Text : Eunice Ng

Cheras is one of Kuala Lumpur's bustling suburbs, located to the south east of Malaysia's capital city. It is adjacent to Ampang to the north and Kajang to the south. But parts of Cheras lies in the vicinity of the state of Selangor, called Cheras, Selangor.

Cheras, Selangor has been buzzing with excitement since news of the Mass Rapid Transit coming its way very soon. With that, the townships in the southern side will resemble a second Petaling Jaya (PJ), says K Toh, Senior Negotiator Executive from GS Realty Sdn Bhd.

By this year-end, Cheras, Selangor will have a few MRT stations under the newly proposed Klang Valley MRT Line 1 (Sungai Buloh-Kajang MRT Line). These few townships namely Bandar Tun Hussein Onn, Bandar Mahkota Cheras, Bandar Sungai Long, Taman Desa Baru and Taman Cheras Perdana, will benefit from development growth and convenience the MRT brings.

Currently, Bandar Mahkota Cheras and Bandar Tun Hussein Onn are experiencing a strong demand in the secondary property market especially for the two-story terrace houses, says KK Toh.

The demand for properties over here, she says, is spurred by the demand for properties with affordable prices. Well, it used to. And now, prices are slowly appreciating.

A two-story terrace house in Bandar Mahkota Cheras was priced at only RM230,000 in early 2010, she recalls. That, she says, represents an ideal price and location especially for young couples looking to settle down to start a family.

The same type of property in the older parts of Cheras like Taman Midah or Taman Maluri would have cost buyers in the range of RM400,000 to RM500,000 due to the bigger land area, she adds. Not only you have to pay a premium for the location, you have to fork out extra for renovation of the property.

In 2010, Bandar Mahkota Cheras was still empty and home-owners were slowly moving in. However, when AEON Jusco started its operations in April 2010, the prices of units keep on rising.

In the past, Bukit Mahkota Cheras was unknown due to its poor accessibility. The only way to reach the area is through Sungai Long. With the opening of the direct access road to this area, it inevitably opens up this side of Cheras to all walks of life from different parts of the Klang Valley.

The highways – Silk Highway and Cheras-Kajang Highway, continue to make Cheras, Selangor appealing and convenient for people to travel to other parts of the Klang Valley. For KK, direct access road into a township is very important; without it the area will remain unknown. Once there is convenient access, people will come, she says.

Now, the two-story terrace houses in Bandar Mahkota Cheras are valued no lesser than RM350,000 to RM400,000 due to the commercial value attached to it. According to KK, the new launches by developers in the area are selling in the region of RM400,000. Most units are sold out before the official launch with prices inching up another level even before the Certificate of Completion and Compliance was obtained and the keys given to purchasers.

On the commercial side, she notes investors' preference for the shop-lots in Bandar Mahkota Cheras. There is a lot of demand here, especially for the three-story shop-lots facing AEON Jusco but limited in supply.

"Owners are not willing to let go," says KK.

Before AEON Jusco began its operations, the two- and three-story shop-lots were priced around the region of RM600,000 to RM700,000. By end of 2010, it has shot up by double to RM1.2 million. Today, there are probably no units selling at a price lesser than RM1.7 million.

The price of a renovated unit at the three-story shop-lot facing AEON Jusco goes up to RM1.9 million whereas a basic unit is priced at RM1.8 million. Rental-wise, it can generate up to RM7,000 to RM8,000 per month, with an average rental return of 6% to 7%.

Having the MRT station at Bandar Tun Hussein Onn will spruce up existing housing areas. The amenities like shopping and medical facilities complement the mature location. The presence of Columbia Asia Hospital next to AEON Jusco and several banks that made their home here have spurred the commercial component further, contributing growth in Bandar Tun Hussein Onn.

Currently, young couples still finds the price range between RM300,000 and RM500,000 comfortable, says KK. Very soon, you can see the demand for properties in Balakong and Kajang areas picking up and slowly spilling to Semenyih, once prices are no longer considered affordable for the general masses.