Malaysia real estate overview

With one of the highest level of income per capita in Southeast Asia, Malaysia has expanded its real estate sector to provide housing, office and commercial properties to a growing middle class. The largest urban areas have attracted most investments, but recent economic and political change modify the property landscape.

The state of real estate in Malaysia in 2015

The real estate market in Malaysia has somewhat stalled or declined in recent years due to several factors that have affected the economy. Yet with a morose outlook, property developers are pushed to become more innovative in terms of products and marketing to reach and satisfy the needs of potential buyers.

In this first report, Knight Frank reviews the major aspects of the real estate environment in Malaysia in the second half of 2015, going from condominiums to office space and retail. They cover in details all the most dynamic areas for real estate in Malaysia: Kuala Lumpur, the Klang Valley and Selangor, Penang, Johor Bahru and Kota Kinabalu.

Though most areas have experienced a rather negative 2015, it is important to note the positive results of the Johor Bahru area, thanks to dynamic investments and upcoming large infrastructure projects. The rising perspective of the Kota Kinabalu area is also to be highlighted through the move of developers towards the mid-range house development.

Malaysia real estate highlights h2 2015 Knight Frank report
Click to open the Malaysia real estate report 2015 from Knight Frank

Malaysia real estate highlights, second half 2015 – summary

Kuala Lumpur high end condominium market – page 2

  • Highlights – page 2
  • Economic indicators – page 2
  • Supply & demand – page 2
  • Prices & rentals – page 3
  • Completion of high end condominium – page 3
  • Outlook – page 3
  • Average asking prices and rentals of existing high end condominiums – page 3
  • Projection of Cumulative Supply for High End Condominiums 2009 – 2016(f) – page 3

Kuala Lumpur and beyond Kuala Lumpur (Selangor) office markets – page 5

  • Highlights – page 5
  • Economic indications – page 5
  • Supply & demand – page 5
  • Prices & rentals – page 6
  • Outlook – page 7
  • Office investment sales 2H2015 – page 7
  • Selected grade A office asking rentals – page 8

Klang Valley retail market – page 9

  • Highlights – page 9
  • Economic indications – page 9
  • Supply & demand – page 9
  • Prices & rentals – page 11
  • Significant shopping mall investment sales 2H2015 – page 12
  • Outlook – page 12
  • Shopping centres scheduled for completion / opening in 1H2016 – page 12

Penang property market – page 13

  • Highlights – page 13
  • Market indications – page 13
  • High end condominium – page 13
  • Office – page 14
  • Retail – page 14
  • Outlook – page 14
  • Future supply of retail space within Penang island – page 14

Johor Bahru property market – page 15

  • Highlights – page 15
  • Market highlights – page 15
  • Residential – page 16
  • Office – page 17
  • Office supply and occupancy trend in Johor Bahru (2005 – 2Q2015) – page 17
  • Retail – page 18
  • Industry – page 18
  • Outlook – page 18
  • Retail supply and occupancy trend in Johor Bahru (2005 – 2Q2015) – page 18

Kota Kinabalu property market – page 19

  • Highlights – page 19
  • Market highlights – page 19
  • The Sabah structure plan 2033 (SSP2033) – page 19
  • Residential – page 20
  • Office – page 21
  • Occupancy rate of office space in Kota Kinabalu – page 21
  • Asking gross rental of selected office Space in Kota Kinabalu (2015) – page 22
  • Retail – page 22
  • Cumulative supply of net retail space within Kota Kinabalu – page 22
  • Future supply of retail space in Kota Kinabalu – page 23
  • Market outlook – page 23

Real estate outlook in Malaysia for 2016

In this second document, Knight Frank proposes an overview of commercial real estate investments in 2015 and expectations of professionals for 2016. With a specific appraisal of investment in the commercial segment of real estate, they detail the specific sub-sectors, positive and negative factors affecting the market.

Though Kuala Lumpur and the Klang Valley area do not have a very positive outlook, the importance of the Urban Mass Rapid Transit system – MRT needs to be highlighted. It is the main factor for the attractivity of real estate in Kuala Lumpur, which is poised to become a world class city by 2020.

Malaysia real estate outlook 2016 - Knight Frank
Click to open the Malaysia real estate outlook 2016 from Knight Frank

Malaysia commercial real estate investment sentiment survey 2016 – summary

  • 2015 past snapshot – page 2
  • Favourable and unfavourable factors affecting commercial real estate investment sentiment in 2015 – page 2
  • Sub-sectors Invested / Loaned / Developed In 2015 – page 3
  • 2016 – the outlook – page 3
  • Commercial sub-sectors investment in 2016 – page 4
  • Commercial sub-sectors expected performance in 2016 – page 5
  • Region for commercial property investment in 2016 – page 7
  • Favourable and unfavourable factors affecting commercial real estate investment sentiment in 2016 – page 8

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