KUALA LUMPUR, July 17 (Bernama) -- Malaysia's property sector has demonstrated commendable mid-year performance, signalling a promising trajectory for the industry fuelling by strategic developments and growing investor interest, according to Knight Frank Malaysia.
Its group managing director Keith Ooi cited the robust economic growth, significant investments and adaptive market trends as key catalysts supporting this growth.
“Malaysia continues to show promising growth prospects, bolstered by strategic investments, infrastructure improvements and evolving market dynamics,” he said.
The global property consultant released its analysis, titled Real Estate Highlights First Half of 2024 (REH 1H 2024) today, revealing a dynamic and resilient market across residential, office, retail, hospitality, and industrial sectors.
During the REH presentation, Amy Wong, executive director of Research and Consultancy, said the high-end high-rise residential segment in the Klang Valley and Johor saw increased growth in transactions and values.
She highlighted that in the first quarter of 2024, a total of 3,413 residential units sold for RM2.8 billion, marking a 19.2 per cent increase in volume and a 19.3 per cent rise in value.
Three high-end condominium projects were completed during the quarter, adding 1,846 units to the market.
"Future completions in the second half of 2024 (2H 2024) will add some 5,866 units," she said.
In Johor, growth in transaction volumes and values were recorded in both the condominium/apartment and serviced apartment categories.
"Several high-rise residential projects were launched, reflecting a vibrant market driven by strategic developments such as the upcoming Johor Bahru-Singapore Rapid Transit System Link," she noted.
Meanwhile, the office sector continues to draw multinational corporations, buoyed by competitive rental rates, a skilled workforce, and robust government support for the digital economy.
Director of Office Strategy and Solutions Naythan Chong said in the Klang Valley, the office sector experienced modest improvements in occupancy and rental rates, driven by tenant relocations and a resilient market in Kuala Lumpur Fringe and Selangor.
In 1H 2024, two significant buildings were completed, adding 0.4 million square feet (sq ft) of space to the market and bringing the total space to 117.9 million sq ft.
In Johor, stable rental rates were observed in Johor Bahru City Fringe, while in Penang, the office space supply remained stable with 6.9 million sq ft on Penang Island and 1.7 million sq ft in Seberang Perai.
Three new office towers are expected to enter the market in the 2H 2024 in Penang, including Sunshine Tower, GBS by The Sea, and a 34-story office suite building in Gelugor.
On the retail segment, director of retail management and consultancy Yuen May Chee said the trends indicate a continued expansion in the Klang Valley, Johor, Penang and Sabah.
Nevertheless, she sees the ringgit and inflation performance, high interest rate, rising costs and rental will add some pressure on consumer spending and operating costs.
As for the industrial segment, executive director of Land and Industrial Solutions Allan Sim said Malaysia's industrial property market is witnessing robust demand, particularly for high-quality sustainable developments.
"The manufacturing sector is projected to grow by 3.5 per cent in 2024, supported by the recovery of export-oriented industries and sustained growth in domestic clusters," he said.
Sim noted a marked shift towards high-quality, sustainable logistics spaces, contributing to a slight rise in rents.
Institutional investors are also increasingly targeting industrial assets in the Klang Valley for their stable returns and yield-accretive potential, he added.
In Johor, the rapid growth in the data centre market is driven by its proximity to Singapore as well as the launch of the Johor-Singapore Special Economic Zone in January 2024.
Additionally, Penang is expected to become a hub for high-tech industries, particularly in semiconductor and electronics manufacturing.
-- BERNAMA
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