iPropertyiQ.com’s latest data shows potential in Perak’s market trend for secondary residential properties and future developments.
Terraced homes in Perak rules the landed property segment from October 2015 to September 2016 as it is still in the affordable range. The best performing neighbourhoods in terms of sales volume are as follows:
According to GISELLE CHONG, IPOH BRANCH MANAGER, CBRE | WTW, Taman Cempaka and Taman Klebang Jaya are both matured neighbourhoods. It was mainly developed with low cost or affordable houses that drove potential home buyers flocking to the area.
Further, Taman Cempaka is located nearer to town and it is surrounded by some high-end housing schemes (The Enclave as well as housing areas at Jalan Dato Khong Kam Tak) and some education buildings, (Ungku Omar Polytechnic Institution and SK Raja Chulan). In the meantime, Taman Klebang Jaya has shown an increase due to the opening of Aeon Mall Ipoh Klebang in 2015. As for Bandar Seri Botani, Chong noted that it emerged as a prime location because the area is a well-planned mixed housing development with integrated segments.
There is a variety of residence types to cater to different preferences of homebuyers. On top of that, it promoted dwelling facilities like security and leisure for residences.
Regardless of the slowdown in the property market, capital appreciation and rental yields for residential properties in Perak will remain stable in the near future, said Chong.
Looking at the overall trend of the transacted price of terraced house in Perak, Chong said that it remained stable and was within the affordable range over the year. It is noted that the growth rate is still below the general property market in Malaysia. This is not a bad thing as Chong believed that this makes it compelling for home buyers. As housing and commercial estates have been mushrooming around the state, it makes sense to invest in the property there.
However, Chong added that the downturn of local economy due to uncertainties of global economy and weakening of the Malaysian Ringgit have affected the property market in Perak to a certain extent.
In addition, banks have also tightened their lending requirements, which have caused both demand and supply of new launches to slow down.
According to Chong, projects from Panorama Lapangan Perdana to Taman Mewah are popular due to the location. They are all situated near facilities that offer affordable household items like the wet market and neighbourhood shops. Chong reiterated the fact that capital appreciation and rental yields for these projects will remain stable in the near future as they are popular to home buyers who are looking for convenience and affordable living.
As can be seen in the transactions over the months, the numbers for flats sub-sector were low. Chong said that this is due to the availability of affordable landed properties in the Perak market.
Further, Chong also added that a home buyer will have more privacy in a landed property compared with a high rise one.
Moreover, majority of the flats are old and in bad condition because of poor maintenance. This pushes buyers and investors away as the units don’t look attractive. However, Chong noted that the transactions for high rise can grow in the future because there is a demand for affordable high rise projects like the PR1MA Homes.
With the rising cost of land and developments, high rise will be attractive especially for the younger generation coming into the workforce. They tend to prefer affordable stratified high rise properties. Currently, there are a few PR1MA projects that are under construction in Perak that is closer to Ipoh like Bandar Meru Raya and Kampung Paloh.
OPPORTUNITY AND CHALLENGES
What are the emerging property hotspots in Perak if someone is looking to invest in property this year? What would be the best kind of property to buy?
People should invest in residential properties in Perak as the prices are still one of the most affordable in Malaysia. Furthermore, Ipoh had been listed as one of the nine most affordable places to retire in the world in publishing group ‘Live and Invest Overseas’ international survey. It is mainly because:
• Property prices remain stable and affordable
• Strategic location
• Better quality of life (less traffic jam)
• Lower cost of living when compared to other states in Malaysia
Therefore, it has boost up the arrival of expatriates to Ipoh through Malaysia My Second Home (MM2H) programmes.
How will new and future connectivity like Rapid Kemunting and Ipoh Sentral affect property trends as well as prices in Perak?
Public transportations in Perak like Rapid Kemunting that began in March 2016 serving two different loops (Taiping and Jejak Warisan) will certainly boost the property market as these locations are more accessible. Further, with the plan to build a railway linking Kampar, Batu Gajah, Ipoh and Sungai Siput to facilitate intrastate movement loops, property trend may shift towards the commercial properties. Home buyers and investors can expect to see property prices to increase and this may mean that it is a good time to invest.
What are the spill over effects of the proposed Green Asia Aerospace Technology Park as well as mix development T-City have on the property market?
It is important to note that the effect of these proposed projects may not be seen immediately as these areas need time to mature. Nonetheless, we see it as something encouraging because over time, the surrounding areas will benefit with new job opportunities. What’s more is that it will draw more population to these places and it has the potential to grow into a new, booming city.