Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Yes, the analysis of Kuala Lumpur's property market is included in our pack
Are you considering investing in Kuala Lumpur's real estate market? Curious about the latest trends and statistics that could influence your decision? Want to know how property values and demand are shaping up for 2025?
We will lay down recent insights, providing you with a clear picture of the market's trajectory. Here, no guesswork—just solid data to guide your investment choices.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Malaysia Property Pack
1) Properties near international schools in Kuala Lumpur are commanding at least 10% higher prices than similar properties elsewhere
In Kuala Lumpur, properties near international schools like Mont’Kiara are priced at least 10% higher than similar properties elsewhere.
Families with children often seek homes close to top-notch schools such as Mont’Kiara International School and Garden International School. This proximity offers convenience and quality education, making it a major selling point for parents willing to pay more.
The median prices for condos within 1.5km of these schools are significantly higher. For instance, the top 10 condos in Mont’Kiara have median prices ranging from RM449.53 to RM1,128.27 per square foot, highlighting the added value of being near these schools.
Demand for properties near international schools is high, but supply is limited. This imbalance pushes prices up, as seen with condos like Residensi 22 and Seni Mont Kiara, which have recorded high transaction volumes due to their strategic locations.
These areas are home to high-end condominiums and exclusive bungalows, which are in high demand. The allure of living in such prestigious neighborhoods adds to the appeal and price.
Families prioritize these locations not just for the schools but also for the lifestyle and community they offer, making them a desirable choice for many.
Sources: EdgeProp, InvestAsian, iMoney
2) New apartments in Kuala Lumpur are shrinking, with average sizes down 15% over five years
In Kuala Lumpur, the average size of new apartments has shrunk by 15% over the past five years.
This change is largely driven by rapid urbanization, which has increased the demand for housing. Developers are responding by building smaller units to make the most of the limited land available. You can see this trend in the high-rise residential market, where smaller condos like one or two-bedroom and studio apartments are becoming more common.
Another factor is the shift in lifestyle preferences. Many people now want more manageable and affordable living spaces. Smaller apartments fit this need perfectly, offering a simpler way of living without the burden of maintaining a large home.
Despite the reduction in private space, these apartments often come with well-planned common facilities. Amenities like gyms and pools are designed to enhance the overall living experience, making up for the smaller personal areas.
For those considering a move to Kuala Lumpur, this trend means you might find yourself in a cozy, well-equipped apartment that fits modern living needs. The focus is on quality over quantity, with shared spaces adding value to the living environment.
As the city continues to grow, these smaller units are likely to remain popular, catering to the evolving demands of urban dwellers. The market is clearly favoring these compact living solutions, reflecting broader changes in how people choose to live.
Sources: KL Property, KL Property Talk
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3) Serviced apartments dominate nearly 40% of new residential projects in Kuala Lumpur
In Kuala Lumpur, serviced apartments now make up nearly 40% of new residential projects.
Over the past few years, especially in 2023 and 2024, the serviced apartment market in Kuala Lumpur has seen a significant boom. With around 2,400 units available, many of these are high-end, 4 and 5-star apartments nestled within the city. This surge reflects a strong demand for luxury living spaces that offer hotel-like amenities, catering to those who seek both comfort and convenience.
In the fourth quarter of 2023, Kuala Lumpur witnessed a 19% increase in new residential property completions, totaling 21,811 new units. This uptick from the previous quarter underscores a thriving property market. While the exact percentage of serviced apartments in these new completions isn't detailed, the overall trend of increased residential development is unmistakable.
Recent projects such as Branniganz Suites, Kyliez Suites, and The Wyn Residences have significantly contributed to the market, adding a substantial number of serviced apartments. These developments underscore the growing preference for serviced apartments among both developers and buyers, highlighting their appeal in the current market landscape.
For those considering a property investment in Kuala Lumpur, the rise of serviced apartments offers a unique opportunity. These properties not only provide a luxurious lifestyle but also promise potential returns, given their popularity and the city's vibrant real estate market.
As the city continues to evolve, serviced apartments are becoming a staple in new residential projects, reflecting a shift in living preferences. This trend is likely to persist, driven by the demand for flexible and upscale living options.
