In Q1 2025, Kuala Lumpur’s prime residential prices rose slightly by 0.2% year-on-year, reflecting a stable but subdued market, according to Knight Frank’s Prime Global Cities Index. The city ranked 35th out of 45, showing no quarterly growth and signaling a pause in momentum rather than a decline.

While global prime markets saw an average growth of 2.8%, led by cities in Asia-Pacific and the Middle East, Kuala Lumpur’s performance was muted due to limited growth drivers and cautious investor sentiment. International buyers remain tentative amid policy and interest rate uncertainties.

Prime residential prices

Despite prevailing challenges, the market shows resilience. Developers are increasingly focusing on niche, integrated projects aligned with lifestyle demands, supporting sustainability but potentially limiting short-term growth. The broader global housing market remains sensitive to macroeconomic conditions, with lower borrowing costs seen as key to reigniting growth.

LM News