The high-end allure of Bukit Jelutong

IF you’ve got the money, would like to live in a quiet environment, and yet stay not too far away from amenities, you may like Bukit Jelutong, Selangor.

How much money are we talking about?

Based on listings on TheEdgeProperty.com, the average asking price for landed homes in the area as of June 2016 was around RM555 psf or an average RM2.42 million per unit.

Bukit Jelutong was a 2,200-acre oil palm estate under Kumpulan Guthrie Bhd before it was absorbed into Sime Darby Group. The latter began the development of the township in 1996 before the Guthrie Corridor Expressway connecting Bukit Jelutong to Rawang was completed in July 2005. The Guthrie Corridor is about a 45-minute drive away from the KL city centre and is the main access to the Bukit Jelutong township. Currently, Bukit Jelutong is also connected via major highways such as the North–Klang Valley Expressway, North South Expressway Central Link and the Federal Highway.

Surrounding the township are Subang (where the Subang airport is located), Ara Damansara and Setia Alam. The average asking prices for landed homes in these three neighbourhoods are currently about RM634 psf, RM730 psf and RM467 psf, respectively.

According to Henry Butcher Malaysia chief operating officer Tang Chee Meng, properties in Bukit Jelutong are mainly 2-storey terraced houses with a minimum land area of 1,300 sq ft. “It is then followed by 2 and 2.5-storey semi-detached homes with a minimum land area of 3,200 sq ft and 2 and 2.5-storey detached houses with a minimum land area of 7,000 sq ft. There are approximately 45,000 homes in the area,” he noted.

There are schools nearby to cater to families with children such as the Greenview Islamic School, Sekolah Menengah Kebangsaan Bukit Jelutong and Islamic Child Development Centre. There are also the Guthrie Golf Academy Pitch and Putt Course for golf lovers.

“There is more demand for landed than for non-landed residential properties in Bukit Jelutong. Most people staying here are owner-occupiers who like big spacious homes in a green and serene environment. The landed houses are seeing an occupancy rate of above 85% currently,” said managing director of ECS Valuation, Eu Chee Siang.

“With homes of large built-up sizes and open spaces, Bukit Jelutong is suitable for growing families,” he said.

Meanwhile, Tang noted that the 2 and 2.5-storey semi-dees which were launched in 1999 with starting prices of RM600,000 are currently priced within the RM2 million to RM2.5 million range while the 2 and 2.5-storey detached houses currently range from RM3.5 million to RM4 million. A similar trend is seen for the 2-storey terraced houses launched in the late 1990s at prices starting from RM250,000 which are now being transacted for RM750,000 to RM1 million. “That is almost a 300% increase since they were launched,” he said.

According to Tang, homebuyers in Bukit Jelutong are mainly those in their 30s to 50s with medium-sized families. “Younger buyers in their 20s will probably not be able to afford the landed homes in the area,” he added.

Bukit Jelutong is a mature area with not much land left for development, he added. “The remaining land will be used for higher value and higher density developments such as shopping malls, shops and serviced apartments. The value of the landed homes here are expected to appreciate further as there will be no new or a limited new supply of such properties in the future,” he said.

Non-landed homes

While landed homes have dominated the mix of properties in Bukit Jelutong, more mixed commercial projects such as shopoffices, serviced residences, SoHos (small office home offices) and SoVos (small office virtual offices) have appeared on the landscape over the past three years or so.

Existing non-landed homes such as Elaeis 1 and Elaeis 2 currently range between RM380 and RM410 psf but newer and upcoming condos and serviced apartments are priced slightly higher, said Eu.

“We have noted that the recently completed Suria Jelutong serviced residence has achieved RM600 to RM650 psf for a typical unit with a built-up of 452 sq ft.

“There are three high-rise projects under construction — Radia Residence, Suria Residence and Skyz Jelutong which were launched at prices from RM700 psf with built-ups of 600 sq ft and above. They are set for completion sometime next year,” said Eu.

He believes that there will be more demand for non-landed homes in Bukit Jelutong in the future as more parents living here look to buy properties for their children so they [the children] can live closer to their families.

“Family members prefer to stay in the same township and neighbourhood. Products such as Rimbun Sanctuary townhouses and apartments developed by Sime Darby Property would appeal to parents buying for their kids, as well as Gen-Ys who are more receptive to new lifestyle products,” he noted.

Upcoming catalysts

Eu, however, noted that Bukit Jelutong still lacks commercial activities compared with other established areas. “It is a place to stay but there isn’t much commercial activity going on. There is no crowd puller for businesses and the Space U8 mall currently in operation has yet to bloom,” he said.

Nevertheless, he feels Bukit Jelutong will do well in future and will continue to see demand as it is a freehold, well connected mature neighbourhood especially with the upcoming new Light Rail Transit 3 (LRT 3) Line from Bandar Utama to Klang.

“The proposed station in Section 13 Shah Alam, which is approximately 8km from Bukit Jelutong, will enhance accessibility to and from Bukit Jelutong,” he said.

“On top of that, Radia, a 20.95-acre mixed-use development undertaken by a joint venture between UEM Sunrise and Sime Darby launched in 2013 comprising retail, residential and office components is expected to be completed in 2018. This may be one of the key factors in making the township more happening and exciting,” offered Eu.

Henry Butcher’s Tang, however, noted that the LRT 3 Line may not have a big impact on the area’s propety values as residents there are multiple car owners. “However, it will still benefit the residents there as a whole,” he said.

“Bukit Jelutong is an area which attracts more owner-occupiers than investors. Low rental yield investors would need to hold the property for a longer period and rely on capital appreciation,” Tang added.

Eu concurred: “At present, property prices in Bukit Jelutong are still fairly competitive compared with other more established neighbouring townships such as Denai Alam, Sunway Kayangan and Cahaya SPK, just to name a few. Niche developments with good quality finishes and design targeted at the right market will continue to be in good demand.”

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This story first appeared in TheEdgeProperty.com pullout on July 22, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.