Jalan Klang Lama or Old Klang Road, Federal Route 2 is the oldest and the first major road in Kuala Lumpur, Malaysia. It was built before the Federal Highway was built in 1965. The road was constructed by the Federation of Malaya government from 1956 to 1959. The road was opened on 14 January 1959 by the Ministry of Public Works, Sardon Jubir. The road passing the two towns namely Sungei Way and Petaling Jaya. Jalan Klang Lama, or better known as Old Klang Road, is rapidly developing despite having the word “old” in the English version of its name. Constructed by the British Federated Malay States in 1908, this road is not only one of the oldest, but it was also a historically significant road in Kuala Lumpur because it was believed to be the only link that will connect Kuala Lumpur to Port Klang, which is located at the southern end of the Selangor’s coastline a few decades ago. In the old days, Old Klang Road started from the Public Bank building of Jalan Syed Putra, which was formerly known as Lornie Drive. Influenced and spurred by the constant development and town-planning of Old Klang Road, today, this is a road that stretches from Mid-Valley Megamall, the longest mall in Asia, to Guinness Anchor Berhad Brewery with a distance of 11km. Despite the road-widening works done on Old Klang Road, it is still considered as one of the busiest roads leading to Kuala Lumpur from Jalan Puchong. It still manages to attract big property developers such as MRCB and UOA to invest in this location.

“This is a fantastic area in terms of accessibility. It is a middle point for travelling to many places within Kuala Lumpur and Selangor. Many of the commercial activities such as food and beverage centres, and entertainment outlets, which provide many job opportunities, can be found here. There are also many notable landmarks in Old Klang Road such as Scott Garden, Pearl Point and Mid Valley Megamall, which are situated at the end of the Old Klang Road. However, sooner or later, the landmarks will soon be redefined as few other significant projects will be built, such as 9 Seputeh by MRCB,” said Oregeon Property Consultancy director Sr. Kok Chin Yee. Looking at Google map, one would realise that the area is actually a prime location in the sense that it is cocooned within the commercial and retail hubs of Bangsar, KL Sentral and Mid Valley.

 

 

AMENITIES AND ACCESSIBILITY

“Old Klang Road has a good proportion of commercial and residential catchmen areas. Both commercial and residential developments are able to complement each other with sufficient of schools, banks and amenities to cater for the residents,” said Hartamas Real Estate (OUG) team manager Janet Chong. There are many residential estates along this stretch. Many of these housing estates started since the 1960’s. Some of them include Shanghai Garden, Taman Desa, Taman Overseas United Garden (OUG) (which is a township sited on a hilltop), Happy Garden formerly known as Taman Gembira, Taman Sri Manja and Taman Bukit Indah. They are also many exciting and interesting developments such as 9 Seputeh by MRCB, Citizen by Binastra, Commerce One by Guocoland Malaysia and the upcoming Southbank Residence by UOA. There is also an international school called the Vikas International School. It is a co-educational school, starting from kindergarten level, and it also provides a hostel. Besides the international school, there are also many government schools: SJK (C) Choong Wen, Sri Sentosa High School, SRJK (C) Yoke Nam, SMK Katolik, SMK Assunta and SJKT Saraswathy. Institutions of higher education also exist here, such as Megatech International College which specialises in producing electronic and electrical engineering graduates. There is also a post office building near Scott Garden. There are also many eateries, such as famous steamboat restaurants, and one can also visit the Old Klang Road wet market. They are at least three pedestrian bridges that will help daily commuters cross the roadand also to shade them from the blazing heat of the sun. One of the notable hotels here is the Pearl International hotel. It has approximately 528 spacious and beautiful guest rooms.

 

Many guests visiting Kuala Lumpur would choose to stay in this hotel because it is strategically located between Kuala Lumpur, the city and Puchong, the satellite city of Klang Valley. It will only take about 5 minutes to reach Mid Valley. Depending on your choice, there are many 4-5 stars hotels around this location, such as Cititel Mid Valley Hotel and The Gardens Hotel & Residences-St Giles Luxury Hotel. “There is a road which is toll-free, linking Old Klang Road to Puchong via Jalan Puchong and to Petaling Jaya via Jalan Gasing,” said UCM Homes sales director Vanees Wong. Located strategically between Petaling Jaya, Selangor and KL City Centre, Old Klang Road is an area well-established in terms of accessibility. It is well-connected to East-West Link Expressway, Federal Highway, New Pantai Expressway, Shah Alam Expressway (KESAS), Damansara – Puchong Expressway (LDP), Jalan Puchong, which will lead you to Kinrara Business Centre, and Jalan Kuchai Lama to Kajang Dispersal Link Expressway (SILK Highway).

