This is a mesmerising example of an emerging gem of a neighborhood.
I’ve been analysing a number of emerging areas in Kuala Lumpur to see which areas to pay more attention to and I think I’ve found a gem in Maluri, KL.
I’ve always been a fan of emerging areas with massive growth potential and I’ve shared about the difference in investing in mature versus emerging markets. Even so, I would like to caution that not all grand masterplans will be completed as planned and hence the risk could be greatest at the earliest entry point. So what’s the best bet? Wait a little; the first movers aren’t always the best movers. In fact, there have been so many incidences of the first movers being the biggest losers. Then what should we wait for? Signs. Signs of genuine transformation starting to take shape with strong government and private sectors genuinely getting involved. Too often, private developers plan to create a new masterplan with grand dreams but those plans aren’t backed by the government with infrastructure support, transformation and growth plans or vice versa and things just don’t get going. When that happens, the first movers suffer. As such, it’s much better to wait and see how such masterplans pan out and build up some momentum before jumping in. When that happens, it’s never too late to enter the market as long as it has not reached complete maturity.
Here are the three major factors out of so many considerations as to why I think you cannot go wrong investing in good developments in Maluri.
• Picking Up Good Momentum
Retail success in today’s challenging retail climate is always a good indicator of an area’s genuine growth. As it is, even malls close to KLCC are experiencing challenging times. Aeon Taman Maluri Shopping Centre has recently undergone a facelift and had its total retail space increased by 50%. Meanwhile, Sunway Velocity Shopping Mall is averaging 1.1 mil visitors per month with increases of up to 1.3 mil visitors during festive months.
• Benefits From Neighbouring Masterplans
The Maluri MRT Station is just a stop away from MyTown, Tabao Physical Store and IKEA. It is situated two stops away from TRX which will have an expected working population of 500,000 people; most of whom would not be able to afford living in the TRX area itself but would happily settle in to stay at Maluri. At the same time, the newly approved RM140 bil masterplan of Bandar Malaysia where the High Speed Rail (HSR) will also be situated is going ahead as planned which will create significant amounts of jobs. The spillover effect from all these growing masterplans within one to a few stations stop away from Maluri would definitely have very telling impact on the demand for properties in Maluri.
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• Demand From Chinese Investors and Migrants
It’s not a secret that the mainland Chinese are the world’s number one buyers of overseas properties. In many cities around the world, Chinese demand has caused property prices to increase astronomically. This makes Maluri an even better prospect as it has already been proven to be a very popular place for the Chinese because of the factors I’ve mentioned earlier including other considerations like good international schools, healthcare facilities, etc. Just take a stroll around Sunway Velocity and you’ll understand what I mean.
As I’ve mentioned earlier, investing in an area where there are clear signs of genuine progress negates the risks connected with completely new areas that may not go the way as planned as seen in many other examples. Coupled with the Maluri MRT (mass rapid transit) station, schools, successful malls, etc and including tangible population growth happening, Maluri is not a gamble but a very good bet.
EXISTING KEY FACTORS
• Successful model despite the current lacklustre retail climate.
• Aeon Maluri needed to expand the mall by 50%.
• With a new modern retail hub ambience, patrons can now look forward to visiting the refurbished Aeon Taman Maluri Shopping Centre – now known as Aeon Style Taman Maluri department store in Kuala Lumpur.
• Having undergone a major facelift after three decades, the shopping centre was recently painted and has expanded its retail space by 50% to encompass 450, 000 sq ft on top of having a good mix of 122 tenants.
• Sunway Velocity Mall registers approximately 1.1 mil visitors a month with visitors increasing to over 1.3 mil during festive months.
The mall’s current occupancy is at roughly 99%.
KEY GROWTH FACTORS
Bandar Malaysia 2019 – 2039
– 486 acres
– RM 140 bil
– Job opportunities worth RM 50 bil (According to year 2017 data)
– High Speed Rail (HSR) Station
Prime Minister Tun Dr Mahathir Mohamad says the development will house a HSR station, as originally planned.