Rental Market: Rental units in Desa ParkCity attract better returns owing to scarcity

This article first appeared in City & Country, The Edge Malaysia Weekly, on May 16, 2022 - May 22, 2022.
High-rise condos in Desa ParkCity are generally more popular and preferred in the rental market owing to their lower rates, according to Khong (Photo by Patrick Goh/The Edge)

High-rise condos in Desa ParkCity are generally more popular and preferred in the rental market owing to their lower rates, according to Khong (Photo by Patrick Goh/The Edge)

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Desa ParkCity is a desirable Kuala Lumpur address that has won numerous accolades. In addition to its sought-after properties, the freehold township draws a vibrant crowd because of its popular amenities, such as The Central Park — one of the most dog-friendly parks in the Klang Valley — and its two retail hubs, The Waterfront and Plaza Arkadia. It is also noteworthy that a good number of the F&B outlets are pet friendly.

Desa ParkCity was developed by ParkCity Group, which acquired the 473-acre tract in 1999. The project was launched in 2002.

Amenities in the self-contained township include an international school, a medical centre, a clubhouse, places of worship, recreational parks, a sports centre, offices and commercial hubs.

Touted as one of Greater KL’s most liveable townships, Desa ParkCity is known for its serenity and low-density environment surrounded by parks, says Savills Malaysia group managing director Datuk Paul Khong. “The township is very conducive for young professionals and working families, with its multiple open spaces. The township is also well connected to various major highways and is near other established neighbourhoods.”

Desa ParkCity is connected to major conurbations within the Klang Valley via the Middle Ring Road 2 (MRR2), Duta-Ulu Kelang Expressway (DUKE), Damansara-Puchong Expressway (LDP) and Sprint Highway.

Neighbouring townships include Bandar Menjalara, Kepong, Segambut, Mont’Kiara and Bandar Sri Damansara.

Khong: Desa ParkCity has also emerged as a strong alternative to Mont’Kiara and attracted tenants who previously resided in Mont’Kiara (Photo by Savills Malaysia)

Good planning

The fact that Desa ParkCity is well planned bodes well for its property market. Khong notes that its residential rental yield is noticeably more resilient than that of many other areas such as Mont’Kiara and KL city centre.

“This can be attributed to the low supply in the area of circa 4,000 units of condos compared with over 15,000 units in Mont’Kiara. Most owners [here] buy for their own stay and are owner-occupiers. Hence, the available units for lease are rather limited, attracting better returns,” he says.

Khong notes that the average asking rents for high-rise residential properties with built-ups of 900 to 1,800 sq ft in Desa ParkCity range between RM2,500 and RM4,500 a month. He adds that rents vary as they depend on the property’s size and furnishings.

“The average asking sale price is about RM925 psf. Therefore, the gross rental yield ranges between 3% and 4%,” he says.

The township’s residential rental market comprises both landed and high-rise offerings (Photo by Patrick Goh/The Edge)

For the 2-storey landed residential properties, the average asking rents start from as low as RM4,000 and go up to RM10,000 per month for units with built-ups ranging from 2,300 to 3,000 sq ft. Again, Khong notes that rents vary depending on the size and furnishings of the properties.

“The average asking price for [landed residential units in Desa ParkCity] is RM1,000 psf. Therefore, the rental yield ranges from 2.5% to 3%,” he says.

Desa ParkCity is popular with locals as well as the expatriate community.

Plaza Arkadia (top) and The Waterfront (below), the two retail hubs in Desa ParkCity, have a good number of pet-friendly F&B outlets (Photo by Patrick Goh/The Edge)
The International School @ ParkCity is among the amenities available in the self-contained township (Photo by Patrick Goh/The Edge)

“The tenant profile here is largely local, but with the presence of the international school nearby as well as various other amenities, the [township’s appeal] has attracted the expatriate community too,” says Khong.

Desa ParkCity residents are largely owner-occupiers, he observes, “In the earlier residential phases, which comprise mostly landed residential units, more owner-occupiers were seen. Even though there have been more completions in the high-rise residential segment in recent years, owner-occupiers still make up a higher proportion here compared with many other areas.

“[Desa ParkCity] has also emerged as a strong alternative to Mont’Kiara and attracted tenants who previously resided in Mont’Kiara,” he adds.

According to Khong, high-rise condos in Desa ParkCity are generally more popular and preferred in the rental market due to their lower rates.

“The Westside series is more affordable, and its rental market has been active. One Central Park and The Breezeway [high-rises] are both closer to the The Central Park, hence their premium, and also because there are fewer units for rent,” he says.

In terms of outlook, Khong is optimistic on the property market in Desa ParkCity. “The residential market here is resilient given its unique selling point and development concept. It has also been rated as a sought-after location for residential living and has won multiple awards including the Fiabci World Prix d’Excellence Award 2019 and The Edge Malaysia Property Development Excellence Award in 2015 for its masterplan.

“Desa ParkCity will continue to attract international tenants who want to make Malaysia their home as well as local tenants who are looking for a green and low-density environment,” he concludes.