Top five property types and key locations for investors to consider in 2022

 By NST Property - Published on April 11, 2022

Kuala Lumpur, Selangor, and Negeri Sembilan remained the most appealing locations for residential property purchases between 2019 and 2021, despite a period of subdued consumer appetite.

iProperty.com.my identified a few bright-spot residential properties in these areas that outperformed the rest between 2019 and 2021 when the property market was dealing with an oversupply of high-rise properties and the Covid-19 pandemic.

According to Shylendra Nathan, country manager of iProperty.com.my, these properties not only generated the most transactions or sales, but also the most inquiries in 2021.

"Savvy investors might see this encouraging demand trend as a strong indication of where to focus their investments in 2022. It stands to reason that residential properties which perform resiliently during challenging times may have a good chance of booming in the future when the market has recovered, especially in terms of rental yield and capital appreciation," he said.

While the property market remains subdued by ordinary standards, Nathan believes that these properties in Kuala Lumpur, Selangor, and Negeri Sembilan have performed well against the grain, providing a glimpse of where demand could grow exponentially in the near future.

Furthermore, he believes that the transition into the endemic phase will open up new opportunities as consumer demand rises.

In terms of the property market's outlook in 2022, Nathan said that all indicators point to an encouraging market outlook this year.

"Still, market experts believe that progress will be slow and steady," Nathan said.

Having said that, favourable sentiments resulting from an anticipated improvement in the country's Gross Domestic Product (GDP) of between 5.5 per cent and 6.5 per cent may extend to the property market.

This growth in economic activity might help raise consumer confidence and increase transactional activities, he said.

Top five property types and key locations for investors to consider

Kuala Lumpur

According to Nathan, the areas in Kuala Lumpur that have gotten the most investment interest are those that have a lot of modern lifestyle amenities like shopping malls, cinemas, retail, and F&B outlets.

He said investors are also looking to capitalise on a promising rental market as a result of the influx of workers and students.

Specific areas with cosmopolitan landscapes of upscale eateries and entertainment outlets catering to the expatriate community have also piqued the interest of the investor.

"In this regard, Bukit Jalil and Mont Kiara fit the bill. Four out of five top investment properties in Kuala Lumpur are from these two townships. Bukit Jalil offers some high-rise properties with decent rental yields and a strong potential for future growth. Condominiums in Mont Kiara continue to command high prices, generate good capital appreciation, and provide attractive rental yields," he said.

Selangor

Nathan said that Damansara is a popular choice in Selangor among property investors due to its excellent infrastructure and amenities, which include malls, educational facilities, hospitals, and hyper marts, as well as plenty of surrounding greenery.

"This wholesome combination has attracted young professionals wanting to live and work within a convenient self-contained environment. One particular high-rise property in Bandar Sri Damansara offers high-rise home seekers the experience of nature beside a forest reserve," he said.

According to Nathan, three of the top five investment properties in the state are in Damansara Perdana, Kota Damansara, and Bandar Sri Damansara.

Damansara, he says, offers attractive rental yields and capital appreciation, which bodes well for a long-term investment strategy.

Negeri Sembilan

Investors in Negeri Sembilan are eager to capitalise on the state's reputation as an education hub and tourist hotspot.

According to Nathan, Nilai and Port Dickson have five of the best-performing high-rise properties in Negeri Sembilan.

Nilai is home to several tertiary educational institutions, resulting in a sizable population of students, teachers, and personnel. With both local and international students in town, the potential for rental income is enormous.

The appeal of the sea breeze and proximity to the beach draws buyers to Port Dickson.

"Investors see the long-term potential of Port Dickson as a tourist hotspot. While rental yields are low in Port Dickson, a high-rise property in a prime location that offers sea views has seen its median price increase over the past two years, indicating a good long-term investment potential," he said.