Prices of luxury condos near KLCC dip

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KUALA LUMPUR — Luxury condominiums and serviced apartments in the prime property area surrounding KLCC are no longer fetching prices as high as RM2,500 per sq ft, but as low as RM1,800 per sq ft, according to a property consultancy firm.

Executive chairman of Rahim & Co, Tan Sri Abdul Rahim Abdul Rahman, said the prices for these highrises had fallen in a span of just a few years.

“When we started to do upmarket residential properties especially in the KLCC area, remember developers asking prices beyond the KL market. They compared it to the market in Singapore, Hong Kong, so on, putting prices up to RM2,500 per sq ft, therefore taking advantage of the market at that time.

“However, these prices have now gone down to below the RM2,000 mark. I think generally the prices range about RM1,500 per sq ft,” he told reporters at the launch of the company’s annual publication, “Rahim & Co Research — Property Market Review 2017/2018”, yesterday.

“People will not pay higher than say RM1,800 (per sq ft) but developers will not bring the prices to any lower, say RM1,300, so depending on the type of development, where it is, what facilities there are in each building, that’s the price range. So, no more than RM2,000 to RM2,500 per sq ft which we had three years ago,” he added.

Instead of appreciating in value, some properties in the vicinity have negative compound annual growth rates (CAGR) over the 2015 to 2017 period, the firm’s data showed.

In examples on high-end condominiums and serviced apartments in KLCC last year, the average transaction prices for One KL was RM1,093 per sq ft (CAGR of -9.2 per cent), and RM1,174 per sq ft (-2.9 per cent) for Quadro Residences.

It was RM1,230 per sq ft (-3.7 per cent) for The Troika, RM1,237 per sq ft (-5.1 per cent) for St Mary Residences, and RM1,582 per sq ft (-6.7 per cent) for Pavilion Residences.

However, other examples fared better with growth in their CAGR rate, such as The Meritz (RM1,011 per sq ft, 2.3 per cent); ParkView Serviced Apartments (RM1,106 per sq ft, 1.8 per cent); The Horizon Residences (RM1,512 per sq ft, 5.2 per cent); Marc Serviced Residences (RM1,536 per sq ft, 2.6 per cent), and Vipod Suites (RM1,638 per sq ft, 0.5 per cent).

The data for the average transacted prices took into account both small and big units in a property.

Rahim & Co said in a press release “the high-end residential category remains flat with prices seeing -10 per cent corrections in actual transactional prices in the past 18 to 24 months, or approximately 15 to 20 per cent lower than original asking prices in secondary market.”

The annual noted the city’s luxury properties remain relatively affordable for high-nett worth individuals and foreigners based on US dollar rates of between $400 and $700 per sq ft (RM1,580 to RM2,760), compared to key Southeast Asian cities like Bangkok (US$900 to US$1,000/RM3,550 to RM3.940) and Singapore (US$2,000/RM7,800 and above).

The report added only a few luxury condominium projects were launched last year, including upscale neighbourhood Bangsar’s The Estate, and two along Jalan Yap Kwan Seng — Isola KLCC and Ascott Star KLCC.