|
Notorious traffic congestions, controversial toll protests, puzzling road networks leading to a maze of housing estates, these probably come to mind when the word Cheras is uttered among veteran KL-ites. But to those domiciled here, there’s absolutely no better place to call home.
The homey behavior of Cheras folks may be attributed to its history. Back in the 1960s, it attracted only the blue collar workers and those from the lower and middle income groups. But despite the financially challenged populace, Cheras was growing rapidly with huge undertakings of housing developments, leading to an influx of new Cheras citizens. Thanks to this growth pattern, it claimed the title as “the fastest growing suburb in Kuala Lumpur at one time,” attests William Goh, Head of Sales, Reapfield Properties (KL) Sdn Bhd.
Blessed with the abundance of housing and manpower, Cheras became the perfect platform for enterprising individuals to hone their entrepreneur skills. The rest as they say is history. Those found Cheras to be their fruitful hunting ground are still very much firmly etched in its soil today, choosing to reside here even when more modern and well planned townships were built across Klang Valley. Second generation Cheras dwellers too took a liking to continue calling this place home.
In terms of real estate preference, William discloses that the double storey link house priced between RM150,000 to RM350,000 was the hot favorite back then as it met the demands of the predominant Cheras folks, families of average income earners.
“However the income bracket has moved upwards over the years. You will find many entrepreneurs, business owners, factory owners as well as high executives here. Thus creating the demand for high end properties, which incidentally have come into the market in the last few years.”
This phenomenon led to a wave of new developments further from the conventional housing nucleus such as Taman Maluri, Taman Midah and Taman Cheras. But not to be discounted for its real estate charm, areas closer to the roots of Cheras between the first and seventh mile still possess pockets of lands for development, like those behind Bukit Segar and Plaza Phoenix. Here, developers are seen constructing exclusive homes, catered mostly for the higher spectrum buyers with modern bungalows, semi-detached and gated estates.
Distant Jewels
For those seeking the medium range properties, a little travelling is however needed. Outer parts such as Bandar Sungai Long, Hulu Langat, Balakong and along the Silk Highway are prime candidates, says William. Distant as it may seem, good news awaits as they have been earmarked as the next investment jewels.
“I think the next growth area should be around Bandar Sungai Long like Mahkota Cheras, Twin Palms, Saujana Kajang and some other new developments along the SILK Highway.”
Historically, landed properties are said to generate between 5 to 6.5% in annual return with some going as high as 8%. As to whether the properties here are more superior in capital appreciation or rental yields, William explains that the newer properties tend to have an edge in appreciation while the older properties would triumph in the rental market.
“This is because the sale prices of new properties are always positioned to gain a rental return of between 5 to 7%. Only the older properties will see a better rental return, that too if they bought it a few years ago at a lower price.”
William also cites the preference to own rather than rent as a contributing factor to the appreciation prowess.
Thanks to the thriving economic activities, Cheras has stamped a mark as a lucrative business avenue among KL suburbs. Apart from the enterprising residents, commercial and industrial properties in Taman Shamelin, Bandar Tun Razak, Taman Midah, Pandan, Taman Cuepacs and Jalan Hulu Langat have all played a part in contributing to its success. Today, brands like Tesco, Carrefour and Jusco have all found a home here, not only do they make life convenient and pleasant but also lifting the intrinsic value of Cheras to greater heights.
For an address that houses 500,000 people, traffic would indeed have been a nightmare if there were no mega projects to ease the pain. With infrastructures such as Middle Ring Road 2, SILK Highway, KESAS Highway, and the LRT in place, travel pressures have all eased into the history books. If these projects are a reflection of the future, then Cheras can only accelerate its prosperity well over into the new housing estates, peak hour or otherwise!
Bandar Sungai Long
Cheras Leisure Mall
Jaya Jusco, Taman Maluri
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 Year End Edition (Nov-Dec) 2008
|
Why Double Storey Link Homes?
Suitable for families.
Average income population.
Higher capital appreciation in the newer properties.
Preference for the local population is for landed properties especially link homes.
Values and Returns?
Capital Appreciation
Taman Midah
Double storey link home, sold by developer at RM350,000, resold last year for RM440,000.00, appreciation of 25% or an average of 6.25% per annum over 4 years.
Prima Midah Heights Condominium
Developer sold at from RM190,000 in its first phase for lower floors, transacted thereafter at RM290,000, appreciation of 52% over 5 years or 10.4% per annum.
Rental Yield
Damai Perdana
Double storey link home, bought at RM250,000, monthly rental RM900, 4.32% annual yield.
Prima Midah Heights
Condominium, 4 bedrooms, bought at RM350,000, monthly rental RM1,400, 4.8% annual yield. If bought 5 years ago, RM230,000, 7.3% annual yield.
Range of Properties in Cheras?
Low cost, RM40,000 to 60,000.
Medium cost, RM80,000 to 250,000.
High medium cost, RM250,000 to RM500,000.
High cost, RM500,000 to above RM1 million.
What’s There Now?
Retail malls like Jaya Jusco at Taman Maluri and Balakong, Cheras Leisure Mall at Taman Segar, UE3; Hypermarkets like Carrefour Jalan Peel, Tesco Extra Taman Midah, Giant Taman Connaught.
Education institutions such as Sedaya College, University College Sedaya International and Masterskill Nursing School.
Recreational centers like the public park at the 3rd mile Jalan Cheras and Bandar Tun Razak, Cheras Football Stadium, public swimming pool and cycling valedrome at Bandar Tun Razak.
Governmental support like Road Transport Department (JPJ) at Sri Permaisuri, National Registration Department at Bandar Tun Razak, police station 3rd mile Cheras, Police Depot Taman Cuepacs, Hospital UKM, Pantai Hospital Taman Cheras.
Coming Soon?
Expansion and upgrading of the Loke Yew Highway and the 1st to 3rd mile of Jalan Cheras; extension and new LRT across Cheras is being planned.
Accessibility?
Loke Yew Highway, Middle Ring Road 2, SILK Highway (Sistem Lingkaran–Lebuhraya Kajang), Cheras-Kajang Expressway, KESAS Highway (Konsortium Ekspresway Shah Alam Selangor), Taman Maluri, Taman Miharja and Cheras LRT stations.
How Did Cheras Come About?
Most part of Cheras was used for rubber plantation and some small part of it was for tin mining and small farming. Taman Midah was a rubber estate and it stretches to Bandar Tun Razak, although part of it used to be mining. It was the same with Taman Cheras to Taman Segar right up to the areas around Plaza Phoenix, Len Seng, Bukit Cheras down to presently Taman Anggerik and its surrounding areas.
In the 60’s to early 70’s, both sides of Jalan Cheras to Kajang were mainly rubber estate with pockets of factories and shops along Jalan Hulu Langat.
Mining was mostly in the Pandan area and some parts of Balakong nearer to the area where The Mines is now located.
Massive housing estate then started in the late 60’s and early 70’s like Taman Maluri, and it progressed to Taman Midah (formerly Bolton) and Taman Cheras.
80’s, Taman Muda, Taman Putra, Seraya and the surroundings.
90’s, Pandan Triangle, Bandar Tun Razak right up to Taman Segar, Taman Len Seng and its surrounding.
Population?
Approximately 500,000.
“When you want to invest in a property you’d want to buy in an area that has a fast growing population because then there will be great demand for your property. You can see examples from Hong Kong, New York or even Jakarta. So why not Cheras?”
|
