Kuala Lumpur DIGEST, 2Q 2024

Key Highlights:

• Investment activity remained strong, with five major transactions totaling RM1.5 billion in Q2 2024, although this represents a 47% decrease from the previous quarter.
• The office market showed slight improvement, with increased demand for high-quality spaces and co-working areas. Prime office rental rates remained stable.
• Retail sector saw robust growth, particularly in F&B and fast fashion. Notable openings included Malaysia’s first Apple Store and Shake Shack at Exchange Mall.
• The high-end residential market showed positive signs with average prices increasing to RM940 per sq ft, despite a 5.3% drop in rental rates.
• GDP grew by 5.9% in Q2 2024, led by strong performance in agricultural (7.2%) and manufacturing (4.7%) sectors.
• The unemployment rate remained stable at 3.3%, with a growing labor force participation rate of 70.5%.
• Inflation increased slightly to 1.9%, driven by higher costs in housing, utilities, and food services.
• New residential launches and completions, including 896 units at TRX Residences, indicate ongoing development activity in the market.