Malaysia's property market remains the preferred investment choice, amid the bleak global economic outlook and the cooling measures implemented by Bank Negara to curb speculation in the property market.
According to Knight Frank, real estate sales for 1H2012 recorded five completions, bringing the total cumulative supply to 29,882 units in Kuala Lumpur.
In the second half of this year, another five developments are expected to be completed which will increase the cumulative supply to 31,163 units.
The report also noted that SoHo units and smaller sized apartments are strengthening in Kuala Lumpur while dual-key concept is becoming popular among developers and purchasers. The increase in smaller units was attributed to land scarcity and high land costs.
As for pricing, the high-end condominium sector slightly declined while the fringe and suburban areas witnessed a stable trend.
According to DTZ's Research report for Kuala Lumpur in Q2 2012, the overall residential market was "stable with average capital and rental values experiencing marginal increases."
"The outlook is, however, more cautious as sentiment is clouded by both internal and external issues, including those of a political nature."
Prime office rentals also remained stable, averaging RM6.23 psf per month, while top tier offices commands around RM7.90 psf per month.
"With a substantial pipeline of supply completing in the second half of this year and next year, rents are forecast to fall," said the report.
Knight Frank noted that the cumulative supply of office space in the city stood at 47 million sq ft and will likely increase to 48.6 million sq ft following the completion of three new offices by the end of this year.
Also, the supply in the city fringes will be added with 4.1 million sq ft by the end of next year.
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.propertyguru.com.my today.