There are also many government institutions here such as Dewan Bandaraya Kuala Lumpur (DBKL), Institute Social Malaysia (ISM) and police stations. The proposed KL Monorail line extension that cuts through the Old Klang Road stretch (KL Sentral-Mid Valley-Old Klang Road-Bandar Sunway) could create a good potential for capital appreciation and rental yield of properties within its vicinity.

 

DEVELOPMENTS IN OLD KLANG ROAD

From coffee shops to shopping mall, Old Klang Road is currently experiencing a surge in high-rise development, or vertical development as many would call it, due to land scarcity. Datuk Alan Tong, working together with Ngoh Development, a company owned by his father Datuk N.K Tong, formed Sunrise Sdn. Bhd and embarked on its first development, the OG Heights condominium, in 1984.Tong will transform the former Alamanda College along Old Klang Road into a serviced apartment project with retail elements. This construction is estimated to be completed by mid-2016. The former Alamanda College, which comprises of two 24-storey blocks, is just a stone’s throw away from the Scott Garden. It is a mixed residential-commercial development comprising condominium, shoplot, hypermarket and retail units. This site will be converted into VERVE Suites KL South with 321 residential units and 45 small office, home office (SOHO) suites on the ground level. Despite being a freehold luxurious serviced apartment property development, it is one of the very first local projects to be certified with a Green Mark Certification from Singapore’s Building & Construction Authority (BCA). The towers will be refurbished at a cost of RM126 million, with each floor playing host to eight serviced suites. There are four designs for the fully furnished units, with prices starting from RM600,000 for one-bedroom units and RM750, 000 for two-bedroom units with built-up starting from 555 sq.ft. GuocoLand Malaysia, a subsidiary of Hong Leong Bank, is developing Commerce One and Residence One with a total GDV of RM116 million. Commerce One is a commercial development, while Residence One is a single-block condominium with a total of 192 units. This development is within Bedford Business Park and opposite Pearl Point shopping mall and OUG Square.

One of the reasons why GuocoLand Malaysia choose to build it along Old Klang Road is because this area is surrounded by established commercial centres and shopping malls, and it only takes about 3km to Mid Valley City or The Gardens.

GuocoLand believes Commerce One will be able to appeal to Small and Medium Enterprise (SMEs) when they want to hire new staff.

 

According to GuocoLand Malaysia, Commerce One will have excellent security features such as vehicle access systems, close-circuit TV and round-the-clock security. Only 1km away from the Petaling KTM Komuter station, the development has a dedicated main office lobby with four passenger lifts and one service lift per floor. According to a spokesperson from GuocoLand Malaysia, Old Klang Road will continue to thrive as one of the most established areas in Kuala Lumpur. The hustle and bustle of trade and commerce along this road and its surrounding area, as well as the expanding network of highways and public transportation systems, will eventually transform Old Klang Road into a significant business district that offers exceptional business and commercial possibilities. The commercial viability of Old Klang Road, together with its powerful potential to elevate businesses with its location and connectivity, are strong reasons for investors to consider this prime location as their next business address.

 

Southbank Residence is another project by UOA Group. It comprises of two blocks of L- shaped towers, block A and Block B, with 37-storeys and a total of 674 freehold units. The first 10 floors will have a mix of carpark areas and offices. Home buyers can choose 7 units of different designed layout with built-up ranging from 779 sq.ft. to 978 sq.ft. Facilities such as seating area, outdoor fitness, gazebo, reflexology path, wading pool, shower area, main lap shower area, main lap pool, pool deck, Jacuzzi, children playground, meeting room, gymnasium, multi-purpose hall, cafe, kindergarten, toilets, changing rooms, trellis, BBQ pit and preparation areas are also provided in this development. Block A has a north and south orientation, with the northern front having the tower view of Kuala Lumpur City Centre (KLCC) and the southern view faces the rest of Old Klang Road, where one can see Scott Garden, Pearl Point and many other landmarks of Old Klang Road. Block B faces the east and west orientation. On the eastern front, Block B faces Taman Desa, while the western front faces Bangsar South and Kerinchi view. Sited on 17.4-acre stretch of prime land within the vicinity of Seputeh in Old Klang Road is 9 Seputeh, a project developed by MRCB Land. Its successful track records include the iconic flagship development KL SENTRAL is the testimony of the company strength in developing the largest transportation hub in Malaysia, high-rose office towers, luxury residences, branded hotels and many more.

