SLOW infrastructure developments in Rawang have become one of the main concerns among potential house buyers who are keen on investing in properties there.
Road-widening works, such as the one that leads from the Rawang town to Taman Tasik Puteri where major projects like Mah Sing Group Bhd’s M Residence are located, are ongoing. The traffic congestion along the route has dented property sales in the area.
“Potential house buyers are concerned with the slow pace of road works. People staying along the route as well as developments in the area are somewhat affected,” Carey Real Estate Sdn Bhd (CRE) senior real estate negotiator Eline Theseira told NST Property.
However, these were just temporary difficulties, she said.
“We are convincing buyers that... once these projects are completed, there will be far less hassle,” said Theseira.
She said developers of upcoming residential projects in Rawang were beginning to see stiff competition in terms of prices.
The trend is expected to be fuelled by demand from people working outside Rawang, such as in Kuala Lumpur and Shah Alam, who are positive that the town would turn into a hotspot once the infrastructure works are completed, given its easy excess to North-South Expressway, Kuala Lumpur-Kuala Selangor Expressway (Latar Expressway) and Guthrie Corridor Expressway.
“It is important to note that besides migrating buyers who are buying properties here, the population in Rawang itself is growing. However, as many here are not in the income bracket to afford these developments, secondary residential properties and rentals are the other options they are looking at,” said Theseira.
TRANSFORMATION
Rawang, which was previously not in the top list for developers, is now slowly transforming itself into “the next big satellite” of Greater KL, thanks to the presence of big property players such as Mah Sing, Guocoland (M) Bhd, Glomac Bhd, Hong Bee Land Sdn Bhd, Low Yat Group, MK Land Holdings Bhd and Sime Darby Bhd.
Some smaller players are also offering a wide range of products there.
Developments mainly comprise landed residential units with prices ranging from RM350,000 to RM800,000 each.
“The property players created the market here. There was ample land available, and with landbank in the city centre becoming scarce, developers moved here and started to build houses.
“This opened up the residential property market, with locals and buyers from other towns and cities buying properties and moving here,” said a property player who is involved in new projects in Rawang.
He said some 80 per cent of the buyers of the properties in the town were working in Kuala Lumpur, Petaling Jaya and Shah Alam.
As houses in the area are priced at an affordable range of below the RM1 million mark, this has suited buyers’ budget, a plus point for those looking for properties away from the city centre.
“Intense pricing in Rawang properties depends on the range of products, area, developers and even the design of a particular home, but it is still within the affordable range, that is below RM1 million,” he added.
SLOWLY DEVELOPING
Unlike other areas in Kuala Lumpur or Selangor, Rawang does not have any major highlights, such as big malls or bustling commercial centres.
AEON Rawang Store and AEON Rawang Anggun Shopping Centre are the only “modern” malls.
However, DA Land Sdn Bhd has announced plans to develop a three-in-one theme park called The Two, which will incorporate a resort, a wholesale city and a mall on a 20.6ha site.
The development has attracted interest from both local and potential buyers from outside Rawang.
The project, which is expected to transform the town’s landscape, will involve a development cost of RM5 billion.
Besides The Two, DA Land is also developing the resort-style LakeClub Parkhome residential project there.
On purchasing trend in Rawang, CRE’s Theseira said residential properties below RM500,000 were easy to sell, but anything above the price would be somewhat challenging.
This was due to numerous reasons, such as income bracket and loan approvals and challenging economic trends, she said.
Overall, developments of residential properties as well as commercial real estates in Rawang would continue to grow despite the current infrastructure challenges.
Major retailers are looking at Rawang’s commercial space to expand their product and services, with eyes on the mid-to-high income groups that are moving into the area.
Existing commercial businesses are also seeing some positivity in these developments.
Local school-leavers and college graduates are looking at job opportunities close to home in these commercial developments.
Retailers and supermarkets are thriving, capitalising on residential communities within Rawang and its surrounding area. These businesses are expected to expand further as communities grow.
Industry observers say commercial growth in Rawang and within its vicinity will slowly provide a spillover effect to a wider area covering Bukit Beruntung and Bukit Sentosa, which primarily comprise low-cost residential communities.
Trends also show that easy access to highways and less hustle and bustle of the city life are some of the plus points for investors to invest in Rawang.