KUALA LUMPUR: Property prices in Klang Valley, especially for landed homes in Petaling Jaya, are expected to rise by 3-4 per cent this year, according to CBRE WTW Valuation and Advisory.
The increase will be driven by limited land availability and rising raw material costs.
The firm's associate director Mary Kurien said the trend predates the pandemic, particularly in established areas.
She told media at a briefing on the property market outlook for 2025 that buying landed properties in places like Petaling Jaya, Bangsar, Mont Kiara, and Hartamas is now nearly impossible.
Buyers are having to look further out to areas like Semenyih, Rawang, and Puncak Alam, where new developments are emerging for landed properties.
However, these areas are further from the city, and new launches in these locations are priced higher due to increased costs, raising the prices of existing homes.
Despite concerns over living costs, residential transactions remain strong, with the sector dominating property deals.
Mary also mentioned that a 2-3 per cent increase seen in 2024 was due to the recovery in 2023 and fewer high-rise launches, which helped correct market imbalances caused by oversupply.
The anticipated 3-4 per cent rise in property prices aligns with expectations.