 

Seputeh has a GDV of RM2.5billion consisting of four parcels with designs to cater the demands of modern lifestyle. Besides providing retail spaces and facilities, these four parcels are divided into Parcel A with of one block of 41 story serviced apartment, parcel B with one block of 38–storey and 2 blocks of 33-storey serviced apartments, while parcel C with 2 block each of 42-storey and 2 blocks each of 44-storey serviced apartments and parcel D with 1 block of 36-storey institution. Serviced residences and SOHO suites of parcel C are the current launch also known as Vivo series. Vivo series is expected to be completed in 2018.Connectivity in 9 Seputeh will be greatly enhanced, as MRCB intends to build a dedicated link bridge to the NPE highway, as well as a dedicated covered link bridge to the proposed monorail station that is to be located along Old Klang Road. Just a short distance away is the Maju Expressway (MEX) and the East-West Link. Adjacent to 9 Seputeh is the Klang River. The “River of Life”, a project under the EPP will transform the riverscape of the Klang River. 9 Seputeh’s development has put into motion planned beautification projects to rejuvenate and transform the scenery of the river by integrating promenades and boardwalks, in a sense, preserving the green lung of the area.

 

Cycling trails along the promenade boulevard are being planned by MRCB to complement & capitalize on the river of life project with an idea to promote green living by encouraging the residents to enjoy healthier lifestyle. With a myriad of property developments happening in Old Klang Road, we will see this location transformed and this will certainly be a hotspot for property investors to begin their investment in times to come. The growing popularity of Old Klang Road or Jalan Kelang Lama, one of the oldest thoroughfares in Kuala Lumpur, has seen the appreciation of property values and the emergence of new developments on the stretch of road. An upcoming development is Menta Construction Sdn Bhd’s Kuchai Sentral in Taman Kuchai Lama. “We want to create a landmark in Kuchai Lama,” CEO Tan Choon Hock tells City & Country, adding that he wants Kuchai Sentral to be a place where families can continue to live close to each other. “Kuchai Lama is an old residential area where most of the residents’ children have grown up. And as this is a mainly Chinese area, families will want to live near each other, making this product very suitable for them.”

 

Estimated to have a gross development value (GDV) of RM1.4 billion, Kuchai Sentral features four residential towers of between 38 and 42-storeys and a net lettable area of 80,756 sq ft, and will be developed in two phases. Phase 1 will comprise two residential towers atop an elevated car park podium, the two bottom levels of which have been earmarked for a retail component. Phase 2 will feature the other two residential towers, retail outlets, offices and grocery space.

Menta Construction will launch the residential units in Phase 1 by the end of this month while the unveiling of Phase 2 will depend on future market conditions. As the developer is targeting the upwardly mobile, young families as well as upgraders for the development, there must also be suitable retail options, Tan remarks. “What is on offer in Kuchai Sentral will be similar to what is found in Publika, Mont’Kiara.” Moreover, the retail component of the project will be managed by the developer to ensure that the food and beverage offerings and conveniences meet the needs of Kuchai Sentral’s residents.The development sits on 6.91 acres that were acquired by Tan for RM15 million in 2012. Initially, the land had a residential title but he eventually converted it to commercial to offer the residents and the public more retail options.“I was thinking that Kuchai Lama is a mature area and we have a big piece of land, so why not do something special? One of the selling points of our project is our commercial element,”

 

What is on offer

Phase 1 features Towers A and B, which will house 941 serviced apartments and 40 duplexes. There will also be 45 retail outlets. The apartments come in four layouts, ranging from the smallest at 656 sq ft with 1+1 bedroom and 1 bathroom to the biggest at 1,312 sq ft with 3+1 bedrooms and 3 bathrooms. The duplexes, with a built-up of 714 sq ft, will have 1+1 bedroom, 1 bathroom and 1 powder room.The maintenance fee of 30 sen psf is inclusive of the sinking fund. Tan says the units will come partially furnished with kitchen cabinets, hood and hob, water heaters, shower screen and air-conditioning units in the bedrooms and living room. The selling price starts at RM414,867 (an average of RM611 psf) with the duplexes going for RM527,393 (average of RM714 psf). Each unit comes with one to two parking bays. The parking area for residents is separate from the retail parking bays, which are open to the public. According to Tan, once the whole development is completed, there will be more than 2,000 resident parking bays and 1,000 public parking bays, ensuring that the F&B outlets have more than the residents as their customers.

