Beware of KLCC Properties

There are 4 important figures that reflects KLCC Properties as a whole.

I derive them from property transactions for the year 2023 alone. So 1 year transactions data.

Just now I said I have 4 different figures. 2 of them are derived from developments completed from 2019 onwards. Onwards here means, as long as they are completed, we have the numbers. They are categorized as “new”.

The other 2 figures are derived from developments completed from 2018 and below. Below here means till the first ever development recorded that has transactions in 2023. So they are categorized as “old”.

The 2 figures of “new” ones are RM 1,025,000 absolute & RM 1575 per square foot.

The other 2 “old” figures are RM 1,580,000 absolute & RM 882 per square foot.

These figures are very general. They constitute the median prices of the “old” and “new” properties transacted in 2023.

The number of units transacted in total is 175 units for 2023. “new” developments with median of RM 1,025,000 or RM 1575psf constitute only 12 units, that is a mere 6.8% from the total KLCC transactions.

You will definitely want to ask me, where is my border? What is KLCC to me?

Northern Border : AKLEH Highway
Western Border : Jalan Sultan Ismail, Jalan Raja Chulan & Jalan Bukit Bintang
Eastern Border : Jalan Tun Razak

So, what does it mean?

It gives us the idea of where KLCC is today. How much people are paying for KLCC Properties and how much is the difference between the “old” and “new”.

Of course, you can’t simply use the figure to quickly justify your purchase

What this figures tell you is that, the median price of RM 1575 per square foot only constitute 6.8% of the market. The rest is way below the line. So, if you are planning to purchase something beyond that, please be mindful.

Another thing I’m wondering is that, if the market can digest RM 1,580,000 for big size units of 1700 sf and beyond, would they consider something almost double the per square foot price with smaller more efficient sizes, much newer development and lesser maintenance?
Because, as we move along, developments of today are getting more efficient. We do not want to pay a lot for maintenance. We want to keep maintenance efficient. And we also want to reduce space wastage.

Next in the list is to calculate the commitments of new development VS their current asking rental. That way, we can see if KLCC properties is something you would want to consider.

Disclaimer : If you wish to purchase a property in KLCC, the figures above only give you one side of the story. You will have to figure out the commitments of the unit VS rental rates, and also how much people are willing to pay for the said layout and features. Also, if possible, you would want to know the waiting time to get the said rental. Is it 1 month? Couple of days? Or few months? Or even a year?