This article first appeared in City & Country, The Edge Malaysia Weekly on June 27, 2022 - July 3, 2022

Wangsa Maju, which spans 1,200 acres, was developed by PGK Sdn Bhd (now known as MSL Properties Sdn Bhd), a joint venture between Dewan Bandaraya Kuala Lumpur and Peremba Bhd.

“The township, which started its development in 1984, is located in Kuala Lumpur, and bordered by Taman Melati [part of Gombak district in Selangor] to the north, Setiawangsa to the south, Taman Sri Rampai to the west and Ukay Perdana to the east,” says Savills Malaysia Sdn Bhd managing director Datuk Paul Khong.

Wangsa Maju is a 20-minute drive from the city centre and is easily accessible via major roads such as Jalan Genting Kelang, Jalan Pahang and Jalan Jelatek, as well as highways Middle Ring Road 2, Duta Ulu-Kelang Expressway and Ampang-Kuala Lumpur Elevated Highway. Upon completion, the Setiawangsa-Pantai Expressway (DUKE 3) will make the area more accessible from the Southern Klang Valley.

Nearby amenities include AEON BiG, AEON Alpha Angle, Wangsa Walk Mall, Giant Hypermarket, SK Wangsa Maju Seksyen 1, Hospital Wanita dan Kanak-Kanak Naluri and Fairview International School. In addition, there are three light rail transit stations — Sri Rampai, Wangsa Maju and Setiawangsa.

PPC International Sdn Bhd managing director Datuk Siders Sittampalam says that Wangsa Maju is divided into sections — Seksyen 1, 2, 4, 5, 6 and 10. Developers such as PGK, Beneton Properties Sdn Bhd, Beverly Group Sdn Bhd, Landmark Bhd, IJM Land Bhd and Tan & Tan Developments Bhd, a wholly-owned subsidiary of IGB Bhd, have a presence in the area.

The now well-established township catered to the low- to mid-range market segments in the early days and has since progressed to more mid to high-end projects. 

“It currently comprises a mix of landed and high-rise residential, and commercial developments. Multiple types of residential properties, from low to medium cost as well as several low-density developments, can be found. The general profile of owner-occupiers includes families, newlyweds, working professionals, students and expatriates,” says Siders.

Notable residential developments in the area include Lexa Residence and Fera Residence by Beverly Group, Infiniti 3 Residence and Villawangsamas by Setapak Heights Development Sdn Bhd, Sunway Avila and Sunway Artessa by Sunway Property, Seri Riana Residences by IJM Land and MSL Properties, and Seasons Garden Residences by SCP Group.

Siders says residential and commercial rental rates in Wangsa Maju have been good over the years, with yields between 3% and 5%. The rental market is considered attractive because of its good network of roads and accessibility, as well as excellent public transport facilities such as LRT stations and public buses.

Based on data provided by Savills Malaysia, rents for condominiums in the township with built-ups of 801 to 1,599 sq ft are between RM1,200 and RM2,500 per month, depending on size, development project, condition of unit and furnishings. This translates into yields of 3.5% to 5% a year.

Khong reckons that the residential market is becoming more competitive due to impending new supply. However, considering that a high percentage of the existing condominiums are owner-occupied, this will not have a big impact.

Demand for residential units in Wangsa Maju is good and the general occupancy rates are high. In many of the newly completed projects, the take-up rates are steadily moving upwards. “There will be a good supply of potential tenants renting units in the area, such as new intakes of students, new graduates who will continue to stay on in the area, as well as new families, newlyweds and working professionals who are looking for convenience and want to reside close to the KL city centre. This is due to the affordable rental rates for a location close to the city centre, existing amenities and the connectivity factor with the highways and LRT line,” says Khong.

For the commercial segment, Siders says that the 3- to 4-storey, 6,000 sq ft corner shops in Jalan Wangsa Delima; the 3-storey, 6,100 sq ft end lots in Wangsa Metroview; and the 3-storey, 5,295 sq ft intermediate shops in Seksyen 1 command monthly rents of RM14,000, RM13,300 and RM7,100 respectively, which translates into a yield of 4% a year. There is a wide range of businesses there, from printing shops, restaurants, clinics and banks to bookshops, convenience stores, hair salons and pharmacies.

According to Siders, Wangsa Maju has a good balance of commercial and residential projects that were developed in phases by several developers. The low-rise residential projects have seen good capital appreciation over the years. “As such, we believe the area has good potential for further appreciation in rental and capital values in the post-pandemic era,” he says.

The township’s proximity to the city centre, along with good infrastructure, public transport and amenities, will attract a good mix of tenants and owner-occupiers. Siders points out that high-rise residential developments tend to have a higher share of renters/tenants, especially when they are located closer to educational institutions.

Khong opines that the residential rental market is becoming more competitive in the mid-term because of newly completed units coming on stream. Meanwhile, neighbourhood shops, especially those on the ground floor, will enjoy good occupancy as they serve the local populace. The long-term prospects are brighter owing to limited new supply and growth in the local population (from new completion of condominiums).

“Wangsa Maju will continue to be one of the key residential and commercial areas in KL’s northeast due to its strategic location and supported by the existing well-established township neighbourhood,” Khong concludes.

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