Property consultants want govt to address office space oversupply

UOB Kay Hian noted that post the 14th General Election (GE14) that saw Pakatan Harapan (PH) taking over the Federal Government, most construction and highway-concession related stocks have tumbled significantly, besieged by concerns of potential cancellation/deferment of some mega projects, contract renegotiation of ongoing mega projects, and toll road concessionaires being compromised.

PETALING JAYA: Saving Tun Razak Exchange (TRX) will need more than capital injection from the Government as property consultants feel the oversupply of office property will need to be addressed.

Rentals at TRX would also need to be brought down to a more attractive level as Kuala Lumpur’s multi-year showcase property will need to attract both local and foreign companies.