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The Klang Valley residential property market displayed mixed yet encouraging trends in the fourth quarter of 2024, according to the latest *Edge Malaysia | Savills Klang Valley Residential Property Monitor 4Q2024*.
Fong Kean Hwa, Director of Research and Consultancy at Savills Malaysia, noted that while Selangor saw improvements in demand and transaction volume alongside a decline in unsold inventory, Kuala Lumpur recorded stronger growth in transaction value despite a persistent overhang in high-rise properties.
Market Performance: KL vs. Selangor
- Kuala Lumpur:
- Transaction volume rose 5.5% YoY to 18,913 units in 2024.
- Transaction value surged 16.6% YoY to RM17.46 billion.
- Overhang units remained high at 9,081, with 53% being serviced apartments and SoHOs, of which 39% were priced above RM1 million.
- Selangor:
- Transaction volume increased 2.8% YoY to 60,703 units.
- Transaction value grew 5% YoY to RM33.99 billion.
- Overhang units dropped 11.8% YoY to 5,203, with 60% being serviced apartments and SoHOs, mostly priced between RM500,000–RM600,000.
Fong attributed the differences to distinct market dynamics: Kuala Lumpur is dominated by high-rise properties, while Selangor’s market remains landed-home focused.
High-Rise Properties: Strong Demand in KL, Steady Growth in Selangor
Kuala Lumpur’s prime areas (KLCC, Bangsar, Mont’Kiara) saw price and rental increases:
- KLCC: Avg. price ↑5% YoY (RM1.47M), rent ↑2.6%.
- Bangsar: Avg. price ↑3.6% YoY (RM977K), rent ↑4.8%.
- Mont’Kiara: Avg. price ↑0.6% YoY (RM810K), rent ↑3.3%.
New projects like Isola KLCC (RM1,500 psf) and Bangsar Hill Park (from RM893 psf) are driving activity.
In Selangor, high-rise properties in Petaling Jaya and Shah Alam saw moderate price growth, with Bandar Sunway maintaining 4.9% rental yields.
Landed Properties: Mixed Trends
- Kuala Lumpur: TTDI (↑5.3% YoY) and Lucky Garden (↑1.2% YoY) saw price increases.
- Selangor: SS2 (↑3.1% YoY) and Bandar Setia Alam (↑2.8% YoY) performed well, while Putra Heights (↓2.7% YoY) saw a dip.
Semi-detached homes in SS3 Petaling Jaya (↑6.5% YoY) and Bandar Tropicana Aman (↑6% YoY) showed strong growth.
Catalysts for Future Growth
Fong highlighted key drivers for 2025:
1. Economic Growth: Malaysia’s 5.1% GDP growth in 2024 supports market confidence.
2. Government Initiatives:
- Affordable housing schemes (PPR, RM10B credit guarantee).
- Tax relief for first-time homebuyers (up to RM7,000).
- Revised MM2H programme (58,468 approvals since inception).
3. Infrastructure Projects:
- LRT3 (2H2025 completion) to boost connectivity.
- IDRISS (South Selangor development) to spur demand in Cyberjaya, Puchong, Putrajaya.
Outlook: Sustained Momentum
Despite some overhang challenges, Fong expects continued demand, especially in KL’s high-end high-rise segment and Selangor’s well-connected suburbs.
