Bangsar – Whats the Attraction? Posted : on 10/3/15
Bangsar has always been a point of reference when comparisons are made with other housing developments. So the question is, what is it that makes Bangsar such a sought after location that in turn, has moved property prices upwards year after year.
Bangsar is a classic example of a housing development that caters to the middle income and the affluent. The amenities available at Bangsar, caters to a lifestyle that many are comfortable with or seek to associate themselves with.
There are many factors that make Bangsar a favourite location. First and foremost is its proximity to the city centre and it accessibility to the highways. Its strategic location was what initially attracted many house buyers, however over time it also evolved into a neighbourhood that offers residents a lifestyle that is vibrant and sought after.
The shopping complexes, classy restaurants, bars, boutiques, showrooms and a host of other lifestyle conveniences has also turned this neighbourhood into a branded destination.
It can be said, that it is a location/neighbourhood that many want to associate themselves with, as it is deemed to be branded, which in turn offers the stature that many wish to associate themselves with.
Bangsar’s perception, as an affluent neighbourhood with trendy life style conveniences has had a dramatic effect on property prices. The more recent developments in Bangsar have breached the RM 1,000 per sq ft selling prices and prices are only moving upwards. Most of the other surrounding neighbourhoods are generally benchmarked by the values in Bangsar.
From a property investor’s perspective, Bangsar is deemed to be a “Safe Haven” , investors may not see dramatic spikes in property prices but are comfortable with the assumption that in the longer term, prices will move upwards. There’s no need for statistics and analysis on property prices at Bangsar as the average man on the street generally has a pretty good grasp of the previous and current property prices.
For the savvy investor, if “Return On Investment” is your investment model, (where annual rental return is 6 to 7% of your purchase price) then Bangsar is definitely not the location for you. The rental values and the selling prices do not match for this type of investors. On the average, an annual return of 4% will be considered good. Properties in Bangsar are generally easy to rent, so one can be rest assured that your property will not be lying vacant for long periods of time.
Investment in Bangsar is merely for Capital Appreciation. This means you will need to hold the property for at least five years before you realize a respectable margin of profit, this is not a location for Flippers. (an investor who buys and sells properties in a short period of time).
In conclusion, if it is your long term plan to purchase a property for own stay and then sell and upgrade into a bigger and better property in the longer term, then Bangsar is the location to consider as it offers a favourable lifestyle, good capital appreciation on your property and the peace of mind that properties in Bangsar remain stable even in situations where the whole market is experiencing a correction. (eg, Financial Crisis 1997).