Knight Frank: KL Office Rental Market May Worsen
EdgeProp, Photo Credit to EdgeProp
clock 18-09-2018
hit 341

According to Knight Frank's Asia-Pacific Prime Office Rental Index for 2Q2018, Kuala Lumpur's office rental market has recorded the steepest decline in the Asia Pacific region in 2Q2018 and the index showed that, over the quarter, KL's office rent had declined 0.8%.


“With more supply due to come online over the next 12 months, rental growth could be limited. Supply concerns in Kuala Lumpur pushed rents down another 0.8% quarter-on-quarter,” Knight Frank Malaysia's Corporate Services executive director Teh Young Khean said.

The office market outlook for both KL and Selangor remains lacklustre as impending supply coupled with tight leasing market continues to put pressure on occupancy and rental levels, he added.

“Landlords with older and newly completed buildings, especially in KL City, are more accommodating in providing additional incentives to retain existing tenants as well as to attract potential tenants,” Teh said in a statement released with the index.

With regards to the overall office rental market in Asia-Pacific, steady demand can be seen in the prime office market and this is expected to bolster rental growth for the second half of the year, Knight Frank Asia-Pacific's head of research Nicholas Holt said.

“Despite several headwinds, including tensions around trade, regional economic growth continues to fuel demand for Grade-A office space,” Holt reckoned.




WHAT DO YOU FEEL ABOUT THIS?

0
LOVE
0
HAPPY
0
SURPRISED
0
SAD
0
ANGRY


COMMENTS
Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.

SIGN UP NEWSLETTER

logo
Monthly Column
The staple of your property-related materials. It's all about being ahead of the game and with The Column, you get carefully selected information that will keep you informed and running with the pack. The best news, articles and properties on the market from the Property Hunter portal, conveniently wrapped and ready, just for you.

logo
Weekly Window
Your weekly dose of what's hot and what's not in property. The window is your view into the realm of real estate in Malaysia, curated from our portal based on the most popular pieces over the week. For those who just can't get enough, this is for you. Ain't nobody got time for dailies anymore, weekly is the new daily.