KUALA LUMPUR: CB Richard Ellis (Malaysia) (CBRE) reported growth in the residential property market for 2011 although it will not replicate 2010 levels in its 4Q Marketview Kuala Lumpur Residential report on Friday, Mar 11.
"Landed property prices grew strongly during 201, up by as much as 20% in some areas," it said. "New supply was limited, as evidenced by the 3% increase in residential housing units in the Klang Valley during the year, which was less than half of the 6% to 8% annual growth seen during 2004-2008."
The condominium sector, particularly the KLCC area, performed poorly in 2010, with some "high-end projects witnessed a decline in both capital values and rents as the market consolidated after the heady growth of 2007-2009". The condo market preference appears to be for smaller units with lower-entry costs. The concern is the 6,000 units being completed in 2011 that will impact the luxury residential market.
CBRE noted that the Mass Rapid Transit (MRT) project will be a major driver for new projects over the next two years.
The report showed that by end-2010, there were 1.7 million housing units within the Klang Valley.