Area Focus Ampang

Yes. Both of them.

By: Jotham Lim

HISTORY OF AMPANG

To better understand the Ampang region as a whole, it pays to learn about the history of the people living in the area who have shaped the culture of the community to what it is today. In fact, the glorious city of Kuala Lumpur that we Malaysians are proud of would not have come to fruition without the help of the district of Ampang.

Raja Abdullah, the first Ruler in the District of Klang, brought along a group of 87 Chinese workers to prospect the area for tin mining. Sadly, 69 of them died within a month due to malaria, but 150 more were sent to excavate the land. Soon, there were fewer deaths, and the first tin was exported in 1859.

With that came the booming tin mining industry which funded the development of the Kuala Lumpur region. There was rapid growth, which then gave birth to prominent leaders such as the famous “Kapitan Cina”, Yap Ah Loy.

A dam was constructed, stretching over from Bukit Belacan to a town area which we now know as Ampang Point. The Malay term for dam “empang” was mispronounced as “Ampang” by the Chinese tin miners, so much so that it became the official name of the region itself.

Ampang has its fair share of violence. The region was taken over by the Communists for 14 days during the end of World War 2. Within the period, Bukit Belacan was the site used to decapitate the heads of Japanese sympathisers and followers.

However, Ampang was excluded from making it into the leadership and wisdom amongst the community leaders which dribbled down to the Malay and Chinese communities during the 13th May riots in 1969.

AMPANG SPLIT IN TWAIN

Running through Kuala Lumpur City Centre, Jalan Ampang is probably one of the most famous and busiest roads in Kuala Lumpur. Lining on both sides are prominent business towers, embassies, celebrated hotels, shopping malls, and not to forget our national icon, the Petronas Twin Towers.

However, at Ampang Point is where Jalan Ampang is divided into two. Initially, under the jurisdiction of Selangor, the Ampang district was split in the year 1974 following the declaration of Kuala Lumpur as a Federal Territory.

The west of Ampang Point (also known as Ampang Hilir) is under the purview of Kuala Lumpur City Hall (DBKL), while the east is under the purview of Ampang Jaya Municipal Council (MPAJ).

IS AMPANG SAFE TO LIVE IN?

Homebuyers looking to move into Ampang might be worried about the crime rate in the area. After all, in early 2018, Ampang scored one of the highest in the Perception of Crime Indicator (PCI) amongst the districts of Selangor.

Crime Statistics for Ampang Jaya (2015-2017)

OVERALL CRIME STATISTICS

Overall crime statistics have dropped year-on-year which is a good sign for Ampang, despite a spike in violent cases in 2017.

But to truly understand how safe Ampang is, let’s compare it to Petaling Jaya, a city where the City Council itself admits to having the highest crime rate in Selangor*.

According to population data released by both city councils, the district of Ampang Jaya is relatively safe with 4.6 crime cases for every 1,000 residents compared to Petaling Jaya which has about 6.8 crimes per 1,000 residents**.

*This was revealed during a seminar hosted by MPPJ in October 2015 **Data collected from both city councils and Department of Statistics Malaysia

Who Are My Neighbours/Tenants?

WHAT DEFINES THE AMPANG REGION?

There are several pockets of large lakes spread across the region, a relic of the past from tin-mining days.

Over to the West, nature has taken centre stage with plenty of greenery in the area. Highlights include the Saga Hill and the Ampang Recreational Forest, a great weekend getaway for young couples and families. In the North is Zoo Negara Malaysia managed by the Malaysian Zoological Society and home to more than 5,000 animals from 476 different species.

Pre-war buildings line up alongside the famous Ampang Road, many of them renovated and modernised to suit a 21st-century lifestyle. No stranger to art and culture, The National Art Gallery is located in the DBKL downtown area and beside it Istana Budaya Malaysia’s cultural centre where performances and theatres are held.

Property Insight has also reached out to Ampang New Village Chief Mr Ho Hoong Chor to chime in his thoughts on Ampang.

“I have lived in Ampang New Village since birth for more than 60 years. The village’s Nine Emperor Temple has already existed for more than 100 years, way before I was even born. It started out as a small building but slowly expanded and modernised to what it is today.

