This article first appeared in City & Country, The Edge Malaysia Weekly on February 15, 2021 - February 21, 2021

Taman Melawati, also known as just Melawati, is a mature neighbourhood set amid hills and lush greenery. Located in Ulu Kelang, it may not be the first place that comes to mind when you are looking for a spot to hang out with your friends or family. Unlike the trendier Mont’Kiara, Bangsar and Kuala Lumpur city centre, Melawati is more tranquil and lacks the bustle of activity found in the more popular areas. But that does not make it any less attractive.

According to VPC Alliance Sdn Bhd managing director James Wong, Melawati was previously a rubber plantation named Hawthornton Estate. Development of the township, the first by Negara Properties (M) Bhd, began in the 1970s. The developer is now a wholly-owned subsidiary of Sime Darby Property Bhd.

“Melawati sits to the east of the Middle Ring Road 2 (MRR2) after Kampung Klang Gate Baru. Most of the area lies before the Klang River, with a small parcel — residential development Amberhill — located after the river, that is to the north of Melawati after Jalan Melawati 7,” he says. 

“Kemensah is located to the immediate east of Melawati. As residential developments start to spill eastwards into Kemensah, the natural boundary of Melawati has expanded accordingly.”

Savills Malaysia Sdn Bhd managing director Datuk Paul Khong believes that Melawati is now a mature township and is slowly progressing to a good address with more high-end projects such as 16 Quartz (Mitraland Group), Amberhill (Tunas Manja Development & Construction Sdn Bhd), Sunway Rydgeway and Sunway Montana (Sunway Property), 20 Trees and 20 Trees West (Selangor Dredging Bhd) and Nadayu 62, Nadayu 63 and Nadayu Melawati (Nadayu Properties Bhd) — a testament to the suburb’s strategic location.

It is a 24-minute drive from the KL city centre and is easily accessible via highways such as the MRR2, Ampang-Kuala Lumpur Elevated Highway, Duta-Ulu Kelang Expressway (DUKE) and Kuala Lumpur-Karak Expressway.

Nearby amenities include Giant Hypermarket, Melawati Mall, AEON BiG, KL East Mall, Wangsa Walk Mall, Setapak Central Mall, SMK Taman Melawati, Malaysian Institute of Art, International Islamic School of Kuala Lumpur, Fairview International School, Tunku Abdul Rahman University College and Columbia Asia Hospital. The township is also located close to four existing light rail transit stations — Melati, Sri Rampai, Setiawangsa and Wangsa Maju — which provide greater accessibility to its residents.

Notable completed residential and commercial projects in the immediate vicinity include MKH Bhd’s Saville @ Melawati (completed in 2013); Mitraland Group’s 16 Quartz (2015); Sunway Property’s Sunway Montana (2019) and Sunway Rydgeway (2011); Sime Darby Property’s Serini Melawati (2018) and Melawati Corporate Centre (2017); Sime Darby Property and Capitaland Mall Asia Ltd’s Melawati Mall (2017); and Nadayu Properties’ Nadayu 62 (2017) and Nadayu 63 (2019).

Ongoing residential projects include Residensi Permata by KLH Melawati Sdn Bhd; Upperville @ 16 Quartz by Mitraland Group; and M Adora by Mah Sing Group Bhd. Residensi Permata is expected to be completed in 2022, and Upperville @ 16 Quartz and M Adora in 2023.

Meanwhile, Sime Darby Property is developing a 153-acre urban integrated development named KL East in the northwest of Melawati, which is adjacent to the MRR2 and near Bukit Tabur and the Klang Gates Quartz Ridge. The integrated development comprises residential, lifestyle and commercial components and is due to be completed by 2025.

Completed projects in KL East include The Véo (completed in 2017), The Ridge (2020) and KL East Mall (2020).

PPC International Sdn Bhd managing director Datuk Siders Sittampalam says one of the upcoming projects in KL East is KL East International School, which will comprise a 4-storey pre-school, 5-storey primary school, 4-storey secondary school, 4-storey administration block and 3-storey auditorium hall. The project is expected to be completed by 2022. “With continued growth in the area and newer developments coming on stream in KL East, [property] values are expected to increase.”

Another upcoming development in Melawati is a commercial project by the Ampang Jaya Municipal Council (MPAJ) in Lorong Perak, comprising a community hall and public park, Siders notes. “The project was supposed to have been completed on June 18 last year, but there is no further information on the completion date. The delay could be due to the Movement Control Order and subsequent measures taken as a result of the pandemic.”

