Is buying a property in Bangsar a good investment?

Last updated on December 20, 2023

Yes, the analysis of Kuala Lumpur's property market is included in our pack

If you've appreciated the leafy streets and cultural charm of Bangsar, you might have contemplated settling down in this trendy Kuala Lumpur district, experiencing its local character and diverse atmosphere.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Malaysia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Bangsar?

Bangsar, a neighborhood in Kuala Lumpur, Malaysia, has become a sought-after location for property buyers, and there are several reasons why it stands out in the real estate market.

First off, let's talk about what makes Bangsar unique compared to other areas. It's a blend of modern urban lifestyle and a touch of local charm.

This area offers a vibrant mix of upscale restaurants, trendy cafes, and shopping centers, making it a hotspot for social activities. It's like having the best of both worlds – modern amenities and a lively cultural scene.

Now, comparing Bangsar to other areas in Kuala Lumpur, it's pretty clear why it's a top choice for many. Unlike the bustling city center, Bangsar offers a more relaxed environment.

It's less congested, which is a big plus for those who want to escape the hectic city life but still be close enough to enjoy its benefits. The green spaces and parks in Bangsar add to its appeal, providing a breath of fresh air literally and figuratively.

Bangsar started gaining popularity in the late 1990s and early 2000s. This rise in interest wasn't just a temporary hype; it had solid reasons behind it. The development of high-quality residential properties, combined with the growth of commercial hubs, made it an ideal place for both living and working.

Plus, the continuous upgrading of amenities and infrastructure has kept the area relevant and attractive to buyers and investors.

It's a diverse mix. You've got expatriates who love the international vibe, young professionals seeking a dynamic lifestyle, and families attracted by the reputable schools and community feel. The area's cosmopolitan atmosphere makes it welcoming to people from various backgrounds and cultures.

However, like any place, Bangsar has its downsides. For one, the popularity of the area means property prices can be quite high compared to other parts of Kuala Lumpur. This might put it out of reach for some buyers. Traffic congestion, especially during peak hours, can be another issue, though it's still less intense than in the city center.

Lastly, the bustling nightlife and commercial activities might not appeal to those seeking a quieter, more subdued environment.

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Why is Bangsar a nice place to live?

Bangsar, nestled has garnered a reputation as a delightful place to live, and there are several reasons why it stands out.

Let’s dive into the lifestyle and culture there. Bangsar is known for its vibrant and cosmopolitan atmosphere. It's a place where modern urban life meets a relaxed vibe.

The streets are lined with a variety of cafes, restaurants, and boutiques, reflecting a blend of both local and international flavors. This diversity is a big part of what gives Bangsar its unique charm.

The expat community in Bangsar is quite significant, contributing to the area's international feel. Expatriates from all over the world are drawn to Bangsar for its lifestyle, which is both dynamic and comfortable. This multicultural environment makes it easy for newcomers to settle in and feel at home.

However, living in Bangsar does come with a higher price tag compared to other parts of Kuala Lumpur. The cost of living here is on the higher end, mainly due to the upscale nature of the area.

Safety is a key consideration for any place of residence, and Bangsar fares reasonably well in this regard. It's generally considered a safe area, with a lower crime rate than more densely populated parts of the city. This sense of safety adds to its appeal, especially for families and expats.

When it comes to amenities and facilities, Bangsar is well-equipped. There are several reputable schools, such as the Garden International School and Bangsar International School, making it a popular choice for families with children.

Healthcare facilities are also top-notch, with hospitals like Pantai Hospital Kuala Lumpur providing excellent medical services. For shopping and leisure, places like Bangsar Village and Mid Valley Megamall offer a wide range of retail and entertainment options.

The quality of infrastructure in Bangsar is commendable. Roads are generally well-maintained, and the area boasts reliable utilities and internet connectivity, which is a must in today’s connected world. This solid infrastructure supports the comfortable and convenient lifestyle residents enjoy here.

It's well-connected to other parts of Kuala Lumpur, making it easy to travel around the city. The area is also relatively close to major transport hubs like Kuala Lumpur International Airport, which is convenient for frequent travelers.

Public transportation options in Bangsar include buses and the Light Rail Transit (LRT). The Bangsar LRT station, part of the Kelana Jaya Line, is a key node that provides easy access to various parts of the city. This connectivity is a significant advantage for those who prefer to commute via public transport.

How much does it cost to buy real estate in Bangsar?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Malaysia.

Buying a property in Bangsar can vary greatly in cost, depending on what type of property you're looking at.

