PROPERTY SNAPSHOT 1: Central City KL condos moderating

This week’s spotlight falls on the secondary market of non-landed residences in Central City Kuala Lumpur (excluding the KLCC enclave, which has been previously analysed separately). The areas covered include Bukit Bintang, Bukit Ceylon, Chow Kit and Pudu. Geographically, the study area is bounded by Lebuhraya Sultan Iskandar and Jalan Tun Razak to the north and extends south, up to Jalan Istana.

•    Based on theedgeproperty.com’s analysis of transactions, the average transacted price of non-landed properties in Central City KL grew rapidly in the beginning of 2013, peaked at RM730 per square foot (psf) in 3Q2013 and has since moderated. The average transacted price was at RM687 psf in 1Q2015, down 5.9% from the peak. Nonetheless, this represents an 11.7% y-y improvement from RM615 psf in 1Q2014.

•    Meanwhile, transaction activity has similarly surged to a peak at the end of 2013 and has since subsided. Total transaction volume for the 12 months to 1Q2015 declined 45.6% y-y from 1,018 units to 554 units. 

•    Closer inspection of the transaction data reveals that the growth in both average price and transaction volume in 2013 can be attributed to a sudden increase in activity in the high-end segment. In 3Q2013, about a quarter (25.4%) of transactions were for properties priced above RM1,000 psf. In contrast, in 2014, the average proportion of transactions above RM1,000 psf was about 16%.

•    With many ambitious projects planned within Central City Kuala Lumpur, the local property market will have no lack of catalysts. Construction work is expected to continue on the RM8.7 billion Bukit Bintang City Centre.

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The Analytics are based on the data available at the date of publication and may be subject to further revision as and when more data is made available to us.