Klang remained the most transacted area in Selangor for the first half of this year (H1 2021) in terms of residential properties, followed by Puchong, Kajang, Shah Alam and Cheras, respectively.
Klang also emerged the second most transacted area nationwide for residential properties in the same period with 485 transactions, behind Ipoh at 527.
Puchong showed the most dramatic change in median prices with a 40.15% increase. Cheras ranked the top transacted area in Kuala Lumpur in the same half and ranks fifth in Selangor, being a district of both KL and Hulu Langat.
Klang has consistently remained the most transacted area in Selangor since H1 2019, and has made a regular appearance in the top five areas nationwide each year over the past five years.
Population density might be among the key factors behind property transactions in the state. Klang is among the oldest and most largely populated cities in the country, having ranked fourth in terms of density in the 2010 national census.
Another key factor is likely the relatively low property prices despite the city’s maturity and accessibility. The relatively small change in Klang’s median prices, from RM350,000 in the first half of this year to RM400,000 in H1 2021, indicates homebuyer preferences for lower-priced properties in the area.
The completion of the LRT 3 in 2024 is expected to further boost Klang’s accessibility and complement the existing KTM rail network.
Of the 26 stations along the LRT 3 line, 13 stations have the potential for future Transit Oriented Development and will serve the booming townships of Bukit Raja and Bukit Tinggi, among others.
There’s also no discounting the strategic importance of Port Klang. Demand for industrial properties and e-commerce grew amid the pandemic, leading to the question of whether residential property transactions in Klang were influenced by economic factors and job opportunities.
Selangor sees steady growth
On a state level, median transacted prices of properties in Selangor have steadily increased since 2016, unlike the other key regions of Johor, Penang and KL. Median prices in the state rose from RM350,000 in 2016 to RM465,000 this year.
The primary market, otherwise referred to as new projects, made up 5.4% of overall transactions in the state for H1 2021, versus 94.6% in the subsale market.
As much as 69% of transactions were for landed properties, affirming increased interest for such property amid the pandemic.
Some 57% of transactions were from first home buyers (FHBs) and the remaining 43% from investors who own more than one property.
Among the top five areas in Selangor, Klang proved the most popular to investors and FHBs alike.
Kajang ranked second for FHBs, while Puchong ranked second among investors. Shah Alam ranked third among investors and FHBs this half, despite being the state capital.
This article was prepared by Vigneswar Rajasurian of PropertyAdvisor.my, Malaysia’s most comprehensive source of property data, property analytics and insights.