 

Having said that, ith links to highways like the Kuala Lumpur-Putrajaya Maju Expressway (MEX), Sungai Besi Highway, Shah Alam Highway (KESAS), New Pantai Expressway (NPE), SMART Highway and Federal Highway, the area’s connectivity is good. “The location is also just a 5 to 10-minute walk from the upcoming Kuchai Lama MRT Station,” Tan says. Nearby amenities include schools like SK Seri Setia, SMK Seri Sentosa, SJK (C) Choong Wen and SJK (T) Sg Besi. Not far are also the NSK supermarket and numerous F&B options. Phase 1 facilities for residents after the development is completed in four years include a gym, multipurpose hall, reading room, meeting room and games room, swimming pool, barbecue area, open lounge, Jacuzzi, jogging track, half basketball court and children’s play area. Additionally, both Towers A and B will have sky lounges for the residents. In Tower A, it will be on Levels 22 and 31 while in Tower B, it will be on Levels 23 and 33A. There will be sofas, reading corners and WiFi hotspots for residents to enjoy, not to mention a view of Kuala Lumpur. Acknowledging that those who live in the area and are familiar with Kuchai Sentral’s location will have concerns over its accessibility, Tan says the infrastructure will be improved at a later date to ensure that movement to and from the development is smooth. On traffic congestion along Jalan Kuchai Lama headed towards the project, he points out that this only occurs at peak hours.

 

Positive vibes

According to CCO & Associates (KL) Sdn Bhd director Chan Wai Seen, Kuchai Lama’s property landscape features mainly landed homes, shopoffices and factories. “The scarcity of land and its increasing cost have contributed to the emergence of high-rises, mainly condominiums and serviced apartments in this locality,” he says.

“The early developments in Kuchai Lama were generally not well planned and it was not considered a good place to live. However, the widening of Old Klang Road, improved accessibility to the North-South Expressway and the completion of NPE and KESAS have improved the attractiveness of Kuchai Lama considerably. “But though Kuchai Lama has seen significant development, it continues to lag behind Petaling Jaya, Bangsar South in Kerinchi, Damansara and so on in terms of commercial developments like purpose-built offices, shopping complexes and hotels.” ExaStrata Solutions Sdn Bhd CEO Adzman Shah Mohd Ariffin highlights that Kuchai Lama is an established suburban locale that is 8km southwest of the Kuala Lumpur city centre and about 60% of whose population are Chinese. “The locality has become popular of late due to its proximity and ease of access to the city centre and surrounding amenities,” he says. “The established housing area offers a choice of accommodation that is suitable for owner-occupiers and investors. With the prices of condos ranging from RM350 to RM400 psf in the older schemes and RM550 to RM650 psf in the newer ones, this locality is considered good value.” Chan highlights that demand for high-end developments in Kuchai Lama has been affected by the current property market slowdown and will take some time to recover. “Good-quality projects priced at RM500 to RM600 psf in Kuchai Lama are generally well accepted in the market,” he says. According to Adzman, house prices in Kuchai Lama have been rising steadily in tandem with those in the surrounding areas like Taman Gembira, Taman Kuchai Jaya and Taman OUG. The challenge for the area is traffic congestion on the internal roads, which is due to the streets being narrow and haphazard parking. “Nevertheless, location-wise, [Kuchai Lama] is still sought after with more modern high-rises coming up in pockets of land, offering lifestyle living with facilities,” Adzman says, adding that high-rises are the way forward for the area as land there is limited. Still, developers need to be mindful of traffic flow and how to mitigate congestion. As for the property outlook for Kuchai Lama, Chan says, “I am quite positive about the new and reasonably priced residential projects there in the medium to long term. In the short term, luxury and highly priced projects may undergo a market correction. “The short-term performance will depend on the country’s economic situation. At this point, there are too many uncertainties. Kuchai Lama’s strategic location will be its key driver while the completion of MRT2 will be a new stimulant for the locality.” Adzman concurs. “The outlook for the locality remains good. With the saturation of the Kuala Lumpur city centre and overspill to suburban areas, Kuchai Lama will no doubt be one of the housing areas to benefit from higher values in the future,” he says.