I love Ampang’s rich culture and history and the committee has plans to turn Ampang New Village into a cultured heritage site. We are collecting, archiving and preserving all historical information about Ampang. Did you know that the Chinese term for “Am” in “Ampang” used to mean darkness rather than peaceful? Even the name of the district has changed over the years.

Now with so many rapid developments going on in the district, traffic in the area is slowly increasing. Our roads are not built for large amounts of traffic and I hope that there will be better road infrastructures in the future,” said Ho.

NEW ADDITIONS

Strangely enough, there are no new residential property launches in Ampang Jaya whatsoever. Jalan Ampang, however, has received a lot of attention from developers with plenty of new project completions and launches in the area.

You have NOVO, a luxurious 38-storey serviced apartment by Sheng Tai International Sdn Bhd and Alfranko Development Sdn Bhd that was just completed in December 2018 with prices coming up to about RM1,500 psf.

M City, another mixed development serviced apartment by Mah Sing Berhad, was fully completed in early 2017, having the added benefit of being situated closer and having better visibility from Middle Ring Road 2 (MRR2). Prices for units in M City start from about RM1,400 psf.

The newly launched Datum Jelatek is a mixed development project by Datumcorp International Sdn Bhd and it features the country’s first sky ring bridge. The project is scheduled for completion in early 2020 and has a starting price of RM1,341 psf.

IS IT A GOOD BUY?

To answer the key question that many readers have in mind, the answer is an astounding “it depends”. Ampang is a large town rich with diversity and answers will vary depending on location, demographic, and subjective individual taste.

What is objective, however, is cold hard data. We will focus mainly on Jalan Ampang as transactions and new launches are concentrated in the area.

WHAT DOES THE EXPERT SAY?

Datuk Paul Khong Managing Director Savills Malaysia - Global Real Estate Service Provider

Jalan Ampang is always known as the Embassy Enclave of KL. Over recent years, we have seen the British Embassy and French Embassy lands being sold at good prices above RM2,000 psf, subsequently planned for redevelopment. The Thailand, China, and Russian embassies are still sited here along Jalan Ampang.

Over the entire stretch of Jalan Ampang - Embassy Row from DoubleTree Hilton through Gleneagles Hospital, we see varied mix usage commercial projects. Many existing developments here have basically out-lived their existing economic life, with parts looking a little tired.

Many of these plots are now under-utilised, presently used for old commercial furniture showrooms, used car open yards, restaurant premises, temporary structures, and various commercial uses in the interim.

There are also new developments such as the International School Kuala Lumpur (ISKL) Line, Ampang street mall, ongoing Pavilion Jalan Ampang, Mah Sing’s M City, BSG’s Reizz, and L&G’s Elements.

We also have an existing mixture of developments here which range from malls like Great Eastern Mall, office buildings, hospitals such as Gleneagles and Ampang Puteri medical suites, around hotel apartments, and various types of showrooms straddling Jalan Ampang.

On the southern side, we have residential areas like Jalan U-Thant which is named after the former United Nations Secretary General U-Thant, Ampang Hilir, Madge, Langgak Golf, and also the infamous landmark Royal Selangor Golf Course (RSGC).

Many older bungalows here are already heading towards low-density condo redevelopments based on the planning requirements of the Kuala Lumpur City Plan 2020. Most lands along the Jalan Ampang frontage have commercial zoning with a plot ratio of six, whilst most secondary parcels would be residential with a density of 260 people per acre.

We will continue to see Jalan Ampang, specifically Embassy Row, holding more commercial front with its present zoning. Also, newer developments here will be more retail and service apartment focused.

This development trend will continue when current market conditions strengthen the demand for high-end condos. Looking at the price trend, general property prices here along Jalan Ampang peaked in the year 2014 at RM1,250 psf. Prices subsequently stabilised at about RM1,000 psf through into the year and improved this year.

The completion of ISKL brought back some light to the neighbourhood. The Compound Annual Growth Rate (CAGR) in the area is slightly negative over a five-year period due to current difficult market conditions and the present oversupply position.

The residential market has generally not been favourable, with the local condo market overhang. Properties reported in Kuala Lumpur stand at figures of about units above current pricing.

