Building & Investment (Jan - Feb 2016) (Jan - Feb 2016) - Page 27

Special Feature Re-create ‘The Green’ @ Greenwall Vertical Garden @ Roof Garden @ Permeable Surface Klang Valley s Subdued scenario, generally, excepting several “notable” land and property deals, e.g., The Intermark (RM1.813 billion) and KL Sentral (RM1.57 billion) and major announcements, i.e., Bukit Bintang City Centre (former Pudu Jail) and TRX Lifestyle Quarter. s Continued slowdown in landed residential market; with improved connectivity, new schemes (mostly on smaller scale) launched further from city, e.g., Rawang, Kajang and Semenyih, with prices ranging from RM300 – 400 per sq ft over built-up area. Soft market conditions, however, may prompt “new developments with affordable price range.” Transactions in secondary market are projected to increase. s Large incoming supply (13,500 units) of high-rise residential in next two years will exert pressure on occupancy rates whereas rentals will be competitive (buyers’ market); slower transaction activities in KL city centre even with discounts (owners disposing due to concerns about economic climate). s Prime rentals for purpose-built office Kuala Lumpur Office: No 28, Jalan Perindustrian PBP3, Taman Perindustrian Pusat Bnadar Puchong, 47100 Puchong, Selangor Darul Ehsan, Malaysia. Tel : 603-8060 8653 Fax : 603-8060 8654 Johor Bahru Office: 45-2, Jalan Titiwangsa 2, Taman Tampoi Indah, 81200 Johor Bahru, Johor Darul Takzim, Malaysia. Tel 607-241 3801 (5 Lines) Fax : 607-241 3811 KL Sentral. s s expected to stay stable although occupancy rates may dip as the 10.0 million sq ft threshold (of cumulative office supply) is breached; continued demand for Grade A buildings but, overall, this sector is essentially a tenant’s market. With additional 7.56 million sq ft (NLA) retail space to open in 2016/2017, slowdown in this sector is of concern, i.e., challenge to let out so much space against cautious consumer spending and uncertain economic future. Hotel segment in 2016 looks promising by virtue of weakened Ringgit and s increased tourist arrivals; average room rates expected to remain stable but occupancy to decline with opening of new international branded hotels/ serviced apartments. Increasing interest, though, noted in KL as venue for MICE (Meetings, Incentives, Conventions and Exhibitions). Industrial sector will continue to grow steadily over next few years, supported by on-going Government infrastructure development and new investments (Johor topped the list for nine months of 2015, followed by Sarawak, Melaka, Selangor and Penang). Q Building & Investment | 23