 

From construction to property development

As Menta Construction Sdn Bhd CEO Tan Choon Hock excitedly shares details of the company’s maiden development in Kuchai Lama in Jalan Kelang Lama, the question many might ask is, why now? Why would a successful construction company — which was incorporated on April 6, 1982, and has done work in excess of RM4 billion, including a RM1.2 billion construction project for Petronas’ Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor — want to move into property development? “I have been buying land over the years, and now have many parcels in KL and the Klang Valley,” Tan says. “I also have a good friend with experience in property development to help me, and I feel it is the right time to do it.” Moving into a new industry is never an easy task but Tan is not one to shy away from a challenge. After graduating from Confucian Private Secondary School, he immediately found work in Jalan Kelang Lama wiring motors. But after a year, boredom drove him to find work in a hardware store. Tan recalls how his parents told him such businesses never go bust. So, at the age of 19 in 1978, he applied for a job at a hardware store, got it and turned up for work, only to discover that it was a furniture hardware store.Tan eventually obtained a permit to sell sand. “It was a new industry and I didn’t mind learning about it. At the time, being young, I liked to learn new things,” he laughs. He recalls the hours under the hot sun. “It was tough work,” he says, shaking his head and wondering how he survived those days. But survive he did and in 1981, when the sand business was not doing well, he roped in his brother, Choon Soon, and three other partners to start Menta Construction Sdn Bhd, with each of them forking out RM10,000.

The company’s name is a combination of two Chinese words — ¬ü¹F (Mi dá) — which loosely translates into “beautifully finish an activity”. The company’s first project was the government quarters at Institut Penyelidikan dan Kemajuan Pertanian Malaysia (Mardi), Serdang. Tan recalls that the over RM300,000 project required him to get machinery on loan from his friends and work day and night to complete it. After it was done, the company made some money, which spurred him on. However, when the commodity crisis of the 1980s struck, his three partners decided to cash out of the business as collection at the time was difficult. This left Tan and his brother to continue the business. In 1991, Tan had a lucky break, which allowed him to grow his reputation as a reliable and trustworthy contractor.

A developer needed a hill in Section 17, Petaling Jaya, to be levelled and the earth to be carted off somewhere. Tan looked around for areas that required land filling and found such a place in Taman Tun Dr Ismail (TTDI). So, the earth removed from the hill found itself in TTDI, an operation that earned Tan his first million ringgit. His name grew from there and he got more jobs in the area.

 

When the 1997/98 Asian financial crisis struck, Tan was fortunate enough to not get caught in the turmoil.

“In the first crisis in 1985, we were not badly affected as we were still very small,” Tan says. “During the second crisis in 1998, luckily I had acquired equipment that had good second-hand value. Before 1998, I had secured a deal from Lion Group for its Lion Cheras Mahkota project, where there were 900 acres to clear and earthworks to be done. I was forced at the time to buy all the equipment because earthworks were starting on the Kuala Lumpur International Airport and demand for lorries at the time was very high, from RM16 per hour to RM36 per hour and still it was hard to get them.

“So, I decided to buy my own machinery, about 30 units, and I completed the project. Luckily, when the crisis happened, I decided to sell the machines overseas, in the US. I made a profit of about RM8 million.”

 

He then started buying repossessed construction machinery at rock-bottom prices to build his fleet again. He recalls buying a particular truck that would normally cost RM100,000 for only RM6,500. “I grabbed so many quality machines,”

And when the times improved, Tan was ready. What is interesting about Tan’s journey is that he did not have a mentor or someone to guide him on doing business. Hard work and persistence saw him through many difficult periods and, certainly, fortune smiled on him. However, there are key values and principles that he holds close to his heart.

“My management principle is very simple: you must be honest,” Tan says. “I think I learnt this from my mother when I was young. She taught me that you must be honest, tell the truth, do the right thing and you cannot cheat others. Until today, I remember my mother’s teachings.”On his plans for the future, Tan says he wants to build a township. While he is coy about how much land bank he has acquired over the years, he does reveal that he has a total of 50 acres ready for development in several areas around the Klang Valley. Facing challenges head-on early in life and finding solutions where there did not seem to be any have held Tan in good stead over the years. As he embarks on a new venture, one can expect him to go about it like he normally does — with focus and dogged determination.

