Malaysia, with its strategic location in Southeast Asia and rapidly growing economy, has long been a hotspot for property investments. Among its many regions, the Klang Valley stands out as the crown jewel, becoming the go-to location for both domestic and international property investors. So, here are the top 5 properties with the highest capital appreciation and rental yield that you can invest in this year.
Top 5 Property Investments in Klang Valley
#1 The Estate, Bangsar South
#2 Novum @ Bangsar South
#3 South Brooks @ Desa ParkCity
#4 The Park Sky Residences, Bukit Jalil
#5 Sri Desa, Kuchai Lama
My Criteria For Property Investments
There you have it, these are my top 5 picks of some property investments within the Klang Valley you can consider for your own portfolio.
To me, my decision to invest in a property depends on its capital appreciation, rental yield, and overall property appeal.
In terms of capital appreciation and rental yield, for most of the five properties, the capital growth rate is well beyond the average of 6% - 8% and they also provide a good rental yield of up to 8% when the average rental yield these days is only around 4% - 5%.
On the other hand, when it comes to the overall property appeal, there are a few common features that these five properties share.
1. Transport-Oriented Development (TOD)
When I take a look at these 5 properties, it achieves my topmost criteria – the property's location relative to Transport-Oriented Developments (TOD).
All five properties are located relatively near to some form of public transportation. And when properties are close to public transportation, especially LRT and MRT stations, it is able to command higher demand.
Think about it - who wouldn't love to have a train station right around the corner? It's super convenient, especially when you don't want to get stuck in horrendous traffic jams or simply don’t have a car to drive.
2. Highway Connectivity
Another non-negotiable for me is how well-connected a property is to major highways. The good thing about these five properties is that they have easy access to highways like the Federal Highway, LDP, and NKVE.
To me, this means future buyers or renters will have reduced commute times and hassle-free connectivity to other parts of Klang Valley and beyond. If that’s not a good selling point then I don’t know what is!
I truly believe that properties with good highway connectivity tend to have a competitive edge in the rental market and also show promising capital appreciation over time.
3. Matured Commercial Area
More often than not, a mature commercial environment encompassing malls, offices, and other amenities like educational institutions and hospitals, increases the attractiveness of a property.
This is why, the top 5 properties I’ve chosen are in areas that are located in bustling business and/or entertainment hubs.
In my opinion, it's not just about convenience; it's also about the vibrant urban life and the multitude of employment opportunities these hubs bring with them to the properties nearby. So, investing in such areas assures me of a steady rental demand and over time, a great deal of capital appreciation.
4. Fantastic Place Making
Property investment trends these days are not just about brick and mortar; they're about experiences. That is why I'm always on the lookout for modern properties that champion 'place-making' or in other words, engaging community spaces for its residences.
Properties like The Estate and The Park Sky Residences are developments where residents can find pockets of relaxation, communal spaces for interactions, and even recreational facilities within their premises.
So, I always give bonus points to properties with neat communal areas, gardens, or even a fun play zone. It's these little touches that make a place feel like home and attract people to rent or buy. Not to mention, with so many facilities, rental rates can be increased which further ensures better yields.
5. Big Property Size
While compact homes have their market, I've found a consistent demand for properties that are spacious, especially those exceeding 1,500 square feet which is why a good majority of the properties on this list are on the more generous side when it comes to space offering.
From my point of view as a property investor, I’ve noticed that families, in particular, prioritize roomier homes for maximum comfort. Moreover, spacious units provide flexibility in terms of interior design and layout adjustments, allowing tenants or homeowners to customize their spaces according to their preferences, a factor that many appreciate.
So, in my opinion, an investment in sizable, “bigger” properties almost always guarantees a better return within the Klang Valley.
I hope these pointers helped you make certain decisions the next time you’re considering buying a property for investment purposes.
Oh! One more thing, recently, I also came across a new development that fits into my criteria for property investment and that is Bon Kiara in Solaris, Mont Kiara.
The property itself is located in a prominently mature area where there are malls like 163 Retail Park, 1 Mont Kiara and various offices as well as businesses. If you’ve been to the area a lot, you’ll also notice that it’s a high-demand location among expatriates who live in the nearby condominiums.
Personally, I own a property in Mont Kiara so I can safely say that you’re able to demand a higher rental price because most of the people there are able to afford it, especially if the property looks as luxurious as the upcoming Bon Kiara.
Other aspects like highway connectivity and place-making are also quite impressive as the Solaris or Mont Kiara as a whole is well-connected, easily accessible and pedestrian-friendly.
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