Zerin Properties chief executive officer Previn Singhe.
PETALING JAYA: The local residential property sector is poised for steady growth in the final quarter of 2024, underpinned by continued demand for homes on the back of positive market sentiment.
Zerin Properties chief executive officer Previn Singhe said high-end residential properties in established areas like Kuala Lumpur City Centre, Mont Kiara and Bangsar are expected to continue performing well.
“This is fuelled by foreign buyers seeking investment opportunities and locals attracted to premium developments offering high-quality amenities,” he told StarBiz.
Additionally, Previn noted that ongoing infrastructure projects, such as the East Coast Rail Link and transit-oriented developments in South Selangor, are enhancing connectivity and increasing the appeal of suburban locations like Klang and Shah Alam.
“These improvements are likely to drive property demand and boost transaction activity in these areas.
“Additionally, developers are actively launching new projects, particularly in emerging and high-demand areas, reflecting confidence in the market’s continued recovery.”
In light of the favourable government initiatives and steady economic performance, Previn said consumer and investor confidence remains strong.
“This is likely to sustain momentum in the residential market through the final quarter of 2024.
“Overall, while premium properties and areas with strong infrastructure connectivity are set to drive growth, tackling mid-range affordability issues will be essential for broader market stability.
“The Klang Valley market is expected to remain on a positive trajectory, with strategic developments shaping its outlook,” he said.
The Klang Valley residential market demonstrated steady growth in the third quarter of 2024 (3Q24), with both Kuala Lumpur and Selangor experiencing positive trends in transaction volume and value compared to 2Q24, said Previn.
“Kuala Lumpur recorded 3,643 residential transactions worth RM3.15bil in 3Q24, reflecting a 12.6% increase in volume and a 9.6% rise in value quarter-on-quarter. However, year-on-year, there was a 9.9% decline in volume and a 5.4% drop in value compared to 3Q23.”
Previn said the RM100,001 to RM300,000 bracket constituted the highest volume of transactions with 1,111 units, followed by the RM500,001 to RM1mil range with 906 units.
“The RM300,001 to RM500,000 segment recorded 811 transactions, while high-end properties priced above RM1mil accounted for 815 transactions, contributing significantly to the total value.
“High-rise residential properties dominated, forming 69% of the total residential transaction volume, with condominiums alone contributing 48%.”
Previn emphasised that the residential overhang in Kuala Lumpur increased slightly to 3,273 units worth RM3.12bil in 3Q24, up from 3,051 units in 2Q24.
“Properties priced between RM500,001 to RM1mil accounted for 41% of the overhang.
“Condominiums constituted 99% of the residential overhang, indicating persistent challenges in this segment,” he said.
Meanwhile, the Selangor residential market recorded 14,902 residential transactions worth RM8.4bil in 3Q24, reflecting a 13.9% increase in volume and a 14.1% rise in value quarter-on-quarter.
Year-on-year, the volume grew by 0.9%, while the value rose by 2.6%.
Selangor’s residential overhang stood at 2,304 units worth RM1.82bil, slightly lower than 2,328 units in 2Q24.
Properties priced between RM500,001 to RM1mil accounted for 53% of the overhang, noted Previn.
“Condominiums and apartments accounted for 59% of the total overhang,” he said.
Overall, Previn said the Klang Valley residential market displayed resilience and stability in 3Q24.
“While Selangor continued to lead in transaction volume and new launches, Kuala Lumpur remained a key player in high-value transactions.
“In both states, mid-range properties in the RM100,001 to RM300,000 bracket were the most transacted, reflecting strong demand in the affordable segment.”
Addressing overhang issues, particularly in condominiums and serviced apartments, remains crucial for ensuring balanced market growth, Previn said.
Meanwhile, down south in Johor, Olive Property Consultants chief executive officer Samuel Tan said the positive confidence in the market is expected to prevail in the final quarter of 2024.
“We anticipate more high-rises to be launched, especially near the Rapid Transit System region and within popular suburban areas.
“We have already seen private previews of some projects and these will be officially launched in 4Q24 or early 2025. Among them are Arden Serviced Residence and Lido Waterfront Boulevard.”
Tan said landed residential properties will be the mainstay in the suburbs and at the fringe of the city.
“Popular areas will be within the Iskandar Puteri, Ulu Tiram, Kulai and northwards.”
Tan noted that developers will be keen to launch their projects when the sentiment is good.
“The current momentum is already in place and moving strongly. With this in mind, we foresee an active property market in 4Q24.”
