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Cheras straddles the Federal Territory of Kuala Lumpur and the Hulu Langat district in Selangor, about 15km from KL city centre.
The area stretches from the Royal Selangor Golf Club and along the Jalan Tun Razak-Jalan Bukit Bintang interchange to the Kajang border. Hence, parts of Cheras have a Selangor address while the larger area comes under Kuala Lumpur postcodes.
Interestingly, Cheras has been the most transacted area in Kuala Lumpur this year.
While the Covid-19 pandemic has led to an 86.46% drop in high-rise transactions and a 79.19% drop in landed property transactions compared with last year, it is worth noting that high-rise volumes rose 1.9% from 2018 to 2019 while median prices in this category rose 12.17% during the same period.
A PropertyAdvisor analysis indicates that it was primarily investors who drove demand in the first half of 2020 (1H2020), making up 52.94% of all transactions in the area despite a 53.55% decrease in transactions compared with 2019 involving investors.
Comparing 1H2018 and 1H2019, first-homebuyer (FHB) activity increased 12%, potentially the result of the Home Ownership Campaign. Unsurprisingly, Covid-19 significantly dented buyer activity as FHBs retreated by 71% in 1H2020.
On the investor market, the median price remained the same from 1H2018 to 1H2019, despite a 10.40% drop in transactions. The median price declined 3.13% in 1H2020, with 53.55% fewer transactions than in 1H2019.
Cheras is one of the largest, most in-demand areas in the Klang Valley for property, appealing to a wide cross-section of income groups.
It is home to more than 100 landed housing estates, with the larger ones being Bandar Tun Razak, Taman Connaught, Taman Maluri and Taman Midah.
Development in Cheras generally comprises decades-old housing estates interspersed with small commercial centres and a few malls.
The area is presently undergoing a revitalisation, especially with the opening of the Mass Rapid Transit (MRT) Line 1, with 11 of the 31 MRT stations situated within the district.
There are several significant new mixed-use commercial developments in Cheras, including the IKEA-MyTown Shopping Centre, Sunway Velocity Mall and Eko Cheras Mall, in addition to the well-established Aeon Taman Maluri and Cheras Leisure Mall.
The key to Cheras’s appeal is its connectivity and location halfway between Kuala Lumpur and Cyberjaya. The area has easy access to the rest of the Klang Valley through a network of interconnected highways and major roads.
What does the expert think?
Metro Homes Realty Bhd executive director See Kok Loong told Property Advisor that Cheras is best suited to the middle and lower-income groups (M40 and B40) because the homes here are affordable.
“Housing in the area was done in stages or on smaller parcels of land. Cheras is a good investment due to its existing population and growth. We foresee a high occupancy rate in the area as the connectivity with public transport [makes it] accessible.”
Despite the pandemic, See believes Cheras has potential, with its good connectivity and accessibility to the city centre.
“Sunway Velocity is a 23-acre integrated development with residences, a shopping mall, hotel, medical centre, offices and shops, as well as a two-acre park,” he said adding that he sees potential in the remaining land near the MRT Line 1 parcel.
“That particular area has vast potential to grow as it provides connectivity. One obvious area is nearby Sunway Velocity, which is located along Jalan Cheras in Kuala Lumpur that has seen tremendous growth in the past three years with the completion of the malls and the MRT line.”
He said the demand for property in Cheras is mostly for small high-rise units of 600 to 800 sq ft with selling prices about RM600 per sq ft.
“It is easy to get a house in Cheras priced below RM500,000, especially for young professionals.”
This article was written by Sharina Ahmad of PropertyAdvisor.my, Malaysia’s most comprehensive source of property data, property analytics and insights.