Prime residential market in Kuala Lumpur shows growth amid economic revival and strategic policies

• The prime residential sector in Kuala Lumpur showed strong performance in the post-pandemic era, with increased sales and values, though concerns about potential market overheating suggest the need for cautious optimism in the medium-term.
• Newly launched and ongoing projects demonstrated strong market traction, with take-up rates ranging from 30% to 50%, while soft-launch schemes garnered encouraging booking levels, reflecting healthy market appetite.

Two new prime residential developments are slated for launch in Kuala Lumpur

• Allevia and Sunway Belfield were completed in the quarter, adding a total of 1,624 units to the available stock.
• Two projects, CloutHaus Residence and Hanaz Suites, were launched during the quarter, totalling 955 units.

The prime residential market retains investor appeal with stable rates and competitive pricing amid global economic headwinds

• Bank Negara Malaysia has maintained the Overnight Policy Rate at 3.00% since May 2023, creating a favourable environment for borrowers and property investors, stimulating demand by making mortgages more accessible and affordable.
• Kuala Lumpur’s prime residential market maintained its stability, with property prices remaining among the most affordable in Asia, attracting both local and foreign investors despite global inflationary pressures and economic uncertainties.

Outlook: Kuala Lumpur’s prime residential market set for growth amid economic recovery and strategic initiatives

• Kuala Lumpur’s prime residential sector is poised for expansion, supported by a post-pandemic recovery, government measures promoting homeownership and innovative financing options like green home programmes, attracting both local and foreign investors.
• Ongoing infrastructure developments are expected to enhance the appeal of suburban areas and transit-oriented developments, while the city’s affordability compared to other Asian markets should continue to drive investment, despite global economic challenges.