According to the Knight Frank Malaysia Real Estate Highlights 2nd Half of 2019 report, several key policies under National Budget 2020 are expected to stimulate the Malaysia residential market in the coming year.
The Real Estate Highlights 2nd Half of 2019 report by Knight Frank Malaysia which was released today, sheds light on the property trends and outlooks in key markets. In it, the report stated that the Malaysia residential market is slowly making a comeback with an uptick in new launches and transactions in prime areas.
The report states that 2019 saw the Tun Razak Exchange (TRX) taking shape with the completion of Menara Prudential and Exchange 106. Complementing these commercial developments, Core Previous Development Sdn Bhd, a joint-venture (JV) between China-based China Communications Construction Group (CCCG) and Malaysia’s WCT Holdings Bhd, seized this opportune time to launch Core Residence @TRX.
The report also states that other notable residential projects unveiled during 2H 2019 are Conlay, a joint development by Eastern & Oriental Berhad and Mitsui Fudosan Group, and Agile Embassy Garden, the third project by Agile Group Holdings. These new launches are selling between RM1,900 per sq ft and RM2,200 per sq ft on average.
According to Sarkunan Subramaniam, Managing Director of Knight Frank Malaysia, the Kuala Lumpur high-end residential market is believed to have bottomed out mid-last year and this has set the right mood for the segment to make its way back slowly, evident by the higher number of launches in 2H 2019.
“Furthermore, we observed an increase in foreign buyer interest in Malaysian properties from Hong Kong, Taiwan, Japan, China, Singapore, USA, Australia, UK, Germany and other European countries,” he adds.
“Moving into 2020, we expect to see more new launches and transactions in the prime areas of Kuala Lumpur City, mainly Bukit Bintang, Ampang Hilir/U-Thant, Mont’Kiara, Bangsar and Damansara Heights/Kenny Hill. In addition to these prime areas, these are also some established neighbourhoods and upcoming hotspots that are drawing the attention of the upper-income population and high-net-worth individuals. They include Desa Park City, Taman Tun Dr Ismail and the upcoming financial district of Imbi/Pudu – TRX.”
Subramaniam also adds that in the general residential segment, several key policies as announced under the National Budget 2020 such as lowering of foreign buyer price threshold from RM1 million to RM600,000 for unsold high-rise properties in urban areas, introduction of Rent-to-Own financing scheme, revising the base year for Real Property Gains Tax (RPGT) to 1 January 2013 for assets acquired before the date from 1 January 2000 previously among others are expected to further stimulate the market.
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