High-end condos in hot demand in M’sia: DTZ

Malaysia’s residential market continues to see active new launches and previews of high-end condominiums in the established neighbourhoods of Kuala Lumpur City Centre, Jalan Ampang and U Thant, DTZ Research said in a report.

Despite the year-end, the market for new launches of prime condominiums remained active, with developers focusing on smaller units. Encouraging take-up rates were noted in the few new high-end launches such as M-Suites, Vipod and Quartro, clearly indicating that buying sentiment remains positive, the report said.

Overall, the average price of high-end condominiums in Kuala Lumpur was stable, with a marginal decline of around 0.17 per cent on-quarter to RM599 ($252) per sq ft in the fourth quarter of last year, while average rents declined 2 per cent from the previous quarter to RM3.58 psf per month.

Mr Eddy Wong, head of residential marketing at DTZ, said: “With the new measure implemented by Bank Negara Malaysia in November, which reduces the loan-to-value for the third residential property purchase to 70 per cent, the market may see a short-term pullback from investors. However, the prospects for 2011 remain positive as the economy is expected to grow sustainably.”

The real estate investment market saw a 90-per-cent on-quarter decrease in the total value of investment transactions due to the absence of major Reit listings compared to the previous quarter. The total investment transaction for the quarter was about RM731 million, involving some 12 assets.

The outlook for 2011 is likely to be moderate as GDP is forecast to slow down to about 5 per cent, and external uncertainties posing new challenges in terms of stronger exchange rates, higher inflation and interest rates. The new investments under the Economic Transformation Plan will also drive growth in disposable income, DTZ said.

Source : Today – 14 Jan 2011

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