IT was once a shining star - the brightest spot in the local property landscape- But for the past year, the country's premier highrise residential address centred around the Kuala Lumpur City Centre (KLCC) area has been in the doldrums, with clouds of negativity brought on by the disappearance of foreign interest from local shores in 2009-Back in March 2009, local property consultancy Rahim & Co was among the first to estimate a 15 to 20 per cent contraction in prices of condos in the area as a result of the global financial crisis- And almost by obedience, that's where values headed-In 2006, condo prices there averaged RM550psf, climbing sharply to RM1,000psf in 2007-2008 as land prices skyrocketed from an average RM800psf in 2006 to over RM2,000psf due to demand for development sites by developers-However, things began heading south by the close of 2008 as the repatriation of foreign workers and investors, especially those from the Middle East, in the wake of the crisis, caused lights to go out in the KLCC's rental and sale markets-But with the current prices at an all-time low, coupled with the government's plans to turn the country into a high-income nation via the Economic Transformation Programme and the sky-high prices of similar residential units in countries such as Singapore, 2011 might be the year for KLCC to regain its lustre-Datuk Abdullah Thalith Md Thani, director-general of the Ministry of Finance's Valuation of Property Services Department believes this is possible and expects prices to "possibly reach the peaks achieved in 2008"-"In fact, the climb has already begun, rising 10 to 20 per cent last year after a 20 to 25 per cent dip in 2009," he said-Eric Ooi, managing director of Knight Frank Malaysia, agrees-"The market has improved and rents are expected to range between RM3-50psf and RM7psf this year," he said, adding that he expects more than 15 per cent of the sale of KLCC properties this year to go to foreigners-Tang Chee Meng, chief operating officer of Henry Butcher Marketing Sdn Bhd, however, cautioned that there will be a 32-5 per cent increase in supply over the next two years and that 26 per cent of the condos currently under construction in the city are in the KLCC vicinity-"Worries about oversupply, rising vacancy rates and lower foreign interest will mean that it will take a while longer for the KLCC luxury condo market to regain its glory days," he has been quoted as saying-Paul Khong, executive director of CB Richard Ellis Malaysia Sdn Bhd, also expects 2011 to be challenging as the new additions completing over the year competes with existing supply for tenants and buyers-Nevertheless, he said "in 2011, we will see some foreign investors coming and looking for KLCC products around the RM1,000psf to RM1,250psf mark"-Datuk Mani Usilappan, president of the Institute of Surveyors Malaysia, observed that "the number of projects coming off the shelf in KLCC has reduced, but there might not be the kind of shooting prices that we saw four or five years ago"-He also noted keen interest from overseas buyers "as they see the prices as being low in the region"-Previndran Singhe, chief executive officer of Zerin Properties, said any price increases will be marginal but that "rental demand from expatriates will pick up"-Meanwhile, Kumar Tharmalingam, chief executive officer of Malaysia Property Inc, a government initiative tasked with showcasing the country as a prime international property destination, believes 2011 will be a good year for luxury units, especially those with smaller built-up sizes-"Measures introduced to cool Singapore's hot real estate market would be a boon to KLCC as properties here are no less in quality," he said-However, he pointed out that KL is not on Hong Kong investors' radars as their traditional investment destinations are Australia and Singapore-Datuk Michael Yam, president of the Real Estate and Housing Developers' Association, said the buoyancy of the KLCC market "is dependent on regional investors" and with their presence, "we can look forward to KLCC's values trending up again in the long term"-"The mass rapid transit is also expected to enhance connectivity, so more expatriates can be anticipated," he said-Joey Lee, a real estate agent, said the value buys in the market will attract foreign investors especially from Singapore, adding "this year is the time one could buy at low prices before the next uptrend kicks in"-...

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