Although transaction activity in the Klang Valley luxury condominium market was less active last year compared with previous years, average transacted prices still rose.
According to research from real estate services firm CH Williams Talhar & Wong (WTW), luxury condominiums in the Golden Triangle were transacted at RM 1,500 per sq ft on average, whereas secondary areas remained firm at RM 920 per sq ft on average.
Average occupancy rates for condominiums and serviced residences remained at between 77 percent and 80 percent in the Golden Triangle area of the capital, and between 60 percent and 65 percent in secondary areas.
The total number of luxury condominiums in Kuala Lumpur stood at 36,252 units in 2015 according to the research, an increase of 4,625 units compared with 2014. The total number of luxury condominiums units is expected to increase by another 13,500 units during the coming two years.
Central Kuala Lumpur, Embassy Row, Mont Kiara/Sri Hartamas and the Golden Triangle remained the prime localities for high-end condominiums developments. The market was quiet during the first quarter of 2015 with only two new launches, while the second quarter saw more new launches, especially in Embassy Row (Ampang Hilir/U-Thant) and the Golden Triangle.
The condominiums sector is expected to be more challenging in the next two years, with the large incoming supply scheduled for completion in 2016 and 2017, according to the firm.
The infrastructure developments, such as MRT SSP Line and East Klang Valley Expressway (EKVE), is likely to spur more condominiums developments in the prime and suburban areas.
However, developers are advised to maintain a cautious stand. The rental market is expected to be a tenant’s market, with more choice of units coming on stream during 2016.
