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 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.
Click to open the Malaysia real estate report 2015 from Knight Frank 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
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 .
Click to open the Malaysia real estate outlook 2016 from Knight Frank 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
