Sunday 14 Jul 2024
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This article first appeared in City & Country, The Edge Malaysia Weekly on November 8, 2021 - November 14, 2021

As the overall Covid-19 pandemic situation improves, the thoroughfare along the commercial area of mixed-use development Radia in Bukit Jelutong, Shah Alam, appears to be livelier — a sign that things are going back to normal.

Patrons, who are mainly locals in the neighbourhood, visit the commercial component of Radia, which also comprises Radia Residences, to pick up their coffee at Costa or check out the artisan Homebaker @ Clover for its freshly baked cinnamon rolls. A recent addition is the nasi padang-style restaurant Sari Ratu Prima.

Handed over in February 2019, the other shops and restaurants there include Blue Cafe, Pizza Hut and Hero Market. There was a slight increase in footfall and traffic in the area when the new shops were opened.

Metro Homes Realty Bhd executive director See Kok Loong shares the background of the area. “UEM Sunrise Bhd and Sime Darby Property Bhd formed a 50:50 joint-venture (JV) company in 2010 to build the mixed-use development Radia @ Bukit Jelutong.

“In April 2014, the JV company Sime Darby Sunrise Development Sdn Bhd launched Radia Residences. Upon completion in 2018, the RM1.6 billion development would provide shopping convenience and easy access to services for the 40,000 residents and working population in Bukit Jelutong.”

He says the Radia commercial area is one of the few commercial tracts available in Bukit Jelutong. “Overall, Bukit Jelutong is one of the most well-planned townships.”

In terms of market performance, the commercial component appears steady. “There were some transactions seen in Radia Residences @ Bukit Jelutong. The price psf ranges from RM321 to RM523 psf while rents are RM1,400 to RM1,500, which is RM1.70 to RM1.80 psf, and the yield is about 4%,” says See.

“We can’t find any transactions from JPPH (Jabatan Penilaian dan Perkhidmatan Harta Malaysia) for the commercial shops for last year. The asking rent is RM3 psf and the yield is at about 2.5% to 3% for a retail lot.

“For office lots, the asking rent is RM1.60 to RM1.70 psf and the yield is about 3% only. The current asking price for a retail lot is about RM1,000 psf while the current asking price for an office lot is around RM400 psf.”

According to See, the area does present some challenges. “There is a lack of local population to support it as [the area] mainly comprises landed properties such as bungalows and semi-detached and terraced houses.”

He adds, “Competition from conventional shopoffices nearby like Persiaran Balairong and the semi-detached shops provide the drive-to-the-doorstep concept that is preferred by most Malaysians.”

Nonetheless, there are promising prospects near the commercial area of Radia in Bukit Jelutong. “[There are a] few empty plots of land [that can be] developed to bring in the population,” says See.

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