Bangsar, regarded as one of the most important residential suburbs to the southwest of Kuala Lumpur, remains vibrant despite the current issues.
Despite the Covid-19 pandemic and many versions of the Movement Control Order (MCO) over the past two years, the upmarket neighbourhood continues to be bustling with traffic and consistent footfall as people flock to Burrow KL (for its fresh canelés) and Roberto’s 1020. (for its authentic Tuscan and Emilian dishes).
Bangsar is a hub for both business and recreation. Its offerings include shopping malls like Bangsar Shopping Centre, Bangsar Village, and Bangsar Village 2, as well as cafés like Jaslyn Cakes, Lisette’s Café & Bakery, and VCR Bangsar, as well as designer boutiques like Nurita Harith, art galleries, restaurants, and watering holes like Mantra Bar KL and Coley.
Due to Bangsar’s enduring allure, property values there have continually increased over time. Lou Minn Yian, head of capital markets at Laurelcap Sdn Bhd, states, “Bangsar remains a highly desirable destination, as indicated by the number of developers hunting for land bank in the area due to high demand and branding. The region has a strong link with prosperity and success.”
The residential suburb contains a diverse assortment of landed, non-landed, and commercial assets. On hilly terrain, luxury bungalows and apartments are frequently found.
The 1960s-built terraced residences in Bangsar sold for approximately RM18,000 in those days. Today, some of them are selling for at least RM2 million,” says Lou.
The executive director of Metro Homes Realty Bhd, See Kok Loong, states, “Bangsar attracts both investors and owner-occupants, including those seeking to upgrade to luxury real estate. As Bangsar is also one of the favourite places for expats, investment returns are excellent and vacancy rates are low.
50 years ago, Bangsar started off as a rubber plantation. Kuala Lumpur Rubber Co Ltd, a corporation with British ownership, recognised an opportunity and chose to plant rubber trees to capitalise on the commodity’s burgeoning demand.
“The rapid rise of motor vehicles in Malaysia and the demand for rubber for tyres, hoses, and seals contributed to this,” adds Lou.
Edouard Bunge and Alfred Grisar, two board members of KL Rubber Co., were honoured with the naming of the rubber estate where Bangsar is currently located. It became known as the Bunge-Grisar rubber estate, which was sometimes shortened to Bungsar estate, and finally evolved into the well-known Bangsar of today.”
Eventually, the plantation was acquired by the Belgian rubber and palm oil corporation Socfin. Where the new Pavilion complex is being erected in Damansara City was the rubber factory. According to Lou, the rubber plantations were sold in 1962 for approximately RM5,000 per acre to two property companies, Bandar Raya Developments Bhd (now BRDB Developments Sdn Bhd) and Bangsar Hill Developments, which began erecting residential units in the area.
The See for Metro Homes states, “The Bangsar Baru neighbourhood, which consists of 1,125 houses and a thriving commercial community, was established in 1974 by Eng Lian Enterprise Sdn Bhd. Bangsar became a residential area for baby boomers settling in Kuala Lumpur throughout the 1970s.
Subsequently, when the following generation grew up and became part of the city’s youth, Bangsar became a desirable location in the 1980s, with companies such as Lever Brothers and Sistem Televisyen Malaysia Bhd contributing to the demographic growth, he says.
Bangsar is located approximately 4 kilometres from the KL city centre and is part of the Lembah Pantai parliamentary seat; hence, it is governed by Kuala Lumpur City Hall (DBKL). The neighbourhood is situated to the north and south of Pantai Dalam and Damansara, respectively, and is bounded by Jalan Bangsar and Jalan Pantai Baharu (to the south), the University of Malaya (to the west), Jalan Damansara (to the north), and Bukit Persekutuan (to the east) (to the east).
Increasing prices and demand
Bangsar is separated into a several neighbourhoods, particularly Bangsar Baru, Bukit Bangsar, Bangsar Park, Bukit Bandaraya, Taman SA, Bangsar Utama, Lucky Garden, Pantai Hills and the sections along Jalan Bangsar. The primary street of the residential suburb is Jalan Maarof. On the east side of Jalan Maarof are the neighbourhoods of Bukit Bangsar, Bangsar Park, Taman SA, Bangsar Utama, and half of Bukit Bandaraya, whereas the remaining neighbourhoods are on the west side.
Lou of Laurelcap observes, “The southeastern portion of Bangsar, specifically along Jalan Tanduk, Jalan Bangsar Utama, and Jalan Abdullah, should be monitored. The development tendency is moving in that direction.”
In Bangsar, it appears that landed properties, particularly terraced flats, remain extremely popular. “According to our analysis, the demand for terraced homes will climb in 2019 and beyond, but bungalows and detached homes have experienced a little dip over the past two years. Since 2019, condominiums have also experienced a minor increase in demand, she notes.
