Kuala Lumpur’s Commercial Property Market: A 2024 Overview
Kuala Lumpur (KL), Malaysia’s economic hub, continues to draw businesses and investors despite evolving post-pandemic dynamics. As remote working and online retail reshape demand, the city’s commercial property market has rebounded strongly, showing promising growth in 2024.
This article delves into key market insights from the National Property Information Centre (Napic), highlighting transaction data and district-specific trends up to the first half of 2024.
Impressive Growth in 2024
KL’s commercial property market recorded significant gains in 1H2024:
- Transaction Volume: Rose by 45.9% year-on-year (y-o-y).
- Transaction Value: Increased by a staggering 103.6% y-o-y, reaching RM5.17 billion compared to RM2.54 billion in 1H2023.
KL Town Centre: The Heart of Commercial Vibrancy
The KL town centre, encompassing KLCC, Bukit Bintang, and Chow Kit, emerged as the most active district:
- Volume: Jumped 81.9% y-o-y, from 765 to 1,392 transactions.
- Value: Skyrocketed by nearly 200%, reaching RM2.86 billion.
This surge reflects growing demand for premium office spaces and retail outlets, cementing the town centre’s status as a hub for high-value commercial activity.
Wider KL Area: Affordable Opportunities
Districts beyond the central city, including Taman Tun Dr Ismail (TTDI) and Salak Selatan, also posted strong growth:
- Volume: Increased by 48.8% y-o-y to 701 transactions.
- Value: Grew over 50%, reaching RM918.2 million.
This highlights sustained interest in affordable yet well-connected locations, appealing to businesses seeking value for money.
Suburban Districts Showcase Diverse Growth
Setapak
- Transaction Volume: Rose by 48.3% y-o-y.
- Transaction Value: Increased 123.9%, from RM123.2 million to RM275.8 million.
Setapak’s affordability and accessibility make it a hotspot for SoHo units and retail investments.
Petaling
- Volume: Up 35.1% y-o-y, with 527 transactions.
- Value: Increased 28.5% to RM466.6 million.
Petaling remains attractive for businesses targeting residential areas, benefiting from its proximity to key transport links and amenities.
Batu District
- Volume: Slight dip of 1.5%, but value surged 34.8%, reaching RM653.7 million.
This suggests a shift toward higher-value properties, even amid reduced transactional activity.
Strategic Investment Insights
Office Lots
- Best Value: Wider KL area (RM482.6 psf).
- Premium Option: KL town centre (RM1,080.3 psf), offering unparalleled urban accessibility and prestige.
SoHo Units
- Most Affordable: Setapak (RM464.50 psf), ideal for budget-conscious small businesses.
- Luxury Option: KL town centre (RM1,308.9 psf), catering to enterprises prioritizing centrality and urban amenities.
Retail Lots
- Best Deal: Petaling (RM499 psf), offering ample space for high inventory or foot traffic.
- Prime Location: KL town centre (RM1,371.2 psf), delivering exceptional urban exposure.
District-Specific Trends and Opportunities
Setapak
Best suited for growing businesses requiring affordable and spacious options, particularly in the retail and service industries.
Petaling
An excellent choice for mid-tier retail businesses targeting family-oriented residential neighborhoods.
KL Town Centre
Perfect for established businesses and premium brands seeking high visibility and access to affluent clientele.
What Lies Ahead for KL’s Commercial Market?
Kuala Lumpur’s commercial property market has demonstrated remarkable resilience and adaptability. As transaction values and volumes grow across districts, strategic investments tailored to business needs—whether affordability or prestige—can yield significant returns.
