KL properties are among the cheapest compared to 34 other cities worldwide. Here are the top 9 reasons to look at new properties in KL.
An April 2019 Global Living report released by real estate firm CBRE noted that houses in Kuala Lumpur are among the cheapest compared to 34 other cities worldwide. The report listed Hong Kong and neighbouring Singapore with an average property price of RM5.1 million and RM3.6 million respectively, a stark contrast with the Malaysian capital average of just under half a million ringgit.
Other news sources report that the market has bottomed out with better sentiments returning since property market cooling initiatives have taken place alongside an increased effort to drive affordable housing by the government. There are considerably more reasons to look at new property in KL. Here are our Top 10:
A May 2019 report by JLL Property Services Sdn Bhd published on the Real Estate and Housing Developers' Association Malaysia's (REHDA) website noted that the volume and value of residential transactions in Malaysia experienced year-on-year decline since 2014 but have started picking back up in 2018. This shows the market has bottomed out and purchasing confidence is returning.
A H1 2019 report released by the Valuation and Property Services Department and published on the National Property Information (NAPIC) website shows an existing stock of some 483 thousand units available in the market with about 14,000 additional new properties in the Kuala Lumpur market, so buyers are spoilt for choice.
Young urban dwellers may prefer to live in studio or one-bedroom apartments compared to bigger units so that they have more freedom and personal space. Likewise, developers are meeting that demand by building more boutique properties in Kuala Lumpur and its surrounds. The focus is to have swankier shared common spaces (like fitness and health facilities on the rooftop e.g. gyms, pools, meditation lounges, media rooms and multi-purpose halls). Home buyers pay less on their purchase with smaller square-footages.
The Malaysian House Price Index shows housing price growth is at its slowest since 2001, at 1.1% in Q3 2018 vs a peak of 14.3% in Q4 2012. This is a reflection of weaker demand for property in the higher-priced segments.
The Government, through the National Affordable Housing Policy or Dasar Perumahan Mampu Milik (DRMM) has pledged to drive more construction of properties within the affordable price range and developers have followed suit. The policy outlines detailed guidelines for developers keen on building affordable homes and includes building standards, key specifications and the ceiling price of affordable homes.
Starting 1 September 2019, Bank Negara's RM1 Billion Fund for Affordable Homes – to assist home buyers from the lower income group to finance the purchase of their first homes – have been enhanced to include an expanded eligibility criteria i.e. maximum monthly household income raised to RM4,360 and maximum property price up to RM300,000.