13-05-2025
- Business
- New Straits Times
Kuala Lumpur prime property market steady, ranks 35th globally
KUALA LUMPUR: Kuala Lumpur ranked 35th out of 45 global cities in Knight Frank's Q1 2025 Prime Global Cities Index, recording a modest 0.2 per cent year-on-year increase in prime residential prices, with prices remaining flat quarter-on-quarter.
The city's luxury housing market reflected stability and resilience despite prevailing global economic challenges.
Compiled by Knight Frank's global research team, the index tracks the performance of luxury residential markets worldwide. Average annual price growth across the index eased to 2.8 per cent in Q1 2025, down from 3.2 per cent in the previous quarter, reflecting uneven recoveries and sustained macroeconomic pressures globally.
"Kuala Lumpur's prime residential segment is showing signs of stabilisation, which is positive in today's environment, but it is not immune to external and domestic pressures," said Enoch Khoo, managing director of Knight Frank Property Hub.
"Buyers remain selective, and we are seeing a growing preference for well-located, well-managed properties that align with changing lifestyle needs."
Keith Ooi, group managing director of Knight Frank Malaysia, added that while growth remains subdued, the lack of price contraction points to underlying market strength.
"That said, the pace of recovery is likely to remain measured in the short term, as market participants continue to respond to interest rate trends, policy signals, and affordability considerations."
Despite cautious sentiment—particularly among foreign buyers—demand continues for niche, integrated developments offering connectivity and future-ready infrastructure. Developers are also exercising more discipline in pricing and project delivery, which supports longer-term sustainability.
"Malaysia's value proposition – in terms of cost, liveability, and quality of life – remains compelling, particularly for regional buyers looking beyond traditional investment hotspots," added Ooi.
