In the old days, the development moved linearly, usually following the infrastructure in particular roads. It was more organic and slower. There are always many causative contributors that form the market forces in modern times. Population and income increments create lifestyles and force the demand to rise, creating more trade. With this comes the infrastructure to support the new sophisticated need of the masses.
Petaling Jaya started as a squatters’ colony back in the 1950s with about 1,300 wooden settlements. It multiplied on the back of the industrial activities fueling the rise in population and demand for property. By the 1970s, the population of Petaling Jaya had grown to just under 200,000 people and around 10,000 houses. The town snowballed in the 1980s to 500,000 people with about 100,000 homes spread over an area of 97.2 square kilometres from the original 42.2 square kilometres.
Subang Airport was opened in August 1965, replacing the Sungai Besi Airport. Coupled with the ports of Klang, it provided a catalyst for a property boom around its surrounding area – Kelana Jaya, Subang Jaya, Shah Alam and the Town of Klang itself. Fast forward to 1990s, KLIA was born alongside Putrajaya and Cyberjaya. The property boom is also measured by the rise in land value across the spectrum of property development, specific for this article – the Industrial Land. The following table briefly shows the land prices in the respective areas from Klang District to Port Dickson, Putrajaya / KLIA, which is the pivot of catalyst for growth.
The following figures show the differences in values per square foot between the selected areas and the Klang District.
The new growth areas south of Klang District, right down to Port Dickson (a town that seems to have disappeared from the radar), are being upgraded. My take is that there is much money to be made in the future golden triangle in the coming decades. Moreover, never forget Port Dickson again.
This article was written by Irhamy Ahmad, Founder and Managing Director of Irhamy Valuers International.
Real Estate Valuation and Consultation for Small & Medium Enterprises: IVI Valuers International