It will take some time for the overhang to be absorbed, with prices expected to remain flat with nominal price movements in the short to medium term. Stretching over to the KLCC side of Jalan Ampang, various office towers and five-star hotels populate the locality such as Integra Tower, Menara Citibank, Intercontinental Hotel, Petronas Twin Towers, Menara Maxis, and W Kuala Lumpur to name a few.

On the southern side, we have residential areas like Jalan U-Thant which is named after the former United Nations Secretary General U-Thant, Madge, Langgak Golf, and also the infamous landmark Royal Selangor Golf Course (RSGC).

Many older bungalows here are already heading towards low-density condo redevelopments based on the planning requirements of the Kuala Lumpur City Plan. Most lands along the Jalan Ampang frontage have commercial zoning with a plot ratio of six, whilst most secondary parcels would be residential with a density of 260 people per acre.

We will continue to see Jalan Ampang, specifically Embassy Row, holding more commercial front with its present zoning. Also, newer developments here will be more retail and service apartment focused.

This development trend will continue when current market conditions strengthen the demand for high-end condos. Looking at the price trend, general property prices here peaked in the year and subsequently stabilised at about through into the year and improved this year.

The completion of ISKL brought back some light to the neighbourhood. The Compound Annual Growth Rate (CAGR) in the area is slightly negative over a five-year period due to current difficult market conditions and the present oversupply position.

The residential market has generally not been favourable, with the local condo market overhang. Properties reported in Kuala Lumpur stand at figures of about units above current pricing.

It will take some time for the overhang to be absorbed, with prices expected to remain flat with nominal price movements in the short to medium term. Stretching over to the KLCC side, various office towers and five-star hotels populate the locality such as Integra Tower, Menara Citibank, Intercontinental Hotel, Petronas Twin Towers, Menara Maxis, and W Kuala Lumpur to name a few.

WHAT DOES THE DOCTOR SAY?

Dr Victor Gan Property investor, advisor & public speaker

Ampang in general has always been one of the few favourite places for expatriates to live due to the various embassies concentrated in the area as well as its proximity to Kuala Lumpur City Centre which is home to many oil & gas companies.

However, when petrol prices began to drop, there were noticeably fewer expatriates living in the area partly due to cost-cutting measures to stay afloat during hard times.

The demographics of the area have therefore significantly changed over the past four years.

There have been a lot of new projects coming up around lately, most recently the completed Arte Plus by Nusmetro. The rental price for a two-bedroom suite is around a figure hard to sustain without a heavy presence of short-term rental services like AirBnB.

In my opinion, the only places where rental prices have sustained well are those older condominiums dotting Taman U-Thant. Places like Brunsfield U-Thant have historically been the preferred choice for expatriates. A two-bedroom in Brunsfield today can easily fetch a monthly rental of RM3500-4500.

Property investment may not be as simple as it used to be due to changing demographics. However, I believe hidden property gems can still be found, more so in the current market climate. The key is to keep looking, keep hunting, and find the diamond in the rough.

Armed with data and comments from experts, Property Insight has reached out to representatives from Datumcorp to get their comments on the decision to build Datum Jelatek at Jalan Ampang.

“Datum Jelatek is located in a prestigious portion of the neighbourhood known as the cluster of embassies within ‘embassy row’ and the international community. The site is in a great locale just ten minutes or less from Kuala Lumpur City Centre. LRT integration at Datum Mall is four stops away from the Golden Triangle where retail, entertainment, and F&B options are plentiful,” they said.

Datum also pointed out that the area is also surrounded by a host of amenities and facilities including world-class educational institutions such as the International School Kuala Lumpur and renowned centres such as Gleneagles and Prince Court.

In addition, the National Zoo is a minute drive away and Genting Highlands is only a minute drive away for leisure day trips for families.

“Ampang also has plenty of accessibility connecting highways and roads from along with MRR2, DUKE, AKLEH, Jalan Tun Razak as well as DUKE SUKE Highway which will be completed soon,” Datumcorp further commented.

When asked for their thoughts on the changing expatriate population in the area, Datumcorp replied, “From our observation, we believe it has retained its international community.”

The company believes the future of the area is relatively promising. “The Greater KL Plan is expected to have a positive impact on the area which will translate to capital appreciation and good rental yields. Upcoming amenities include new MRT lines, Tun Razak Exchange, the 118-storey PNB118 Tower, and Warisan Merdeka which will add value to the area,” they said.