 

Stretching about 11km between Mid Valley City in Kuala Lumpur and the Kontena Nasional Global Logistics building in Petaling Jaya, Old Klang Road lies midway between the two major urban centres. Built in 1959, the road has become a thoroughfare over the years with the areas along it undergoing significant change.

Pockets of development sprang up along the road because of the fragmentation of the land abutting it, but what has really transformed its landscape in recent years is a surge in high-rise developments.

Ongoing projects include Millerz Square by Exsim Group (completion: 2019), 9 Seputeh by Malaysian Resources Corp Bhd (2024), The Nest Residences by Nagano Development Sdn Bhd (2019) and CitiZen by Binastra Land Sdn Bhd (2019). Newly completed projects include Southbank Residence by UOA Group (2017), Avantas Residences by CPI Land Sdn Bhd (2016) and Pearl Suria by Aikbee Timbers Sdn Bhd (2016).

 

Nevertheless, Old Klang Road is still home to a sizeable number of old buildings, presenting the prospect of redevelopment. “Old Klang Road has great redevelopment potential, being strategically located between the Kuala Lumpur city centre and Petaling Jaya. It is also near Mid Valley City and transit-oriented KL Sentral, two very important economic hot spots. Thus, we can expect old commercial and industrial sites to be redeveloped into modern urban spaces,” says Landserve Sdn Bhd managing director Chen King Hoaw. Old Klang Road is among the localities identified for redevelopment under the Kuala Lumpur Structure Plan 2020. The plan seeks to revitalise zones lacking in basic infrastructure facilities, especially those with deteriorating or obsolete buildings. The area’s easy access to transit facilities, such as KL Sentral, has been highlighted. Scomi Engineering Bhd had even proposed the expansion of the KL Monorail to cover KL Sentral, Mid Valley City, Old Klang Road and Bandar Sunway in November 2012. But the project has not got off the ground as Prasarana Malaysia Bhd, the operator of the Monorail, has yet to finalise the proposal. The 1.36-acre Verve Suites KL South by Bukit Kiara Properties Sdn Bhd, which has a gross development value of RM354 million, is arguably the most significant redevelopment project in the area to date. It involves the transformation of two 24-storey towers, formerly occupied by Alamanda College, into 321 fully furnished designer suites with built-ups of 555 to 876 sq ft, and 45 small offices/home offices (SoHos) with built-ups of 497 to 1,788 sq ft. With selling prices starting at RM600,000, the current take-up rates for the first and second towers are 95% and 65% respectively. The handover of the first tower started last September. Kuala Lumpur City Hall (DBKL) is planning to redevelop the 40-year-old wet market in the neighbourhood into a mixed-use development, which may include units under the Federal Territories Affordable Homes Programme. The wet market may be maintained but no details are available yet as the project is still in the planning stage.

 

Steady upward trend

So, how have residential and commercial properties along Old Klang Road fared over the last five years?

“The prices of high-rise residential properties have appreciated by about 6% to 21% from 2012 to this year,” says Chen. Indeed, a refurbished Pearl Point condominium of 1,076 sq ft was sold for RM400,000 this year. In 2012, a similar unit was sold for RM330,000. The rise in the value of landed residential properties, however, has been significantly higher, ranging from 5% to 134% during the period. A 2-storey terraced house with a land area of 1,604 sq ft in Taman Lian Hoe, which was transacted at RM320,000 in 2012, is likely priced at RM750,000 this year. On the sub-sale market, there has been an upward trend in both landed and non-landed residential property transactions since 2012, Chen says. MacReal International Sdn Bhd founder Michael Kong says there were more transactions of non-landed residential properties from 2013 to 2016. “This is because landed residential properties are mostly old and owner-occupied,” he explains. High-rise development The Scott Garden recorded 277 transactions during the period — more than the combined transactions of landed properties in Taman OUG (142) and Taman Shanghai (six). SoHos measuring 775 to 1,905 sq ft at The Scott Garden enjoy high gross yields of up to 5.86% and monthly rents of RM1,200 to RM2,900, Kong notes. Avantas Residences, whose units have built-ups of 692 to 1,249 sq ft, offer a yield of 5.54% and rents of RM500 to RM2,500. The project was completed last year. As for landed residential properties, a 2-storey terraced house in Taman OUG can fetch a rent of RM1,500 to RM1,800 a month, which translates into a yield of 2.28%. A 1-storey Taman Shanghai terraced house can be rented out for RM1,500 to RM1,700, generating a yield of 2.82%.

