Has KL Property Really Been Increasing in Price? Here’s What 2024 Tells Us
Many believe property prices in Kuala Lumpur have been on a steady rise. But is this truly the case? Using data from the Ministry of Housing and Local Government (KPKT), we dive into the 2024 trends, revealing the evolution of housing prices and what buyers can expect for new launches.
Overview of New Property Launches in Kuala Lumpur (2024)
From January to September 2024, Kuala Lumpur saw 10 new non-landed residential projects, including flats, condominiums, serviced apartments, and luxury apartment suites. With limited development land, it’s no surprise that all the new launches were non-landed.
Of these projects, 8 out of 10 had starting prices below RM1.2 million, reflecting strong market demand for more affordable to mid-tier housing options.
2024 New Property Price Breakdown
The price categories for new property launches in Kuala Lumpur vary, allowing for a range of affordability options. Here’s what buyers can expect:
- RM250,000 – RM400,000
- Number of Projects: 2
- Monthly Mortgage: Starting from RM1,193.54 (based on a 4% interest rate and 30-year mortgage).
- This category offers budget-friendly options for first-time buyers.
- RM400,001 – RM800,000
- Number of Projects: 4
- Monthly Mortgage: Starting from RM1,906.66.
- This is the most active market segment, featuring developments like M Zenya by Mah Sing Group Bhd, Bamboo Hills Residences by UOA Development Bhd, and Riverville 2 Residence by Alzac Group. Mid-tier homes in this range are popular among middle-income families.
- RM1,600,001 – RM2 Million
- Number of Projects: 1 (Ta Twin Towers by TA Global Bhd)
- Monthly Mortgage: Starting from RM5,728.98.
- Higher-end housing is less frequent but caters to a specific market segment seeking luxury living.
- Above RM2 Million
- Number of Projects: 1 (Aetas Seputeh by Avaland Bhd)
- Monthly Mortgage: Starting from RM9,548.31.
- This luxury development features premium homes with wide-ranging prices, catering to the upper market.
Trends Over the Last Decade in KL’s Property Market
Over the past decade, property prices in Kuala Lumpur have seen notable shifts. Particularly, the pandemic years (2020-2021) saw a surge in affordable housing priced between RM250,000 and RM400,000, making up 37.5% of new developments in 2020 and 36.8% in 2021. This was in response to the economic slowdown, where affordable housing became a priority for buyers.
However, by 2024, only 10% of new launches fell into the affordable category, reflecting rising land and construction costs. As the economy recovered, the share of budget-friendly options has diminished, giving way to more mid- to high-tier developments.
Mid-Tier Homes: A Steady Market Force
The RM400,001 to RM800,000 price range has been a consistent favorite in the market. This segment peaked in 2023, making up 53.9% of new projects, but it slightly decreased to 50% in 2024. Despite the slight dip, mid-tier homes remain a dominant force in the market, balancing demand from middle-income buyers and investors.
High-End Projects Surge in 2024
Luxury properties priced above RM800,000 have seen significant growth, especially post-pandemic. In 2024, high-end projects represented 40% of new property launches in Kuala Lumpur. This shift indicates an increasing appetite for premium developments as buyers seek more sophisticated living options with enhanced amenities.
Conclusion: What Does the Future Hold for KL Property?
While affordable housing options have reduced in supply, the RM400,001 to RM800,000 segment continues to dominate, offering a sweet spot for a wide range of buyers. Meanwhile, the rise in high-end luxury developments reflects a growing demand for premium living spaces. With the city’s property landscape evolving, buyers and investors should remain attuned to market trends to seize the best opportunities.
Whether you’re seeking budget-friendly homes or high-end luxury apartments, Kuala Lumpur’s 2024 property market has something for everyone.
