KL property market improves: Report

Kuala Lumpur's leading property markets pushed through amidst heightened uncertainties in the economy this year, according to a report by the Star.

In the condominium sector, stocks soared to 21,214 units in Q1, following the completion of 285 units in a project located in Bangsar. The development offers six types of units ranging from from 671 sq ft to 1,610 sq ft.

But the number of high-end launches has moderated, as developers shifted their focus on the more saleable mid-price range market.

In general, rental values and market prices were stable while rental rates were also unchanged. Average net yields ranged from 3.5 percent to five percent.

In the office front, existing volumes of main office space in Kuala Lumpur increased by 1.1 million sq ft, with the completion of two buildings in the Golden Triangle. Moreover, the city centre's prime office market will likely increase by 2.04 million sq ft this year, with the development of four major office buildings.

On average, occupancy rate in KL city centre dipped to 81.3 percent in Q1 2011 from Q4 2011's 84.9 percent, as the newly built offices are yet to be occupied.

However, office market in the city centre listed less than 190,000 sq ft net absorption and several key buildings in the Golden Triangle recorded remarkable rental activity.

All in all, market prices are anticipated to be stable; however, high occupancy rate and first-class specification properties within main locations could possibly sign in capital increase.

Meanwhile, average occupancy rate in the retrial sector marginally dipped to 91 percent from 91.7 percent due to outlet repairs by retailers and retail centre owners, strong demand predominates with majority of the empty spaces in new retail developments pre-deposited by occupants.