The Edge reported on Friday that the five areas recorded to have had the steepest reductions in transacted prices were SS 3 in Petaling Jaya (10.7% dip year-over-year), Taman Bukit Teratai in Ampang (9.5% dip), Section 22 in Petaling Jaya (9.5%), Taman Kajang Perdana in Kajang (8.6%) and Section 20 in Petaling Jaya (7.4%).
Citing data from the National Property Information Centre’s (Napic) Property Market Report 2016, it said these five “matured” estates already had easy accessibility and established amenities.
It cited Kim Realty Sdn Bhd CEO Vincent Ng as pointing out that the situation did not mean that the property owners there were throwing down prices below the market value.
“These are old and established housing estates. Some owners have likely either paid off their housing loans or have only minimal outstanding loans,” he was quoted as saying.
“Most of them are selling because they see cash-out opportunities due to capital appreciation over the years.”
He added that the asking prices of the properties could have also been capped due to stricter lending rules, and the bank valuation of a landed home may not correspond to a seller’s intention to offer for sale at a higher price.
The Edge’s report also quoted Acrehill Properties real estate negotiator Michelle Lee as saying that house owners in these areas were getting more realistic and flexible on pricing, as the market softened and there were launches of new residential projects which were more appealing to purchasers.
She said as these launches featured modern designs and were in new well-planned townships, old houses in matured areas would find it difficult to attract new owners.
“For instance, with a price of over RM1 million for an old house that needs to be refurbished, one could get a spacious new house in a new township with a lot of offerings like clubhouse facilities and nice landscaping as well as security features,” she was quoted as saying.
She also cited aspects like safety and security in the older areas as posing a challenge in attracting buyers.
“Older housing estates undeniably have the best locations, accessibility and amenities, but as people become more concerned over safety issues, a gated-and-guarded community will be more appealing to them,” she was quoted as saying.
However, Jordan Lee & Jaafar Sdn Bhd (JLJ) executive director Chin Shiow Wei stressed that older areas in Petaling Jaya were still sought after.
She said they remained attractive due to their location and connectivity as well as proximity to major business hubs in the Klang Valley.
Improved public transportation systems such as the mass rapid transit (MRT) and light rail transit (LRT), shopping malls, schools, hospitals and other amenities were still fundamental features that were sought and could catalyse prices in these areas.