By Sharina Ahmad
WITH Seremban finally being elevated to city status on Jan 1, will property prices there see an uptick? The Negeri Sembilan state capital became a city after the Pakatan Harapan government decided to shelve the previous government’s decision to accord the city status on Jan 14, 2019.
Property experts do not believe there will be any surge in property prices although quit rent rates will likely go up.
“We are not expecting any big changes in property prices as an immediate effect. The first significant change will be the name of the town will be Bandaraya Seremban. I foresee the quit rent rates will increase because more services as a city would need to be given,” Arkitek Mustapha Kamal Sdn Bhd founder and principal Mustapha Kamal Zuulkarnain tells FocusM.
In terms of cost of living, he said it will go up slightly, especially when the quit rent rates are increased to compensate for the better city services provided by the new Majlis Bandaraya.
“The increased population would demand a greater and diverse set of offices and mall design requirements. Citizens will get savvier especially if the income as a result of city activities increases,” he adds.
Mustapha says the citizens will be expecting much better services and amenities such as solid waste management, urban road infrastructure, water and open spaces.
However, he believes there will not be much impact on property prices except for the areas close to public transportation.
Raine & Horne International Zaki & Partners Sdn Bhd partner James KM Tan says prices of the property in Seremban might be affected by macro and microeconomic factors as well as property-specific details.
“It may move up marginally but not very much. You have to look at the economic landscape, availability of finance, interest rates, current overhang situation and more.
“Unless there are major macroeconomic and demographic changes, the supply and demand will remain status quo,” he says.
Former Seremban Municipal Council (MPS) president Datuk Zazali Salehudin has been appointed the first mayor of Seremban after it was officially declared a city.
The state administration merged the Seremban and Nilai municipal councils to form the Seremban City Council.
Back in April 2012, the Cabinet together with the Housing, Urban Well-being and Local Government Ministry approved an application by the state government for city status for Seremban.
However, despite the approval from the federal authorities, then Mentri Besar Datuk Seri Mohamad Hasan decided against declaring Seremban a city and instead worked on improving the public infrastructure and basic amenities there. – Jan 22, 2020
