Increased new launches in Selangor last year

Posted on: 2018-04-06

Despite softer market conditions, property developers in the state switched focus to strata developments with smaller-sized units, and embarked on more projects in an attempt to make it up in sales turnovers — there were 88 new launches last year, compared with 79 the year before.

Landed developments continued to form the majority of new projects last year, with 57 out of 88 launched. They form 65 per cent of total projects launched compared with 70 per cent the year before.

In 2016, the total number of units were almost evenly split between strata and landed properties (11,813 strata; 10,528 landed). Last year, there was a heavier focus on strata units (16,289 over 9,380 landed units).

Terrace and super-link projects contributed to the most number of new projects launched (32 in 2017; 34 in 2016), followed by serviced apartments and residences (10 in 2016; 15 in 2017), and semi-detached developments (11 in 2016; 7 in 2017). Nevertheless, 2017 saw a slight drop in the number of terrace/link housing projects while th ere was an increase in the number of apartments, condominiums, serviced apartment projects as well as semi-detached and bungalow projects.

March, August, September and November were the active months last year, with November being the most active with 16 launches. This contrasts with 2016, where significant activity was registered in May (12 launches). For both years, launching activity picked up during the second halves of each year — the second half of 2016 saw a steady stream, while the second half of last year saw a more vibrant activity.

In terms of unit sizes, there was a slight increase in the number of projects with unit sizes of less than 1,000 sq ft last year, as well as units of between 1,001 and 1,500 sq ft. It was also interesting to note that there was an increase in the number of projects of above 3,500 sq ft. This may be due to the increase in the number of semi-detached and bungalow projects launched last year.

Price-wise, there was an increase in the number of projects above RM1 million per unit. This could also be due to the increase in the number of semi-detached and bungalow projects launched last year.

Nevertheless, buyers looking for value-for-money properties can still find them in Selangor. There three (about four per cent) units priced below RM500 per sq ft and 46 new projects (about 34 per cent) priced between RM501 to RM750 per sq ft last year.

Going up a tier, there were 45 projects with units priced between RM751 and RM1,000 per sq ft last year, compared with 28 projects in 2016.

Twenty projects last year offered units priced at the higher tiers. Fourteen projects offered units priced at RM1,001 to RM1,500 per sq ft and six projects with units exceeding RM1,500 per sq ft.

Out of 88 new projects last year, 57 had units with prices exceeding RM1 million, followed by 36 projects that offered prices between RM601,000 and RM800,000, and 34 projects between RM801,000 and RM1 million. Ten projects comprised units priced below RM400,000.

In terms of geographic distribution, several locations in Selangor had multiple project launches. Notable areas include Setia Alam, Semenyih, Sungai Buloh and Klang — registering a high number of launches across 2016 and last year.

There were return of activities to long-standing areas like Subang Jaya and Bandar Sunway last year. All in all, 2017 had a more diverse range, with launches spread out at various locales.

Based on data, Rawang had the most affordable new strata development with prices ranging from RM180 to RM220 per sq ft. The most affordable new landed developments were in Kuala Selangor (RM200 to RM450 per sq ft). Other areas of opportunities for landed properties included Putrajaya (RM300 to RM500 per sq ft), Serendah (RM300 to RM400 per sq ft), Klang (RM300 to RM600 per sq ft), Puncak Alam (RM300 to RM400 per sq ft) and Semenyih (RM300 to RM600 per sq ft).

Meanwhile, affordable high-rises were located in Putra Heights (RM200 to RM300 per sq ft), Semenyih (RM300 to RM350 per sq ft), Sungai Buloh (RM300 to RM500 per sq ft), Kota Kemuning (RM350 to RM600 per sq ft), Kajang (RM400 to RM600 per sq ft), Selayang (RM400 to RM500 per sq ft) and Cheras (RM400 to RM500 per sq ft).

Developments priced at the higher end of the spectrum were in well-established and well-connected areas — Ara Damansara (one strata project, RM900 to RM1,000 per sq ft), Subang Jaya (two strata projects, RM900 to 1,200 per sq ft), Bandar Sunway (two high-rise projects, RM900 to 1,300 per sq ft) and Petaling Jaya (one high-rise project, RM1,000 to RM1,200 per sq ft).

The year 2017 proved to be an active year for developers, going on the offensive with more launches. With various infrastructure developments underway, we can expect to see a better-connected Selangor, and this could lead to more projects coming onstream to capitalise on improved accessibility to previously less popular areas.


Source From: New Straits Times

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