Overlooked Prime Location in Kuala Lumpur

The northern region of Kuala Lumpur is one that is often overlooked by property purchasers as the focus of future development is mostly concentrated in the south of Kuala Lumpur, in regions such as Cyberjaya, Puchong, and etc. This is mostly because the northern part consists mostly of mountainous region, making development much more difficult and costly. Of course, this does not mean you should disregard the entire northern part of KL as there are still areas of great potential, and the two best areas that are directly connected to the Kuala Lumpur city center are Sentul as well as the region that covers both Selangor and Kuala Lumpur – Setapak.

Setapak

Part Selangor and part Kuala Lumpur, Setapak was a region of tin-mining and rubber-growing as it is several kilometers away from the city center. In the Malay language, the word ‘tapak’ actually means step or base, while ‘se’ usually means one. In essence, Setapak means ‘one step’ or even ‘one base, possibly referring to its close proximity to Kuala Lumpur or its identify during the olden days, being some sort of base outside KL. The Setapak area is unlike many suburban areas around Kuala Lumpur that were previously uninhabited location that has been developed into modern townships, this place has its own cultural identity.

Setapak is situated in the Northeastern region of Kuala Lumpur and is directly connected to KL city, with a mere distance of around 7km. The area has undergone tremendous change with more and more high-rise buildings, public transport stations, expressways, education institutes and modern hospitals erected. The improvement of public infrastructure has greatly enhanced the accessibility, convenience and dynamics of the area, making Setapak currently one of the most sought after location for people working in KL.

Sentul

Located just west of Setapak lies Sentul, slightly smaller but just as close to Kuala Lumpur, yet with a different vibe. Regarded by some as a complete neighbourhood, Sentul is a humble neighbourhood rapidly developing into a modern township.

Renowned for its railway and markets, Sentul was the place where one of the finest integrated engineering railway workshops in Malaya – Sentul Works, was established in the 1890s. As most of the workers were Indians, the place was mostly populated by Indians. The area was well-known for its temples and churches along the road of Jalan Sentul.

The area saw major property development and a total landscape change thanks to YTL Corporation. Squatter areas and residential railway quarters were relocated for the development of Sentul East and Sentul West. The changes brought about a positive vibe and since then, property values of Sentul have greatly appreciated and with more facilities and infrastructures being constructed, the place has become a hotspot for property investors as well as various young adults seeking to make a home close to the KL city.

Comparison Between Setapak and Sentul

Comparing Setapak and Sentul will most likely bring us nowhere as they incredibly similar in both their development stages as well as their identity relative to KL. To get a better idea, let’s have a look at the development within this area.

In Setapak, some of the more notable developments are condominiums such as Platinum Condominiums (Platinum Hill, Lake, etc.), Sri Pelangi Condo, Genting Court Condo, Idaman Sutera Condo, Ascenda Residences and Bennington Residences in the mammoth development of SkyArena; terrace houses in Taman Bunga Raya, Desiran Bayu; bungalows or semi-d in Taman Setapak; even serviced residence such as The Nest @ Genting Klang and Residensi 22.

Similarly, in Sentul, the amount of development has increased it’s impossible to list them all down. Some of the more notable ones are, for condominiums, The Capers, Sang Suria, River City, Casa Idaman, The Saffron, and Court 28. The number of landed developments in Sentul is extremely low as prime land is scarce and developers prefer building high rise buildings for maximum profit. However, some still exist in places like Jalan Sentul Pasar, Jalan Sentul, and Impiana Sentul Bahagia.

Pricing Of This Prime Location in Kuala Lumpur

The price per square feet of these property ranges from RM 200 per square foot to RM 600 per square foot (Based on various transaction prices of May 2017) and the focus of the developments is basically high-rise condominiums or serviced apartments. Although these areas are located close to the KL city center, there is still a certain distance to cover and many areas still do not have easy access to public transport stations. This means that as a whole, these areas are more attractive to local Malaysians who usually owns a car and are looking to buy a property for their own occupancy as compared to purchases with investing in mind. This is especially true for young professionals or families working in KL because the two areas are equipped with an abundant of amenities that can more than satisfy their daily needs, all the while being connected to roads that can lead them to their office.

That being said, there are still investors who would opt for a property in Sentul or Setapak because of the affordability issue. If you’ve read our investment guides (links), you would know find that there are properties within these areas that fit the descriptions of a suitable investment so don’t be discouraged if you are looking to invest in Sentul or Setapak! The potential for property capital appreciation is considerably high as new developments as well as public transport systems are still under construction.

Developments in this prime location

Another notable trend of developments in the Greater Klang Valley, apart from high rise buidlings, is the increasing number of mixed developments such as the SkyArena development in Setapak that includes serviced residence, hotels, shop lots and even malls. This is in line with the preferences of the younger generation, putting convenience before privacy. Another difference in preference between the young and old is the space and size requirement of properties. Youngsters nowadays are more likely to accept a smaller unit due to reasons such as affordability and necessity. The preference of the young is important in future developments because, as noted by Ishmael Ho from Ho Chin Soon property consulting group, the biggest age group of population in our country is the group of 20-24, which in 5-10 years will be the ones wanting to buy a house.

According to the data from NAPIC, the total number of property transaction in the Setapak region in Q3 2016 is 400, with a total value of around RM 175 million. Among these 400 transactions, 195 or 48.75% are condominium/apartment purchases, with a value of RM 94 million, 53.71% of the total value, which means the value of these high rise are potentially higher than of the other property types.

Added to that, Ho Chin Soon’s group procured a property purchase guideline based on their research and analysis, ranking each area in the Greater Klang Valley in terms of property attractiveness. According to Ishmael Ho, purchases within the 1^st tier areas that is within 20km of the KL city center will not go wrong. If you are lazy or if the picture below is too muddled or confusing, Sentul and Setapak are without a doubt 1^st tier location, in short, prime land for property purchases.

In summary, Setapak and Sentul are regions experiencing rapid development both in terms of infrastructure as well as property developments. Due to their proximity with the Kuala Lumpur City Center, amenities available as well as accessibility, the region is bound for growth, both in population and property capital value.

Among the property projects in Sentul and Setapak, the more notable and with the best prospects are as follows.