Prime demand holds firm as post-COVID preferences favour newer, lifestyle-led developments and sharper product positioning

• Demand for prime units remained resilient, supported by foreign talent inflows, strong FDI momentum, and healthy income growth, with expatriates and affluent locals favouring newer, well-designed developments in prime and lifestyle-led locations.
• Older pre-COVID projects saw weaker sales due to misalignment with current buyer expectations, while newer developments gained traction as developers refined targeting, layouts and amenity-led designs to match post-pandemic preferences and sustain transaction momentum.

Prime supply broadens with disciplined expansion, diversifying product variety while maintaining market balance and segment depth

• New prime supply increased modestly following selected completions across KLCC and Bangsar, expanding luxury inventory within established precints while reinforcing the depth and maturity of core prime submarkets.
• Launches and pipeline additions remained selective and strategically focused with developers adopting cautious rollout strategies to manage costs and sentiment, ensuring supply growth stayed aligned with demand and supported pricing stability.

Prime investment market remains defensive and quality-led as pricing stabilises and income returns gradually normalise

• Investment sentiment remained stable and quality-driven, led by local high-net-worth investors, with capital value performance increasingly differentiated by asset quality and submarket fundamentals, and no signs of distress selling.
• Capital values stabilised while yields improved modestly, reflecting demand-supply dynamics, easing downside pressures, and the continued role of prime residential assets as defensive income and capital preservation plays.

Outlook: Prime market remains balanced as disciplined supply meets resilient demand and improving income returns

• Supply growth remained controlled despite more pipeline announcements, as most projects stayed in planning stages. Cautious developer rollouts amid high costs kept new supply aligned with demand and supported pricing stability.
• Demand, rents, and investment activity stayed resilient, underpinned by foreign talent inflows, healthy local incomes, and quality-led investor preferences, while stable capital values and improving yields reinforced the segment’s defensive profile.