KUALA LUMPUR (April 28): Luxury residences in Kuala Lumpur showcased stable appreciation with a growth of 1.1% in 2025, according to a press statement issued on the Knight Frank Wealth Report 2026.
This performance is in line with the overall residential segment’s steady performance in recent years, as transactions grew 5.4% from 399,008 units in 2023 to 420,545 units in 2024.
Knight Frank Property Hub executive director Adrian Yeoh said in the statement: “We’re looking at a mixed outlook in 2026, as supportive housing reforms such as the proposed Real Property Development Act and Transforming and Empowering Data Usage in Housing (TEDUH) platform serve to buoy dampened market sentiment amid wider uncertainty. Against this backdrop, prime residential assets continue to hold their value, though private capital and institutional investors may look into diversification to mitigate risks.”
Kuala Lumpur’s stable growth rates reflect divergent movements across the Asia-Pacific region, where values in Hong Kong fell 2.1% in 2025, while Singapore continued to set record prices exceeding US$6,000 (RM23,782) psf.
The real estate consultancy firm highlighted that more investors are turning to safe havens abroad as volatility hedges amid ongoing political uncertainty, with Malaysia’s direct investment abroad (DIA) rising 65% quarter-on-quarter to RM2.8 billion in the fourth quarter of 2025.
These movements are supported by ultra-mobility trends among the ultra-high-net-worth individual (UHNWI) segment, which are reshaping buying patterns and boosting demand for super prime rentals.
“The emergence of safe-haven locations in gateway cities in markets such as the United Kingdom and Australia comes as ultra-wealthy individuals increasingly organise their lives across multiple jurisdictions, with family offices actively managing tax, lifestyle and political risk,” Yeoh noted.
Australia continues to draw strong domestic interest, with Malaysians comprising the ninth largest source of investment of residential land in recent years.