ARE some owners of buildings and shoplots along Jalan Tuanku Abdul Rahman (Jalan TAR) selling their properties because of the decision by Kuala Lumpur City Hall to turn one of the city’s busiest shopping streets into a pedestrian walkway?
Are they selling because they are worried that lease and sale prices will drop going forward?
CBRE|WTW Malaysia managing director Foo Gee Jen said properties along Jalan TAR and Jalan Masjid India command one of the highest commercial rentals per square feet (psf) in the Klang Valley.
He said the rental for a typical shoplot fronting Jalan TAR measuring 1,760 sq ft and in Jalan Masjid India is about RM30,000 a month currently.
A nicely done-up four-floor shoplot with modern facilities can fetch about RM60,000 to RM70,000 in rental a month.
Jalan TAR — flanked by pre-war buildings with unique features that have been preserved— are occupied mainly by textile traders and those selling household items, wedding decorations and shoes.
The stretch of the road that will be closed is from Jalan Esfahan to the Jalan Melayu intersection, covering about one kilometre. On this stretch are some of the retailers, such as Kamdar, Gulatis, Sarah Hughes @ Globe, Harisons, Nagoya Textiles and Muaz Textiles.
Nawawi Tie Leung Property Consultants Sdn Bhd executive director Brian Koh said prior to the road closure announcement, there were hardly any transactions involving properties along Jalan TAR.
“There is nothing to note except for two pieces of development land sold at between RM962 and RM2,654 psf prior to 2019. There was also a shophouse that sold at RM2.85 million. But moving forward, there may be more activities in the market,” he told NST Property.
Koh said rental rates are higher for the properties facing Jalan Masjid India than the ones along Jalan TAR.
“I think rental rates will increase because there is improvement in the area on the assumption that it has been successfully implemented.”
MULTIPLE ASSETS SELLING NOW
Interestingly following reports in January that part of Jalan TAR will be closed effective tomorrow, an owner has put up for sale a two-storey shop for RM23 million, or RM10,000 psf.
The freehold property with floor size of 2,300 sq ft is currently tenanted for RM90,000 a month. A 4.5-storey building (30,000 sq ft) is selling for RM17.8 million or RM596 psf, while a 15,000-sq-ft five-storey shop office is asking RM16.8 million, or RM1,120 psf. These buildings have been listed for sale since more than a month ago on propertyguru.com.my.
Also listed on the portal is a five-storey building with built-up of 12,800 sq ft and is said to be located near Kamdar and Nagoya has the owner looking to sell it for RM13 million.
Meanwhile, according to the PropertyGuru portal, Wisma Tancom is also up for sale and the owner isaskingRM35million orRM1,367psf.
The building, with floor size of 25,600 sq ft, has seven floors, a basement and rooftop.
Also selling is a seven-storey building in Jalan TAR for RM47.8 million, or RM1,409.74 per sq ft.
The building has a built-up of 33,907 sq ft and is said to be fully tenanted at RM159,000 a month.
The GSH by Gulati’s, which sells fabrics and furnishings, is also believed to be selling at about RM50 million, or RM1,413.75 psf. The seven-storey plus one basement retail commercial building has built-up of 39,365 sq ft.
Bangunan TAR, a 60,220-sq-ft office building, is on the market for RM42.3 million, or RM702.42psf.The freehold 10.5-storey property is currently being rented out for RM160,000 a month.