In Bangsar, you'll find a range of residential properties, including apartments, houses, and luxury villas. Each of these caters to different lifestyles and preferences, contributing to the diversity of the neighborhood.

Apartments and condominiums are particularly popular, especially among young professionals and expatriates. This is due to their convenience, modern amenities, and often, the sense of community they offer.

Houses, including semi-detached and bungalows, are sought after by families looking for more space and privacy. Luxury villas, while less common, attract high-end buyers looking for exclusivity and opulence.

In terms of new developments versus resale properties, Bangsar has a mix of both. New developments are always cropping up, offering modern amenities and contemporary designs.

These are attractive for those looking for something brand new and modern. On the other hand, resale properties, which include well-maintained older homes and apartments, appeal to those who appreciate the charm and character of established buildings.

The price range for properties in Bangsar can be quite broad. For apartments and condos, prices per square meter can start from a moderately high range and go up significantly for luxury units.

Houses, given their larger size and land component, can be considerably more expensive. The price per square meter for luxury villas, which are the most premium, is understandably the highest.

Over recent years, property values in Bangsar have seen a steady increase. This is due to its continued popularity, development of new amenities, and its status as a prestigious address in Kuala Lumpur. This upward trend is likely to continue, though the rate of increase can vary depending on various factors.

Looking ahead, there might be new developments and city planning changes that could influence property values in Bangsar. Specific names of upcoming projects or major city planning initiatives can significantly impact prices, especially if they enhance the area's accessibility, amenities, or overall appeal.

Predicting the real estate market in Bangsar in the coming years involves considering several factors. The neighborhood's continued desirability, potential for new developments, and overall market trends in Kuala Lumpur will play key roles.

Given its established status and ongoing appeal, it's likely that property values in Bangsar will continue to rise, albeit at a pace influenced by broader economic conditions.

Specific factors that indicate a potential increase in property values in Bangsar include the development of new infrastructure, improvements in public transportation, and the introduction of new commercial and retail spaces. These enhancements make the area more attractive to live in, thereby driving up demand and property prices.

Where is the best area to buy a property in Bangsar?

When considering the best area to buy property in Bangsar, it's important to understand how the different parts of Bangsar vary.

Each area has its unique atmosphere, types of properties, and price ranges, catering to different preferences and lifestyles.

Firstly, Bangsar is broadly divided into two main areas; Bangsar Baru and the areas around Jalan Maarof and Bukit Bandaraya. Bangsar Baru is known for its more lively atmosphere, lined with cafes, restaurants, and shops. It’s a bustling area, popular among younger buyers and expatriates.

Here, you’ll mainly find apartments and condominiums, with prices being relatively high due to the area's popularity and convenience.

On the other hand, the areas around Jalan Maarof and Bukit Bandaraya are more upscale and residential. This part of Bangsar is quieter and more exclusive, with a selection of larger homes, including semi-detached houses and bungalows.

These properties are pricier, appealing to those looking for luxury and space in a serene environment.

As for up-and-coming areas within Bangsar, buyers should keep an eye on the outskirts of the main commercial areas. These areas are gradually developing, offering newer properties at potentially more affordable prices. They could become more sought after as development continues, potentially offering a good return on investment.

In terms of where it would be a good idea to look for a property, it really depends on what you’re looking for. If a vibrant, urban lifestyle appeals to you, then areas close to Bangsar Baru and Telawi streets are ideal.

These areas are great for those who want to be in the heart of the action, close to nightlife, shopping, and dining options.

Conversely, for those seeking a more laid-back and residential atmosphere, the areas around Jalan Maarof and Bukit Bandaraya are more suitable. These areas offer larger properties and are favored by families and long-term residents looking for a quieter life while still being close to the amenities of Bangsar.

On the contrary, areas immediately adjacent to the main roads and commercial zones might not be advisable for those seeking peace and quiet. These areas can be noisy and congested, which could be a drawback for some buyers.

Additionally, properties in these areas might not appreciate as quickly as those in the more residential parts of Bangsar.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Malaysia.

Area	Atmosphere	Property Types	Price Range
Bangsar Baru	Lively, urban	Apartments, Condominiums	High
Jalan Maarof	Upscale, residential	Semi-detached houses, Bungalows	Very High
Bukit Bandaraya	Quiet, exclusive	Luxury homes, Larger properties	Highest

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Is there a strong rental demand in Bangsar?

In Bangsar, there is indeed a strong demand for rental properties; this demand is driven by both short-term and long-term rentals, but the specifics vary depending on the target demographic and the types of properties available.

