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KUALA LUMPUR: The vacancy rate of luxurious condominiums in the country is expected to rise to an alarming 35% to 38% this year amid a supply glut, said CH Williams Talhar & Wong Sdn Bhd.
This compares with a vacancy rate of 32% in 2013 and 35% in 2012, said its managing director Foo Gee Jen.
“There has been an alarming growth in condo supply for the last three to four years which led to lower occupancy rates and rents,” he told a press conference on the property market outlook for this year.
The pool of luxury condos available in the market this year is expected to grow 19.4% year-on-year to 32,020 units, said the real estate consultancy firm.
The bulk of the new supply would be concentrated in the Kuala Lumpur City Centre area, Mont’Kiara, Ampang Hilir and Bangsar, he said.
“The population in the Klang Valley is getting more affluent and this has resulted in the launch of more high-end condominiums,” Foo added.
Overall, the average condo market, that includes the lower and mid-end segments, would see a vacancy rate of 20% in 2014.
Luxury condos usually offer facilities such as club house, swimming pool, meeting rooms, gym, with the podium area reserved for retail purpose.
This article first appeared in The Edge Financial Daily, on March 19, 2014.