The MM Residency development by TSA Land Sdn Bhd in Jalan Melawati 1 has also stalled, he says. “The project, which comprises a serviced apartment block and two blocks of SoHo, was launched in 2016 and originally slated to be completed in 2019. However, construction stalled in 2018 and the developer is planning to recommence work soon.”

Similarly, the development of Gadang Land Sdn Bhd’s high-rise residential project — two towers of 21 and 22 storeys respectively, with a total of 479 apartments — in Jalan Kolam Air has stalled. “Residents [in the area] opposed the development. The site is currently overgrown with thick undergrowth, with no construction activities,” says Siders.

“As for a parcel in Lorong Selangor, it was originally an office for the menteri besar of Selangor, utilised as a service centre, and was subsequently designated as a park. However, the authorities had proposed to build a convention centre, but it was opposed by residents in the area. Currently, a community hall and public park are being built on the site.”

According to VPC Alliance’s Wong, Melawati caters for both the middle- and upper-income groups. “Compared with Kemensah, properties in Melawati see higher demand as Kemensah is mainly being developed by small developers on small pockets of land with high-end bungalows, semi-detached houses and townhouses, which are targeted at upper-income households.”

Current landed residential properties in Melawati comprise mainly 1- to 3-storey terraced houses, 2- to 3-storey semidees, and 2- to 3-storey bungalows.

Wong notes that the prices of landed properties are relatively stable. With most of the land in the township having freehold tenure, these properties are highly sought after, he adds.

Siders says property values on the secondary market have increased with new developments mushrooming in the peripheral areas, especially close to the hilltops.

According to data provided by VPC Alliance, the 1-, 2- and 2½-storey terraced houses with built-ups of 744 to 3,665 sq ft were transacted at RM370,000 to RM1.18 million in 2018 and 2019. The 2- and 2½-storey semidees with built-ups of 2,034 to 3,418 sq ft were transacted at RM1.05 million to RM2.5 million during the same period. As for the 3-storey bungalows, a 3,476 sq ft unit was transacted at RM2.2 million while those with built-ups of 4,641 to 4,786 sq ft were sold at RM4.5 million in 2019. Rents range from RM6,500 to RM10,000 per month, giving a yield of 3.6% to 6% per annum. 

In terms of high-rise developments, the current market activities mostly involve apartments priced below RM500,000, including Saujana Melawati, Desa Melawati and Pesona Villa, says Savills’ Khong. These mid-range units have recorded a five-year compound annual growth rate (CAGR) of 3% to 6%. For the high-end condos such as 20 Trees and Nadayu 62, only a few transactions were recorded, with a five-year CAGR of about 1%.

“Recent transactions show that a 950 sq ft unit at Nadayu 62 was sold for RM520,000, or RM550 psf, while a 1,848 sq ft unit at 20 Trees was sold at RM1.07 million, or RM580 psf. These units can fetch a monthly rent of RM1,400 to RM3,500, which translates into a gross return of 3.5% to 4% a year,” he says.

Wong notes that in the commercial segment, the 2- to 4-storey shopoffices in high-traffic locations such as Jalan Negara and Jalan Bandar see good demand. There is a wide range of businesses there, from digital printing, motor accessories, art supply and barber shops to launderettes, pharmacies, F&B outlets, banks and number forecast operators.

“A 3-storey shopoffice with a built-up of 4,277 sq ft in Jalan Negara was transacted at RM1.62 million in 2019, while 4-storey shopoffices with built-ups of 6,730 and 6,896 sq ft in Jalan Negara 2, Jalan Bandar 13 and Jalan Bandar Melawati were transacted in the region of RM1.9 million to RM3.1 million in 2018 and 2019,” he says.

“As for the office units at Melawati Square and Melawati Corporate Centre, they have built-ups of 1,475 and 1,884 sq ft and were transacted at RM500,000 and RM1 million respectively in 2019. Rents range from RM6,300 to RM11,000 a month, yielding a gross return of 3.8% to 5% a year.”

Khong notes that Melawati has grown into an established residential suburb with several new and high-end developments in the neighbourhood. “It has attracted purchasers of high-end properties, owing to the strong nature setting of hills and lush greenery. The fresh air and better-quality living have drawn potential owner-occupiers, who are interested in the gated-and-guarded developments nestled among forest reserves.”

Wong concurs, saying that developments in Melawati are low density and there are no low-cost properties in the area. Its residences are expected to continue to be sought after, with the location suitable for people looking for a peaceful environment and reasonably priced landed properties, he adds.

“Property values in the area are expected to remain stable and appreciate gradually in the long term, owing to the freehold tenure and close proximity to the city centre, as well as easy accessibility to major highways and surrounding amenities,” says Wong.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.