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Bangsar South, a magnet for long-term rentals

Bangsar South’s winning formula is its infrastructure, security and community well-being. (Property Advisor pic)

The Covid-19 pandemic wreaked havoc for businesses across the world, and the property market in Malaysia was not spared.

However, despite the property slowdown, Bangsar South has been able to continue chalking up impressive occupancy rates, proving itself to be somewhat recession-proof albeit registering a significant drop in rental prices.

One of its renowned developments, The Park Residences has received continuous demand for rentals since its launch, said Polygon Properties Sdn Bhd senior real estate negotiator Jenny Wong.

“How is this possible? We have seen tremendous growth in the population of The Park Residences in particular and Bangsar South in general, even during the post-pandemic phase.

“Rental occupancies are dependent on the type of township population. Townships with a great organic population are blessed with strong buying demands due to people regarding the township as their long-term home,” she told Property Advisor.

The Park Residences was developed by the UOA Group, the same developer who created the iconic Bangsar South branding.

The 60-acre site was formerly a squatter colony in the Kerinchi area. The company acquired the land back in 2005, and the district is now home to residential and commercial buildings, hotels and a conference centre.

Wong said townships with large moving or transit populations bring an ample supply of tenants.

“Although this type of population is not permanent and will usually look to move again, Bangsar South is fortunate to have a mixture of both an organic and transit population.”

Reapfield Properties relator Jonathan Low said attracting an organic and transit population requires striking a balance between good accessibility, mobility and quality of life.

“This takes into account the existing infrastructure, safety, cleanliness, healthcare, environment, recreation sites, access to goods and services as well as public transportation.

“Multinational companies are found to take these criteria into consideration when deciding where to set up their offices,” he said.

Multinational job opportunities

According to Wong, Bangsar South is now home to over 20 different multinational companies.

“As multinational companies usually look to expand into locations that fulfil the quality of living criteria, it is also natural to find huge amounts of employment opportunities in that area.

“For locals, jobs offered by these companies usually come with attractive salaries and benefits. During the setup of the new offices, highly trained expatriate staff are present to train and educate new hires, and also to guide the team before transitioning to local leadership.

“This precedent will concomitantly increase property rental demands around these offices as well as its property value due to impending property transaction volumes,” she said.

Safety and security

The success of a township is greatly dependent on three aspects – infrastructure, security and community well-being.

“No one likes living in a place where they are fearful of stepping out to shop for groceries, walking the kids to school, or popping out for a late-night bite with friends. This issue becomes of even greater concern, especially for high-income earners,” said Reapfield’s Low.

Fears like this are amplified among individuals from countries with a lower crime rate. “These people need to learn to avoid certain habits they have become accustomed to like jogging at night for instance. Tackling this concern has been one of the differentiating factors between experienced and thoughtful developers and the rookies.”

Apart from the hiring of auxiliary police and the installation of surveillance cameras, Polygon’s Wong said strategies like constructing wide roads, ensuring sufficient lighting in the township and maintaining the cleanliness of the area has proven essential to the overall safety of this integrated township.

Ease of access

Bangsar South’s connectivity has given it an unparalleled edge over other townships, making it a highly sought-after business district.

“The most important criteria for real estate is ease of access. This takes into consideration the ease of getting in and out of the township, good connectivity to other townships, the existence of various modes of public transportation, and low traffic congestion levels,” said Wong.

A glance at Kuala Lumpur City Hall’s (DBKL) 2040 plan sees efforts to reduce KL’s carbon footprint significantly by creating a reliance on public transportation instead of personal transportation.

“Ideally, the closer it is to the central business district, the fewer cars should be present to ease traffic congestion. That is why the parking rates at the Kuala Lumpur City Centre (KLCC) and KL Sentral are extremely high – it is simply to discourage the use of private transport.

“At the same time, ensuring that there are sufficient access points via all modes of transportation into Bangsar South is essential for businesses to thrive.

“This makes it extremely convenient for those staying in Old Klang Road, Petaling Jaya, Puchong, and Bangsar as these areas are closer to Bangsar South,” said Low.

Next international hub

Upon gaining its status as an international IT hub, Bangsar South has transformed into a melting pot of cultures that include Japanese, Koreans, Europeans and Middle Easterners apart from the locals.

“Bangsar South goes the extra mile by making it possible for people from various cultures to flourish and grow as an extension of their respective countries.

“The best example of this is food. In Bangsar South, you can find restaurants representing almost every country’s culture and lifestyle,” said Wong.

In a nutshell, a good location attracts long-term rentals, but this greatly depends on how well the supply of products matches the demands of that location.

Most people assume that the location of a township is what appeals most to buyers. This is not completely true however, because the appeal of a township also largely depends on how well it plays its various supporting roles compared to its competitors.

This article was written by Sharina Ahmad of PropertyAdvisor.my, Malaysia’s most comprehensive source of property data, property analytics and insights.

Source: FMT News

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