Starting with the type of rental demand, it's a mix of both short-term and long-term. Short-term rentals are popular among tourists and business travelers who prefer the area for its central location and vibrant lifestyle.

Long-term rentals, on the other hand, are sought after by expatriates, professionals working in Kuala Lumpur, and families who appreciate the area's amenities and lifestyle but are not yet ready or willing to buy property.

The target demographic for rentals in Bangsar is quite diverse. Expatriates make up a significant portion, drawn to Bangsar for its cosmopolitan atmosphere, range of international schools, and the presence of various embassies. Young professionals are also a key demographic, attracted by the area's vibrant nightlife, cafes, and proximity to the city center.

Families are drawn to Bangsar due to its reputation as a safe and friendly neighborhood with access to good schools and parks.

Regarding the profiles of potential tenants, expatriates often look for well-maintained apartments or condominiums with modern amenities. Young professionals typically seek smaller, stylish apartments that are affordable yet close to social hotspots. Families generally prefer larger apartments, semi-detached houses, or bungalows with additional space and safety features.

The types of properties in demand reflect these preferences. In areas like Bangsar Baru and close to Telawi streets, smaller apartments and studio units are in demand for short-term and long-term rentals by young professionals and expatriates.

In contrast, areas like Jalan Maarof and Bukit Bandaraya, known for their quieter and more upscale environment, see a higher demand for larger homes and luxury apartments, especially from families and long-term expat residents.

Amenities play a crucial role in reducing vacancy rates. Properties with added facilities like swimming pools, gyms, security services, and proximity to public transport, shopping centers, and restaurants are more attractive to potential tenants.

These amenities not only provide convenience but also enhance the lifestyle appeal of the property, making it more desirable in a competitive rental market.

Speaking of potential returns on investment, properties in Bangsar can yield attractive returns, though the exact numbers vary depending on the property type and location. Apartments and condos in high-demand areas can offer good rental yields, especially if they cater well to the target demographic with the right amenities and location.

Finally, the type of properties that are seeing increasing demand and could potentially offer better yields are modern apartments and condominiums with good amenities, and in prime locations within Bangsar. These properties cater to the lifestyle expectations of young professionals and expatriates, two key renter demographics in the area.

With Bangsar's continuing popularity and development, these types of properties are likely to remain in high demand, offering promising investment opportunities for those looking to enter the rental market.

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Is it easy to buy a property as foreigner in Bangsar?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Malaysia.

Buying property as a foreigner in Bangsar, Kuala Lumpur, can be a relatively straightforward process, but it's important to be aware of specific regulations, potential risks, and the importance of working with local professionals.

Firstly, Malaysia does have regulations that govern property purchases by foreigners. One of the key regulations is the minimum purchase price set for foreign buyers. This minimum threshold varies by state, so it's crucial to check the latest regulations specific to Kuala Lumpur.

Additionally, foreigners are typically restricted from buying Malay Reserved land and properties categorized under Bumiputera lots. These are reserved for Malaysian nationals, particularly the ethnic Malay community.

The purchasing process in Bangsar for foreigners generally follows these steps; identifying a property, negotiating the price, signing a Letter of Offer/Acceptance, paying a deposit, and then proceeding to the Sale and Purchase Agreement (SPA).

The process involves various legal documents and procedures, where the terms, conditions, and timelines are clearly defined.

When it comes to risks associated with property investment in Bangsar, one primary concern is market fluctuations. Like any property market, prices in Bangsar can be affected by economic conditions, policy changes, and market trends. Another risk is the potential for legal complications, especially if proper due diligence is not conducted.

Classic pitfalls or common mistakes in the Malaysian property market often involve overlooking the legal aspects of property transactions. For instance, not thoroughly checking the property title, failing to understand the terms in the SPA, or neglecting to verify the developer's or seller's credibility.

Unique to Malaysia, there's also the issue of understanding the difference between Freehold and Leasehold properties and the implications of each on ownership rights and property value over time.

Working with a local real estate agent or lawyer is highly important. A local agent will have a better understanding of the Bangsar property market, including insights into areas with the best growth potential.

A lawyer, on the other hand, is crucial for navigating the legal intricacies of the Malaysian property market, ensuring all documentation is in order, and protecting your interests as a foreign buyer.

Common exit strategies for property investors in Bangsar include selling the property for capital gain, especially if the market has appreciated since the purchase, or leasing the property for rental income.

Given Bangsar’s popularity and growth, both strategies can be effective, but they depend on market conditions and individual investment goals.