- Average annual price growth across the 45-city basket was 2.8% in Q1 2025, a marginal dip from 3.2% in Q4 2024. This reflects continued recovery, albeit with modest and uneven momentum.
- The market has recorded two consecutive years of positive growth since its low of -0.6% in Q1 2023. However, growth remains below the long-run average of 5.3%.
- Asia-Pacific and the Middle East continue to lead the global recovery, with Seoul registering a notable 18.4% year-on-year growth.
- Kuala Lumpur’s prime residential market posted a stable 0.2% annual increase, underlining steady fundamentals despite broader global challenges.
Kuala Lumpur – The latest Knight Frank Prime Global Cities Index for Q1 2025 shows Kuala Lumpur ranking 35th out of 45 tracked cities, with a 0.2% year-on-year increase in prime residential prices and a flat quarterly performance. The data suggests a market that is treading water, showing signs of resilience but lacking strong growth drivers in the current environment.
The Prime Global Cities Index, compiled by Knight Frank’s global research team, monitors high-end residential performance in key cities worldwide. With global average annual growth easing to 2.8% in Q1 2025 from 3.2% in the previous quarter, the report reflects the impact of persistent macroeconomic headwinds and uneven recovery across regions.
“Kuala Lumpur’s prime residential segment is showing signs of stabilisation, which is positive in today’s environment, but it is not immune to external and domestic pressures,” said Enoch Khoo, Managing Director of Knight Frank Property Hub. “Buyers remain selective, and we are seeing a growing preference for well-located, well-managed properties that align with changing lifestyle needs.”
Keith Ooi, Group Managing Director of Knight Frank Malaysia, added: “The absence of decline, despite prevailing headwinds, suggests a degree of resilience in the market. That said, the pace of recovery is likely to remain measured in the short term, as market participants continue to respond to interest rate trends, policy signals, and affordability considerations.”
Malaysia’s Outlook: Measured Sentiment and Structural Opportunities
Kuala Lumpur’s marginal price growth highlights a cautious but stable environment. While investor sentiment remains tentative, particularly among overseas buyers, demand is steady for niche products offering integrated living, strong connectivity, and future-ready infrastructure. Developers are also seen exercising greater discipline in pricing and delivery timelines, a shift that supports long-term sustainability but may moderate short-term growth expectations.
“Malaysia’s value proposition – in terms of cost, liveability, and quality of life – remains compelling, particularly for regional buyers looking beyond traditional investment hotspots,” added Keith. “However, structural reforms and greater clarity on policy direction will be key to unlocking a stronger rebound.”
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