When local municipalities care for their residents

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A well-managed municipality is essentially a magnet for residents and quality businesses alike.

A well-managed municipality is essentially a magnet for residents and quality businesses alike.

The allure of suburban living is often painted in broad strokes. Quiet neighbourhoods, green spaces and a sense of community. Yet, the reality is far more nuanced. The quality of life in these residential havens is twisted, tied to the decisions made by the governing bodies responsible for their upkeep. From the condition of roads to the types of businesses allowed to operate, these factors can significantly influence property values and the overall desirability of a neighbourhood.

No suburb will thrive without the management of good local municipalities, and the scene is no different in Malaysia. A well-managed municipality is essentially a magnet for residents and quality businesses alike. What exactly are they in charge of? Well, pretty much anything you can think of. 

Infrastructure maintenance comes to mind from focusing on roads and pavements to public transportation systems that support the lifelines of a community, regular maintenance of such basic infrastructure ensures safety for residents and those passing through it. Aside from that, it provides convenience and allows drivers to get where they need to be quickly and efficiently. There is also the aesthetic appeal of a smooth road. All-in-all, areas with well-maintained infrastructure tend to have higher property values.

There comes a point in time when you will drive into an area and your jaw just drops. Lush greenery, birds flittering about among other local fauna accompanied by beautiful, scenic views surrounding picturesque homes. Parks and green spaces have so much potential to enhance a neighbourhood and its residents' quality of life. They provide an abundance of recreational opportunities, improve air quality and contribute to an overall healthier community. If it was not immediately apparent, well-maintained parks significantly boost property values too.

When it comes to commercial, property zoning and business licensing systems, good local municipalities prevent incompatible businesses from setting up. What this does is ensure the character of the neighbourhood is preserved while protecting the quality of life of the residents living there. It is like a snowball effect whereby shops cater the right goods and services that will inadvertently bring new residents in and retain old ones. A proper blend of residential and commercial activities done right can increase property values.

Examples of thriving districts

Commercial districts like Taman Megah, Uptown and SS2 are now associated with thriving economies and lifestyles. These places have a lot to offer in terms of amenities, from hip cafes and shops to necessary services. They are therefore very appealing to renters and homebuyers.

The existence of business enclaves has the potential to increase the value of nearby residential properties greatly. Individuals are frequently prepared to pay more to live close to the amenities and excitement that these enclaves have to offer. The average property price in SS2 in 2015 was RM700,000. In 2023 however, the price jumped to RM900,000. This is what is known as the halo effect.

Interestingly, a study by the Department of Geography and Environment at the Sultan Idris Education University (UPSI) found that for every metre away from the commercial areas, house prices decrease at a rate of RM8.95, dubbed distance decay.

Double-edged sword?

The picture isn’t always rosy. Commercial growth can raise property values, but it can also present difficulties. Residential areas may become encroached upon by commercial enclaves as they expand. This may lead to a rise in traffic, pollution from noise and rivalry for parking spots.

Converting residential buildings into commercial ones is a complicated matter with legal ramifications. The allowed uses of land are usually governed by zoning laws that are enforced by local authorities. It is unlawful to turn a residential property into a commercial space without the required permits. The property owner may face legal ramifications for such unapproved conversions. They might be ordered to return the property to its original residential condition in addition to paying fines.

Sometimes, the character of a neighbourhood will change dramatically. Take some residential-turned-commercial suburbs like Bangsar for example. These days, there are more and more home-for-sale signs which could be due to the issues surrounding Bangsar Baru. Cases of robberies, car window smashing, drunk fighting and even murders have frightened many residents in the area. Within numerous forums, locals constantly express dissatisfaction with how their neighbourhood is being treated. Simply taking a walk along streets like Jalan Telawi will show you how much the quaint neighbourhood has transformed from a family-friendly suburb to one where walking about brings up fear of being mugged.

For a suburb to remain healthy over time, the proper ratio of commercial to residential development must be struck. Efficient zoning regulations and meticulous planning are necessary. When making decisions, local authorities have to take into account the needs of businesses as well as residents.

Property owners must be entitled to the plans that the local government has for the area. Better returns can be obtained by investing in real estate in communities that are dedicated to preserving a high standard of living and have a clear development plan. In the end, a suburb's ability to succeed rests on how well local government, citizens and businesses work together. Together, they can build vibrant communities that raise property values and raise the standard of living in general.


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