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PROPERTY SNAPSHOT Prices in KLCC stagnate

• This week, the prime Kuala Lumpur City Centre (KLCC) area takes centre stage. We begin by taking a look at price and volume trends of condominiums and serviced apartments in the area bounded by Jalan Tun Razak, Jalan Raja Chulan, Jalan Sultan Ismail and the Klang river.

• Prices in the area have generally stayed stagnant over the past two years, although average transacted prices have remained above the RM1,000 per square foot (psf) mark since 1Q2013. 

• Based on theedgeproperty.com’s analysis of transactions, the average price per square foot (psf) for non-landed residences in KLCC softened slightly to RM1,052 psf in 3Q2014, down 2.2% y-y from RM1,076 psf in 3Q2013. 

• In contrast, prices in Kuala Lumpur had tracked upwards, with the High-Rise House Price Index up 7.0% y-y in 3Q2014, according to NAPIC statistics. 

• The average price in 3Q2014 was also down 9.9% from the peak of RM1,167 psf in 4Q2013. Transaction data reveals that there was less activity in the ultra-high-end segment in 2014. 

• Transaction activity was similarly muted, with recorded transactions for the 12 months to 3Q2014 down 15.5% from 467 to 395 units. 

• There was a spike in transaction volume to 198 units in 4Q2013, led by Vipod Residences, which saw 44 units transacted. As the project was completed at end-2013, the spike in the secondary market was likely due to investors selling before the higher Real Property Gains Tax took effect in January 2014.

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.

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