A Guide To KLCC Property Prices
Are you considering property in the Kuala Lumpur City Centre (also known as KLCC)? The bustling heart of Kuala Lumpur, where vibrant nightlife meets luxury malls, is one of the most sought-after addresses in the country. Presenting: an exciting landscape of business, commercial, and residential property that forms an attractive proposition for keen investors!
KLCC is often referred to as a ‘city within the city’, a purpose-built and largely business-focused development area situated over 100 acres that incorporates the iconic heights of the Petronas Twin Towers amongst its most familiar landmarks.
It comes as no surprise in a neighbourhood that boasts such dazzling architecture that KLCC property rarely sits at the lower end of Malaysia’s property price ranges. Kuala Lumpur is itself the most expensive location for property in Malaysia, with the average property price sitting at RM719,098 for the year 2019.
As a high-end representation of that sample, KL City Centre is a location that can be home to some extreme property prices, as luxury condominiums and high-value developments dominate much of the area.
According to the National Property Information Centre (NAPIC), condominiums and apartments accounted for nearly two-thirds of all residential property sold in the area of Kuala Lumpur City Centre in Q4 2019, with 227 units sold.
So how do those extremes look in practice? Let’s go right to the top. As of June 2020, the most expensive property listed on PropertyGuru in the KLCC area is a penthouse that’s selling for a cool RM49 million. To put that into better perspective, you could purchase nearly 169 properties at the median Malaysian house price of RM290,000 for the same money!
A Property Snapshot Of KLCC
Exploring the prices at the top helps highlight the substantial differences in valuations that one can find in KLCC, but it’s important to also explore the more frequently transacted properties. Based on the Kuala Lumpur area page on PropertyGuru, the median price is almost RM1.5 million (based on over 600,000 transactions over the past year).
Now, let’s also look at some of the data handily available from Property Advisor. We can take a snapshot of Menara City One, a 502-unit development on the edge of KLCC that’s seen over 200 transactions in the last 10 years. To date, the median price of units in the building has stood at roughly RM490,000, with the lowest sale at RM380,000 for a 252 sq ft unit, and the highest at RM825,000 for 521 sq ft.
At the other end of the scale, The Troika KLCC presents a picture of luxury urban living right in the heart of KLCC. With 16 transactions over the last 8 years, the median price of property in the condominium stood at almost RM1.8 million with the price for the larger units in the building averaging almost RM1,400 per sq ft.
KLCC property price trend
While the figures might be eye-catching, it’s apparent that shifting market conditions still present opportunity for the right investments, with luxury markets in particular facing a much more subdued trading period in recent years.
2019 offered an interesting demonstration of this recent trend in luxury home prices in the KLCC area. According to the 2019/2020 Property Market Review of Rahim & Co Research, the residential market of the Kuala Lumpur area has seen a drop in total transaction value to RM4.17 million. As a decline in the value is consistently observed, it’s worth noting that the prices of units transacted are thus lower than they were previously.
The PropertyGuru Market Index Q1 2020 Report hints at a continuation of this trend for property within the greater Kuala Lumpur area. Overall property prices in KL maintained its downward slope by 2.75 index points year-on-year, a pattern which has been observed since Q4 2016. With a market broadly subdued by a large inventory of unsold residential high-end units, that reality may be particularly pronounced in an area such as KLCC, where luxury properties form a large percentage of the available property market.
While property prices may remain subdued, the Q1 2020 Report notes that high-end condominiums and serviced apartments have managed to hold steady property values across Kuala Lumpur. Again, supply and demand have a significant impact on how that impacts particular areas. An area such as KLCC is likely to be more susceptible to such challenges in the face of substantial luxury property overhang.
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