"Friendly neighbourhood with good food"

"Friendly neighbourhood with good food"

Old Klang Road had in recent years seen new developments spring up – amid its sprawling housing estates, there is a haphazard mix of factories, office buildings, nurseries and automobile yards.

The developers behind the new projects were attracted by the strategic location, high plot ratio of 1:6 for developments on commercial land (according to Draft Kuala Lumpur City Plan 2020),redevelopment potential and pent-up demand from the locals for newer projects.

Several neighbourhoods fall under “old Klang Road” – Seputeh, Taman Desa, Taman Shanghai, Taman Lian Hoe, Taman Continental, Kuchai Entrepreneurs Park, Taman Oversea Unions, Kampung Pasir, Taman United, Taman Gembira, Taman Manja, Taman Desa Ria and Oversea Union Garden (OUG).  Due to its nebulous borders, some adjacent localities include Bukit Jalil, Puchong and PJS 6 of Bandar Sunway.

In total, more than 200,000 people live in the approximately 5,000 acres in Old Klang Road.

The century-old trunk road – so named because it was the only road between (KL) and Port Klang – is also linked to the New Pantai Expressway (NPE) and the expressway between (KL) and Shah Alam. It is a toll-free alternative to town.

"Old Klang Road is toll-free, 10 (min) to Mid Valley, 15 (min) to (KL) and (PJ), and is connected to the Maju Expressway (MEX), which goes all the way to the city centre and (KLIA).  There are also many wet markets such as the famous NSK Trade City in Kuchai Lama.  There is a lot of good food and it’s a friendly neighbourhood.  I know because I stay here.  What more can you ask for?” says iProp Realty Sdn Bhd managing director Victor Lim.

In recent years, condominiums and serviced apartments have sprung up along the road and further inside the townships, especially the Kuchai Lama area.  This is partly due to the availability of land and older low-rise properties with redevelopment potential and small acreage, coupled with high density allowed.  A notable exception to this is mixed-use development by Exsim Group. 

“Old Klang Road has seen a number of developments since 2010 and the newer developments show that the area has become more upscale.  Prices of condos and apartments, which were hovering around RM300 to RM400 psf range in 2010, have now moved up toRM500 to RM700 psf, with one project even touching the RM1,000 psf mark,” Henry Butcher Malaysia Sdn Bhd director Tang Chee Meng tells City & Country.

Over in Jalan Sepadu, the Pearl Suria serviced apartments are being redeveloped into a retail complex with 403 serviced apartments, with built-ups of 763 to 1,213 sf.  The project will be connected via a bridge to the Pearl International Hotel and Pearl Point Shopping Mall across the road.

Verve Suite KL South was formerly an office building.  The building was acquired and is being extensively refurbished by Al Batha Bukit Kiara Holdings Sdn Bhd (better know as Bukit Kiara Properties), which also built the unique Verve Suites condominiums in Mont’ Kiara.  Verve Suite KL South comprises two towers that will house 321 serviced suites, 45 small office / home office (SoHo) units and three retail units.  The serviced apartments have built-ups of 555 to 876 sf and will be fully furnished.  Prices start from RM600,000 for one-bedroom units while two-bedroom units will be priced at RM750,000 onwards.

Verve Suite KL South has sold 50% of Tower A since it was previewed to its existing clientele people who registered their interest in the project in the middle of last year.

The Scott Garden KL is a mixed-use development comprising a 3-storey retail podium housing 100 lots and three blocks of SoHos.  The launch prices of the retail units were between RM500,000 and RM600,000, which is fairly pricey, says Landserve’s Chen. Today, Scott Garden is known as an after-work destination, with several pubs and restaurants on the ground floor.  A Tesco hypermarket occupies one of the basements.

Lim notes that prices have almost doubled in the past two years.  “In 2010, condos were selling at roughly RM250 to RM400 psf.  Nowadays, it is easily RM500 to RM800 psf.  Population and wealth growth are the main reasons.  The mean age group for Malaysiais now around 29 to 30, plus most of them are earning good income, therefore they can afford to invest in properties.  Easy access to housing loans also contributed to the price increase.”

The opening of NSK Trade City drove up the prices of properties in Kuchai Lama.  The 24/7 hypermarket, which occupies the basement of Kuchai Business Park, is a popular spot among Old Klang Roadfolk.  It draws even expatriates living in the posh Seputeh enclaves.

“There is more variety, and the goods are fresher and cheaper,” says Landserve senior negotiator K C Chew, who not only specialises in the Old Klang Road market but also lives there.

Outlook

While several high-rise housing projects were launched recently, consultants generally feel that there is no oversupply looming on the horizon.

“I would say the supply issue is not as bad as in Mont’ Kiara.  As long as the pricing is reasonable, many would still prefer to invest in Old Klang Road, partly due to its proximity to KL and PJ and also because most of the roads here are toll-free,” Lim says with a chuckle.

Meanwhile, Chen and Henry Butcher’s Tang see the place’s strategic location and enduring popularity to continue to draw interest.

“Old Klang Road is a very convenient location.  It caters for people who work in KL and PJ.  Investors should look at investing in projects with easy access to alternative roads out of the area as Old Klang Road can be pretty congested during peak hours.  Another point to consider is the pricing of the project.  If the project is priced substantially above the prices of similar developments in the neighbourhood, it has to contain value-added elements which are not found elsewhere and that can justify the premiums paid.  Lastly, as always, buy from a developer with an established track record and who is financially strong so that the risk of the project being abandoned is low,” says Tang.