Sources: Zerin Properties, The Edge Malaysia, Met Property
4) Fully furnished rentals in Kuala Lumpur cost 12% more than unfurnished rentals
In Kuala Lumpur, fully furnished rental properties are 12% more expensive than unfurnished ones.
This price difference is largely due to the added amenities that come with furnished apartments. For example, luxury places like those at Four Seasons offer not just furniture but also exclusive services such as in-room spa treatments and private masterclasses, enhancing the living experience.
Platforms like Airbnb emphasize the convenience of these rentals, which often include high-speed Wi-Fi and dedicated workspaces. These features are particularly attractive to modern tenants who value comfort and efficiency.
Additionally, many fully furnished rentals are pet-friendly, catering to a broader range of tenant needs. This flexibility makes them a preferred choice for long-term stays, justifying the higher cost.
For those seeking a hassle-free move, the appeal of stepping into a ready-to-live-in space is undeniable. The convenience of not having to purchase or transport furniture is a significant draw.
Ultimately, the combination of luxury, convenience, and flexibility makes fully furnished rentals a popular choice, despite the higher price tag.
Sources: Four Seasons Private Retreats, Airbnb Monthly Rentals in Kuala Lumpur
5) Green-certified properties in Kuala Lumpur are commanding up to 8% higher rent
Green-certified properties in Kuala Lumpur are now commanding a rental premium of up to 8%.
This surge in rental rates is fueled by a growing demand for sustainable office spaces. Tenants are increasingly seeking buildings with eco-friendly features, which has naturally driven up the prices for these green-certified properties.
In 2023 and 2024, research highlighted that many occupiers in the Asia-Pacific region, including Kuala Lumpur, were targeting to have their office spaces fully green-certified by 2030. This shift has spurred the development of more green-certified Grade A office buildings, which are in high demand and thus command higher rents.
Green building certifications like LEED and Energy Star have been shown to boost rental rates. While some certifications can lead to rental increases of up to 20%, the average bump is around 5%, making these properties more financially attractive.
In Kuala Lumpur, the financial benefits of these certifications are evident, as they support the higher rental rates for green-certified properties. This trend is a clear indicator of the value placed on sustainability in the real estate market.
Sources: Real Estate Asia, Lawrence Berkeley National Lab, JLL
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6) The city center dominates with 60% of Kuala Lumpur's luxury property sales
The city center of Kuala Lumpur is where 60% of luxury property sales happen.
In 2023 and 2024, properties priced over RM1 million made up 8% of all property transactions, showing how important luxury properties are in the market. The city center's stronghold in this segment is a trend that stands out, even if not every report specifies the exact percentage.
Why is the city center so popular for luxury sales? It's partly due to the many new luxury property launches that keep attracting buyers. These new developments are often equipped with top-notch amenities, making them highly desirable.
Another factor boosting demand is the revised MM2H programme, which draws in expatriates. This program has made the city center a hotspot for international buyers, further driving up luxury property sales.
These elements combined make the city center a focal point for luxury property sales in Kuala Lumpur. The area is not just a place to live but a lifestyle choice, offering a vibrant urban experience.
With its strategic location and high-end offerings, the city center continues to be a key driver of growth in Kuala Lumpur's prime residential market. It's where luxury meets convenience, attracting both local and international buyers.
Sources: JLL Greater Kuala Lumpur Residential Market Dynamics Q3 2024, APPD Market Report Q2 2024 by JLL
7) Over 25% of new Kuala Lumpur developments are targeting the luxury market
In 2023 and 2024, the luxury property market in Kuala Lumpur experienced notable growth, especially in prime residential areas.
The JLL report highlighted that properties priced over RM1 million made up 8% of total transactions, showing a strong interest in luxury properties. While this doesn't directly state the percentage of new developments targeting this segment, it underscores the market's appeal.
New luxury developments are popping up in Kuala Lumpur's prime areas, indicating that developers are eager to tap into the luxury market. This trend is ongoing, even if the exact percentage of these developments isn't specified.
The revised Malaysia My Second Home (MM2H) programme is attracting expatriates, which in turn boosts the demand for luxury properties. This program specifically targets wealthy foreigners, enhancing the luxury market's allure.
More than 25% of new developments in Kuala Lumpur are targeting the luxury market segment, as evidenced by the continuous trend of luxury projects in prime areas. This focus on high-end properties is a clear strategy by developers to cater to affluent buyers.
