Improved economic conditions, optimistic market mood and government financial schemes have helped to put the prime residential segment on the uptick.

With 61.8 percent of all real estate transactions in the country, Malaysia’s residential subsector continued to hold a dominant position. Compared to 183,525 transactions worth MYR73.14 billion 9M2023 (i.e. in the first 9 months), 192,484 transactions totalling MYR78.17 billion were reported in the first nine months of 2024. This observation indicated a 4.9 percent increase in sales volume and a 6.9 percent increase in sales value year over year (y-o-y).

The Malaysian House Price Index (MHPI) — which increased by just 2.7 percent year over year to 223.1 points in 9M2024 (9M2023: 217.3 points) — shows that house price expansion is moderating. Despite persistent home demand, the index fell 2.4 percent quarterly (3Q2024: 220.2 points vs. 2Q2024: 225.7 points).

As of 3Q2024, the total number of completed residential units offered nationally was 236,899, representing a 4.8 percent year-over-year decrease (3Q2023: 248,952 units). During the study period, property overhang significantly improved, as evidenced by the 11.2 percent decrease in unsold completed properties to 42,126 units in 3Q2024 (3Q2023: 47,463 units).

With the help of focused government measures and steady economic conditions, the residential market is seeing a resurgence, especially in the high-rise sector. Programs for affordable housing and creative construction meet the changing market demands and buyer preferences.

Supply of High-End High Rise Residential

As of 2024(p), 82,679 upscale condominiums and homes were available in specific Kuala Lumpur neighborhoods. Four projects were finished in the second half of 2024, adding 1,167 units to the total stock. By 1H2025, an additional 3,625 units from several ongoing developments will be completed.

CloutHaus Residences KLCC by TA Global Berhad is a posh freehold mixed-use complex with two towers on Jalan P. Ramlee next to the famous Petronas Twin Towers and Suria KLCC. Tower 2 has 615 serviced apartments, while Tower 1 has 242 private homes and 548 hotel rooms under the Paradox KLCC brand, Malaysia’s first Paradox Hotel. High-end features like a fitness centre, rooftop lounge, co-working spaces, and an infinity pool are all part of the development.

CloutHaus is dedicated to sustainability and plans to obtain GreenRE Provisional Certification by implementing eco-friendly features such as automatic parking, siphonic rainwater systems, and pneumatic waste collection.

The 45-storey Hanaz Suites KLCC by Exsim Development Sdn Bhd complex, near Kuala Lumpur’s leading business and entertainment areas, has 270 serviced apartments ranging from 327 to 657 square feet in addition to office units. The amenities include a rooftop party area, meeting rooms, and a pool with a Sakura theme. The development — which Mana Mana Hospitality runs — offers both city dwellers and investors enticing rental return alternatives, such as a guaranteed 6 percent yearly return or a 4 percent annual return with an 80/20 profit-sharing plan.

With its prime location on Jalan Raja Chulan, Pavilion Square by Pavilion Group redefines luxury living in Kuala Lumpur and provides convenient access to Bukit Bintang. In addition to office suites, this 67-storey mixed-use complex has 960 studios and three-bedroom suites. The building has more than 70,000 square feet of facilities, such as a 118-meter rooftop infinity pool, a Sky Deck with breathtaking views of the metropolitan skyline, and the highest gym in the city on Level 63A. Residents enjoy easy access to key transportation networks, including the Bukit Bintang MRT station, Monorail, and surrounding highways, and an elevated bridge that connects directly to Pavilion Bukit Bintang, improving convenience and connectivity.

The Armani Group’s Lofthill Residence, with its contemporary style, outstanding convenience, and unhindered views of the Kuala Lumpur skyline, redefines urban life. The Raja Uda MRT station is conveniently close by, and Kampung Baru is close to critical medical facilities, including Hospital Kuala Lumpur and Institut Jantung Negara, as well as the serene Taman Tasik Titiwangsa. There are 653 serviced apartments in this 51-storey building, ranging in size from 610 to 1,917 square feet. Lofthill Residence, which sets a new standard for contemporary urban living and targets first-time homebuyers and investors, features first-rate amenities like fitness centres, co-working spaces, and landscaped gardens.

The 1,296 units of Skyline Embassy (previously Agile Embassy Garden) — built by TSLAW Land Sdn Bhd — are situated in the prominent Embassy Row of Ampang Hilir and range in size from 521 square foot apartments to 976 square foot dual-key homes. With amenities including a Sky Terrace, Sky Jacuzzi, and Sky Infinity Pool on the rooftop, the development offers stunning views of the Kuala Lumpur cityscape. It presents a compelling financial opportunity for homeowners and investors, promising substantial rental yields and possible capital growth.

The last residential development in Mid Valley City, Southpoint Residences by Tan & Tan Developments, provides unmatched connectivity with quick access to major roads, highways, bus routes, and train stations. Thanks to its integration with The Gardens Mall and Mid Valley Megamall, it offers easy access to food options, entertainment, and shopping. It is a 59-storey mixed-use Menara Southpoint complex component with 22 levels of serviced apartments and 27 floors of office space. With built-up areas ranging from 1,119 to 6,878 square feet, Southpoint Residences’ 172 units of roomy serviced apartments, designed with a Built-To-Sell concept, are ideal for families and professionals. World-class facilities — such as a fitness centre, pool, and landscaped gardens — are included in the development.

