ECONOMY

In 2022, Malaysia’s economy experienced a significant rebound alongside the country’s transition into an endemic phase and the reopening its borders, beginning 1st April 2022. However, at the start of 2023, the pace of economic growth started to moderate. This moderation is seen as a positive sign, indicating that the economy has successfully overcome the adverse effects of the pandemic and has returned to a stable state.

In Q1/2023, the Gross Domestic Product (GDP) grew by 5.6% YoY to MYR380.3 billion, almost matching the average quarterly growth of 5.0% in the pre-COVID years (2017-2019). This encouraging growth was supported by further expansion of household spending, continued investment activity, improving labour market conditions and a  return of tourism activities.

SUPPLY

Over 1H/2023, Kuala Lumpur is expected to have an accumulated 39,785 high-end highrise residential units priced above MYR1,000 per sq ft. Approximately 38% of these units range between MYR 1,000 and MYR1,999 per sq ft. There are 12,850 luxury units (about32%) priced above MYR1,500 per sq ft, with the remaining 12,027 units (about 30%) costing about MYR1,200 to MYR1,499 per sq ft.

The total cumulative supply has increased by 12% CAGR from 22,763 units to 39,785 units over the last five years (2017-1H/2023).Such elevated supply levels have inevitably had a negative impact on values.