13-05-2025
Knight Frank: KL prime home prices remain flat in Q1 2025, ranking 35th globally
KUALA LUMPUR, May 13 — Prime residential prices here edged up by 0.2 per cent year-on-year in Q1 2025, according to Knight Frank's latest global index, reflecting a market that is cautious but not contracting.
The city ranked 35th out of 45 locations in the Prime Global Cities Index, with a flat quarterly performance that signals a pause rather than progress.
The global average growth of 2.8 per cent was driven largely by Asia-Pacific and Middle Eastern cities, even as the overall recovery remained modest and uneven.
Seoul topped the list with an 18.4 per cent increase, followed by Dubai (16.4 per cent), Tokyo (15.5 per cent), Bengaluru (8.3 per cent), and Mumbai (7.6 per cent), while Singapore placed 20th with a 2.5 per cent annual gain.
Knight Frank said Kuala Lumpur's stability, while positive, masks a lack of strong growth drivers in the current environment.
Investor sentiment remains tentative, particularly among international buyers who are awaiting more clarity on policy direction and interest rate movements.
'The absence of decline, despite prevailing headwinds, suggests a degree of resilience in the market,' Keith Ooi, group managing director of Knight Frank Malaysia, said in a statement.
He added that the pace of recovery will likely stay measured in the short term, shaped by affordability pressures and economic signals.
Meanwhile, developers are focusing on niche projects that offer integrated living and strong infrastructure to meet evolving buyer preferences.
This trend is pushing developers towards more disciplined pricing and delivery, which supports sustainability but may limit near-term growth.
Enoch Khoo of Knight Frank Property Hub said buyers remain highly selective, prioritising location, quality, and lifestyle alignment.
Knight Frank said global housing markets are still influenced by macroeconomic uncertainty, with lower borrowing costs needed to trigger the next growth phase.
