Different point of views matter when you invest in any area. If you are looking to invest in Subang Jaya, check out below for the different point of views from a developer, an investor and a real estate agent. These views might help you to consider if it is profitable to invest in Subang Jaya, and also ask the right questions when you are exploring and researching a property.
Asking questions is the simplest and most effective way of gaining deeper insights on where and why to invest. Many investors could have avoided trouble and losses if they had asked basic questions before going into property investments.
Subang Jaya is a town that has been growing rapidly for the past 20 years. Even though it started primarily as a residential area, today it can be seen as a town with a myriad of developments and amenities.
From a developer’s perspective: The different property and infrastructure developments
Tropicana Metropark will feature a 9-acre central park.
A developer that is currently constructing a property development in Subang Jaya is Tropicana Corp Bhd. The group is developing a township named Tropicana Metropark as its first foray into the growing, affluent neighbourhood of Subang Jaya.
Tropicana Corp Bhd head of marketing and sales Ung Lay Ting said that Subang Jaya is an area worth investing in because it boasts a population of over 700,000 people and is set to be the next affluent neighbourhood in the Klang Valley region.
“Subang Jaya has witnessed a steady growth of business and retail hubs, international education centres, medical centres and mushrooming of modern residences to cater to the flourishing neighbourhood.
“Recognising the growth potential of Subang Jaya and understanding the needs of our customers, Tropicana Metropark is specially created as a gateway for city-dwellers.
“This exclusive development has been built clearly to capitalise on the shift of mindset among new homeowners who prefer expansive green spaces that bring families and communities together, she adds.
Tropicana Corp Bhd has started the construction for a new flyover that will link Tropicana Metropark to the Federal Highway, and is slated for completion during Q4 of 2016. With the increasing number of property developments in Subang Jaya, and the strong infrastructure readily available as well as those provided by the developers, there is a possibility that those could add value to the property in Subang Jaya.
From an investor’s perspective: Rental potential and amenities available
Houses in SS15 are mostly rented out to students and rental rates have increased in recent years.
“The core objective of being an investor is to preserve and build wealth, and properties are a good way to achieve that. Therefore, I look for potential growth of an area before I invest,” says a property investor and director of IQI risk management Sdn Bhd, Alexander Woo.
In comparison to some other areas within Klang Valley, such as Petaling Jaya, Damansara and Mont Kiara, Subang Jaya has equivalent developments that are at lower prices. It is also an established area with high demand so investing for rental income can be profitable.
Woo has done an extended research on property market and he finds that property investors should look into Subang Jaya area as it is an established area with universities and colleges nearby, allowing potentially healthy rental yields from a steady and ready tenant market.
For example, in Q4 2014, a freehold terrace house in SS15 has an indicative rental yield of 5.30% with prices ranging between RM1.75 and RM 1.80 psf.
One of the precincts in Subang Jaya that has a large student population is SS15, where most of the tertiary institutions are. With a high volume of students looking to rent a room or house, it could be a great idea to invest in SS15 and also the neighbouring areas, such as SS12, SS14 and SS17.
“The BRT and upcoming LRT extensions are also a boost to the area, making it even more accessible and convenient,” says Woo.
Subang Jaya is well established with a myriad of amenities, thus people living or renting in Subang Jaya does not have to travel far to get their desired necessities and lifestyle.
“SS15 is now one of the best areas in Subang Jaya that buyer’s market and investors can look out for potentially good bargains in the subsale market. There are also attractive packages for projects provided by developers, such as in Tropicana Metropark or You One @ USJ 1. If done right, Subang Jaya is one location that will give you good yield and a healthy capital gain,” adds Woo.
From a real estate agent’s perspective: Opportunity for residential and commercial investment
By night, commercial areas in Subang Jaya are visited by students and residents living nearby.
Twincrest Properties senior negotiator Eric Ng says he would definitely recommend Subang Jaya for property investment.
“It would be best to invest for a property in Subang Jaya and renting it out for those who are working in Subang Jaya as many who work in Subang Jaya prefer to stay in the area so they don’t have to endure the congested traffic of driving out to workplaces like Petaling Jaya or Kuala Lumpur,” Ng adds.
Besides investing in residential unit for rental income, investing in commercial shop lots and small offices in Subang Jaya could also be lucrative.
Subang Jaya sees an increase in economic growth for the past years with a large crowd of consumers. Thus many businesses, be it local, international, small or big could be looking for a commercial unit in Subang Jaya. Buying shop lots and/or offices to rent out could gain the attention of the diversified businesses so there is a high chance of renting out your unit.
“There is a better investment opportunity in the commercial area in SS15 because during the day, there are two colleges and offices to cater to, and by night the students and residents living nearby will keep the food outlets busy,” says Ng.
Investing in an established town as Subang Jaya might foresee a great capital appreciation as there are abundant amenities available.
It is crucial that you seek professional advice and do your research before investing in property. Make sure that you don’t let your hard-earned cash go to waste by investing unnecessarily without evaluating your property investment strategy.
