Location, location, location.
Two identical bungalows can cost RM1.5 million here in Klang Valley, while costing only RM300,000 in the rural states up north. Regardless if you are a seasoned property investor or a first-time homebuyer, there is no denying that location plays a central role when it comes to property investments, or even for own-stay.
But which location will provide you with the most returns? Which location has the highest chance of seeing the largest capital appreciation in the next few years?
Nobody can answer that question with a 100% certainty, but there are a few places where you can start looking and researching on. One of which is a piece of land located near the heart of Kuala Lumpur – Chan Sow Lin.
Named after a prominent Chinese businessman that has propelled Kuala Lumpur into the economic powerhouse it was back in the colonial days, Chan Sow Lin is one of the oldest industrial areas in Kuala Lumpur established over a century ago.
The area is home to many old and established manufacturing factories, warehouses and car service centres, with charming old colonial-age buildings lining the roadsides. However, this small town is primed for massive developments, and the process of gentrification has finally shown its colours in recent years.
Why is Chan Sow Lin worth your consideration?
1. Limited Land
Land near the Kuala Lumpur city centre is increasingly scarce, with very few remaining land ready for development located near the western end of Jalan Ampang, and of course, Chan Sow Lin.
Once all the land within Kuala Lumpur has been developed, developers have no choice but to look outwards towards the city outskirts to develop new projects. The upcoming projects within Chan Sow Lin are probably going to be the last few remaining projects that we are able to witness within the heart of Kuala Lumpur.
This is unless the government decides to redevelop existing land within Chan Sow Lin, but that will cost a bomb, which will reflect in the rapidly increasing housing prices within the region.
2. Prices are still relatively cheap
Prices for newly developed projects near Chan Sow Lin can range from RM600 – RM800 per square feet, which is reasonable considering the proximity to the city centre and the accessibility to the other major towns via highways. It is also one of the few areas in Klang Valley today with both LRT and MRT connectivity.
In fact, Chan Sow Lin has been met with rapid growth for the past two decades. Land prices used to cost about RM50 per square feet in 2003, and has now increased to RM427 per square feet today. In fact, it has once reached a peak of RM736 per square feet in 2016.
3. Revival of Megaprojects
Located near Chan Sow Lin, Bandar Malaysia is a 486-acre mixed-use, transit-oriented development, currently being redeveloped on land formerly owned by the Royal Malaysian Airforce.
Bandar Malaysia is going to be a huge property booster for the Chan Sow Lin area, as it is planned as a central transport hub for the KL-Singapore High-Speed Rail, Mass Rapid Transit, KTM Komuter, Express Rail Link and 12 other highways.
Not to mention, Bandar Malaysia will introduce plenty of office towers and commercial activity in the area, all of which attract tenants and buyers to look for property within the nearby vicinity.
In fact, Dewan Bandaraya Kuala Lumpur (DBKL) already has plans to transform Chan Sow Lin into the city’s state-of-the-art automobile business park, housing companies supplying parts to businesses associated with the automobile industry, such as accessory dealers, car showrooms and vehicle-servicing workshops.
However, the current issues plaguing Chan Sow Lin are poor urban planning, lackluster access to nearby public transport and the lack of greenery. All of these issues will hopefully be resolved by DBKL in their upcoming plans to transform Chan Sow Lin to the bustling hub it is primed to be.
But overall, Chan Sow Lin is definitely a location to look out for, especially if you are a first-time homebuyer and investor.
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