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MALAYSIAREAL
ESTATEMARKET
OUTLOOK ...
Sharing
an overviewof the local real
estate scene, discussing the
market outlook for 2017 and
‘Malaysia – opportunities in the
newnormal’ were (from left)
CBRE-WTWdirector Tan Ka
Leong, managing director Foo
Gee Jen and director Peh Seng
Yee at a press conference at
MenaraMulti Purpose in Kuala
Lumpur. A summary of the
overview/forecast is reported
in our property article today.
More detailed information
will be released over the next
couple of weeks.
UPDATEAND
OUTLOOK ...
The questionwas
‘IsMalaysia still an attractive real estate
investment destination?’ And there to
answer were (from left) JLL’s associate
director of research & consultancy
Veena Loh, associate director of capital
markets Nick Charlton, Malaysia country
head YY Lau and InvestKL CEODatuk
Zainal Amanshah at amedia briefing
at InvestKL’s office in Sentral Kuala
Lumpur. Followour property column
to learn the answer to the ‘burning
question’ and other relevant nuggets
of information gleaned from the talk by
the panelists at theQ&A session.
OUTLOOK
KLANG VALLEY IN 2017
2016
Overview
Landed
Residential
High-Rise
Residential
Purpose built
Office
Shop office
Retail
Hotel
Industrial
2017
HIGH-RISE RESIDENTIAL
Rental market for condominiums in central KL will compress further, attributed by
increasing upply.
LANDED RESIDENTIAL
Market is anticipated to observe more launches of residential products within the
affordable price range. Properties in the secondary market are expected to stay active.
PURPOSE BUILT OFFICE
The office market is expected to sustain interest from foreign investors who are
exploring and interested to invest in Malaysia. It is made more attractive by the
weak ringgit andslower growth in the European countries, China and US.
RETAIL
Stiff competition is expected, with more ongoing-construction of retail malls slated for
completion, which is expected, with more ongoing-constructions of retail malls slated for
HOTEL
Hotel sector is expected to stay stable, underpinned by growing tourist arrival, yet stiff
competition is expected with the increasing popularity alternative accommodation options
such as Airbnb.
INDUSTRIAL
Industrial remained a sector that is underrated, but strong growth is anticipated especially
in term of rental and prices.
affordable housing. No
doubt residential
development will
continue to be active
beyond the KL fringe,
especially supported
by the rapid
infrastructure
development.
CONCLUSION
Looking at the real
estate outlook in the
Klang Valley for 2017
(refer boons and
banes), key drivers to a
positive year are
expected to come
from infrastructure –
HSR, MRT and LRT
additional lines and
stations, new
highways and
expressways. While
Johor and Seremban
are expected to gain
from the “spillover”
effected fromnew
infrastructure, residential
hotspots to take note of
include – Selangor Vision
City, Nilai/Pajam,
Semenyih/Kajang,
Putrajaya/Cyberjaya,
Rawang/Ijok/Kuang, Sungai
Buloh and Kuala Selangor.
Key drivers that will push
these areas are scarcity of
land in the city centre, high
land costs in the city as well
as the improved
connectivity in viewof new
infrastructure.
In his message at the
launch of the 2016/2017
report, CBRE /WTW
managing director Foo Gee
Jen shared that on-ground
consensus among practitioners
throughout all its branches across
Malaysia is that market conditions
have becomemuchmore
challenging in 2016 and that 2017 will
not get any better.
Transaction activity is down in
many urban centres, especially in
the residential sector, which Foo
said is a common barometer to
gauge the overall propertymarket.
However, although figures in CBRE
/WTW’s outlook report are
discouraging, there is still a glimmer
of hope for the year to correct itself
once themass rapid transportation
system in Kuala Lumpur and other
similar transport systems are up and
running.
BOTTOMLINE
Foo’s viewon the whole: “Another
flattish period pulled down by
mostly low commodity prices,
continued slow economic growth in
most major countries, especially
with political uncertainties like
Brexit, Trump’s presidency and
other referendums in Europe.”
His advice: “Reduce portfolios of
non-strategic assets to reduce loan
gearing and be aware of liquidity
needs if andwhen credit tightens.
Investors and developers should
focus on taking calculated risks
wheremarkets are strong, pursue
developments in strong, supply-
constrainedmarkets and bid on
strategic long-hold assets that are
most likely able towithstand a
downturn.”
Information and charts/graphs
were retrieved from the CBRE /
WTW2017Malaysia Real Estate
Market Outlook. Followour column
next week on interior design,
followed by office space in KL and
market direction across various
regions inMalaysia.
PHOTO: HTTP://WWW.PROPERTYPRICETAG.COM
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JANUARY 27, 2017