See believes condominiums are the most popular sort of real estate in Bangsar. “In Bangsar, demand for all forms of real estate is strong. Nevertheless, high-rises are currently the most popular, as safety has become a primary issue.”
RM1.15 million to RM3.4 million were paid for condominium apartments in Suasana Bangsar Condominium in Lorong Kaloi, Bangsar Heights in Jalan Tandok, and Palmyra Bangsar in Jalan Medang Tandok, he says.
According to Lou, landed residential apartments can get RM736 psf and above, with an average monthly rent of RM2.40 psf and a yield of 3.9%. “The average price for non-landed units is approximately RM718 psf, with an average monthly rent of RM2.80 psf and a yield of approximately 4.6%.”
She says that the average price for commercial apartments is RM1,141 per square foot, with an average monthly rent of RM5.50 per square foot and a yield between 5.5% and 6%.
Despite the lack of land and the market’s sluggishness, Bangsar continues to see new construction. The upcoming debut of BRDB Development’s One Eleven Menerung next month is a notable endeavour.
The 23-story tower is scheduled for completion in 2026 on a 0.83-acre freehold site adjacent to the Pusat Bandar Damansara MRT station. The low-density residential development will have 111 units with built-ups ranging from 997 to 3,705 square feet and selling prices beginning at RM1,800 per square foot.
Lou presents a newly-launched project by City Motors Group of Companies: the 42-story mixed-use building Alfa Bangsar, which includes a hotel, serviced apartments, and retail facilities.
“The location is on Jalan Tandok, which is adjacent to Jalan Maarof. The hotel will feature 220 rooms on 10 storeys, while the serviced flats will encompass 178 units on 24 floors. There will also be shop space on the podium level.”
The RM450 million construction will be completed in 2023 and is situated adjacent to Hap Seng Land’s Nadi Bangsar.
Along Jalan Abdullah, she also spotlights a 32-story, 172-unit serviced apartment project by Mega Capital Development Sdn Bhd.
UDA Holdings Bhd’s serviced apartment 38 Bangsar is another future project in Bangsar, according to See. The leasehold construction is located between Lorong Maarof and Jalan Bangsar Utama and will feature 281 units with built-ups ranging from 580 to 1,442 square feet and priced between RM758,000 and RM1.9 million.
“Setia Federal Hill is a major future project by S P Setia Bhd. It is situated between Bangsar and Federal Hill, he continues.
“Bangsar Hill Park Development Sdn Bhd will construct a 57-story serviced apartment with 812 units at Bangsar Hill Park. It involves the renovation of the Bangsar Utama KTMB Quarters. “PHB Bhd has also constructed a mixed-use commercial complex on Lot 20001 along Jalan Riong,” says Lou.
Land shortage and perspective
According to the specialists, there are a number of long-term variables that will increase the property values in Bangsar. “In terms of key factors, the land titles are freehold and the population is prosperous. “There is also an excellent road network leading to key highways such as the Federal Highway, Sprint Expressway, and Kerinchi Link,” Lou explains.
Jalan Bangsar is the location of the Bangsar LRT Station on the Kelana Jaya Line, in addition to other neighbouring stations such as the Kerinchi, Universiti, and Abdullah Hukum LRT stations. Bangsar is accessible by the Federal Highway, the Sprint Expressway, the New Pantai Expressway, the New Klang Valley Expressway, and the Damansara-Puchong Expressway.
“Bangsar’s [strategic] location is crucial, and it is also an upscale neighbourhood,” says See.
Despite being a wealthy residential community, there are a few concerns. “One of the most significant obstacles in Bangsar would be security. There have been numerous instances of robbery and snatching. In addition, there are less gated and guarded landed complexes and less green space,” explains Lou.
See highlights the issue of land scarcity in Bangsar. “There is insufficient land for additional growth, and redevelopment is nearly impossible due to a land legislation requiring 100 percent ownership in order to redevelop a historic structure [which is improbable for a strata development with several owners].
There are few undeveloped parcels of land remaining in Bangsar. There is only a modest parcel for a bungalow development on Jalan Penaga, and one or two lots for a high-rise development on Jalan Kapas.
See agrees with Lou. With the exception of unoccupied bungalow lots, there is very little land available for development in Bangsar, especially in the Medang Tanduk region. Any remaining development land in Bangsar would be owned by prior area developers such as BRDB Developments and Eng Lian.”
Despite this, the advisors appear optimistic regarding Bangsar’s overall prognosis.
Over the past ten years, property values in the region have increased moderately. Despite the epidemic, consistent values have been seen. Lou anticipates that Bangsar’s property prices will continue robust in the future.
“The outlook for Bangsar is positive. In the next one to two years, values may stabilise due to the epidemic and weak economic conditions. See predicts that the market will improve and appreciate further during the medium term.