The real estate market in Kuala Lumpur and Selangor continues to show mixed performance, with robust demand for well-located high-rise properties and selective growth in landed residential segments. In 1Q2026, the high-rise residential market in prime locations such as KLCC, Bangsar, and Mont’Kiara recorded stronger price and rental growth compared to the previous year, with average transaction prices for two-bedroom units rising between 2% and 3.6% year-on-year. Rental rates in these areas also saw significant increases, with Mont’Kiara standing out for its relatively stronger rental yields. Recent developments, including SWNK Houze @ Bukit Bintang City Centre and Windsor Tower at Pavilion Damansara Heights, have added supply to prime, transit-oriented submarkets, where demand remains concentrated.
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The premium high-rise segment in Kuala Lumpur remained resilient, attracting buyers from higher-income brackets despite ongoing affordability challenges. A notable transaction involved the acquisition of a 3.7-acre freehold tract in Jalan Ampang for RM257.9 million, with plans to develop two high-end serviced apartment blocks with a gross development value (GDV) of RM1.1 billion. In Selangor, the high-rise residential market demonstrated steady growth in prices and rents, with Bandar Sunway, Subang Jaya, Petaling Jaya, and Shah Alam reporting average transaction price increases ranging from 2.3% to 2.6% year-on-year. Rental yields across these areas also improved, reflecting sustained demand from expatriates, young professionals, and investors seeking yield sustainability and income visibility.
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The landed residential segment in Kuala Lumpur and Selangor exhibited mixed performance. In key areas such as TTDI, Bangsar Lucky Garden, OUG, and Taman Midah, 2-storey terraced house prices showed positive appreciation trends, with transaction prices in TTDI rising 5.6% year-on-year to RM1.7 million. In Selangor, stronger price growth was observed in areas like SS2 and Putra Heights, with 2-storey terraced house prices in SS2 increasing 8% year-on-year to RM1.08 million. The semi-detached housing sector in Selangor also registered positive growth, with price increases noted across monitored areas such as SS3, Bandar Kinara, Bandar Setia Alam, and Tropicana Alam. Rental yields in the semi-detached segment remained stable at 2.1% to 3.8%.
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Key real estate activities in Selangor during the quarter included the acquisition of a 2.56-acre leasehold parcel in Bandar Ampang for RM45 million, earmarked for a mixed-use, transit-oriented development (TOD) with an estimated GDV of RM470 million. The acquisition of a 1.214ha freehold commercial parcel in Petaling Jaya for RM63 million is also notable, with plans for a high-rise serviced apartment project under the Dwi Aurora @ Surya PJ development, part of a larger 70-acre township plan. These developments highlight the continued focus on transit-oriented and mixed-use projects in Selangor, driven by demand from investors and residents seeking convenience and accessibility.
