Shah Alam was the first planned city in Malaysia after independence from Britain in 1957. It was once known as Sungai Renggam and was noted for its rubber and oil palm estates. Shah Alam has a total area of 290 sq km, with a current total population of about 750,000. It has a similar urban layout to Petaling Jaya or Subang Jaya, with housing areas occupying most of the city and commercial centres scattered around the different ‘Seksyen’ (sections).
Shah Alam is one of the preferred housing locations for Malays because there are vast tracts of Malay Reserved Land and the city is equipped with various Muslim-friendly facilities such as Islamic Montessori schools. The area is ideal for own stay or investment with long-term capital appreciation in mind, but less suitable for investors looking for a quick buck in rental yield. Landed properties make up the majority of Shah Alam’s housing market and are mainly owner-occupied, with terraced homes being the most sought after. Prices of two-storey terraced houses in Shah Alam range from RM400,000 to RM1.45mil depending on the built-up area, location and tenure.
However, that is not to say that the rental market is weak. Industrial parks that offer job opportunities and a steady student population contribute to the strong rental demand in the area. With a balanced mix of property and infrastructure developments, the industrial segment has benefited from Shah Alam’s growth.
Based on our Estate123.com analytics, Shah Alam is the second most-popular place searched by visitors. What makes it even more interesting is that the search results seem fairly equal between commercial and residential, as well as properties for sale and rent, which suggests that Shah Alam is indeed a hotspot for buyers and renters looking for commercial and residential property here. Shah Alam property is still relatively affordable compared to Kuala Lumpur, and its good connectivity to the rest of the Klang Valley makes it an ideal location for owner-occupiers and businesses.
In the last two decades, the market began to see a rise in demand after the completion of several highways that opened up the area. It is now well connected to other main cities in Klang Valley via a network of major highways, namely the Federal Highway, New Klang Valley Expressway (NKVE), Shah Alam Expressway (KESAS), Guthrie Corridor Expressway (GCE), North–South Expressway Central Link(ELITE) and the newest highway Kemuning–Shah Alam Highway (LKSA). The future LRT3 is expected to further improve connectivity and boost the property market here.
The maturing of central Shah Alam has prompted developers to shift their focus and expand to the northern and southern regions. Most of Malaysia’s major property developers have projects in Shah Alam, including Kota Kemuning by Gamuda Land, Bukit Jelutong and City of Elmina by Sime Darby Property, iParc by Mah Sing Group, Setia Alam by SP Setia, Eco Ardence by EcoWorld, and i-City by I-Berhad. Other notable developers include Paramount Property, OSK Property, Naza TTDI, MK Land, Sunsuria Bhd, KEN Holdings, PKNS, and Malton Bhd, just to name a few.
First Published on: Estate123