 

Mixed performance for commercial properties

Landserve data shows that the prices of retail units in Bedford Business Park, measuring 551 to 1,250 sq ft, have risen from RM500 psf in 2012 to RM600 psf this year while those of shopoffices in Medan Klang Lama 28, featuring built-ups of 1,109 to 1,708 sq ft, have increased from RM378 psf in 2012 to RM410 psf this year.

“However, the prices of shopoffices remained flat or recorded marginal increases in the same period,” Chen says. A 3-storey shopoffice in Taman Desa Business Park with a built-up of 1,313 sq ft was sold for RM2.1 million this year — up 5% from RM2 million for a similar unit in 2012. There has been a decline in commercial sector transactions since 2014, Kong points out. “This can be attributed to several factors, including a soft market and the implementation of the Goods and Services Tax.” In OUG Square, there were only three transactions of shopoffices measuring 4,620 sq ft in 2014 compared with six a year before. Rents for a 2-storey shoplot at OUG Square range from RM4,800 to RM5,300, representing a yield of 3.56%. For a 3-storey shoplot in Taman Desa Business Park, rents range from RM6,600 to RM8,000 for a yield of 4.38%.

 

In need of rapid transit

A major widening of Old Klang Road in 2004 has not been as successful as expected because of inconsiderate motorists who park their vehicles haphazardly, especially along the wet market stretch. The increase in new developments has also aggravated the traffic crawl during the peak hours.

“What will help improve the situation is the construction of an MRT line to complement the existing public transport, especially Rapid KL buses,” says Raine & Horne International Zaki + Partners Sdn Bhd executive director James Tan, referring to the MRT2. This 52.2km Sungai Buloh-Serdang-Putrajaya Line, due for completion in 2Q2022, will include a station in Jalan Kuchai Lama. “A train service will come in handy for a high-density area with active commercial activities where parking is a daily headache,” Tan adds. As one of the oldest suburbs in Kuala Lumpur, “Old Klang Road’s developments over the last decade have been piecemeal. The overall infrastructure and public transport in the neighbourhood cannot cope with the growing population”. The combined population of Seputeh, Taman Desa, Taman Shanghai, Taman Lian Hoe, Taman Continental, Taman Overseas Union, Taman United, Taman Gembira and PJS6 is estimated at 235,000, Tan adds. One of the plus points of Old Klang Road is that it is surrounded by mature townships such as Taman Desa, Bangsar, Petaling Jaya, Bandar Sunway and Puchong, he remarks. “It is accessible via the Federal Highway, the Damansara-Puchong Expressway, the Shah Alam Expressway, the New Pantai Expressway and the Salak Expressway.” Suleiman & Co Property Consultants Sdn Bhd director Azlan Harris Sulieman says proximity to the Kuala Lumpur city centre and good connectivity make Old Klang Road a much sought-after address for owner-occupiers and investors. There is also easy access to upcoming areas, such as Bangsar South, KL Eco City and Bandar Malaysia, apart from Puchong, Bandar Sunway, Sri Petaling, Mid Valley City and Brickfields, where KL Sentral is located.

 

Game changers

A game changer for Old Klang Road was the completion of Mid Valley Megamall 18 years ago, says Kong. The mall is part of the Mid Valley City master plan that includes Cititel Mid Valley, Northpoint, Southpoint, The Boulevard Hotel and The Gardens Hotel and Residences. Landserve’s Chen says the opening of the New Pantai Expressway 13 years ago has also benefited Old Klang Road. “The interchanges at Salak South, Pantai Baru, Pantai Dalam, Kuchai Lama, Kampung Pasir, Jalan Templer, Taman Maju Jaya, Bandar Sunway and Subang Jaya help ease congestion while providing added connectivity to Old Klang Road,” he says.Tan, meanwhile, highlights the RM4.4 billion River of Life project under the Economic Transformation Programme, involving eight rivers, including the Klang and Gombak rivers located within Greater Kuala Lumpur/Klang Valley. Started in 2011 and scheduled for completion in 2020, the project is expected to increase economic activities along Old Klang Road, which runs parallel to the Klang River. The project comprises three components — river cleaning, river beautification and commercialisation and tourism. Moving forward, Kong expects more high-rise integrated developments at higher price points to be built in the area in the next decade, given the shrinking land bank. “The used car yards, old plank houses and shops, warehouses, car workshops and temporary structures will be phased out, giving way to a new wave of development,”