Property market shows signs of ‘bottoming out’: Knight Frank Malaysia
PETALING JAYA (July 23): The Malaysian property market is poised to gather momentum moving into the second half of 2019 as the residential market is “firing various cylinders”, said Knight Frank Malaysia managing director Sarkunan Subramaniam.
“We may finally be seeing rays of hope in the housing market. The HOC (Home Ownership Campaign) 2019, which has attracted many developers, has been extended until Dec 31, 2019 and is expected to provide further traction for the housing market, including the high-end condominium or serviced apartment segment,” he said in a press release today in conjunction with the release of its Real Estate Highlights 1H2019 report today.
He added that the HOC will continue to stir interest among homebuyers while providing an opportunity for developers to clear existing stock.
In its Real Estate Highlights 1H2019 report, the real estate firm said the commercial property market’s looming supply and weak absorption will continue to impact the Klang Valley office market although rental and occupancy levels are seen to be holding firm in the Kuala Lumpur Fringe areas and in Selangor.
The availability of good grade office supply at competitive rentals and the expanding public rail transit lines have boosted the popularity of decentralised office locations, it added.
Keith Ooi, executive director of Valuation & Advisory at Knight Frank Malaysia, said: “In this tenant-led office market, landlords need to be realistic on their rental expectations although the growing co-working or shared services segment provides a small window of opportunity for letting.
Meanwhile, retail sales growth has improved although consumers remain prudent in their spending amidst rising cost of living and slower income growth.
“Mall operators are allocating a higher percentage of their leasable space for experiential retail purpose while more retailers are integrating their digital and brick-and-mortar outlets in line with rapid changes in the retail trends and consumer behaviour.
“Despite heightened competition in the retail market, prime malls continue to enjoy high occupancies with most garnering single-digit growth in terms of rental reversion,” said the firm.
SOURCE : Edge Prop