Prices Of Luxury Condominiums In Malaysia In A Steady State
More real estate projects have been developed in Kuala Lumpur as well as those in unconventional locations in the country. There is now a strong competition among the rental market because of the weak real estate market in Malaysia.
The prices of condominiums that are in the luxury category will remain the same. The same cannot be said when it comes to the rental prices which is expected to decline. According to Knight Frank Malaysia, a property consultancy company, the reason behind this is the strong competition between the currently available units to the new ones that are recently launched.
Because of the increasing competition on the property market, many developers are forced to become more innovative. They are now offering attractive packages as well as creative deals just to boost their sales.
In a report published by the firm entitled Knight Frank Malaysia Real Estate Highlights 2H2015, the current state of the property market could be the very reason why many of the projects which are expected to launch at the first six months of 2016 were not pushed through. The report said that there are now many developers promising leaseback arrangement to buyers and even pool management programs to make sure that they will receive rental results. This is in an attempt to boost the sales of the property developers and get more prospective clients and investors that will partner with them in long term investment.
The report also states that the prospective buyers and investors will continue to wait and see before buying because they are skeptical of the real estate market in the country which remains to be weak. In the third quarter of 2015, Kuala Lumpur was able to record around 1,694 transactions dealing with condos and apartment units. The figure recorded was 6.3 less than the recorded number in 2014.
In terms of commercial properties in Kuala Lumpur and Selangor, there is an increase in the level of rental and occupancy pressure because of the high supply and the incoming new units while the market remains to be weak.
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