Kuala Lumpur Market Update

Market Overview

  • KL became a 'city' status in 1972.
  • The Kuala Lumpur Tower is the fifth tallest telecommunication tower in the world.
  • Kuala Lumpur literally means "muddy confluence". Because it is situated at the confluence of the Lumpur River and Klang River.
  • In the second quarter, a number of luxury projects were launched and the highest values were in KLCC at about RM 890per square foot.
  • The city was founded by Chinese Tin miners in 1857.
  • A record was set in July 2010, when a luxury apartment sold for RM38 million (US$11.8 million).
  • After a strong performance in 2010, Malaysia's economy grew by 2.4%. The outlook for 2011 remains strong with growth estimates of 5.7% year on year.
  • Last year's Economic Stimulus Package helped boost GDP by 6.7% .
  • The Malaysian Ringgit should continue to perform well in 2011; it has already appreciated by 4.7%.

Reasons to be cheerful

Global companies continue to flock to Kuala Lumpur as purchase and operational costs are low compared to other Asian cities. For example, property in KL is FIVE times lower than Hong Kong.

The Malaysian Ringgit was the best performing Asian currency in 2010. It gained 9% against the US dollar, 23% against the Euro and 15% against the British pound. Even with that strong gain, the currency is still considered undervalued.

The residential market continues to see new launches and previews of high-end condominiums. Prospects for 2011 remain positive as the economy is expected to maintain growth albeit slower than in 2010. Recent reports have detailed that transaction values in the residential sector between July and November 2010 increased by 15.5% year on year and commercial transactions rose by 22.4% during the same period. Positive price growth for of 8.2% for residential property was recorded in Kuala Lumpur in 2010 as well.

Local surveyors are reporting a positive outlook to 2011 following the country's strong recovery in the economy during 2010 . Residential property in Kuala Lumpur is expected to appreciate by 5% in 2011 on the back of increasing transactions volumes during 2010 and the Economic Transformation Programme being introduced, which will aim to restructure Malaysia's economy and the nation's status from developing to developed.