… BUT THAT COULD CHANGE IN THE NEAR FUTURE
BY Chris Prasad
The nation’s capital remains the favoured focal point for commercial investment and development in the country, says global property consultancy Knight Frank Malaysia.
It said KL has seen the lion’s share of investments and development in the commercial subsector, followed by Selangor (23 per cent), Penang (17 per cent), Johor (20 per cent) and Sabah (11 per cent).
However, according to the company’s Malaysia Commercial Real Estate Investment Sentiment Survey 2017, interest in the capital city is expected to wane marginally in the year ahead. The survey found that many respondents are looking to diversify their investment in other popular regions within the country, such as Penang, Johor and Sabah.
The survey is designed to predict Malaysia’s commercial real estate outlook based on the current sentiments of industry players, said Knight Frank Malaysia’s managing director Sarkunan Subramaniam.
He said both the office and retail markets will continue to be under pressure in terms of rental and occupancy rates due to the ongoing oversupply situation.
“The logistic/industrial sub-sector is set to gather pace in 2017 with the growth of e-commerce driving the demand for logistic/industrial space,” Sarkunan said.
On the upside, he said it was a positive sign that respondents showed interest in exploring investment opportunities in various regions despite the challenging operating environment.
Sabah and Penang were voted among the most attractive regions for hotel and leisure investments, which is attributable to their strong tourism market.
The survey also found that there will be an increase in interest in the healthcare and institutional subsectors as more and more developers begin to shift their interest on to these sectors. The growth in interest was shown as an 11 per cent uptick in the survey compared with the sentiment indicated last year.
The survey was conducted using an e-survey mechanism distributed throughout Knight Frank’s vast database with key players in the local commercial sector.