I’m going to write a series of articles where I list some of the best areas of Kuala Lumpur, and give reasons why I like the areas, and also give the negatives of the area.

An easy one to start with is Damansara Heights. That’s the area we’ve done most of our developments to date.

Damansara Heights is perhaps the most exclusive residential area in KL, and thus also Malaysia. It’s home to many senior politicians, regional CEO’s of multinational companies, plenty of wealthy businessmen, as well many less well off people who have had their home in Damansara Heights for decades.

Damansara Heights is often somewhat of a disappointment to my European and American friends. When I tell them that this is the place to live in Kuala Lumpur, many are a little surprised because they can’t believe how ordinary it looks. That’s partly because many houses are run down.They can’t believe that most semi-d’s in Damansara Heights, in pretty average condition, would fetch over US$1m.

Damansara Heights biggest strength is its location. Less than 15 minutes from the KLCC, it is also right next to Bangsar, Mont Kiara and also has easy access to Petaling Jaya including amenities such as the Curve, Ikea, 1 Utama, etc…

It is sandwiched between all the important parts of KL and PJ, and because it’s sandwiched it means it can’t grow in size. That means supply is not increasing. There are a few thousand homes in Damsansara Heights today, there won’t be many more in 50 years time. But demand is increasing every year as Malaysians are getting richer, and KL’s population increasing. That is the simple reason why prices keep rising every single year – not much new supply and plenty of more demand.

You will hardly ever be stuck in a traffic jam within Damansara Heights, and that’s a pretty important positive of the area. I can’t think of too many areas in KL where you can say the same thing.

The residents association has done a great job of limiting crime as well as bringing the residents together to form a community. I know many of them and they’re an amazing team of really committed people.

In terms of long-term investment, Damansara Heights is absolutely great. Not only do we have the limited supply vs ever increasing demand meaning higher and higher prices, but the area is being gradually redeveloped. Each old house that is bought will 2 years later be a beautiful new or renovated home enhancing the entire street. In 10 years time Damansara Heights will thus be an even nicer area than it is today.

In terms of what to buy the smaller houses make the most sense from a rental yield perspective as do houses with swimming pools. The only way to get a fairly good rental yield (over 4%) is by targeting the expat crowd. Most buyers who are looking for their own stay are looking for larger units to redevelop into their dream homes.

There are a few condo developments in the area too. Rental yields are around 6% for well-maintained blocks, which is lower than many other areas, but the limited supply of future condominiums means that you can expect higher capital appreciation of your condominium unit.

The area is a great a solid defensive investment play. Malaysia could be going through a major recession but owners in Damansara Heights are seldom desperate sellers because most owners do not have much debt on their houses.

I expect prices in Damansara Heights will rise quite sharply in the next few years, if Malaysia’s economic recovery continues, despite the fact prices are already so high. Supply is extremely limited with owners demanding significantly higher prices than a few years ago. Most owners expect prices to rise and so they are not in any rush to sell.

So what are the negatives of this area? Well, it’s a little dead for some people. The nearest supermarket is in Bangsar or Mont Kiara. There isn’t much or anything to do in the area itself. There isn’t even a park in the area or even nearby which is a real shame. And there are lots of old houses, including plenty of abandoned ones, so it doesn’t feel nearly as nice as newer areas such as newer areas such as Country Heights Damansara or Tropicana. And the area is not gated which is becoming increasingly important for many people as Malaysia’s crime problem continues to get worse.

In summary Damansara Heights is perhaps the most sought after area in KL. It doesn’t feel as expensive as it is because many of the houses are old. Its main strengths are its location and the limited supply. Properties in the area are great defensive investment, and rental yields are strongest for smaller properties with swimming pools. Prices are high, but I expect them to rise quite sharply if Malaysia’s economic recovery continues.

In Malaysia, the Group develops mid-range to high-end housing, particularly condominiums and service apartments. We also focus in landed properties and commercial properties i.e. shop office and shopping mall. To-date, the Group has a total land bank in Malaysia of approximately 500 acres, which included both current developments and land bank of undeveloped land and most of the land strategically located in Kuala Lumpur and Johor Bahru.

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KLCC Property Holdings Berhad (KLCCP) was incorporated as a public limited company on 7 February 2004. KLCCP owns a diverse property portfolio largely within the KLCC Development comprising office buildings, a leading shopping mall and luxury hotel.

The subsidiaries of KLCCP include Arena Johan Sdn. Bhd., Kompleks Dayabumi Sdn. Bhd., Arena Merdu Sdn. Bhd., Impian Cemerlang Sdn. Bhd., KLCC Parking Management Sdn. Bhd., KLCC Urusharta Sdn. Bhd., Asas Klasik Sdn. Bhd., Suria KLCC Sdn. Bhd. And Midciti Resources Sdn. Bhd. KLCCP also has 33% equity interest in Impian Klasik Sdn. Bhd.

KLCCP’s strength is reflected through its premium assets centred in the KLCC Development, one of the largest integrated real estate developments in the world. KLCCP, with its niche position in property investment and facility management services, will continue to grow its earnings potential by building on the strength of its premium assets, maintaining high standards in its operational performance and exploring prospects for sustainable progress.

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The company is now managed by Dato’ Jimmy Lim Thaw Chay. He is a chartered accountant by profession and was a former managing director of Arab Malaysian Corporation Bhd (AMCORP). He has wide experience in finance and property developments. He has been actively involved in the completion of Megan Ambassy Phase1 that is 20 Storey Hotel & Serviced Apartment Tower Block & Megan Ambassy 7 Storey Mixed Development Block.

The company is now embarking into Phase 2 of the development of Megan Ambassy that is a block of 51 units Luxurious Apartments know as Mei on the Madge.

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