PROPERTY NEWS: DTZ: Double-digit returns on KL retail till 2016

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HIGH: DTZ Research has forecasted average annual total returns of 12 per cent between 2012 and 2016 for retail investment in Kuala Lumpur. The research house said retail investment has gained significant share in the past few years on the back of strong market fundamentals.

 

“While prime retail capital values are only around one third of those in Singapore, prime retail units in KL yield much higher income return, at circa 6.5 per cent per annum,” it said in a recent report.
 
“KL retail is expected to continue to outperform other sectors given continued rural urban migration, a young population, strong tourist arrivals and rising disposable income. But investors should be wary of potential fallout from the forthcoming election, as well as the introduction of GST.”
 
The report also said increasing accessibility and good information and communication technology are attracting growing investor interest in offices in KL’s suburban areas. An example was the conclusion of a notable deal, Tower 8, Horizon Phase 2 for US$30 million (RM90 million) in Bangsar South in 2Q, a price which DTZ considers high for its non-central location.

 


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