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Knight Frank launches Inaugural Malaysia Commercial Real Estate Investment Sentiment Survey 2015

03 March 2015

03 March 2015, Malaysia – Knight Frank Malaysia, the global property consultancy, launches the inaugural Malaysia Commercial Real Estate Investment Sentiment Survey 2015. The survey takes a litmus test of insights and preferences of key players, namely fund managers, developers and lenders in the commercial sector for the year 2015.

Survey Respondents

The survey was conducted using an e-survey mechanism distributed throughout Knight Frank’s vast database as well as in-depth interviews with key players in the local commercial sector.

Snapshot:

        More than 40% opted not to invest/lend or develop commercial real estate in 2014 cited poor yield/return as the main reason.

       More than 80% of the respondents feel less optimistic about the overall economic scenario in 2015, while the rest believe that the market will remain unchanged from 2014.

       The healthcare/institutional sector is expected to show the most growth in 2015 followed by the hotel/leisure sector.

       Contrary to popular belief, the Malaysian political scene is considered to be the least important factor in having an impact on the commercial investment sentiment in 2015.

Sarkunan Subramaniam, Managing Director, Knight Frank Malaysia, says, “It is predicted that at least for the first ten months of this year, the commercial investment market will see a softer subdued climate, as it will be grappling with rising cost of capital, selective lending and the implementation of the Goods & Services Tax. Opportunities will abound towards the end of the year when we are likely to see some pressured sales where prices become more realistic, driving yields to be attractive.

The healthcare/institutional and hotel/leisure sectors are likely to be more resilient whilst the office sector seems likely to see some strain. The retail sector will have a slightly poorer year but certainly better than offices. The logistics/industrial sector may actually turn up a good surprise to investors. But do remember whilst sentiments do drive the market, hard facts determine said sentiments.”

END

To download the report, please visit: http://bit.ly/17M8rac

For further information, please contact:

Mr Sarkunan Subramaniam, Managing Director, Knight Frank Malaysia

sarky.s@my.knightfrank.com +603 2289 9633

Ms Pamela Phua, Asst. Marketing Manager, Knight Frank Malaysia

pamela.phua@my.knightfrank.com +603 2289 9699 @KnightFrank_my

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Grubb Knight Frank, operate from 335 offices, in 52 countries, across six continents.  More than 12,000 professionals handle in excess of US$1 trillion (£643 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants.  For further information about the Company, please visit www.knightfrank.com.

Knight Frank has a strong presence in Malaysia with its headquarters in Kuala Lumpur as well as branches in Penang, Johor and Kota Kinabalu. The company offers high-quality professional advice and solutions across a comprehensive portfolio of property services and is registered with the Board of Valuers, Appraisers and Estate Agents. The Company is licensed to undertake property, valuations / consultancy, estate agency and property management and is also on the panel of all leading banks and financial institutions. For further information about the Company, please visit www.knightfrank.com.my