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Sunday, April 22, 2012

Shang Villa, Kelana Jaya - A Review

In my quest to find a reasonable residential property with good potential for capital appreciation, I researched many, many properties, and finally came upon Kelana Jaya.  This area was suggested to me by the seasoned property investor sinleong.

Sinleong recommended Kelana Jaya around SS7 area due to the fact that Paradigm mall is being built there, which will bring up the Live and Play factors. In addition, Kelana Jaya itself is home to many offices and also close to PJ where people work, live and play.   When I went to survey the area, I also found out that potentially the new KJ LRT extension will have a station somewhere near Kelana Centre Point (researched by Horlic).  

Also, I looked for freehold properties since Kelana Jaya is a predominantly leasehold area and my search turned up Shang Villa, Kelana Parkview and Kelana Sentral.

Further research took me to Shang Villa for a closer look.  A note about the freehold status here, this condo was previously leasehold, and got a conversion to freehold status as confirmed by the developer and the land search.  I was attracted to Shang Villa as it is located within walking distance (700m) to the Kelana Centre Point which is the presumed new LRT station location.

The guardhouse entrance has a card entry system for pedestrians.  The green grounds inside are wide and spacious.  The clubhouse is a short walking distance from the two Blocks A & B.  The clubhouse contains a decent-length swimming pool, a restaurant, a mini market, a hair salon, a squash court and a sauna. The clubhouse looked well-maintained.  I checked out the clubhouse toilet and it was clean. The fact that the mini market, hair salon and restaurant are in business attest to the decent occupancy rate at Shang Villa. 

Guardhouse post

Wide open space with green grounds inside

Walking distance to Manipal University

More greenery

Clubhouse facilities which include a decent size swimming pool

...and a squash court

The thriving mini market

So in my opinion, this is a good location due to:
1. Kelana Jaya is a good area where people work, live and play, although I am not sure about the number of young families staying in this area though.  It seems to me the occupants are working people.
2. Paradigm mall and potential LRT station factor
3. Freehold
4. Rental rate now going for RM1600-2000 (based on asking prices in websites)

Other factors to research:
1. Occupancy mix  (was told that MAS staff and badminton players always rent to stay here, not sure about others)
2. When is the repainting going to start and finish - that will bring up the image of the property which I think had not been repainted since its completion in 1997/98.
3. Actual occupancy rate - 1 agent told me it's 80-90%, but then we must do our own research.

Hope any owners/ tenants in Shang Villa can answer some of these questions.

Updated in June 2013:
Ok, disappointingly, the LRT station is built across the road from Kelana Business Centre.  Hopefully there will be a pedestrian access or shuttle buses to serve the residential area.

Image fromhttp://www.starproperty.my/index.php/articles/investment/starpropertys-map-of-lrt-extension-stations/


  1. Dear Haruki,

    Thanks for the detailed sharing. Mind to know Shang Villa is mainly occupied by which race ? Are you able to get below RM350k ? As it would difficult to generate positive cash flow about that price.

  2. congrats for the new investment, haruki. let the money comes...

  3. Beh, agree with you that it is quite difficult to get below 350k, with asking prices shooting up above 400k.

    Anie, need advice on the balconies then... sifu DIY.

  4. hi

    actually i want to ask opinion.
    my friend rent a unit at this condo..it has 4 bedrooms..she invite me and my friend to join her and altogether is 11 people..i think, if we stay there, that place is so crowded.. but, she convince us saying that unit is big. and wide and suitable for 11 of us.. that unit is unfurnished ( only has kitchen cabinet).. i didnt see that house yet but i already had been told about the house's condition..
    hope, u give me an opinion..i am really appreciate it..sorry to disturb u..

  5. Hi Twinkle Star,
    Unfurnished units with 4 rooms probably are >1200 s.f, and rent is probably around RM1500 (check the rent listings). So if there are so many people sharing, the rent is probably very cheap. It is a matter of your own decision if you want to save on the rent expenses and trade it for comfort. If you could afford more rent, then have less people share. I think 4 housemates in 4 rooms would be quite comfortable.