With more and more developers developing land parcels near to train stations, we analyse five key winning points of the project
By Khalil Adis
Ask any Malaysians and chances are the first big-ticket item they had purchased is a car.
This is because getting around Malaysia, particularly in Kuala Lumpur and Greater KL via public transport is such a hassle.
However, since the completion of the Sungai Buloh - Kajang Line (SBK Line), Transit Oriented Developments (TOD) have become a popular option among first-time homebuyers as the line becomes integrated with other existing lines.
Combined with the popularity of ride-hailing apps like Grab and a generation that is more financially literate, the significant cost savings have made TODs a viable option among Gen Ys and millennials.
Thus, it is no wonder we are seeing developers acquiring land parcels near to train stations to cater to demand.
While some parts of KL and Greater KL still suffer from patchy connectivity, all that is about to change once the upcoming Sungai Buloh-Serdang-Putrajaya Line (SSP Line) and LRT Bandar Utama-Klang Line (Klang Valley LRT Line 3) are completed and integrated with the rest of the existing lines.
Here are five things that make Glomac’s 121 Residences an exciting proposition for homebuyers:
#1: Located in the bustling township of Petaling Jaya
Petaling Jaya, or ‘PJ’ as the locals would call it, is strategically located next to the well-established townships of Bandar Utama, TTDI, Mutiara Damansara, Kota Damansara and Tropicana Golf & Country Resort.
Home to several educational institutions, shopping centres, medical facilities and famous eateries, it is no wonder PJ has become a sought after address.
Over the years, it has seen several established property developers building quality homes to fulfil the demand from sophisticated buyers.
As a result, residential developments in PJ have become extremely scarce.
One such development is 121 Residences by Glomac Berhad.
Glomac is a multi-award winning developer. It recently bagged the IDEA Best Developer at the People’s Choice Award.
Comprising two 33-storey towers with 834 units, this SOHO serviced apartment offers buyers a choice of two- and three-bedroom units starting from RM300,000.
According to data from Brickz, the median transacted price for homes in PJ was RM670,000 from October 2018 to September 2019.
Thus, the lower entry price to live in such an established and well-connected township have made buying a home here even more attractive.
#2: Home Ownership Campaign (HOC) has made buying a property an attainable dream
Due to its strategic location and excellent connectivity, PJ has, over the years, seen its fair share of high-end homes being launched in the market.
However, such homes are generally out of reach for the first time homebuyers.
If you are thinking of buying a home here, fret not.
With the current Home Ownership Campaign (HOC), you will get even more helping hand that will bring you a step closer to owning your dream home.
The HOC entitles you to a waiver on the Memorandum of Transfer (MOT) and loan on stamp duty.
Glomac is also offering buyers of 121 Residences a waiver on the fee for Memorandum of Transfer (MOT), Sales and Purchase Agreement (SPA), free SPA legal fees and disbursements.
Glomac is giving away free kitchen cabinet voucher worth up to RM8,000 and a voucher worth RM3,000 for electrical appliances / furnitures.
On top of that, non-Bumi and Bumi buyers will get rebates of 6 per cent + 2 per cent and 7 per cent + 2 per cent respectively upon signing your SPA within 21 days.
Buyers also get an additional 2 per cent discount if SPA is signed on the spot.
All that is required is a booking fee of RM5,000.
All these added benefits will bring you one step closer to owning your dream home.
#3: Near to newly completed and upcoming transport infrastructure projects
One of the 5Cs that I have mentioned in my book that you should check against before buying your property is to check for the transport masterplan.
121 Residences fulfils this as it is located close to the newly completed SBK Line as well as the upcoming Klang Valley LRT Line 3.
The SBK Line costs an estimated RM23 billion to build while the Klang Valley LRT Line 3 will cost RM16.63 billion.
The latter, in particular, will have, three stations serving Petaling Jaya - Tropicana, Bandar Utama and Kayu Ara.
Why are such infrastructure projects important as a homeowner?
This is because they act as property boosters which will help to enhance the value of your property over the long-term.
This is especially important in the Greater KL area where an oversupply of properties has lead to a stagnation in the resale value of homes.
For instance, the SBK Line is estimated to raise some RM300 million in the gross development value (GDV) per annum for the overall property values in the Klang Valley, create 20,000 jobs with a gross national income (GNI) of RM24, 630.28 by 2020 with a gross national income (GNI) of RM24, 630.28 and have a daily ridership of 400,000.
Meanwhile, the entire length of the Klang Valley LRT Line 3 is 37 km spanning from Bandar Utama to Johan Setia station with 19 stations in total.
It is expected to serve a population of 2 million in the Western Corridor of Klang Valley
It is worth noting that Bandar Utama LRT station will serve as an interchange station to the SBK Line.
Hence, we can expect the spillover impact from building these lines to be felt in PJ as well.
#4: 400 metres away from Kayu Ara LRT station and near Bandar Utama MRT station
One of the perks of living in such a mature township of PJ is the excellent connectivity via the Damansara-Puchong Expressway (LDP), New Klang Valley Expressway (NKVE) and SPRINT Highway or via public transport via Bandar Utama MRT station on the SBK Line and Kayu Ara LRT station under the upcoming Klang Valley LRT Line 3.
When analysing the value of TOD projects, you should try to buy as close as possible to the train station to experience good capital appreciation.
As a rule of thumb, this would be between 1km to 500 metres to such stations.
The good news is 121 Residences is located 400 metres away to Kaya Ara LRT station.
This station will be located along the Kayu Ara River and will serve the suburbs of Damansara Utama.
When completed by 2024, it will serve its immediate vicinity which includes 121 Residences, Bandar Utama, TTDI and Damansara Uptown.
As such, you have around four years to see the potential upside from your investment.
#5: Strategically located close to good schools, hospitals, shopping malls and recreational facilities
One of the perks of living in PJ is its strategic location next to the affluent townships of TTDI, Mutiara Damansara and Kota Damansara.
As such, there are many educational, health, shopping, recreational and lifestyle amenities to cater to the upwardly mobile.
Just immediate next to 121 Residences, for example, is Damansara Uptown.
This commercial hub is home to The Starling Mall, numerous banks such as UOB to Standard Chartered, Jaya Grocer and various restaurants.
Meanwhile, educational and medical establishments that can be found nearby include First City University College, British International School, KPJ Damansara Specialist and Thomson Hospital.
Lifestyle options such as Glo Damansara, One Utama, Centre Point, Central Park, Mutiara Damansara Recreational Park, badminton courts, Tropicana Golf & Country Club and TPC Kuala Lumpur, are just a short drive away.
What to know more? Find out by RSVPing here for a property talk by Khalil Adis
Date: 8 December 2019
Time: 12 noon
Venue: Glo Damansara, Main Concourse
*First 30 to RSVP will receive a copy of Khalil Adis's best-selling book 'Property Buying for Gen Y ‘
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An independent analysis from yours truly