Streetscapes: Growth potential for established commercial area in Taman Wangsa Melawati 

This article first appeared in City & Country, The Edge Malaysia Weekly, on April 26, 2021 - May 02, 2021.
The roads in the commercial hub are lined by 3 and 4-storey shoplots (Photo by Chung Ying Yi/The Edge)

The roads in the commercial hub are lined by 3 and 4-storey shoplots (Photo by Chung Ying Yi/The Edge)

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Jalan Wangsa Setia, a commercial area in Taman Wangsa Melawati, is bordered on the southwest by Wangsa Maju, and to the northeast, by Taman Melawati.

Formerly a tin mining hub and rubber estate, Taman Wangsa Melawati is a mature commercial and residential neighbourhood that has appreciated in value  since it was first developed in the 1990s by Negara Properties (M) Bhd, now a wholly-owned subsidiary of Sime Darby Property Bhd.

The areas surrounding Taman Wangsa Melawati include Taman Melati, Wangsa Maju, Taman Sri Rampai, Taman Permata and Taman Melawati, says PPC International Sdn Bhd managing director Datuk Siders Sittampalam.

The roads in the commercial area consist of Jalan Wangsa Setia 1, Jalan Wangsa Setia 2, Jalan Wangsa Setia 3 and Jalan Wangsa Setia 4. They are lined by 3- and 4-storey shoplots, where businesses operating there include restaurants, banks, convenience stores, launderettes and clinics.  Among these are Restoran Home Town Yong Tow Foo, Strawberry Hair Studio,  Restoran Bidayah Bistro, Restoran Nasi Ulam, Tauhu Anora, Klinik Famili, Klinik Veterinar Wangsa Melawati, 7-Eleven, 99 Speedmart, Foodmarket, Sensha Coating, My Car Care Service Centre and Wangsa Koi Aquarium.

Data provided by PPC International shows that a 3-storey shoplot with a built-up of 3,231 sq ft in Jalan Wangsa Setia 4 was transacted at RM1.45 million in 2017 and another was sold at RM1.3 million in 2020. A 4-storey shoplot with a built-up of 4,600 sq ft in Jalan Wangsa Setia 1 was transacted at RM2.1 million in 2017, while similar shoplots in Jalan Wangsa Setia 3 and Jalan Wangsa Setia 4 were sold at RM1.95 million and RM1.8 million in 2016 and 2017 respectively.

“The current rental listings for a 1,300 sq ft unit on the third floor of a shoplot is RM1,650 per month whereas the second floor with the same built-up is RM2,200 per month. In 2020, rental listings for a 1,400 sq ft, ground floor unit (with road frontage) indicated a monthly rent of RM5,500 whereas it is RM3,500 for those without road frontage. The estimated yield is 2% (without road frontage) to 3.1% (with road frontage) a year,” says Siders.

Residential properties in the locality,  comprise mainly 1- and 2-storey terraced houses, 3-storey detached houses, low-cost flats, apartments and condominiums.

“In 2019 and 2020, the 2-storey terraced houses with built-ups of 858 and 888 sq ft were transacted at RM430,000 and RM490,000, or RM501 and RM552 psf. Monthly rents are RM1,300 and RM1,600, giving a yield of 3.63% and 4% a year. The 3-storey detached houses, with built-ups of 2,582 and 4,510 sq ft, were sold for RM2.8 million and RM3.2 million, or RM621 and RM1,239 psf, in the same period. Owing to the lack of transaction data, it is hard to work out the rental yields for the detached houses,” says Siders.

“As for the apartments and flats, they have built-ups of 527, 531 and 1,152 sq ft and were transacted at RM195,000, RM260,000 and RM500,000 respectively in 2019 and 2020. Rental rates are RM950 to RM1,300 per month, yielding 3.12% to 5.07% a year.”

Upcoming residential projects in the vicinity include Binastra Land Sdn Bhd’s Sinaran (to be completed in 2022), Platinum Victory Sdn Bhd’s PV9 Residence (to be completed in 2022) and Mah Sing Group Bhd’s M Adora (to be completed in 2023).

The outlook for Jalan Wangsa Setia appears positive, says Siders. “The commercial and residential properties around Jalan Wangsa Setia are more than a decade old and it is an established and mature area in Taman Wangsa Melawati. As such, we believe the area has tremendous potential for capital appreciation in future.”

The area has good accessibility to the Kuala Lumpur city centre via roads such as Jalan Jelatek and Jalan Ampang, as well as highways such as the Middle Ring Road 2, Duta-Ulu Kelang Expressway, Ampang-Kuala Lumpur Elevated Highway and the upcoming Setiawangsa Pantai Expressway.