By Danial Dzulkifly
SHAH ALAM, Feb 3 — Homebuyers in the Klang Valley may have to dig deeper in their pockets this year, with property prices set to rise even in non-urban areas.
This, according to experts, is fuelled by a wave of new infrastructure projects around transportation hubs and highways that connect major cities to urban outskirts and other emerging residential areas.
While the property segment within the sought-after markets of Subang Jaya, Petaling Jaya, Klang, Shah Alam and Kuala Lumpur continues to appreciate in prices, property developers are now accelerating their investment in emerging hubs in southern and northern Selangor.
According to Knight Frank Malaysia senior executive director of research and consultancy Judy Ong, this shift is partly due to the changing lifestyles among young families seeking quieter environments with enhanced security and amenities, away from urban centres.
She projected property prices will rise by 3 to 4 percent this year, driven by Malaysia’s robust economic performance under the Madani Economy framework, consistent gross domestic product growth throughout 2024, low unemployment, and a stable interest rate environment.
“This positive outlook is reflected in the improved residential overhang situation as well as the successful launches of new development projects that are strategically aligned with evolving buyer preferences,” she told Media Selangor.
“These (preferences) include well-planned developments that prioritise sustainability and liveability, developments located in proximity to transit hubs, and transit routes that offer the convenience of accessibility, connectivity and diverse amenities.”
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An aerial view of Subang Jaya, Selangor. — Picture by FACEBOOK/MAJLIS BANDARAYA SUBANG JAYA[/caption]
Ong highlighted the expansion of transportation infrastructure, including the ongoing East Coast Rail Link (ECRL) and the proposed MRT3 project, as key drivers of growth and property development along the rail corridors.
The ECRL, she said, is expected to unlock growth potential in outlying areas like Gombak, Puncak Alam, Kapar, and Klang.
“Meanwhile, the proposed 51km MRT3 Line (also known as the Circle Line), which is projected to commence construction by 2027, will serve as the final link of the Klang Valley MRT network and further catalyse developments along its routes.
“Transit-oriented developments offering mixed-use components in the vicinity of the designated stations have the potential to become vibrant economic hubs, thus driving up property values in these areas.
“In addition, with improved accessibility and connectivity, there may also be opportunities to redevelop, reposition, or repurpose existing dated properties in these areas,” she said.
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Raja Muda of Selangor Tengku Amir Shah flags off participants of the Selangor Eco Run 2024 programme, at the Community Park in Putra Heights, Subang Jaya, on December 8, 2024. — Picture by MOHD KHAIRUL HELMY MOHD DIN/MEDIA SELANGOR[/caption]
Changing lifestyles
Another major factor to rising property prices across the Klang Valley is the changing priorities and lifestyle of young Malaysians, said Ong, with the rise of remote work significantly shifting buyer preferences.
She added that some potential buyers prioritise factors beyond proximity to city centres and workplaces — good internet connectivity, home office-friendly features, access to quality-of-life amenities like parks and recreational facilities, and proximity to nature are now key considerations for many.
This trend is compounded by limited land availability and high land costs in central or well-established areas in the Klang Valley.
“Mature districts such as Subang Jaya and Petaling Jaya are experiencing growing congestion and soaring property prices that make owning a home in these locations unattainable for many.
“With improved road and rail connections, housing in suburbs such as Semenyih, Puncak Alam, and Rawang is attracting buyers (owner-occupiers) from the traditional hotspots.
“These locations offer a compelling blend of lower property costs, modern sustainable homes, and thriving communities with access to a diverse range of amenities such as retail malls, schools, and recreational facilities,” she said.
Ong said gated and guarded (G&G) communities are also becoming more popular as they provide security, privacy and exclusivity, especially for families prioritising larger living spaces, driving prices of such properties up.
“These townships are thoughtfully planned and self-sustaining with neighbourhood amenities, including schools, recreational facilities, and retail centres, to cater to the needs of the communities,” she said, pointing out that G&G communities are mushrooming in the outskirts of the Klang Valley, such as in Bandar Bukit Raja, Setia Alam, Puncak Alam and Semenyih.
Meanwhile, young professionals who prefer to be in the city usually prioritise rental affordability and proximity to workplaces, public transport, and lifestyle amenities.
“Suburbs such as Cheras, Kepong, Sungai Besi, and Bukit Jalil are gaining popularity due to their balance of affordability and convenience — thus driving growth in affordable and rental-friendly housing options in these neighbourhoods,” she said.
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One of the apartments under the Skim Smart Sewa programme, situated along Jalan Kapar in Klang. — Picture by SELANGORKINI[/caption]
Developers’ balancing act
Stakeholders in the property sector are also facing their own challenges. Ong said rising material and labour costs, coupled with high land prices, are putting pressure on developers to balance affordability with quality.
“In the Klang Valley, developers are addressing these issues by building high-density projects with fewer facilities to reduce maintenance fees and offering more affordable, but smaller, units.”
While government initiatives such as Rumah Selangorku (under the Selangor government) and Residensi Wilayah (under the Federal government) aim to boost homeownership, these schemes face challenges, including limited supply, construction costs, and less-than-ideal locations.
Ong said established urban areas such as Kuala Lumpur City Centre, Bangsar, and Mont Kiara, meanwhile, continue to attract affluent professionals and expatriates, maintaining their appeal through premium housing stock, international schools, and prime locations.
“Affluent areas often target niche audiences, including international investors, through strategic marketing campaigns.
“Government initiatives such as the revised Malaysia My Second Home programme and Malaysian Premium Visa Programme further support this trend by attracting foreign investors and residents to these developments.”
With the Klang Valley set to see further expansion and development, Ong anticipates that the property market will remain robust, though affordability remains a key concern for prospective buyers.
“Location is the key. Buyers could consider more affordable options in emerging suburbs like Rawang, Semenyih, and Sepang, rather than focusing solely on high-demand areas like Petaling Jaya and Shah Alam.
“Alternatively, if prime and key locations remain a priority due to accessibility, connectivity, and proximity to a wide range of amenities, home seekers may consider older properties in the secondary market.”
