What’s There Now?
All major banks including Citibank and Standard Chartered Bank, IOI Mall with Jusco as anchor tenant, 2 Giant Hypermarket, 1 Tesco Hypermarket, Binary University College.
Coming Soon?
3 LRT (Light Rail Transit) stations at Bandar Kinrara, IOI Mall and Tesco Hypermarket; a bridge connecting Bandar Metro Puchong to Subang Jaya (approved but not build yet).
Accessibility?
Damansara-Puchong Expressway, Puchong-Sungai Besi Highway, Kesas Highway, Putrajaya-Cyberjaya Expressway, NPE (New Pantai Expressway), Federal Highway, close to NKVE (New Klang Valley Expressway).
How Did Puchong Come About?
It was previously a tin mining and rubber plantation area. IOI Properties Bhd and Perumahan Kinrara Bhd (part of the Island and Peninsular Sdn Bhd) were the biggest players that bought land here. Perumahan Kinrara was responsible for Bandar Kinrara while IOI was responsible for Puchong Jaya and Bandar Puteri.
What’s Great About Puchong?
Michael’s Badminton Academy (the largest in Malaysia with 32 indoor courts); international standard cricket stadium in Bandar Kinrara; Columbia Asia Private Hospital at Bandar Puteri; big recreational lakes at Bandar Metro Puchong and Taman Tasik Prima; availability of industrial factories where transactions are active and convenient for factory owners and operators to call Puchong home; Lim Kok Wing Institute of Creative and Technology in Cyberjaya is only 10 minutes from Puchong.
Population?
220,000 in 2002, 780,000 in 2008.
20 years ago, used to be medium and low income earners, laborers, rubber tappers, hawkers.
Now professionals, businessmen, factory owners.
Popular Events?
Prime Minister Datuk Seri Abdullah Ahmad Badawi officiated the opening of a Chinese national primary school, SRJK (c) Harcroft in June 2008.
