KUALA LUMPUR, 9 APRIL 2022 – iProperty.com.my has identified certain bright-spot residential properties which have performed better than most during the last three years when the property market was dealing with an oversupply of high-rise properties as well as the Covid-19 pandemic. Despite an environment of subdued consumer appetite between 2019-2021, this handful of high-rise properties in key locations across Kuala Lumpur, Selangor and Negeri Sembilan continued to attract robust demand. These properties not only generated the highest transactions or sales, but also garnered the highest volume of enquiries in 2021.
Shylendra Nathan, Country Manager - iProperty.com.my, said, “Savvy investors might see this encouraging demand trend as a strong indication of where to focus their investments in 2022. It stands to reason that residential properties which perform resiliently during challenging times may have a good chance of booming in the future when the market has recovered, especially in terms of rental yield and capital appreciation.”
Below is a rundown of the top 5 properties and key locations that investors should keep an eye on:
Kuala Lumpur
In Kuala Lumpur, the areas that received the most investment interest are the ones that offer plenty of modern lifestyle amenities such as shopping complexes, cinemas, retail, and F&B outlets. Investors are also looking at capitalising on a promising rental market due to the influx of workers and students. Furthermore, specific areas with a cosmopolitan landscape of upmarket eateries and entertainment outlets that caters to the expatriate community have grabbed investors' attention.
In this regard, Bukit Jalil and Mont Kiara fit the bill — four out of five top investment properties in Kuala Lumpur are from these two townships. Bukit Jalil offers some high-rise properties with decent rental yield and a strong potential for future growth. Meanwhile, condos in Mont Kiara continues to command high prices, generate good capital appreciation, and provide attractive rental yields.
Selangor
In Selangor, Damansara is a popular choice among property investors due to its great infrastructure and amenities including a plethora of malls, education facilities, hospitals and hypermarts as well as plenty of surrounding greenery. This wholesome combination have attracted young professionals wanting to live and work within a convenient self-contained environment. One particular high-rise property in Bandar Sri Damansara offers high-rise home seekers the experience of nature beside a forest reserve.
Three out of five top investment properties in the state are located in Damansara Perdana, Kota Damansara, and Bandar Sri Damansara. As an investment prospect, Damansara offers attractive rental yields and capital appreciation, boding well for a long-term investment plan.
Negeri Sembilan
In Negeri Sembilan, investors are keen to leverage the state's reputation as an education hub and tourist hotspot. With this in mind, all five of the best-performing high-rise properties in Negeri Sembilan are in Nilai and Port Dickson. Nilai is home to several tertiary educational institutions and thus boasts a large population of students, teachers, and personnel. With both local and international students to cater to in the town, the potential for rental income is immense.
As one of Malaysia's well-known beach destinations, Port Dickson attracts buyers with the appeal of the sea breeze and proximity to the beach. In addition, investors see the long-term potential of Port Dickson as a tourist hotspot. While rental yields are low in Port Dickson, a high-rise property in a prime location that offers sea views has seen its median price increase over the past two years, indicating a good long-term investment potential.
What does the property market look like in 2022?
All indicators point to an encouraging market outlook in 2022. Still, market experts believe that progress will be slow and steady. Nevertheless, favourable sentiments resulting from an anticipated improvement in the country's Gross Domestic Product (GDP) of between 5.5% and 6.5% may extend to the property market. This growth in economic activity might help raise consumer confidence and increase transactional activities.
While the property market can still be defined as subdued by ordinary standards, these properties have performed positively against the grain, offering a peek at where demand could grow exponentially soon. Furthermore, the shift into the endemic phase may bring new opportunities as consumer demand is expected to increase.
