KL high-end residential market in slow comeback

Knight Frank report says there is an increase in foreign interest in Malaysian properties

PETALING JAYA: The high-end residential market in Kuala Lumpur is believed to have bottomed out in the middle of last year, setting the tone for the segment to slowly make its way back, as evidenced by the higher number of launches in the second half of 2019, according to a report by Knight Frank Malaysia.

In its “Real Estate Highlights 2nd Half of 2019” report, Knight Frank noted that 2019 saw the Tun Razak Exchange (TRX) taking shape with the completion of Menara Prudential and Exchange 106.

Complementing these commercial developments, Core Previous Development Sdn Bhd, a joint venture between Chinabased China Communication Construction Group (CCCG) and Malaysia’s WCT Holdings Bhd, seized this opportune time to launch Core Residence @ TRX.

Other notable residential projects unveiled during the second half 2019 were Conlay, a joint development by Eastern & Oriental Bhd and Mitsui Fudosan Group, and Agile Embassy Garden, the third project of Agile Group Holdings.

These new launches are selling between RM1,900 and RM2,200 per sq ft on average.

Knight Frank Malaysia managing director Sarkunan Subramaniam said there has also been an increase in the level of foreign buyer interest in Malaysian properties from Hong Kong, Taiwan, Japan, China, Singapore, the United States, Australia, the United Kingdom, Germany and other European countries.

“Moving into 2020, we expect to see more new launches and transactions in the prime areas of Kuala Lumpur City – Bukit Bintang, Ampang Hilir/U-Thant, Mont’ Kiara, Bangsar and Damansara Heights/Kenny Hill.

“In addition to these prime areas, there are also some established neighbourhoods/ upcoming hotspots that are drawing the attention of the upper-income population and high net worth individuals. They include Desa Park City, Taman Tun Dr Ismail and the upcoming financial district of Imbi/Pudu-TRX,” he said.

Meanwhile, in the general residential segment, the report said several key policies announced in Budget 2020 are expected to further stimulate the market. The measures include the lowering of foreign buyer price threshold from RM1 million to RM600,000 for unsold high-rise properties in urban areas, the introduction of the rent-to-own financing scheme and revising the base year for real property gains tax.