Being regarded as the Beverly Hills of Malaysia, these are places where locals actually grow up dreaming to live in one day. Just drive along any of the roads here and you’ll be amazed by the majestic view. Some of the houses are like a showcase of ardent designs and architecture against a scenic backdrop.

 

“Each house here has its own individual character!” says Mrs Teo, Senior Real Estate Negotiator of Reapfield Properties Sdn Bhd, “and you’ll definitely be surprised too with the amount (of money) people are willing to offer!

 

“And there’s no limit to the price the houses can go. In these few places, it’s a willing buyer and willing seller situation.

 

“People are buying because of the location.”

 

Prices here are absolutely not for the faint hearted because in these places, one can’t find any bungalows priced around the RM1 million mark anymore.

 

For instance, a bungalow, which is the most sought after type of real estate here, with a land area of less than 6,000 sq ft in Bukit Damansara, Bukit Pantai or Bangsar has been transacted on the average of RM2 million to RM3 million since 2008 while some of the bigger units go beyond the RM5 million threshold. And for the colossal castles exceeding 15,000 sq ft in Bukit Tunku, it can go as high as RM10 million and even more!

 

In terms of investment returns, it is not short of glorious appreciation too. According to Teo, a certain bungalow in Bangsar was sold at RM2.85 million in September 2007. Seven months later, it was resold at RM3.7 million, almost 30% appreciation in less than a year!

 

There are also those that command a higher price tag simply because it is located along the “preferred” roads, usually due to the view that surrounds them, she says.

 

“Some people like the green, the trees and the feeling of exclusivity that comes along with it. Some even pay a premium just to have the KLCC view!”

 

 

Being long time favorites of the high rollers in Malaysia, which then would be the most sought after?

 

Bukit Damansara or also commonly known as Damansara Heights, Teo reckons, thanks to its accessibility via major highways and roads which make it very central to many places from commercial amenities to education institutions, down town Kuala Lumpur and even to Petaling Jaya.

 

Its commercial convenience is a boon too as the residents of Damansara Heights are well acquainted with the bustling places like Bangsar Shopping Center, Bangsar Village, Hartamas Shopping Center, Millennium Tower, Desa Sri Hartamas and more recently, Solaris Mont’ Kiara.

 

Backed with such appeal, newer developments have also begun to take shape. As a matter of fact, Teo cites that newer properties are generally able to command a better price compared to the older ones because people are willing to pay more for it, especially those in a gated and guarded environment.

 

“For an old house with a land size of 5,000 sq ft to 6,000 sq ft without a pool, the rental would probably range from RM5,000 to RM7,000 or more. However, a new one of a similar land size can probably fetch between RM12,000 to RM15,000 or more, depending on the built-up of the property.”

 

To further enhance the value, some would put in more effort to renovate the property and then resell or renting it at a higher rate, she attests.

 

For example, renovating a basic bungalow of RM2.9 million can up its market value to RM5 million after only about one and a half years, a significant increase compared to only RM3.5 million if it was resold as it was, she says.

 

“This is definitely one business that can bring you a handsome profit!”

 

Discerning buyers here are also renowned to evaluate the developers to ensure the prestige aura of the location is maintained. Reputation, quality and the concept the developer adopts are just some vital considerations.

 

As an example, while it was thought that certain quiescent parts of Damansara Heights might not be as sought after as the usual hotspots, and many too, would assume any new developments there are bound to face an uphill task to sell. However, Teo recalls of a developer, E&O Property Development Bhd, who quashed this fallacy altogether when its gated and guarded development Idamansara was all sold out. Within three months from its launch in 2005, they have already achieved 40% of sales. Priced from RM2.9 million to RM4.7 million each when it was first released, today, the semi-detached homes and bungalows are already commanding approximately RM4 million to RM6 million and above, respectively.

 

But a question on everyone’s mind these days is whether such prices are able to hold well given the economic condition. Expounding from her 15 years of experience, although there is no crystal ball telling which direction the prices will inch toward, Teo opines that the present market is now more affordable.

 

This may be a good time for buyers and investors to look out for as good deals may be hovering around, she adds.

 

While good deals may just be around the corner, property owners here know fully well that the value of their properties command a premium. Thanks largely to the strong expatriate presence in these areas, as well as the willing buyer and willing seller market, owners here are provided with a healthy rental market, giving them a double edged sword opportunity in the property they invest in, she confesses, and this is applicable throughout Damansara Heights, Bukit Tunku, Bukit Pantai and Bangsar.

 

For the very same reason, some developers have also been looking for dilapidated bungalows in certain pockets to rebuild in the near future. And just like the owners, they too know the value will one day rebound when the financial tide is over.

 

So come what may, this Beverly Hills of Malaysia is not about to crumble despite the threats of the financial turmoil. If at all, it may even prove its mettle in these trying times and emerge unscathed, more refined and polished!

Published in the International Edition (Mar-Apr) 2009