As of the first half of the year, Cheras remained the most transacted area for residential properties in Kuala Lumpur, followed by Setapak, Old Klang Road, Mont Kiara and Bukit Jalil, respectively.
Being a suburb of both KL and the Hulu Langat district, Cheras also ranked the fifth most transacted area in Selangor within the same period.
Negative transaction growth was recorded across the board within the top five transacted areas of KL owing to the pandemic and movement control order, mirroring overall downward trends in the federal territory and the country.
Nevertheless, Cheras accounted for 4.14% of residential property transactions in KL in H1 2021, of which 63% were by first home buyers, and the remaining 37% by investors who own more than one property.
Transaction data also shows only 25% were for landed properties, despite a preference for such properties nationwide. Condominiums and apartments made up the bulk of purchases at 37% with a median purchase price of RM344,000, while flats were the second most popular choice at 28% with a median price of RM182,000.
Affordability is likely to be the primary factor behind demand as Cheras recorded the lowest median price among the top five transacted areas in Kuala Lumpur. At RM348,000, it remains far below the median transacted price for KL at RM529,000.
The prevalence of leasehold properties in Cheras likely contributes to lower asking prices and possibly demonstrates how buyers are more concerned with factors such as affordability, connectivity and amenities than any drawbacks of a leasehold title.
Ease of accessibility might have also influenced purchased decisions. Parts of Cheras notably benefit from proximity to the city centre and the Tun Razak Exchange, making it a cheaper alternative for those working in these areas.
Key highways connecting Cheras to other parts of the Klang Valley include the KL–Seremban Expressway, Sungai Besi Highway, Salak South Highway, and the Cheras-Kajang Highway.
Rail connectivity would have also appealed to home buyers and eased concerns over severe traffic congestion in Cheras. Eleven of out 31 stops in the Sungai Buloh-Kajang MRT Line serve various areas in Cheras and make up 35% of the MRT line.
The impressive rail connectivity allows for more transit-oriented development and may be a key reason behind a vast number of new projects in Cheras.
Notable amenities in the area will continue to be another driving factor for population growth. Cheras has over recent years seen the addition and/or expansions of amenities such as IKEA, MyTown, Sunway Velocity and You City, alongside existing establishments such Cheras Leisure Mall, The Mines, AEON, AEON Big, Lotus’s (formerly Texco Extra) and Cheras Sentral.
Indeed, Cheras has come a long way since its humble origins as a small tin mining town in the 1900s, and the 21 shophouses on Jalan Pudu Ulu that once served as the town centre in the 1930s.
With abundant amenities, excellent connectivity and affordable prices, it is sure to continue to be among the top transacted areas in KL for years to come.
This article was written by Vigneswar Rajasurian of PropertyAdvisor.my, Malaysia’s most comprehensive source of property data, property analytics and insights.