Time for Dutamas to get out of Mont’Kiara’s shadow

KUALA LUMPUR (May 28): It is time more investors recognise the potential of the Dutamas area in Kuala Lumpur. The area, which is often overshadowed by its more popular neighbour Mont’Kiara, has in fact seen its non-landed residential properties perform better than Mont’Kiara in recent times, according to TheEdgeProperty.com’s analysis of transaction data in these areas.

“Dutamas has always been like a little sister of Mont’Kiara, but now is the time for the little sister to grow up and make itself known to everyone,” said TheEdgeProperty.com research manager Aisyah Che Mahzan in her talk on the topic “How is the Mont’Kiara-Dutamas property market faring?” at an event to celebrate the completion of BTHomestead Group’s 28 Dutamas project on May 21.

She pointed out that non-landed residential properties in Dutamas have been delivering better capital gains compared to Mont’Kiara in the period from 2012 to 2016.

The average transaction price psf of the non-landed residential properties in Dutamas has been trending upward from 2012 to 2016. It stood at RM477 psf in 2H2016, which was 36.29% higher than RM350 psf in 1H2012. In comparison, similar properties in Mont‘Kiara have an average transaction price of RM621 psf as of 2H2016.

The non-landed housing market in Dutamas offers an attractive entry price at an average RM477 psf, she said. In addition, she noted that prices of these properties have increased an average of 5% per year in the past five years, higher than the 2% average annual capital gain in Mont’Kiara. “So Dutamas is actually doing better than Mont’Kiara,” she said.

Furthermore, the non-landed residential properties in Dutamas are able to offer an average indicative rental yield of 7.5% in 2H2016, which is higher than 5.8% in Mont’Kiara and 7% in the entire KL.

The number of transactions, however, was only 155 in 2016, much lower than the volume recorded in the previous years — 331 in 2012, 343 in 2013, 292 in 2014 and 225 in 2015. This is due to the economic downturn and cautious approach by developers and consumers, she said.

Aisyah noted that Dutamas shares the same perks as Mont’Kiara including its strategic location, medium to high-end community and mature neighbourhood.

Dutamas is close to many amenities and it is easy for residents in the area to travel in and out of KL. The area is connected to major roads and highways such as the North-South Expressway, Penchala Link, Duta-Ulu Klang Expressway (DUKE), Jalan Kuching, Jalan Tuanku Abdul Halim and SPRINT Highway.

The amenities within 2km radius of the area include 16 schools, such as Garden International School, Mont’Kiara International School, Lycee Français de Kuala Lumpur, Taylor’s College and SJK (C) Kai Chee.

“There are four malls in the vicinity — Publika Shopping Gallery, 1 Mont’Kiara, Plaza Mont’Kiara and Plaza Damas (Hartamas Shopping Centre), as well as two transport hubs, namely the Segambut KTM station and Hentian Duta Bus Terminal. There are also many clinics and a hospital in the area.

“Dutamas and Mont’Kiara share the same perks, but you do not have to spend the amount of money that you would have to spend in Mont’Kiara [due to the lower entry cost],” she added.

Looking ahead, there will be more amenities and infrastructure projects that are poised to enhance the liveability and growth of the Mont’Kiara-Dutamas area including the Malaysia International Trade and Exhibition Centre, the five-acre Metropolis Park, World International School, two retail malls and the proposed MRT Line 3 station in KL Metropolis, as well as a proposed direct link to DUKE and the New Klang Valley Expressway.

This story first appeared in TheEdgeProperty.com pullout on May 26, 2017. Download TheEdgeProperty.com pullout here for free.