Assessing if an area may become a hotspot? Some reasons here.

Everyone likes to know where is the next hotspot. My friends and me would love to know this too! This is so that we could quickly buy and wait to sell in a few years’ time, right? Property is always an investment yeah. So, how do we know where are the future hotspots? Well, they could ask this question when they attend some talks by famous property experts. Hopefully they give some objective answers and not just telling you that the developer they were representing would be the next hotspot. 🙂  Anyway, let’s look at a few things that we can research and review in order to at least know what happens before a non-spot becomes a ‘warmspot’ and when the whole world knows about it, then it becomes a hotspot.
Many prominent developers are buying land in the area. The prices they are paying is also showing a rising trend. Within that potential area, every developer may have a piece of land but generally we do not find developers all buying land in the same area unless all of them believe in the same area. YES, there is a chance all the developers got it wrong but when we look at past records, I think the chances of this should be pretty slim. How to know this? Buy maps from Ho Chin Soon’s office to know more. Alternatively, drive around the area to know more.
Public transport stations, linked is better. This is going to be a norm in future. The closer the home is to the LRT / MRT / KTM and even BRT, the better it will be. When jams worsen further or when the space becomes a premium in the city centre, then the car parking rates will rise to a level that majority will not want to accept. Some parking space within the city centre today is already RM25 / day today. It can only go higher and not cheaper. Those empty space parking of RM10 per day? It will soon be occupied by another high-rise property.
Interchanges to expressways. Developers who build interchanges to expressways will help to push up the premium of the property development. This is because for many developments, the expressway may be right next to it but without a direct connection, it will take ‘forever’ to reach it. A colleague once told me that just getting out from her high-rise project into the main road will take her 40 minutes every morning.
Jobs, Jobs, Jobs. Within a radius of 10km, there should be industries or even office towers. We can easily do a rough calculation of the potential number of people working there. If we could see some huge MNC brands, this is a huge plus because it meant that professionals working there may be highly paid too. It does not matter whether these people will buy or rent. As long as own a home nearby, it’s either capital appreciation or stable rental returns, both a plus. Yes, an international airport is going to be a huge plus point and for a very long time too!
Education. That SRJKC will help tremendously. Here is one latest announcement.  Yes, for those with teenage kids, a university with the course they love is usually a huge plus. Kids may not love to be near to their parents but parents would love to be near to their children. So, they may buy a unit nearby for their kids to stay and for them to have an eye on them too. Families with school-going children will be willing to pay a slight premium for these homes too. It’s good to have a POTENTIAL new university but it’s better to trust such news only when we see the foundation of the university being built.
Remember yeah, hotspots to some may not actually fulfil all our personal reasons to love the place. Thus it’s more important to look at all spots objectively, identify the potential ones and buy when prices are still not yet fully up. When many have yet to know about it, that’s when gems are found. When gems are found, that’s when the capital appreciation happens. Of course, there are a lot of other reasons too but these 5 would make any potential area be a potential hotspot in the future. Happy finding an awesome new property.
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written on 1 June 2018
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