The pricing and rental costs of residential property in and around Kuala Lumpur fell in the fourth quarter of 2022 compare to the previous quarter.
Nawawi Tie Leung Property Consultants in their report titled ‘Cautious Optimism Amid Global Uncertainty’ — which focussed on the property market in the greater Kuala Lumpur — stated that on q-o-q, asking prices and asking rentals of high-end condominiums registered a further decrease of 3.8 per cent (RM947) and 0.3 per cent (RM3.40), respectively.
It was highlighted that residential property prices declined by 3.8% in the fourth quarter of 2022, after rising by 2% the previous quarter, while rental prices was correspondingly recorded at -0.3% in Q4 2022 after rising 13% in quarter three.
Two projects were completed in the final quarter of 2022. Located along Jalan Ampang, NOVO Residences offer 421 units and Pavillion Embassy 318 units.
The report highlight that there key projects within the property market being completed.
EUPE Corp launches Helix2 @ PJ South in Q4 2022. The 33-storey residential development will be home to 500 residential units with built-up areas ranging from572 to 1,065 sq ft at prices starting from RM346,000.
On a side note, EUPE has previously acquired 4.812 acres of a parcel located off Jalan Istana with plans to develop the respective parcel into a mixed-use of residential and commercial developments.
Bonia Corp has announced its acquisition of freehold land in Jalan Delima, Kuala Lumpur from Resaa Properties Sdn Bhd for RM35.51 million. The land covers approximately 15,000 sq ft of land including a double-storey bungalow and a guard house. No plan on developing the land yet was announced except to enjoy capital appreciation and rental income of the property.
Building on its previous successful launches, in Q4 2022, Desa ParkCity launched NOÖRA, a high-rise residential development to be developed on 6.63-acre freehold land. The project comprises two 52-storey towers, offering 1,156 units with built-up areas ranging from 520 sq ft to 1,282 sq ft at an average selling price of RM950 per sq ft. About 73 per cent of the units sold as of November 2022.
In Mutiara Damansara, Boustead Properties Bhd announced that it would redevelop eCurve mall into high-rise residences due to its strategic location and the site’s potential for a higher plot ratio. The developer is expected to launch the residential project in 2024.
The data shows that more incoming and planned projects are expected to complete in 2023 onwards with two completions were registered in Q4 2022.
The report stated that in Q4 of 2022, Budget 2023 were tabled by then Senator Tengku Datuk Seri Utama Zafrul Tengku Aziz. The respective budget was announced to amount to RM372.3 billion in total. Also in the announcement of the Budget 2023 were the updates on the government’s allocation in property sectors.
On the outlook, moving into the year 2023, the newly formed government announced that the issue of the rising cost of living would be the government’s top priority. It is hoped that moving forward we will see a rise in property demand, especially for homebuyers.
The revision of stamp duty exemption from 50 per cent to 75 per cent for real estate transfer documents for properties priced between RM500,001 and RM1 million is expected to benefit the mid-market segment.
A 100 per cent stamp duty exemption will remain applicable for properties priced at RM500,000 and below benefitting lower-income first-home buyers.
“We expect demand to improve in 2023 as the current Budget 2023 allocated RM3 billion to Syarikat Jaminan Kredit Perumahan Bhd (SJKP) for 12,000 borrowers who do not have fixed income, such as the gig economy workers,” it said.
