KUALA LUMPUR (May 14): Kuala Lumpur’s real estate market is showing signs of resilience and broad-based growth across its key segments, according to JLL Malaysia’s market dynamics report for the first quarter of 2025 (1Q2025).

According to a media statement released on Tuesday, the report highlights healthy demand trends and declining vacancy rates in the industrial, office, residential and retail sectors in 1Q2025, underpinned by institutional investment, demographic shifts and evolving workplace practices.

“Kuala Lumpur's real estate market demonstrates resilience and growth across sectors,” said JLL Malaysia head of research and consultancy Yulia Nikulicheva in the statement.  

She highlighted that vacancy in the logistics sector fell to 4%, down from 4.8% in 4Q2024, driven by steady absorption of space and lack of new completions.

Five warehouse facilities were completed in 2024 and contributed 4,019,416 sq ft of gross floor area, with strong demand from electrical and electronics, automotive, logistics and medical tenants.

Meanwhile, financial institutions and technology firms were key drivers of office demand, particularly in the Tun Razak Exchange precinct, as companies prioritise ESG-aligned Grade A buildings with advanced technologies and flexible workspace options.

Overall office vacancy improved to 16.1%, with the KL city submarket at 19.4% and the KL fringe submarket at 8.5%.

The residential prime segment recorded take-up rates of 30% to 50% for new launches, with some projects nearing 70% sales, despite a moderated launch pipeline.

Stable rental performance was noted in central locations, as expatriates and professionals continue to prefer serviced apartments and co-living options in prime, transit-oriented areas.

Foreign interest is supported by government initiatives such as the Malaysia Premium Visa Programme and the revamped Malaysia My Second Home scheme.

In retail, the food and beverage segment led leasing activity with the entry of brands like Japan’s Sushiro, South Korea’s Super Matcha and China’s Luckin Coffee.

Fashion newcomers JNBY and KaraKu debuted in the Malaysian market, while Chinese brand Semir expanded with a new outlet.

Alamanda Shopping Centre’s expansion in Putrajaya added 199,000 sq ft of net lettable area across 29 new stores, including a 151,548 sq ft outdoor adventure park.

Asian Pac Holdings Bhd (KL:ASIAPAC) entered the Petaling Jaya market by acquiring Jaya Shopping Centre for RM100 million, adding to its suburban retail portfolio.

“We are seeing increased institutionalisation in logistics, adaptation to hybrid work models in offices, strong prime residential demand, and continued retail expansion. These trends position Kuala Lumpur favourably for continued growth in 2025 and beyond,” said Nikulicheva.