KUALA LUMPUR: Tthe Kuala Lumpur office sector will remain firmly tenant-led next year as there is no immediate catalyst to boost demand, said independent global property consultancy Knight Frank.
It said while the rise of the shared office and co-working segment provided a breather to a market with oversupply, with additional stock expected, there were further headwinds ahead.
“Both 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 its 2018 wrap-up and 2019 outlook on nine markets across Asia Pacific.
Knight Frank Asia Pacific research head Nicholas Holt said while the region’s economy haed faced some headwinds in 2018, most real estate markets remained dynamic with investors and occupiers both continuing to be active.
“Heading into 2019, cooling measures, rising interest rates and slowing sentiment is likely to weigh on residential markets, while trade tensions could influence decision making for corporates looking at office space.
“Structural changes are also likely to continue as co-working and co-living become more commonplace across Asia-Pacific markets,” he said.
On housing market, Knight Frank said prices in Kuala Lumpur’s prime housing market were generally holding firm.
It expects to see more property launches amid improved market sentiment.
It said the slight upward revision in stamp duty and real property gains tax (RPGT) rates announced in the 2019 Budget was unlikely to have significant impact on the market although the growing mismatch in supply and demand coupled with rising financing costs would continue to impinge on price growth as the market finds its equilibrium.
“In contrast, 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 two-year period and the six-month waiver of stamp duty charges for properties priced from RM300,001 to RM1 million, are expected to kick-start the housing market moving into 2019 and beyond,” it said.