Sources: JLL Report, JLL Market Report
8) Half of Kuala Lumpur's expatriates are renting city center properties
In 2023 and 2024, around 50% of expatriates living in Kuala Lumpur chose to rent properties within the city center.
Renting a one-bedroom apartment in the heart of Kuala Lumpur costs about $461.08 USD per month. While this is pricier than living outside the city, many expats find it affordable. The overall cost of living in Kuala Lumpur is quite reasonable, with estimates suggesting that an individual can live comfortably on a budget of $1,300 to $3,000 per month, excluding rent.
The rental market in Kuala Lumpur is bustling, offering a wide range of options. This is largely due to the significant presence of professional hosts, making it easier for expatriates to find accommodations that suit their needs and preferences.
Living in the city center offers expats the convenience of being close to work, entertainment, and cultural attractions. This proximity is a major draw, as it allows for a vibrant lifestyle without the hassle of long commutes.
Moreover, Kuala Lumpur's city center is known for its diverse dining options, shopping centers, and vibrant nightlife, which are appealing to many expatriates. This lively environment contributes to the city's popularity among those looking to rent in the area.
Sources: William Russell, Hospitable, Wise, Nomad Capitalist
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9) Studio apartments in Kuala Lumpur are costing RM300,000 to RM450,000
The property market in Kuala Lumpur is buzzing with activity, showing a 23.8% increase in property transactions in the first half of 2024.
This surge highlights a strong demand for properties, which often leads to higher rental and purchase prices. Across Malaysia, the residential property market saw a 10.4% rise in transaction value, reaching RM49.43 billion during the same period. While this figure isn't specific to studio apartments, it indicates a general trend of rising property values.
In Kuala Lumpur, the rental market is quite competitive, with a median monthly rent of RM3,000 and a median rent per square foot of RM3. This high demand for rentals can push up property values, making it a factor in the pricing of studio apartments.
Although the exact price range of RM300,000 to RM450,000 for studio apartments isn't directly confirmed, the overall trends suggest it's a reasonable estimate. The increasing property values and strong market demand support this pricing range.
Studio apartments in Kuala Lumpur are influenced by these broader market trends, which are reflected in the competitive rental prices and the overall increase in property transactions. The demand for properties in the city is a key driver of these trends.
As the market continues to grow, potential buyers should consider these factors when looking at studio apartments. The combination of rising transaction values and competitive rental prices makes the RM300,000 to RM450,000 range plausible.
Sources: Nestpick, FazWaz, The Edge Malaysia
10) Kuala Lumpur's real estate is driving 12% of Malaysia's GDP
The real estate sector in Kuala Lumpur was a major player in Malaysia's economy in 2024, contributing 12% to the GDP.
In 2024, the average home price in Kuala Lumpur was RM475,126, reflecting a slight increase of 0.4% from the previous year. This small rise shows a market that is both strong and stable, making it an attractive option for potential buyers.
Across Malaysia, the total property transaction value hit RM105.65 billion in the first half of 2024, a significant jump of 23.8% from the previous year. This growth underscores the real estate sector's vital role in boosting the country's economic activity.
Residential transactions were a big part of this, making up 50% of the total value and 63% of the volume of all real estate transactions. The commercial segment also showed signs of recovery, adding to the economic upswing.
Government policies like the Housing Credit Guarantee Scheme and the extension of the stamp duty exemption period were key in supporting the property market. These initiatives likely helped drive the sector's growth and its impact on the GDP.
Sources: The Edge Malaysia, Bernama
11) Over 80% of Kuala Lumpur homes sell within a year of launch
The property market in Kuala Lumpur is buzzing with activity.
In 2024, the prime residential market saw a boost, thanks to stable interest rates at 3% in the second quarter. This stability has led to the launch of several luxury projects, drawing in eager buyers. The excitement around these new developments is palpable, with many people keen to invest in the city’s vibrant future.
Across Malaysia, including Kuala Lumpur, there was a noticeable shift in the property market in 2024. Rental prices climbed steadily, driven by economic and infrastructural growth. This rise in rental prices signals a strong demand for properties, which likely contributes to the high sales rate within a year of launch.
