Where to Invest in Klang Valley
Location, location, location has always been the mantra of the gurus of property and today it is still valid although there are many other factors which are just as important. In investing in property, you have to choose the location of the property carefully as the wrong choice could have a great impact on the potential for capital appreciation as well as ability to attract high rentals.
There are many factors to consider when choosing the location of your dream property. If you are buying a home for your own occupation, you would obviously look for a home which is located near good schools, shopping, recreational and other amenities. You may also want to stay near your parents or friends or maybe as far away as possible from your in-laws. How close the property is to your work place is also important. The romance of staying in the beautiful countryside vanishes quickly when you have to fight two to three hours of traffic jams everyday from work to home and vice versa.
Check for availability of public transport. Locations served by public transport like LRT and public buses are usually more easily rented out compared to areas where public transport is not available. In major cities like Singapore and Hongkong, it has been proven that properties located near MRT stations enjoy a premium.
Infrastructure plays a big part in dictating the flow of development. New highways have opened up many new stretches of land for development. Places which were previously deemed too far away become attractive places to stay once highways open peoples' eyes to the potential of the area. One good rule of thumb to adopt in choosing a property would be to look at the length and breadth of highways especially near interchanges. Properties which can be accessed only via narrow secondary roads do not usually fetch good prices.
New growth centres also offer good potential, for example site of a new university, industrial centre or administrative centre. New growth centres are cheaper and may offer strong growth potential but you probably cannot expect a good rental income from such properties until the area matures. If you are prepared to look at a longer time horizon for your investment, going for new growth centres will provide you with better potential for capital appreciation.
Areas which are located nearby well known icons e.g. KLCC are also good areas to be considered as they are deemed unique in their own special way. If you are looking for commercial properties, spots near popular shopping centres are good bets as are areas surrounding a popular tourist spot. Business from the shopping centre and tourist spots could very well spill into the surrounding area.
Established locations are always a safe bet but they usually do not come with a cheap price tag. Established areas like the city centre as well as popular residential suburbs like TTDI, Bandar Utama and Mutiara Damansara offer good growth potential. Further, investing in prime locations like Bangsar, Damansara Heights, Bukit Tunku, Mont' Kiara/ Sri Hartamas as well as Ampang Hilir and U Thant will never be wrong as land available for development in these areas is limited and property prices can only go up. These areas are popular with expatriates and usually fetch better rentals as well as offer good potential for capital appreciation. However, these established areas come with hefty price tags.
What are the new growth centres within the Klang Valley? Try looking at the map and zero in on areas which have seen vast improvement in infrastructure. Areas like Kota Damansara or Sungai Buloh offer good potential due to their improved connectivity via the LDP, the interchange from the NKVE and the Penchala Link. Other potential hotspots include the area between the established Sri Hartamas neighbourhood and the lower profile Segambut area which have seen a significant improvement in the road network system as well as the areas flanking the Old Subang airport road and linking to Ara Damansara which have recently witnessed a spurt of new developments after the airport shifted to KLIA. The SILK highway should also bring more development and interest to the areas stretching between Balakong and Kajang.
Some other areas which have seen significant development activities are the Bukit Jalil - Puchong stretch and Klang where townships like Bandar Botanic, Setia Alam, Setia Ecopark and Bandar Bukit Tinggi have added new colour to the lifestyle of Klangites. However, these, as well as other new townships nearby, will add substantially to the stock of properties and it will take some time to digest these new stocks.
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