This article first appeared in City & Country, The Edge Malaysia Weekly on May 30, 2022 - June 5, 2022

Formerly a tin mining and rubber plantation area, Setapak was first inhabited by the Minangkabau people and Orang Asli. In 1884, British Resident of Selangor Frank Swettenham appealed for the reappointment of Batu Tapak as headman of the Orang Asli community in the area, and Setapak was named after him.

One of the oldest neighbourhoods in the Gombak district, ­Setapak — which also means “one step” in Malay — is a 20-minute drive from the Kuala Lumpur city centre, says Metro Homes Realty Bhd executive director See Kok Loong.

Housing schemes in the area include Taman P Ramlee, Desa Setapak, Taman Sri Rampai, Taman Setapak, Danau Kota, Platinum Walk, PV 10, PV 13, PV 15, PV 16, PV 128, Taman Setapak Jaya, Taman Bunga Raya and Taman Air Panas.

In terms of accessibility, one can easily get to Setapak via major roads and highways, such as Jalan Genting Kelang, Jalan Gombak, Jalan Tun Razak, the Middle Ring Road 2 and Duta-Ulu Kelang Expressway (DUKE), as well as the upcoming Setiawangsa-Pantai Expressway (DUKE 3) in the near future. Transport hubs in the area include the Wangsa Maju, Sri Rampai and Setiawangsa LRT stations.

“The upcoming MRT Line 3, which has a proposed station in Air Panas, is expected to further enhance connectivity in the area,” says Henry Butcher Malaysia chief operating officer Tang Chee Meng.

Slated for completion by 2024, the MRT line will form part of the Greater KL/Klang Valley Integrated Transit System, which is anticipated to cover Bandar Malaysia, KL Eco City, Bukit Kiara, Segambut, Sentul and Petaling Jaya, he adds.

Those living in Setapak are mainly from the middle-income group. There is also a large student population due to the presence of several institutes of higher learning, who make up the bulk of tenants renting rooms, apartments and houses there, notes Tang. Other tenants include blue-collar workers employed by factories in the Setapak industrial area as well as white-collar workers working at companies in Setapak and the Kuala Lumpur city centre.

According to Tang, the rental demand for residential and commercial properties in Setapak is generally buoyant and stable due to the decent occupation rates achieved by these properties. 

Factors that contribute to the healthy rental demand of these properties include the presence of several institutes of higher learning, the availability of various types of facilities and amenities (such as good public transport), reasonable rental rates, affordable food outlets, pleasant living environment and proximity to the city centre, he adds.

“As such, we believe interest in the area from both homebuyers and investors will continue to be strong. The newer projects offer nicer designs with modern concepts and come with more and better facilities that will put them on a par with projects in other localities,” says Tang.

An example of the going rents in the area, the single-storey terraced houses in Setapak Garden with a land area of 1,600 sq ft and built-up of 1,000 sq ft are commanding a monthly rent of RM1,400 to RM1,500, according to See. 

For commercial properties, he notes that the intermediate three-storey shopoffices in Jalan Prima Setapak with land areas of 1,650 to 1,700 sq ft and built-ups of 4,700 to 5,000 sq ft are rented out at RM4,500 per month for the ground floors and RM1,600 per month for the first and second floors.

According to Tang, commercial units with high visibility/main road frontage continue to attract interest. However, he has noticed an increase in vacant commercial units located in secondary locations with no main road frontage and visibility.

While Setapak’s property market was not spared by the pandemic, See believes the area has one of the lowest rental rates in Kuala Lumpur, and thus property prices will not have much room to go down further.

Meanwhile, Tang reckons that people have continued to buy and rent property in Setapak due to the relatively affordable prices and rents compared with areas such as Mont’Kiara, Petaling Jaya and the KL city centre. “The market is relatively stable and there has been no significant impact on property prices or rents, although owners are now more willing to negotiate selling prices and rents, which has resulted in a slight downward adjustment.”

With a sizeable number of new serviced apartment/condominium projects having been completed over the past few years, the rental market has become more competitive, exerting downward pressure on rents. 

In terms of outlook, Tang sees bright prospects for Setapak property — both residential and commercial — in the long term. But in the short to medium term, it will be affected by strong competition due to the high volume of new supply in recent years, which will drive up vacancy rates and exert some pressure on rents.

Nonetheless, See expects Setapak’s property market to remain stable in the mid term as it is a mature and well-populated township. “Due to limited land for development, we might see some [land owned by the government or government-linked companies] being developed to enhance the image of the area. As such, the outlook for the long term appears positive due to its strategic location.”

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