Snapshot of the residential market
Malaysia’s All House Price Index (AHPI) (base year 2000=100) shows an increase of 17% from 125.9 in 2007 to 146.9 in 2010. The highest growth recorded was for terraced and semi-detached houses with an increase of 18% each. The highest increase in prices was recorded in Sabah with a 30% jump reflecting an annual growth rate of 9% during the 2007–2010 period. KL and Selangor’s HPI increased by 14% and 13% respectively, while Penang grew by 14.
This shows the residential market was not adversely affected by the global financial crisis as demand was (and is) driven mainly by the local market. Even for high-end condominiums in prime areas such as the city centre, the market is dominated by a growing number of local buyers.
Outlook
Developers of landed homes seem optimistic about the market as seen from the various launches of such homes. Prices for most newly launched projects start at RM280,000 or higher, making it less affordable for young home buyers. Prices are expected to continue rising at about 5% to 6%, especially in established areas.
Developers are also active in Johor, especially within Iskandar Malaysia as key projects such as Legoland Malaysia, Newcastle University Medical Malaysia and Chelsea Premium Outlet edge towards completion in 2012.
High-rise homes will continue to gain popularity among young home buyers. The AHPI for high-rise homes rose 12% from 121 (2007) to 135 (2010) with an annual growth rate of 4%. Prices are expected to rise, but at a slower rate compared to landed homes, due to high volume of supply, especially in the Klang Valley. Encouraging demand for high-rise residential is also seen in Penang with new launches recording good sales.
1. Ken Bangsar
the luxury serviced residence in Bangsar is certified under the Green Building Index and Singapore’s Green Mark. Its developer Ken Holdings Bhd opted to transform rather than demolish the former uncompleted office building. About 70% of the original structure was re-used and other parts were recycled. A wind tunnel in the lobby helps cool the area while an innovative engineering system is also used to condition and recycle condensated water into an evaporative feature wall. The project was also awarded The Edge-PAM Green Excellence Award 2010, has also added value to the surrounding community.
2. Sunsuria 7th Avenue, Setia Alam
This modern 2- and 3-storey semi-detached retail offices by Sunsuria Development Sdn Bhd has set a new standard within the neighbourhood commercial centre. Each unit comes with its own rooftop garden and a private lift.
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