KUALA LUMPUR: The recovery of the country’s real estate industry in the second half of this year may be dampened by issues in the construction sector, which is facing raw materials supply pressure.
CBRE Research Asia Pacific (APAC) executive director Ada Choi said the rental market in Malaysia, however, is expected to be flat as the research firm is expecting only a mild decline in rents of less than 5% for 2021.
“Despite lockdowns similar to some countries in the APAC region, we expect the current wave (of the coronavirus) will be under control relatively quicker.
“I do see there will be improvement but it will probably be first reflected from the demand and recovery in the rental levels.
“Regionally, the economy is expected to rebound despite a delayed recovery in Japan and India, ” she said in a Maybank Invest Asean 2021 virtual session titled “Asean Real Estate: Path To Recovery”.
Choi, who is also head of occupier research and head of data intelligence and management at the research firm, said the rental market in Singapore has already started to stabilise and more investments are coming back to the republic.
Narrowing on the office rentals in the future, Choi said landlords would need to re-think about the user experience as occupiers would no longer be using the space due to rents and locations only, but would also lean more on the attributes of the buildings. — Bernama