High-End Residential Market To Make A Slow Comeback
KUALA LUMPUR: The high-end residential market is making a recovery after several years of slowdown.
Although it is a slow comeback, it is viewed positively by international property consultancy Knight Frank Malaysia which launched its latest research report, Real Estate Highlights 2nd Half of 2019.
The report highlighted the property trends and outlook in key markets of Malaysia. Knight Frank Malaysia managing director Sarkunan Subramaniam said: “The Kuala Lumpur high-end residential market is believed to have bottomed out mid last year.”
“This has set the right mood for the segment to make its way back slowly, evident by the higher number of launches in the second half of 2019.”
There is an increase in foreign buyer interest in Malaysian properties from Hong Kong, Taiwan, Japan, China, Singapore, USA, Australia, UK, Germany and other European countries, he said.
“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,” he pointed out.
In addition to these prime areas, there are some established neighbourhoods and upcoming hotspots that are drawing the attention of the upper-income population and high-net-worth individuals.
These areas include Desa ParkCity, Taman Tun Dr Ismail and the upcoming financial district of Imbi / Pudu – Tun Razak Exchange (TRX).
The year 2019 also saw the 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 China-based 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 are Conlay, a joint development by Eastern & Oriental Berhad and Mitsui Fudosan Group, and Agile Embassy Garden, the third project of Agile Group Holdings. These new launches are selling between RM1,900 per sq ft and RM2,200 per sq ft on average.
In the general residential segment, several key policies as announced under the National Budget 2020 are expected to stimulate the market further.
Among them is the lowering of foreign buyer price threshold from RM1mil to RM600,000 for unsold high-rise properties in urban areas, the introduction of Rent-to-Own financing scheme and revising the base year for RPGT to Jan 1, 2013, for assets acquired before the date, from Jan 1, 2000.
Source: StarProperty