News & Articles KL Central Business District, Golden Triangle Still Attractive
KL Central Business District, Golden Triangle Still Attractive
3 Mar 2015
KUALA LUMPUR, March 3 (Bernama) -- The KL Central Business District (CBD) and Golden Triangle are still the most attractive regions in Malaysia for commercial real estate investment for 2015, according to a survey by global property consultant Knight Frank.
It said up to 57 per cent of the respondents ranked those as their prime choice followed by 30 per cent opting for the KL Fringe/Klang Valley and the rest for Kota Kinabalu and Johor/Iskandar.
For 2015, 85 per cent of the respondents plan to invest, lend to, and develop commercial real estate while 15 per cent opted not to, Knight Frank said in its "Malaysia Commercial Real Estate Sentiment Survey 2015" covering developers, fund/REIT managers and commercial lenders.
As for the investment outlook for commercial property for 2015, 78 per cent were less optimistic and the rest were of the opinion that the 2014 trends would continue.
Knight Frank Malaysia managing director Sarkunan Subramaniam said the commercial investment market was predicted to see a softer subdued climate at least for the 10 months of this year as it grappled with rising cost of capital, selective lending and the Goods and Services Tax implementation.
"Opportunities will abound towards the end of the year when we are likely to see some pressured sales where prices become more realistic, driving yields to be attractive", he said.
Sarkunan said the healthcare/institutional and hotel/leisure sectors were likely to be more resilient while the office sector seemed likely to see some strain.
The retail sector will have a slightly poorer year, though better than offices, while the logistics/industrial sector may turn up a good surprise to investors, he added.
As for the 2014 performance, the survey indicated that half of the respondents (52 per cent) believed that the commercial real estate market had performed below expectation in terms of yields, margin and returns.
Seventy eight per cent of respondents were active in 2014, having invested in, lent to or developed commercial real estate while the rest remained dormant.
-- BERNAMA
It said up to 57 per cent of the respondents ranked those as their prime choice followed by 30 per cent opting for the KL Fringe/Klang Valley and the rest for Kota Kinabalu and Johor/Iskandar.
For 2015, 85 per cent of the respondents plan to invest, lend to, and develop commercial real estate while 15 per cent opted not to, Knight Frank said in its "Malaysia Commercial Real Estate Sentiment Survey 2015" covering developers, fund/REIT managers and commercial lenders.
As for the investment outlook for commercial property for 2015, 78 per cent were less optimistic and the rest were of the opinion that the 2014 trends would continue.
Knight Frank Malaysia managing director Sarkunan Subramaniam said the commercial investment market was predicted to see a softer subdued climate at least for the 10 months of this year as it grappled with rising cost of capital, selective lending and the Goods and Services Tax implementation.
"Opportunities will abound towards the end of the year when we are likely to see some pressured sales where prices become more realistic, driving yields to be attractive", he said.
Sarkunan said the healthcare/institutional and hotel/leisure sectors were likely to be more resilient while the office sector seemed likely to see some strain.
The retail sector will have a slightly poorer year, though better than offices, while the logistics/industrial sector may turn up a good surprise to investors, he added.
As for the 2014 performance, the survey indicated that half of the respondents (52 per cent) believed that the commercial real estate market had performed below expectation in terms of yields, margin and returns.
Seventy eight per cent of respondents were active in 2014, having invested in, lent to or developed commercial real estate while the rest remained dormant.
-- BERNAMA
Source: BERNAMA