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Shah Alam offers a well-balanced real estate market

Shah Alam is the most industrialised city in the country with 20 industrial parks. (Property Advisor pic)

Shah Alam, the country’s first planned city, became the capital of Selangor in 1978 after Kuala Lumpur was declared a Federal Territory in 1974.

The city spans about 30,000ha and borders Subang Jaya and Petaling Jaya to the east, the district of Klang to the west, the district of Kuala Selangor and Selayang to the north and the district of Kuala Langat to the south.

A Property Advisor analysis shows the transaction volume for high-rise developments in Shah Alam trending is downwards.

In the first half of 2019 (1H2019), transactions fell 20% year-on-year and nearly 90% in 1H2020.

Median prices of high-rise properties dipped 29% from 1H2019 to 1H2020 after gaining 23% in 1H2018.

Despite the challenges in the high-rise sector in Shah Alam, landed properties emerged relatively unscathed, with median prices falling marginally by 7% in 1H2020 on the back of 25% growth in transaction volume in 1H2019.

The same analysis revealed that transactions among first-home buyers (FHBs) had dropped 68.96% from 1H2019 to 1H2020, while investor transactions declined 49.17%.

It is worth noting that transactions were already on a downward trend before the pandemic, with a 14.76% dip in the FHB market and 9.95% in the investor market from 1H2018 to 1H2019.

Median prices, on the other hand, have been increasing steadily since 2018. Between 1H2019 and 1H2020, median prices on the FHB market surged 25%, and 15.08% for investors.

For comparison, prices had surged 20% on the FHB market and 20.20% on the investor market from 1H2018 to 1H2019.

What does the expert say?

Royal Institution of Surveyors Malaysia president Datuk Thiruselvam Arumugam told Property Advisor that Shah Alam is a good place for investment because it is a structured, master-planned city with good accessibility and quality facilities and amenities.

“Most property developers are looking to develop more properties in Shah Alam because of its reputation for promoting work-life balance.

“Residential, commercial and especially industrial properties are playing a major role in Shah Alam as the city’s population encompasses the private and government sectors.”

Shah Alam has excellent rental yields, high demand and property prices are increasing.

“It would be a great investment opportunity for investors who are keen to get good returns,” said Thiruselvam, adding that historically, Shah Alam mainly catered for the housing needs of employees of the industries in the area.

“The area has now grown to accommodate the housing needs of all levels of residents with a government administration centre, public and private schools, universities and educational institutions, industrial developments, shops, shopping malls and recreational parks.”

The educational institutions, public and private, include Tenby School Setia Eco Park, the Chinese Taipei School in Bukit Rimau, MAZ International School in Seksyen 7, Sekolah Seri Cahaya in Seksyen U9, Management & Science University (MSU) in Seksyen 13, Universiti Teknologi MARA (UiTM) in Seksyen 2 and Seksyen 7 and KDU University College in Utropolis Glenmarie.

Shah Alam has good public transport, including free shuttle buses under Bas Selangorku, taxis, e-hailing services, the Glenmarie light rail transit (LRT) station on the Kelana Jaya Line (Putra Heights-Gombak route) and Keretapi Tanah Melayu with a few stations such as Batu Tiga, Shah Alam and Padang Jawa.

Thiruselvam said the LRT Line 3 (LRT3) will also provide greater accessibility to Shah Alam.

“The areas to look out for will be along the LRT3 Bandar Utama-Klang Line, which will be completed in 2024,” he said.

The demand for industrial properties in Shah Alam has contributed to the economic growth of the city.

Shah Alam is now known for being the most industrialised city in the country as it has more than 20 industrial parks.

Many new developments are coming up in Shah Alam because of its potential to boost the economy in Selangor, which is expected to grow further and become more vibrant in the long run.

Thiruselvam said landed properties are the most favourable in Shah Alam, along with some commercial properties.

Many major locations can be accessed from Shah Alam via highways such as the Shah Alam Expressway, Federal Highway, New Klang Valley Expressway, North-South Expressway Central Link and the Guthrie Corridor Expressway.

Among the malls in Shah Alam, Setia City Mall, Central i-City, Space U8 Mall and the upcoming Sunsuria Forum @ 7th Avenue have comprehensive entertainment, food and beverage and retail offerings.

Source: FMT News

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