The Star reported on research conducted by Knight Frank, which revealed smaller apartments and studio flats are "becoming a mainstay" in the city's real estate sector.
According to the firm, the total cumulative supply of high-end units in Kuala Lumpur stood at 29,882 at the end of June, with additional projects due to come online later this year set to boost this figure further.
Rising supply and weak demand are "expected to put further pressure on the rental market", the news provider revealed.
In contrast to the top end of the market, smaller apartments and dual-key units - which comprise a standard condominium and studio flat linked by a shared foyer - are showing strong take-up levels.
Last month, Global Property Guide cited figures from CH Williams Talhar & Wong's 2012 property market report, which showed the price of residential property in Kuala Lumpur climbed by six per cent in the year to the first quarter of 2012.