Limited demand for Putrajaya homes

PETALING JAYA: The lack of a privateownership option has limited the demand for homes in Putrajaya. About 70% of the properties there are made up of government housing and buildings with the majority of residential properties in the nation’s administrative centre housing top-ranking officials and government servants working there. Currently, Putrajaya has a population of about 70,000.

Although the area witnessed tremendous growth in the past, Metro Homes Sdn Bhd director See Kok Loong (pix) said that this has slowed down of late as the government has shifted its focus to the development of the economic growth corridors including the Iskandar Development Region (IDR), Northern Corridor Economic Region (NCER) and Eastern Corridor Economic Region (ECER).



According to master developer Putrajaya Holdings Sdn Bhd, the 12,184-acre freehold township is divided into 20 precincts, out of which 15 are residential enclaves. Catered to the mid- to high-end market, properties offered in Putrajaya include 2- and 2 ½-storey terraced, semi-dees and bungalows.

“Prices range from as low as RM280,000 to RM2 million for the bungalows located in Precinct 8 and 10,” said Putrajaya Holdings corporate communications senior executive Eddie Khalil Hasbullah. He added that some 52% of the homes in Putrajaya are allocated for government quarters with the rest for public housing.

However, See said the property prices there are higher compared to other developments in the vicinity. A 2-storey terraced house is valued at more than RM300,000 in Putrajaya, while a similar unit is going for RM290,000 in Puchong, and RM280,000 in Seri Kembangan, located 20 and 10 minutes drive away respectively.

“The prices are not market driven, but instead follow the benchmark set by the master developer (Putrajaya Holdings) that has a monopoly there.

Hence, there is little or no room for price adjustments for the other property players there, which includes SP Setia Bhd, PECD Bhd, Guocoland (M) Bhd, and E&O Property Development Bhd,” he said.

Putrajaya is well connected to the city centre and Kuala Lumpur International Airport (KLIA) via an extensive network of major highways including the KL-Seremban Highway, Damansara-Puchong Highway (LDP), North South Central Link (Elite), and the recently opened KL-Putrajaya Highway.

See said, although the township comes with good accessibility, it will require additional basic amenities to draw people to reside there. “The residents need (more) education institutions, food outlets, shopping options and medical facilities to promote community living,” he added.

He said that there are very few units available for sale or rent in the secondary market, as the returns for the residential properties in the area are fairly low. “Price appreciation for the homes was about 2% within the last two years while fetching rental yields of only 3%,” he explained.


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From data sampled in the theSun/Metro Homes Putrajaya housing price monitor for the period between November 2007 to January 2008, a 2-storey terraced house in Precinct 11 with a lot size of 22ft by 75ft and a built-up of 1,800 sq ft was priced between RM300,000 and RM320,000. Meanwhile, a 2-storey detached house in Precinct 10 with a lot size of 70ft by 92ft and a built-up of 5,000 sq ft was transacted for between RM1.5 million and RM1.6 million.

Where rentals are concerned, a 2-storey corner terraced house in Precinct 14, with a lot size of 22ft by 75ft and built-up of 1,800 sq ft can be rented out for between RM1,300 and RM1,500 a month. In Precinct 9, a 2½-storey semi-detached house with a lot size of 40ft by 80ft and built-up of 3,600 sq ft is tenanted for between RM2,000 and RM2,200 a month.

By theSun