Old is gold: Old Klang Road remains a property hotspot

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Old Klang Road is one of the oldest roads in Kuala Lumpur, but it continues to evolve and keep up with the times.

Old Klang Road, or Jalan Klang Lama, is one of the oldest roads in Kuala Lumpur. The 11km road was originally built in 1908, and before the Federal Highway was built in 1965, Old Klang Road was the only link between Kuala Lumpur and Port Klang.

Today, the Old Klang Road area is a much sought-after residential and commercial location linked by major highways.

It remains an important transport artery for the Klang Valley, after being widened and upgraded to accommodate a greater volume of vehicles.

It has an impressive number of schools and condominiums as well as shopping malls, such as the Mid Valley Megamall, the JKL Furnishing Centre and a shopping complex of its own called Plaza Prima.

Amenities include Hong Leong Bank, Cititel and Pearl International Hotels and the Taman Desa Community Park, perfect for recreation and some light exercise.

In the first half of the year (1H2020), the volume of transactions for high-rise properties in Old Klang Road fell 60.09% and landed properties, 41.46%.

However, it is interesting to note that the median price for landed properties in Old Klang Road increased 4.61% in the same period.

Analysis conducted by Property Advisor shows that the demand for properties in Old Klang Road is made up of an almost equal mix of first-home buyers (FHBs) and investors, with the latter making up 50.96% of transactions in the area for 1H2020, a 51.38% drop from last year.

What do the experts say?

Reapfield Properties realtor Jonathan Low told Property Advisor that Old Klang Road is one of the most prime real estate areas in the country due to real capital appreciation, starting from the centre of commerce out to outer townships.

“Being next to the central business district zone, particularly Kuala Lumpur City Centre, Old Klang Road is poised to be the first town to experience capital appreciation during the next economic boom,” he said, adding that due to upcoming e-commerce growth, real estate with infrastructure linked to Old Klang Road is expected to see exponential growth.

Economic growth attracts people to a township because it is a signal of more job opportunities, said Low.

Polygon Properties Sdn Bhd senior real estate negotiator Jenny Wong said Old Klang Road is an old location that has evolved.

“The longer it is in existence, the more valuable it gets. Today it still maintains its vitality, not just as an arterial road in Kuala Lumpur city but also as a hotspot for commercial activity.

“Old Klang Road is a melting pot of prominent developers. The MRCB Group, Akibee, UOA Group, Binastra, Bukit Kiara Properties and Exsim Group have invested and built developments in this neighbourhood.”

She said Old Klang Road had gained popularity among developers because of its prime, strategic location between Kuala Lumpur, Petaling Jaya and Puchong.

“This provides great accessibility for residents. The link built by MRCB’s Seputeh Land Sdn Bhd, which connects to the New Pantai Expressway, has improved traffic flow and allows faster access to Subang Jaya, Sunway and Petaling Jaya.”

Understanding housing demand in Old Klang Road

As Old Klang Road’s residential real estate is still among the cheapest in Kuala Lumpur, Low said demand, especially among FHBs, is expected to remain high.

“Young homebuyers prefer facilities over unit size. Security and convenience are also highly sought after. A preference for real estate above shopping malls, like Pearl Suria or the upcoming Bloomsvale and Millerz, has been observed,” he said.

In terms of price per sq ft, Old Klang Road generally commands around RM600 psf for leasehold properties and RM700 to RM800 psf for freehold properties.

Despite not having light rail transit (LRT) or mass rapid transit (MRT) services, Old Klang Road is very well connected, within a 15-minute drive of most of the Klang Valley

Polygon’s Wong said real estate developers are some of the most careful investors in the market.

“Good developers will have proper planning, ensuring that [their projects] have good access to government schools, an international school, institutions of higher learning, hotels and government institutions.”

She added that the freehold land tenure at a prime location with relatively reasonable house prices would also pique interest.

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