Prices of residential properties continue to rise.
By MAK KUM SHI
WHILE Kuala Lumpur’s property market had remained subdued in 2015, residential property prices have continued to rise moderately.
According to the Ministry of Finance’s Valuation and Property Services Department’s (JPPH) property market report 2015, Kuala Lumpur’s property market had moderated in performance as market activity and the construction sector softened.
Market activity across all sub-sectors was on the downtrend, preceded by commercial (-15.0%), industrial (-8.7%), residential (-8.3%) and development land (-6.6%). In terms of value, similar downward trend was recorded with the exception of development land sub-sector, showing a positive growth of 43.1%.
Prices of residential property recorded strong growth across the board. Due to limited supply of landed property, residential properties in prominent and established areas continued to enjoy capital appreciation.
The report cited terrace homes in the Cheras area, such as Taman Midah, Taman Tayton View and Taman Sri Cendekia, which charted double-digit increases of 10.5% to 20.0% due to their proximity to the Light Rail Transit (LRT) and upcoming Mass Rapid Transit (MRT) stations.
[slider id='81590' name='StarProperty' size='full']
High-rise properties witnessed mixed performances across the board. Apartments and condominiums in Bangsar and Cheras areas, as well as those developments located along the Mass Rapid Transit route, recorded capital appreciation.
As at 2015, the All House Price Index for Kuala Lumpur stood at 277.0 points, rising by 6.4% over 2014. The average all-house price rose to RM734,957 (Q4 2015) against RM690,541 (Q4 2014) in the previous year.
In line with value appreciation is an upward trend in the residential rental market. The increase was noted in prominent housing schemes as well as property developments that are located along LRT and MRT routes.
Average rental yield for landed residential units were between 2.0% and 3.8%. High-rise units generally obtained higher average yield between 3.0% and 7.0%.
Looking forward, Kuala Lumpur’s property market would remain on a positive path backed by various ongoing and proposed development projects. Prices of properties are expected to remain firm. The completion of LRT extensions this year is expected to stimulate the property market within the vicinity of the completed LRT stations.
*For Chinese articles, download Property Trends at Google Play/iTunes, or subscribe to WeChat.
**Subscribe to StarProperty.my on Facebook for the latest updates.
***Want to contribute articles to StarProperty.my? Email editor@starproperty.my.
