Prime luxury homes price within KLCC to remain flat

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Prices of prime luxury high-rise homes within the Kuala Lumpur City Centre (KLCC) and Mont'Kiara areas will remain flat next year, according to property experts.

James Goh of Savills Rahim & Co said rental prices within the KLCC area will remain flat going forward, with some even declining, attributed to the cautious economic outlook.

"We believe owners will be more realistic (with their selling prices) and be pressured to sell," he said in a report by StarBizWeek.

"There are some that range from RM750 psf to RM950 psf and others that range from RM1,100 to RM1,300 psf. Then there's (Bandar Raya Developments Bhd's) The Troika, which is in a class of its own," he said.

Goh expects that prices of high-rise properties within the Mont'Kiara area will also remain unchanged next year, stating, "There is a huge oversupply and many projects coming online (in Mont'Kiara area)."

He added that more investors are now taking their money out of the stock market and placing them in a safe haven like property.

"The KLCC area offers a lot of opportunities (for potential investors)," he said.

Meanwhile, Saleha Yusoff, Head of Research at Rahim & Co, said market activity within the KLCC area was less active in the secondary market with prices expected to remain stable at between RM800 psf and RM2,000 psf.

He noted that the asking price for properties within the KLCC area currently stands between RM730 psf and RM1,400 psf while prices in the Mont'Kiara area range between RM590 psf and RM860 psf.

According to the Property Market Report 2011 released by C.H. Williams Talhar & Wong, prices of high-end condo units in the Klang Valley have moderated over the past year with supply as the biggest threat to price stability.

"Significant new supply of luxury condominium units is anticipated to be added to the current market over the next three years. Further supply can be expected with a number of approved projects. There is also ample supply of land for future condominium projects," it said.

"Thus, the supply situation is anticipated to create further pressure on occupancy rate and rentals upon completion. As most of the luxury condominiums launched earlier achieved good take-up rates, the risk is with future launches."

"Hence, it is imperative for a developer to provide purchasers with a good quality product that will stand out among its competitors."

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