CONDOMINIUM DEVELOPMENT IN KUALA LUMPUR AND ITS SUBURBS

Abstract

Kuala Lumpur is a rapidly growing metropolis with a papulation of approximately 1.1 million. The increasing affluence and sophistication of Kuala Lumpur's populace has brought about a new style of housing known as condominium housing. It is these emerging condominiums that form the subject matter of this dissertation which aims to study the development of condominiums and luxurious apartments and its implications in the not too distant future. The study reveals the increasing popularity of condominiums among developers mainly because of the huge returns possible with this type of development. The study also indicates the main regions in which condominiums are concentrated and also the present and future supply of condominium units. The condominium market recorded very good sales in the late seventies and early eighties when the condominium concept was still very new and the real estate market was experiencing a boom. But with the present downturn in the property market, many condominium developments are having sluggish sales. The analysis in Chapter Four also indicates that the present unfavourable demand for condominiums will continue in the near future, with the oversupply of condominium units reaching an all-time high of 2469 units in 1988 before the market recovers, hopefully in two to three years time. The current glut in condominiums should sound a warning to developers who intend to cash in on the condominium market because of its past favourable performance. Presently, the situation appears bleak in the property market in general and the condominium market in particular. With prices dropping because of fierce competition, developers are trying all sorts of innovative marketing in order to lure buyers. The question remains — for how long will this buyers' market persist ? This really depends on the supply that will be created in the market in the future. The answer ultimately lies with the developers themselves.