KL auction property market update #1 - Idaman Residence

According to IProperty.com, Savills Malaysia Sdn Bhd expects the Kuala Lumpur luxury condominium market to remain subdued in 2022.

“The challenges faced by the luxury condominium market in 2021 will carry into this year. This is on top of the fact that there were no fiscal goodies announced at Budget 2022 in October last year,” Datuk Paul Khong, Group Managing Director at Savills Malaysia told The Star.

Siva Shanker, CEO of real estate agency at Rahim & Co, agrees, saying the segment was affected by the COVID-19 pandemic in 2021. He shared that he does not see any major improvement for the segment this year. However, he expects the downward movement of prices to flatten out. “We expect to only see real meaningful growth perhaps by mid 2023,” he said.

The problem with sound bites like the ones above by industry experts is nobody really knows which property market they are talking about. I mean I don’t see any actual High End KL properties being mentioned by name. And of course, the sound bites don’t have time to mention the very important assumptions underlying the optimism for the property market.

Forget the helicopter view, guys. 🤠 thinks it’s better to see what’s actually happening on the ground at KLCC, the epicentre of the KL Luxury Condominium market. Of course, there are other high end KL property enclaves at Damansara, Mont Kiara etc. But yours truly is going to concentrate on KLCC where I have owned a 3000+ sf 5* investment property since 2000.

Yesterday my every cheerful auction real estate agent - call him J- says that a freehold unit at Idaman Residence, just 5 minutes walk to the iconic Twin Towers is going for auction at RM7xx psf. There is a pretty good chance there will be no bidders. Why? Just take a look at the 10 year price transactions chart for Idaman Residence by EdgeProp Analytics :

🤠’s Dua Sen on what’s in store for the KL luxury condominium market  :

“Which property market are you talking about”

“KL high end property market- A dead cat bounce?”

“MM2H Cha Cha Cha”

‘Reacting to MIEA’s comments on Bank Negara’s reports”

“Why are KLCC rents falling when Red Dot Island’s rents for private residences are shooting up?”