Slow Property Sales Forces High-End Developers To Offer More Discounts
Amid a soft property market, high-end developers are offering more discounts on condominiums and service apartments, said Knight Frank Malaysia.
Observing that the market remained tepid due to a mismatch in supply and demand, as well as in product and pricing, Knight Frank observed that in certain locations, asking prices and rentals remained depressed.
In its Real Estate Highlights for 2nd Half 2017 report, Knight Frank found that total supply of high-end condominiums or residences in Kuala Lumpur stood at 49,678 units following the completion of 2,298 units in the second half of 2017.
The capital also chalked up the most completions over the period with 1,243 units (54.1%) from projects such as The Mews (256 units), The Manhattan (129 units), Tribeca Bukit Bintang (318 units), Dorsett Residences Bukit Bintang (252 units) and The Ritz-Carlton Residences (288 units).
“The freeze on approvals for four categories of developments including condominiums and serviced apartments priced from RM1 million as of Nov 1, 2017 is causing market uncertainties as to its implementation. Although on a positive note, it may provide a breather to the oversupplied market,” added the report.