Office market likely to remain tenant-led in 2019
KUALA LUMPUR: The market for office property sector is expected to remain firmly tenant-led in 2019 as there is no immediate catalysts to boost demand, said independent global property consultancy Knight Frank.
In its 2018 wrap-up and 2019 outlook on nine markets across Asia Pacific, it said although the increase of the shared office/co-working segment provided a breather to a market with oversupply, with more stock expected, there would be further headwinds ahead.
“Rental and occupancy levels will remain under pressure as landlords continue to offer attractive leasing options to attract new occupiers and retain existing tenants,” it said in a statement.
For residential properties, Knight Frank said the Kuala Lumpur’s prime housing market was generally holding firm and more property launches were expected amid improved market sentiment.
“The slight upward revision in stamp duty and real property gains tax rates as announced in the 2019 Budget would unlikely have a significant impact on the market, although the growing mismatch in supply and demand coupled with rising financing costs would continue to impinge in price growth as market finds its equilibrium,” it said.
In contrast, it said the exemptions and initiatives, in particular the waiver of stamp duty on the instrument of transfer and loan agreement for residential homes valued up to RM300,000 for a twoyear period and the six-month waiver stamp duty charges for properties priced from RM300,000 to RM1 million, are expected to kick-start the housing market moving into 2019 and beyond.
Meanwhile, online property platform PropertyGuru Malaysia said given the larger macroeconomic fundamentals, coupled with rising home unaffordability, extensive supply in certain key segments and a serious lack of financial visibility among Malaysians, the market outlook for 2019 would likely remain consistent with 2018 for the better part of the year.
Country Manager Sheldon Fernandez said many may choose to look around for the first six months before making a purchase decision later in the year.
“Others may adopt a waitand-see approach, hoping to benefit from the various home affordability schemes launched by the government and event annual home deals during which Malaysians could get the steepest discount deals for a limited time,” he said in a statement.
Among trends that could be on the loop in 2019 include properties connected strategically to the Mass Rapid Transit and Light Rail Transit lines, smaller units with bigger lifestyle possibilities (more facilities and close to public transportation) and potential property hotspots, namely Petaling Jaya, Shah Alam, Subang Jaya and Kuala Lumpur.
“We are also encouraging Malaysians to utilise the PropertyGuru Mortgage PreQualifier as they can check their loan eligibility in real time, and whether they can afford their desired property,” said Fernandez.