Prime residential market shows resilience amid stable rates and foreign interest

• Kuala Lumpur’s urban core experienced a surge in demand, propelled by ongoing urbanisation trends and the city’s position as a key economic hub that attracts, in particular, young professionals and high-net-worth individuals.
• Foreign investment, notably from Chinese investors, is on the rise in the luxury residential segment, driven by Malaysia’s political stability and favourable visa policies, which enhance the appeal of prime properties in Kuala Lumpur.

In KL’s prime area, there are two upcoming residential projects scheduled for launch

• MET 1 Residences at KL Metropolis and Core Residence were completed this quarter, adding a total of 1,196 units to the available stock.
• Two projects, Lofthill Residence and Aetas Seputeh, were launched during the quarter, with a total of 779 units.

Kuala Lumpur’s prime residential sector attracts investors with affordability and strategic initiatives

• Kuala Lumpur maintains its position as the most affordable prime market in the APAC region, attracting a diverse range of investors and enhancing its appeal in the residential sector alongside established markets like China, Singapore, Australia and Japan.
• Government initiatives, including favourable interest rates and stamp duty exemptions for first-time buyers, aim to stimulate Kuala Lumpur’s property market. These policies are expected to drive growth and attract diverse investors to the prime residential sector.

Outlook: Kuala Lumpur’s prime residential market poised for growth amid balanced supply and foreign investment

• Kuala Lumpur’s prime residential market faces supply pressure on capital values, yet sees stable demand from urbanisation and rising foreign investment, particularly from Chinese buyers attracted to Malaysia’s stability and favourable policies.
• New high-quality developments are expected to rejuvenate the rental market. Kuala Lumpur’s status as APAC’s most affordable prime market, along with government wealth-attraction initiatives, is likely to sustain investor interest and drive capital appreciation.