Demand for Luxury Property High in Kuala Lumpur

High-end condominiums and serviced apartments are still in strong demand in Kuala Lumpur, according to CB Richard Ellis executive chairman in Malaysia, Christopher Boyd.

Take-up rates for high-end condominiums and serviced apartments launched in the first quarter range from 65-88 per cent even with a 4 per cent increase in the total supply since the end of last year.

According to a recent CB Richard Ellis report, the total number of high-end units is 32,742 of which about 44 per cent or 14,514 are located in the Golden Triangle, central business and Ampang areas and 34 per cent or 11,121 units in Mont’Kiara and Sri Hartamas.

About 38 per cent of the supply of condominiums and serviced residences were tagged at between RM350 (US$115) and RM499 (US$164) per sq ft, with a further 38.6 per cent priced at between RM500 (US$165) and RM799 (US$263) per sq ft.

The remainder, or 24 per cent of the units, were priced at RM800 (US$264) per sq ft onwards and categorised as luxury residential units.

According to Boyd, average capital values in the three main condominium markets (KLCC, Bangsar and Mont Kiara) in Kuala Lumpur has remained relatively steady since the 2008 global financial crisis.

The CB Richard Ellis report said that last year, there were 2,156 transactions for high-end condominiums in Kuala Lumpur with an average value per transaction of RM1.09mil.

Speaking to The Star, Boyd said that about 76 per cent of buyers of luxury condominiums and serviced residences in Kuala Lumpur are Malaysians.

Less than a quarter of Kuala Lumpur luxury condominium buyers are foreigners. Also, most of the local buyers are not highly leveraged and they are not buying for speculative purposes,” he said. – Property Report