Property market to be flattish in 2018, says CBRE WTW


KUALA LUMPUR: The Malaysia property market is expected to be "flattish" in 2018 with low single digit growth in terms of prices with greater pressure on serviced offices home offices (SoHos), says a top property valuer. 

CBRE WTW managing director Foo Gee Jen said on Wednesday that in the residential sector, "more strategic adjustments on products, pricing and sale strategies may be observed in 2018".

Of all the different sectors, the hotel and industrial segments have the "most optimistic" outlook for 2018, he said.

Foo pointed out Penang's residential may have bottomed out after three years of downtrend with more interest in landed units in township development in Seberang Prai.

In Iskandar Johor, new purpose-built offices are asking for higher rent of RM4 to RM5 per sq ft, which is about double that of Johor Barucity fringe of RM2.80 to RM3.20 psft. 

“While demand is there now, especially from multinational corporation (MNC),  going forward as more offices are completed to the tune of 2.7 million sqft in the pipeline versus 4.6 million sq ft from 29 existing buildings today, building owners will have to restratgise in order to attract tenants,” he said.

 

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