KUALA LUMPUR — July 23, 2019: Real estate consultancy Knight Frank Malaysia sees the local property market bottoming out and set to gather further momentum moving into the second half of the year.
It further views that the extended National Home Ownership Campaign will continue to stir interest amongst buyers in the residential segment, while providing an opportunity for developers to clear existing stock.
“We may finally be seeing rays of hope in the housing market. The campaign which has been extended till December 31 is expected to provide further traction to the housing market, including the high-end condominium/serviced apartment segment.
“Many developers are participating in the campaign as it presents a good opportunity for them to clear their existing inventories, which is positive for the residential market,” said the firm’s managing director Sarkunan Subramaniam in a statement.
The company today launched its latest research report Real Estate Highlights 1st Half of 2019, which highlights property trends and outlook in key markets of Malaysia.
It noted the campaign as one of the most impactful events on the residential market during the review period to increase home ownership among Malaysians and also to address the property overhang.
But while consumer sentiments remain subdued, retail sales remain in expansionary territory, it pointed out.
It said operators of existing shopping malls need to continuously review their trade and tenant mix to ensure that they remain attractive and cater to consumers within their trade areas, while retailers must innovate and refresh their stores by embracing technology for improved in-store experiences in the diluted retail market.
Looming supply and weak absorption continue to impact the Klang Valley office market, although rental and occupancy levels are seen to be holding firm in KL fringe and Selangor.
The availability of good grade office supply at competitive rentals and the expanding public rail transit lines have boosted the popularity of decentralised office locations, said the statement. — Bernama