Friday 29 Mar 2024
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This article first appeared in City & Country, The Edge Malaysia Weekly on December 19, 2022 - December 25, 2022

Nestled in a peaceful residential enclave in Taman Desa, Kuala Lumpur, are two rows of shops. Separated by a small alley, the 10- and 12-unit blocks in Jalan Bukit Desa 5 face a linear recreational park and playground. Across the park are high-rise condominiums — namely Bukit Desa Condominium, Desa Villa Condominium and the recently completed Millenia Residence. Behind the shophouses are terraced houses.

Being in a typical residential neighbourhood, the stretch has been home to a laundry shop, a hair salon, a pharmacy, a veterinary practice, cafés and offices. In recent years, trendy cafés and pâtisseries such as Red Kettle, Kews Pâtisserie and Café Superfluous have set up shop.

“The profile of the tenants has changed in recent years. This adds sophistication and variety to the incumbent Encore Pâtisserie Café that has been there for quite a number of years now,” says Nawawi Tie ­Leung Real Estate Consultants Sdn Bhd managing director Eddy Wong.

Eateries with a longer presence in Jalan Bukit Desa 5 include Charlie’s Café & Bakery, which is best known for its chicken chop, and Sanuki Udon, which has moved from the ground floor to an upper-floor unit several doors away, Wong notes.

The latest addition to this stretch is Le Deli Gourmet Foods Store, which opened in May, he adds.

“Besides the residents of Taman Desa, those living in the neighbouring suburbs do come and patronise the shops too due to their accessibility and connectivity. As a pâtisserie and café hub, these shops have a fairly wide catchment market as they present an ideal setting [for one] to enjoy conversations with friends over coffee and pastries,” says Wong.

Due to the location and limited number of units, the occupancy rate is healthy. Sale transactions have been limited, with the last sales recorded in 2013. A ground-floor shop with a floor area of 1,776 sq ft was transacted for RM1.65 million, or about RM930 psf, says Wong. A slightly smaller shop unit with a floor area of 1,184 sq ft was transacted at RM930,000, or RM785 psf, he adds.

In terms of rent, Wong notes that a ground-floor shop in Taman Desa in general can fetch between RM6,000 and RM8,000 per month, depending on the location and frontage. “A unit of between 1,500 and 1,650 sq ft can fetch rents of RM4 to RM5 psf. Yields would be 3.5% to 4.5%.”

Wong notes that the residential properties around the shops are either freehold or leasehold. Recent sale prices of intermediate freehold terraced houses range from RM950,000 to RM1.18 million while those of intermediate leasehold terraced houses range from RM780,000 to RM1 million.

“Due to the age of the properties, condition and degree of renovation vary greatly, but generally, the prices are on an uptrend. In fact, there is a leasehold terraced house in Jalan Bukit Desa 6 that was resold at a RM200,000 premium to the first transaction about five years ago,” he says.

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