By Sharen Kaur
sharen@nstp.com.my
office towers, retail malls and hotels, said a property consultant.
Foreign funds like ING Real Estate Fund, Macquarie Global Property Advisors; Kuwait Finance House,
CapitalLand and Asian Equity Partners have been quiet in Asia since mid-2008 - cautious about the impact of
the US' economic woes.
But sentiments started to change since early last year as prices of properties in Malaysia are still relatively
low, allowing for higher return on investment. There is also strong upside potential if compared with
neighbouring Singapore.
"There are a few foreign funds sniffing the market. But the concern is whether are there enough prime
properties to sell," said CH Williams Talhar & Wong (WTW) deputy managing director Danny S.K. Yeo.
Yeo said in 2011 there were slightly less than 10 major property transactions and he expects the market to do
better this year.
Meanwhile, WTW managing director Foo Gee Jen said projects like the mass rapid transit (MRT), light rail
transit (LRT) line extension and the high-speed train will open up new development areas between Sungai
Buloh and Kajang, as well as Seremban, Malacca and Ipoh.
"We will see a lot of new residential projects coming up in these areas," he told reporters yesterday, after
presenting the 2012 WTW Property Market report.
WTW expects the local property market to grow by 10 per cent in transaction value this year from over RM40
billion last year, and prices to increase moderately.
"We also expect the market for real estate investment trust (REIT) to grow. The REIT size is still small at
US$1.5 billion (RM4.54 billion) compared with US$23 billion (RM69 billion) in Singapore. REITS will
provide an alternative investment to properties," Foo said.
Foo said office rentals will remain stagnant or decline for older buildings but there will be higher asking
rentals for newly completed buildings with green certification and Multimedia Super Corridor status.
He said with over 0.74 million sq m of new office space entering the market this year, older buildings will
face pressure from declining occupancies as tenants seek newer, better quality offices.
-ENDS-
sharen@nstp.com.my
Published in NST on February 11, 2012
THERE will be moderate return of regional real estate funds into Malaysia this year looking to buy Grade A
office towers, retail malls and hotels, said a property consultant.
Foreign funds like ING Real Estate Fund, Macquarie Global Property Advisors; Kuwait Finance House,
CapitalLand and Asian Equity Partners have been quiet in Asia since mid-2008 - cautious about the impact of
the US' economic woes.
But sentiments started to change since early last year as prices of properties in Malaysia are still relatively
low, allowing for higher return on investment. There is also strong upside potential if compared with
neighbouring Singapore.
"There are a few foreign funds sniffing the market. But the concern is whether are there enough prime
properties to sell," said CH Williams Talhar & Wong (WTW) deputy managing director Danny S.K. Yeo.
Yeo said in 2011 there were slightly less than 10 major property transactions and he expects the market to do
better this year.
Meanwhile, WTW managing director Foo Gee Jen said projects like the mass rapid transit (MRT), light rail
transit (LRT) line extension and the high-speed train will open up new development areas between Sungai
Buloh and Kajang, as well as Seremban, Malacca and Ipoh.
"We will see a lot of new residential projects coming up in these areas," he told reporters yesterday, after
presenting the 2012 WTW Property Market report.
WTW expects the local property market to grow by 10 per cent in transaction value this year from over RM40
billion last year, and prices to increase moderately.
"We also expect the market for real estate investment trust (REIT) to grow. The REIT size is still small at
US$1.5 billion (RM4.54 billion) compared with US$23 billion (RM69 billion) in Singapore. REITS will
provide an alternative investment to properties," Foo said.
Foo said office rentals will remain stagnant or decline for older buildings but there will be higher asking
rentals for newly completed buildings with green certification and Multimedia Super Corridor status.
He said with over 0.74 million sq m of new office space entering the market this year, older buildings will
face pressure from declining occupancies as tenants seek newer, better quality offices.
-ENDS-
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