This article first appeared in City & Country, The Edge Malaysia Weekly on August 3, 2020 - August 9, 2020

On the southern flank of Taman Melawati in Ulu Kelang, Gombak, lies a commercial area called Taman Permata. It is located at the intersection of Changkat Permata, Persiaran Permata 10 and Jalan Permata 1.

Taman Permata is a growing middle-­income neighbourhood, about an 18-minute drive from the Kuala Lumpur city centre. Nearby amenities include Giant Hypermarket, SK Taman Permata, Malaysian Institute of Art, Melawati Mall and Zoo Negara.

Stanley Toh, executive director of Laurel­cap Sdn Bhd, says the properties along Changkat Permata and Persiaran Permata 10 comprise 3½-storey shop­offices. The ground floors are occupied by hardware shops, a bakery, pharmacies, music schools, tuition centres, pre-school centres, banks, shoe retailers, clinics and barber and laundry shops, while the upper floors are occupied by businesses that do not require a shopfront.

“The shopoffices in Persiaran Permata 10, with average built-ups of 5,500 sq ft, were transacted at RM1.8 million last year. Meanwhile, the shopoffices with the same built-ups in Changkat Permata fronting the Giant Hypermarket were transacted at RM2.5 million during the same period,” says Toh.

“The monthly rent for the ground floor is RM2.80 to RM3 psf. The higher the unit, the lower the rent, with units on the first and second floors being rented out at RM1.10 to RM1.30 psf. This translates into a yield of 4.5% to 5% per annum.

“For the residential properties in Taman Permata, the 1- and 2-storey terraced houses, with built-ups of 900 to 1,500 sq ft, were transacted at RM480 to RM550 psf in 2019. The monthly rent ranges from 90 sen to RM1 psf, giving a yield of 2.5% to 3% a year,” adds Toh.

Jasmine, who lives in the area, is a frequent customer at Pistachios Bakery. “The bakery offers a wide range of cakes, pastries and buns that are affordably priced. I love their Belgian chocolate cake, which is filled with Belgian chocolate cream and a generous layer of dark chocolate ganache on top,” the 26-year-old says.

An upcoming residential project in the vicinity is M Adora by Mah Sing Group Bhd. It will offer 677 condominium units with built-ups of 850, 1,000 and 1,200 sq ft. Prices start from RM468,000 and the project is expected to be completed by 2Q2023.

Toh notes that Taman Permata is an established area and strategically located, as it is easily accessible via the Middle Ring Road 2 and Duta-Ulu Kelang ­Expressway. “Nevertheless, the area needs some rejuvenation in order to keep up with property values. This is in view of competition from upcoming projects in Ampang, Gombak and its surrounding ­areas, which are more in demand because of better and modern development concepts,” he says.

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