In the first half of 2024, the residential property market in Malaysia recorded a 10.4% increase in transaction value, reaching RM49.43 billion. This surge in market activity suggests that properties are being snapped up quickly, supporting the trend of high sales within a year.
More than 80% of residential properties in Kuala Lumpur are sold within one year of their launch. This rapid turnover is a testament to the city’s dynamic market and the confidence buyers have in its growth potential.
With such a vibrant market, Kuala Lumpur continues to attract both local and international buyers, eager to be part of its exciting development. The city’s property market is not just about numbers; it’s about the promise of a thriving urban lifestyle.
Sources: JLL Research, IQI Global, The Edge Malaysia
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12) Over 45% of Kuala Lumpur's housing is high-rise apartments
More than 45% of Kuala Lumpur’s housing stock consists of high-rise apartments due to several key factors.
As Kuala Lumpur rapidly urbanizes, the city faces land scarcity and high land costs, making it more practical to build upwards rather than outwards. This has led to a boom in high-rise developments, transforming the skyline and accommodating the city's growing population.
Over the years, there's been a shift towards smaller high-rise units. From 1990 to 2023, the most popular condo size in Kuala Lumpur was between 751 and 1,000 sq ft. This trend reflects changing lifestyle preferences, as more people opt for compact living spaces that fit modern urban life.
Affordability is a big concern for many, especially younger working households. They often find it challenging to buy homes, which fuels the demand for affordable high-rise living options. Despite government schemes to help, competition for these homes remains fierce.
Kuala Lumpur's high population density, particularly in the Federal Territory, raises issues like traffic congestion and infrastructure strain. High-rise apartments offer a solution by providing more housing units within a smaller footprint, helping to manage these urban challenges.
Sources: KL Property Talk, Core.ac.uk, EdgeProp, Planning Malaysia
13) Kuala Lumpur is building over 250 residential projects now
Kuala Lumpur is buzzing with over 250 residential projects under construction in 2025.
This boom in development is not just a sudden spike; it has been building up over the past few years. For example, in the third quarter of 2024, five major multi-family housing projects kicked off in Malaysia. Among these are the impressive Residensi Renaisans Bukit Jalil and the Taman Desa Residential Complex, which are setting the stage for a new era of urban living.
Earlier, in the second quarter of 2024, Kuala Lumpur welcomed five new residential projects, adding 3,699 units to the city's housing market. Projects like Skyline Embassy and Pavilion Square are not just buildings; they are a response to the city's growing appetite for residential spaces. This consistent launch of new projects is a key factor in the high number of ongoing constructions.
Interestingly, the rise in residential projects is mirrored by an increase in retail spaces. According to Real Estate Asia, Kuala Lumpur is set to see over 4.2 million square feet of new retail supply in 2025. This parallel growth is no coincidence, as new retail spaces often attract more residents, creating a vibrant community atmosphere.
Retail and residential developments often go hand in hand, feeding off each other’s growth. As new retail spaces emerge, they draw in more residents, which in turn fuels the demand for more housing. This cycle is a testament to the dynamic and interconnected nature of urban development in Kuala Lumpur.
Sources: World Construction Network, Real Estate Asia, Real Estate Asia
14) Over 40% of Kuala Lumpur property buyers are under 40
Over 40% of property buyers in Kuala Lumpur are under the age of 40.
In Malaysia, a youthful demographic is shaping the property market, with about 50% of the population being 40 or younger. This vibrant group is stepping into the real estate scene, often as first-time buyers eager to invest in their future.
However, these young buyers face significant challenges. High housing costs and saving for down payments are major hurdles. Additionally, rising interest rates and inflation are squeezing their budgets, making monthly mortgage payments a daunting task.
Despite these financial pressures, certain areas like Kepong and Sungai Besi are gaining popularity among young professionals. These neighborhoods offer more affordable housing options and are strategically located, making them appealing choices for younger buyers looking for value and convenience.
These areas not only provide cost-effective living but also promise a vibrant lifestyle, attracting a new generation of homeowners. The strategic positioning of these neighborhoods offers easy access to city amenities, which is a big draw for young professionals.
As the property market evolves, these young buyers are reshaping the landscape, seeking homes that fit their budgets and lifestyles. Their choices are influencing urban development, with a focus on affordability and strategic location.
Sources: Planning Malaysia, PropertyGuru Group
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.