Knight Frank Malaysia Real Estate Highlights 2H2015
Residential sector sluggish whilst Investment sector resilient
18 February 2016, Malaysia – Knight Frank Malaysia, the global property consultancy, launches the Knight Frank Malaysia Real Estate Highlights 2H2015. The report looks into the market performance across the various property mix – Residential, Office and Retail; and highlights the trends and outlook in the four key markets in Malaysia, including Kuala Lumpur, Klang Valley, Penang, Johor Bahru and Kota Kinabalu for the second half of 2015.
Sarkunan Subramaniam, Managing Director, Knight Frank Malaysia says, ““The overall outlook of the property sector for the 2nd half of 2015 must be viewed in different spectrum. The residential and housing development sectors were naturally affected by cooling measures and poor consumer sentiment and saw a slowdown in transaction volume.
The investment sector on the other hand saw more market activities with opportunities abound evident from several noteworthy deals transacted. The sector also saw a downward shift in vendors’ expectation with many becoming more realistic to match that of the opportunistic purchasers.”
Highlights for 2H2015
Kuala Lumpur High End Condominium Market
• Sluggish market with potential buyers and investors adopting ‘wait and see’ approach.
• Greater level of product innovation and marketing strategies to drive sales.
Kuala Lumpur and Beyond Kuala Lumpur (Selangor) Office Markets
• Growing pressures on rental and occupancy levels amid a high supply pipeline of existing / new stock and a weaker leasing market.
• Despite a general slowdown, the investment market recorded several notable deals as savvy investors / funds seek quality assets for long-term returns.
Klang Valley Retail Market
• Majority of retailers exercise caution in their expansion plans amid poor sales performance and reduced profitability.
• Rental and occupancy levels at prime and established regional and neighbourhood shopping malls expected to remain resilient despite a high impending supply of circa 4.61 million sq ft by 1H2016.
• Overall volume of transactions declined 11.3% in 1H2015 compared to 2H2014 and the trend is expected to continue. No significant decrease in value as yet.
• Challenging outlook for all sub-sectors with further consolidation in the residential sub-sector.
• Iskandar Malaysia continues to register positive growth in investment, both local and foreign, with cumulative investment of RM187.96 billion as at November 2015.
• Active industrial market with notable developments such as the Johor Biotech Park, Nusajaya Tech Park and Eco Business Park III.
• Infrastructure projects, namely the High Speed Rail (HSR) and Rail Transit System (RTS) are expected to spur further economic growth in the longer term.
• Developers cautious on project launches, particularly in the high rise residential segment due to slow absorption rate.
• Developers with sizeable land banks in fringe areas shifting focus to affordable and mid-range housing developments.
• The opening of Plaza Shell sets new benchmark for office sector in Kota Kinabalu.
To download the report, please visit: http://bit.ly/1olwx4v