Kuala Lumpur: Residential transaction trends in 2021 The

March 24, 2024
Malaysia


Despite two iterations of the Movement Control Order (MCO), the decline in the volume of transactions in Kuala Lumpur’s most popular areas was marginal last year compared with 2020. 

Overall, median transacted prices in Kuala Lumpur grew by 6% to RM 530,000 while the volume of transactions increased by 5.5% when compared to the previous year. 

Property purchases by investors (categorised as those who own more than one property) marginally outnumbered purchases by first-home buyers. 

81% of the recorded residential property transactions were in the subsale market while 19% were new developments. 

Owing to its affordability and connectivity, Cheras continues to emerge as KL’s most transacted area. The township has the lowest median transacted price of RM370,000, a slight increase of 5.7% from RM350,000 in 2020. 

A prevalence of leasehold properties likely contributes to lower asking prices. The volume of transactions, however, declined by 18.72% in 2021 compared with the previous year. 

In keeping with the expanding population, Cheras has over recent years seen the addition and/or expansion of amenities such as IKEA, MyTown, Sunway Velocity, and You City, alongside existing establishments. 

Eleven of out 31 stops on the Sungai Buloh-Kajang line serve various areas here, making up as much as 35% of the MRT line. 

Cheras is also among the most transacted areas in Selangor for 2021. 

Developers are capitalising on Cheras’ potential as a mature suburb with abundant amenities close to the city centre and Tun Razak Exchange. (Wikipedia pic) 

The next most transacted area in Kuala Lumpur for 2021 is Setapak, a bustling urban neighbourhood in the heart of KL. 

Despite being the second-most transacted area in KL, median transacted prices here dropped by 2.7% to RM437,875 last year, while the volume of transactions dropped by 8.91%. 

Old Klang Road’s strategic location has also led to a large number of new developments in the past decade, with many more new projects in the offing. 

Most of the properties on the eastern front here are freehold, while the western end is populated with leasehold properties. 

Median transacted prices recorded positive growth of 7.1%, from RM420,000 in 2020 to RM450,000 last year. 

Mont Kiara remains the prime location for expatriates and affluent Malaysians, with its excellent international schools and upscale high-rises. 

Despite the lack of direct rail connectivity and high prices, it remains among the most desirable locations in KL. The pandemic made living here more achievable as median asking prices dropped by 45.75% in 2020 compared with the year before. 

Median transacted prices, however, saw little change, falling by 3.6% to RM1,130,000 in 2020 and a further 4.5% in 2021. 

The volume of transactions last year has remained nearly the same as the previous year. 

The Bukit Jalil National Stadium is a cornerstone of the burgeoning suburb where new developments continue to emerge. (Bernama pic) 

Last but not least, Bukit Jalil offers attractive landed and high-rise properties even as new developments emerge, boosted in part by the recently completed Pavilion Bukit Jalil.

Apart from Technology Park Malaysia, Bukit Jalil hosts notable educational institutions including International Medical University and the Asia Pacific University of Technology & Innovation.

The Sri Petaling and Bukit Jalil LRT lines serve the fast-growing population, with further expansion of the Sri Petaling line having added two new stops close by (Awan Besar and Muhibbah).

Median transacted prices dipped by only 1.96% to RM500,000 last year, while the volume of transactions dropped 13%.

As market recovery begins, the question remains if transaction patterns will return to pre-pandemic levels amid remote/hybrid working trends.

This article was written by Vigneswar Rajasurian of PropertyAdvisor.my, Malaysia’s most comprehensive source of property data, property analytics and insights.

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