KL named one of Asia's top property investment spots

Alternative Asset Analysis (AAA), a US-based advisory group, has named Kuala Lumpur, along with Singapore and Hong Kong, as one of the top three locations for property investments in Asia.

Leslie Chua, Senior Vice President of AAA, said Malaysia is enjoying wage growth, resulting in more retailers moving into the capital city, while Singapore has witnessed an increase in visitors due to their integrated resort developments, which has reflected growth within its property market.

Meanwhile, residential property prices this year climbed at a slower pace compared to Q1 2010, according to the Valuation and Property Services Department. This was mainly attributed to slower exports due to the appreciating ringgit and sluggish economic growth caused by rising inflation.

According to the 2011 Property Market Report, the office segment has become a competitive market which relies mostly on the success of the Malaysian government applying the ETP initiative.

Luxury condominiums in the  Kuala Lumpur city centre area showed a slight decline due to slow demand and larger supply last year.

The report noted that serviced apartments accommodating guests on business trips to Kuala Lumpur witnessed a drop in occupancy rates. The occupancy rate between 2009 and 2010 fell to 64.6 percent from 70.7 percent.

It is likely to drop further when faced with huge incoming supply which stands at approximately 19,000 units by the end of 2013, the report said.

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