An old housing estate’s potential

SOME of the older housing estates in Petaling Jaya, Selangor are like fine wine. Their real estate values grow the more established they become. Damansara Jaya could be one such area which has seen its value grow with time.

If you had purchased a house in Damansara Jaya 30 years ago and still own the property today, congratulations! You are now a millionaire! In terms of asset value, your house could now possibly be worth as much as 15 times more than the price you paid 30 years ago.

Megaharta Real Estate Sdn Bhd negotiator Alicia Lee tells TheEdgeProperty.com, the selling price of a double-storey terraced house in Damansara Jaya with a built-up size of 2,200 sq ft, which was about RM60,000 three decades ago, could now be worth more than RM1 million.

Made up mainly of terraced houses, Damansara Jaya’s housing values have been growing at a steady pace. Some eight years ago, the terraced houses in Damansara Jaya that were selling for between RM400,000 and RM500,000 on the average per unit are now asking for RM1.2 million to RM1.5 million depending on their condition.

In a recent deal concluded by Lee, a double-storey terraced house with a land area of 3,000 sq ft (measuring 23 ft by 116 ft) and built-up size of 1,900 sq ft, was sold for RM1.3 million. According to her, the current selling prices of similar terraced houses here are already nearing RM1.5 million.

Lee, who has been staying in Damansara Jaya for the past 14 years, has witnessed the rising price trend of the houses in this area.

“Most of the houses have changed hands over the years and the new owners will usually renovate the old houses before they move in. This has been very helpful in the good upkeep of the houses and brings up their values,” she remarks.

“Damansara Jaya has always been one of the most desired places for home owners due to its accessibility and nearby amenities. Transaction activities had surged in 2010 to 2014, but have slowed over the past two years due to the current soft market condition,” she adds.

Rahim & Co (Selangor) managing director Choy Yue Kwong concurs that housing prices here have been rising over the years due to strong demand and the inflation factor.

According to him, Damansara Jaya’s homes have been transacted at prices ranging between RM922,000 and RM1.66 million in 2015. He notes that for a RM1.5 million terraced house, it must be in a good move-in condition.

Data from three real estate agencies – Metrohomes Sdn Bhd, Rahim & Co and Landserve Sdn Bhd –showed that there were 20 landed residential properties transacted in 2015, sold at an average of RM758 psf.

According to data collated by TheEdgeProperty.com, as many as 38 houses changed hands in 2014 at an average transacted price of RM584 psf.

The transaction data by the agencies and consultancies showed that the highest transacted value in 2015 was for a 3-storey semi-detached home with a built-up of 3,075 sq ft. It was sold for RM1.95 million or an average of RM793 psf.

TheEdgeProperty.com data showed that the asking price for landed homes here in 1Q2016 averaged RM686 psf, which is slightly lower than RM694 psf recorded in 4Q2015.

However, it must be noted that prices are dependent on the location of the property within the neighbourhood as well. Margaret Than from Hartamas Real Estate says not all places in Damansara Jaya could fetch a price of above RM600 psf. For instance, some houses located near a Hindu cemetery or facing a highway can go for as low as RM400 psf.

What makes it so attractive?

Damansara Jaya, or also known as DJ to locals, covers the areas of SS22 and SS22A and is one of the earliest township developments in Petaling Jaya. It is located within easy access to the Sprint Expressway, Damansara–Puchong Expressway and The New Klang Valley Expressway.

The township was developed by Paramount Garden and Paramount Corp. It comprises about 2,000 houses including terraced houses, semi-dees and bungalows.

The redevelopment of the local neighbourhood mall into the new Atria Shopping Gallery, which re-opened in May 28, 2015, has added a renewed vibrancy to the area.

The five-floor Atria shopping mall is part of a mixed -use development by OSK Property Holdings Bhd. The project also comprises two 14-storey blocks with 392 small office/flexible office (SoFo) units named Atria SoFo Suites, which are expected to be completed sometime this year.

The immediate neighbourhoods surrounding Damansara Jaya are Taman SEA, Taman Megah, Taman Mayang Jaya, Damansara Utama and Bandar Utama.

Megaharta’s Lee notes that although there are many choices in the market, Damansara Jaya remains compelling to home buyers, especially those who want bigger homes.

“The sizes of homes are varied and offer big land areas. Some measure 22 ft by 90 ft while some even have a land size of up to 22 ft by 120 ft,” Lee explains.

Have prices peaked?

Despite their faded façades, old houses that are well-located and offer a good living environment could be more valuable than newer properties.

On the investment prospects of Damansara Jaya, the agents and consultants still see potential of further capital appreciation due to land scarcity, its strategic location and its proximity (15 minutes’ drive) to the upcoming Bandar Utama light rail transit (LRT3) station.

Than from Hartamas Real Estate concurs saying Damansara Jaya is a mature yet quiet neighbourhood, which appeals to home owners who want a serene living environment, and offers convenient access to various amenities.

“Most of the original owners are still staying in Damansara Jaya and they know each other very well. Some parents are even helping their children get a unit in the same area, hoping their children will stay nearby when they have their own family,” she adds.

Rahim & Co’s Choy says the price of Damansara Jaya’s properties, especially terraced houses, will continue to rise for its freehold tenure, its mature township amenities, and the landed homes scarcity factor.

“House price growth may experience a slowdown or be stagnant in the near term due to the dampened market sentiment. However, I don’t think Damansara Jaya will lose its attractiveness. Its property values will continue to appreciate and so properties there are still worth investing in,” he concludes.

Interested in property investments in Damansara Utama after reading this article? Click here to check out the properties there.

This story first appeared in The Edge Property Singapore, the property pullout of The Edge Singapore business weekly on May 13, 2016.