News: High-end Residential Market Set For A Slow Rebound

Jan 9, 2020

Knight Frank Malaysia believes that Kuala Lumpur high-end residential market has bottomed out in the middle of last year.

“This has set the right mood for the segment to make its way back, albeit slowly,” said Knight Frank Malaysia managing director Sarkunan Subramaniam.

This is evidenced by the higher number of launches during the second half of 2019.

He revealed that there was also an increase in foreign buyer interest for Malaysian properties from Hong Kong, Japan, Taiwan, Singapore, China, Australia, USA, Germany, UK and other European countries.

Read this guide on buying a property as a foreigner! 

With this, he expects to see more new launches and transactions this year within the prime areas of Kuala Lumpur like Ampang Hilir/U-Thant, Bukit Bintang, Bangsar, Mont’ Kiara and Damansara Heights/Kenny Hill.

“In addition to these prime areas, there are also other established neighbourhoods as well as upcoming hotspots in Kuala Lumpur that are drawing the attention of the upper-income population and high-net-worth individuals (HNWIs). They include Desa ParkCity, Taman Tun Dr Ismail and the upcoming financial district of Imbi/Pudu-Tun Razak Exchange (TRX),” explained Sarkunan.

The TRX is also taking shape following the completion of Menara Prudential as well as Exchange 106, reported The Edge.

These commercial developments are complemented by the launch of Core Residence @ TRX by Core Previous Development Sdn Bhd – a joint venture between Malaysia’s WCT Holdings Bhd and China-based China Communication Construction Group.

Other notable residential projects launched in the second half of 2019 were Conlay, which is Eastern & Oriental Bhd and Mitsui Fudosan Group’s joint development project, and Agile Embassy Garden, which is Agile Group Holdings’ third project. Units in these new projects carry an average price of RM1,900 to RM2,200 per sq ft.

Meanwhile, Knight Frank also expects several key policies announced under Budget 2020 to further stimulate the market.

These include the lowering of foreign buyer price threshold to RM600,000 from RM1 million for unsold high-rise properties within urban areas, the revision of base year for the real property gains tax and the introduction of rent-to-own financing schemes.

 

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