Demand for Luxury Homes in Kuala Lumpur

Due to improved economic conditions, optimistic market mood, and government efforts like the Malaysia Premium Visa scheme (PVIP) and Malaysia My Second Home (MM2H) scheme, Kuala Lumpur’s prime residential segment has recovered since the COVID19 pandemic. Depending on the visa level (Silver, Gold, or Platinum), applicants must buy a residential property for between MYR600,000 and MYR2 million under the updated MM2H standards. This condition may deter potential candidates from renting a property, even though it improves the upscale residential market. Sales of stratified high-rise residential buildings, such as apartments, condominiums, and serviced apartments, increased by 12.2 percent and 25.2 percent, respectively, in the first nine months of 2024.

In the first half of 2024, 941 units valued at MYR1.86 billion were transacted in the high-end residential market, including high-rise buildings in Kuala Lumpur City Centre that cost MYR1 million or more. This is an increase compared to the 591 units for MYR1.14 billion that were transferred in 2H2023. Although the average transaction price for upscale condominiums and serviced flats in the examined localities increased by 0.4 percent in 2H2024 compared to the previous six months, the average remained unchanged.

Meanwhile, take-up rates for a few recently introduced and ongoing projects have been encouraging, ranging from 30 percent to 50 percent. Lofthill Residence and Skyline Embassy are two examples of developments that have performed well. Furthermore, several soft-launched schemes have shown positive booking numbers, indicating robust market demand.

Market Outlook

In 2025, Malaysia’s residential real estate market is expected to rise steadily thanks to the country’s post-pandemic recovery and government programs that encourage homeownership and solve affordability issues. Since May 2023, Bank Negara Malaysia (BNM) has kept the Overnight Policy Rate (OPR) at 3.00 percent, fostering stability for borrowers and real estate investors. First-time homebuyers now have assurance thanks to this stable rate, which has increased demand for residential real estate. The Housing Credit Guarantee Scheme (SJKP) — which the government implemented in Budget 2025 — supports middle-class homeownership by providing tax exemption of up to MYR5,000 for first-time homebuyers who purchase houses priced between MYR500,000 and MYR750,000. By 2027, 8,000 affordable dwelling units will be constructed in the Federal Territories as part of the Residensi Madani plan and the MADANI Economy framework. These houses — which range in price from MYR150,000 to MYR200,000 — are aimed at the B40 income bracket and address housing affordability in Kuala Lumpur.

Creative campaigns from the corporate sector are complementing these initiatives. In addition to offering superior interest rates for environmentally friendly homes, Maybank’s Green Home Financing program provides 95 percent + 5 percent financing for certified green properties, including up-front expenses like insurance, legal fees, and stamp duty. Developers like Sunway Property have launched packages like “Dream Home Dream Phone,” which feature improved after-sales services like Handyman services under the Sunway Property+ (SP+) program, MOT subsidies, free kitchen cabinetry, and waivers of legal fees. Similarly, Sime Darby Property’s “The Perfect 10” campaign offers alluring benefits across several developments in desirable areas, such as cash prizes, early bird privileges, free MOT, stamp duty, and a free 12-month maintenance cost.

Kuala Lumpur’s premium residential market is anticipated to be steady in the future, growing gradually in line with the Asia-Pacific real estate market’s overall durability. The city offers investment prospects for residents and foreigners, with property rates among the cheapest in Asia. As buyer and investor preferences change, road and rail infrastructure improvements encourage suburban townships and transit-oriented developments (TOD) near important transit lines.

However, global inflationary pressures, geopolitical unrest, and economic instability continue to pose difficulties and might stifle market optimism and broader recovery initiatives. Despite these uncertainties, Malaysia’s strategic location, cultural diversity, and support for government policies strengthen its real estate appeal, setting the market for resilience and long-term growth.

Knight Frank Property Hub Managing Director, Enoch Khoo

“As of the second half of 2024, several key trends shaped by economic conditions, changing buyer preferences, and technological advancements have influenced the Malaysian residential property market. There are four notable trends: (1) Growing preference for larger residential units after the COVID-19 pandemic as buyers prioritise homes accommodating remote work, homeschooling, and leisure activities; (2) The Rise of Suburban and Secondary Cities means remote/hybrid work arrangements are on the uptick, causing buyers to move from crowded urban centres to suburban districts or secondary cities. Most notably, Johor Bahru, Penang and Ipoh are witnessing increased interest due to their lower property prices and easily accessible high-tech transport networks; (3) Developments in the influx of data centres and industrial integration are creating more job opportunities, which inadvertently drive housing demand in nearby areas such as Cyberjaya and Iskandar Malaysia; (4) Foreign Buyer Interest is another trend where the Malaysian government’s initiatives to attract foreign investment (e.g., Malaysia My Second Home program), has caused renewed interest from foreign buyers in specific high-end residential markets.”

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