Property market remains subdued in 1H17

KUALA LUMPUR: The local property market remained subdued in the first half of this year as potential investors continued to adopt a ‘wait-and-see’ approach, according to the findings of a research undertaken by Knight Frank Malaysia.

Titled, “Real Estate Highlights for first half of 2017”, the report looked into the market performance across various property mix – residential, office and retail; and highlighted trends and outlook in various regions, namely Kuala Lumpur, Klang Valley, Penang, Johor Bahru and Kota Kinabalu.

Managing director Sarkunan Subramaniam said despite the overall subdued market, the recent rebound in the country’s economy coupled with the strengthening of the local currency and stable employment market may provide recovery in the high-end condominium market.

“While in the office sector, the quality of office supply continues to be upgraded to cater to the requirements of large corporations and multinational companies. With the increase in supply and competition, malls are facing challenges in sustainability in the retail market.

“Operators are refurbishing, rebranding and repositioning their malls to improve footfall. Fashion and food and beverages related trades are no longer the key to increase footfall, shopping centres are starting to promote experiences instead of products, such as transforming its car park into an indoor kart zone,” he said in a statement today.

Moving forward, he said Malaysia would remain an attractive investment destination with its stable property market and relatively low entry prices that continued to offer reasonable returns. — Bernama