What KLCC auctions say about the state of the KL high end property market Part 1
A falling Ringgit, political uncertainties, flip flops over MM2H policies and a declining expat pool of tenants are I think the factors behind the lack lustre buying interest amongst high end property investors. So no surprises that auctions of prime KLCC properties are finding no buyers even at the 4th or even the 5th auctions. I see quite a number of KLCC auction prices at 🔥 sale prices of RM600 to RM700 PSF in recent months.
I think but cannot be 100% certain the high end KL properties that have ended up on the auction block in recent months are owned mainly by non resident overseas owners. These are investment properties that are usually used as premium AirBnBs or are rented out to expats. When the supply of expats or Airbnb travellers suddenly disappears because of MCOs and travel restrictions, their overseas owners come under high financial pressure to repay loan installments.
Branded residences in KL in contrast seldom come up for auction because their usually very affluent owners tend to use them as overseas vacation apartments. So the appearance of the three branded residences below at auction is particularly noteworthy.
8 Kia Peng https://www.edgeprop.my/condo/8-kia-peng-10160
Ritz Carlton Residences
https://www.edgeprop.my/project/the-ritz-carlton-residences-13439
St. Regis Residences at KL Sentral
https://www.edgeprop.my/project/the-st-regis-11779
Will we see more auctions of branded residences in KL next year? Yours truly would like to hear the views of experts involved in marketing New Projects branded residences at 8 Conlay, TRX etc 🤠 #BrandedResidences #klccproperty
Post Script & Disclaimer
For my story how I bought AT AUCTION a 1500sf freehold Golden Triangle flat in the heart of KL @RM200 PSF, IE 50% off the previous owner's acquisition price see here:
https://360kiranaresidence.com/klcc-property-news/fc0ztl226t8vmf1y5tejbodx4j155k
For how to avoid the mistakes I made as a newbie buyer at property auction, see here:
https://360kiranaresidence.com/klcc-property-news/jymibswzjbplo7ji73mx9n1879hten
I do not have a REN license. If you are interested in buying KLCC auction properties please contact a BOVEA registered real estate agent or valuer. There are many FB groups that track property auctions in KL, Penang and Malaysia. The admins are usually RENs who can assist buyers by providing information and bank financing packages. For an example you might want to look at Mylelong Property FB group.
