Kuala Lumpur Property Market Overview The Wilayah Persekutuan Kuala Lumpur s property market has shown moderation in activities in the first half of 2015. There were 9,291 transactions worth RM11.01 billion recorded in the review period, reflecting a drop of 7.4% in volume and 6.5% in value as compared to the first half of 2014. The uncertainty of the GST effects on property prices is once again seen to be the hold back factor which further translated into a moderate recorded number of transactions of properties. (Source : Property Market Reports 2008 to H1 2015) The residential market once again spearheaded the market as it accounts for 74.7% of the volume in Wilayah Persekutuan Kuala Lumpur followed by commercial (22.1%), development land (2.0%) and industrial (1.2%) sectors. (Source: Property Market Report H1 2015) JORDAN LEE & JAAFAR SDN. BHD. Page 1
All sub-sectors recorded increase in terms of number of transactions in year 2014 except for the residential sector which recorded a slight fall of 3.8%. The sector that shows the sharpest increase in number of transactions is the industrial sector with a rise of 22.8% followed by the commercial sector at 13.4% and development land sector at 7.0%. Volume of Transaction by Sector Wilayah Persekutuan Kuala Lumpur 25,000 20,000 15,000 10,000 5,000-2008 2009 2010 2011 2012 2013 2014 Residential 18,840 20,220 21,262 24,314 24,010 15,751 15,151 Commercial 3,796 4,492 5,507 6,478 5,934 4,213 4,776 Industrial 280 229 250 353 294 206 253 Agricultural - - - - - - - Development land 497 384 351 519 528 383 410 Residential Commercial Industrial Agricultural Development land Others (Source: Property Market Reports 2008 to 2014) By value, the total value of transactions increased 19.2% from year 2013. All sectors recorded rise in value with the sharpest rise in value of transactions is the development land sector with an increase of 71.2% followed by the industrial sector at 17.2%. and commercial sector at 14.3%. Value of Transaction by Sector Wilayah Persekutuan Kuala Lumpur (RM million) 12,000 10,000 8,000 6,000 4,000 2,000-2008 2009 2010 2011 2012 2013 2,014 Residential 8,216 7,884 10,387 11,123 11,742 10,604 11,677 Commercial 4,548 4,025 6,435 7,719 6,614 6,533 7,467 Industrial 484 166 232 452 316 351 411 Agricultural - - - - - - - Development land 3,880 1,713 2,975 3,514 3,678 2,465 4,221 Residential Commercial Industrial Agricultural Development land Others JORDAN LEE & JAAFAR SDN. BHD. Page 2
Market activities for the residential segment in Wilayah Persekutuan Kuala Lumpur is largely concentrated on condominiums / apartments, followed by 2-3 storey terraced houses and flats. A total of 3,494 units of condominuims / apartments changed hands during the first half of 2015, which accounted for 50.4% of the total transactions of residential units within Wilayah Persekutuan Kuala Lumpur. The development of condominiums / apartments appeared to be most popular within the State due to scarcity of land as well as the increasing demand for such lifestyle from younger working population which forms the majority population within the State. Affordability level of these group also constributed to popularity of condominiums / apartments development in Wilayah Persekutuan Kuala Lumpur. In terms of popularity, the Mukim of Batu is the most activetly transacted location, followed by Mukim of Petaling and Mukim of Kuala Lumpur. In terms of value of transactions, the Mukim of Petaling recorded the highest, followed by Town of Kuala Lumpur (Sections 1-100) and Mukim of Batu. JORDAN LEE & JAAFAR SDN. BHD. Page 3
(Source: Property Market Report H1 2015) On the commercial front, the most actively transacted type of property is the hotel / serviced apartment units which accounted for 46.0% of the total volume of commercial properties within the State whilst stratified office lots and shop/retail lots transactions accounted 20.3% and 14.1% respectively of the total volume of transactions. The Town of Kuala Lumpur remained the most actively transacted locality with the highest recorded value of transactions in H1 2015. There are 104 shopping complexes in Wilayah Persekutuan Kuala Lumpur as at first half 2015 offering a total space of 2,603,216 square metres, an increase of 6.2% from H1 2014. The occupancy rate of shopping complexes is recorded at 86.5% in H1 2015, which reflected a marginal improvement of only 0.3% as compared to H1 2014. The Bukit Bintang / Raja Chulan and central commercial area have the highest number of shopping complexes as well as the largest retail space in the State. For the office building sector, average occupancy maintained to 81.0% (1H 2014 : 81.0%) with positive take up rates. There is a total of 426 purpose built office buildings in Wilayah Persekutuan Kuala Lumpur with a total lettable space of 8,257,055 square metres. The city centre accomodates the most number of office buildings followed by suburban area and central business district and KLCC / Golden Triangle area. For the industrial subsector, demand for industrial complexes remained strong. Most of the industrial developments were concentrated in the Mukim of Batu and Mukim of Petaling. Transactions of industrial property within Wilayah Persekutuan Kuala Lumpur are majorily priced from RM1,000,000 and above, which accounts for 91.3% of total transactions within the State. Mukim of Batu has the highest value of transactions (37.2%) followed by Mukim of Setapak (25.5%) and Mukim of Kuala Lumpur (12.0%). JORDAN LEE & JAAFAR SDN. BHD. Page 4
This report and other research materials may be requested from us. Questions related to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Jordan Lee & Jaafar Sdn. Bhd. for general information only. Jordan Lee & Jaafar Sdn. Bhd. makes no guarantees, representation or warranties of any kind, expressed or implied, regarding the information including but not limited to, warranties of content, accuracy and reliability. Interested parties should undertake their own inquiries as to the accuracy of the information. Jordan Lee & Jaafar Sdn. Bhd. excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss or damages arising therefrom. JORDAN LEE & JAAFAR SDN. BHD. Page 5