More high-end condo project launches to be deferred in 1H2016

Real estate consultancy firm Knight Frank Malaysia foresees more high-end condominium projects in Kuala Lumpur that were originally scheduled for launch by 1H2016 being deferred owing to the large amount of incoming supply and poor market sentiment.

According to Knight Frank Malaysia’s 2H2015 Real Estate Highlight report, the cumulative supply of high-end condos in Kuala Lumpur stands at 42,749 units following the completion of 3,139 units in 2H2015.

Meanwhile, there are 1,998 units of high-end condos scheduled for completion by 1H2016.

“Market sentiment for the high-end condominium segment remains cautious going forward, as it continues to be impacted by the various cooling measures, softening demand and a slowdown in the economy. Some of the projects scheduled for launch by 1H2016, may be deferred,” the report showed.

The consultancy firm also reckons that the impending completions of new projects amid a weak market is expected to heighten competition in the rental market, both in KL City and its fringe locations.

It is also driving developers to greater levels of product innovations and marketing strategies, Knight Frank Malaysia added. - The Edge Property