THE Greater Kuala Lumpur
residential property market is poised for some consolidation after recording
breathtaking growth in terms of price hikes and transaction volume over the
last three years, property consultants observe.
CBRE’s latest Greater Kuala Lumpur MarketView says a period of stabilisation is in order, with the period of significant growth in capital values seen since 2009 being replaced by an era of more gradual increases.
“The rapid growth in Kuala Lumpur and its suburbs has resulted in a scarcity in development land that drove up capital values for many areas in Selangor.
“About 75.7% of all residential units in Greater KL are located in Selangor, with the remaining 24% and 0.3% in Kuala Lumpur and Putrajaya respectively. Putrajaya, the country’s administrative capital, accounted for just over 4,740 units which are primarily for housing of civil servants,” the report adds.
New residential developments are being located further and further away from the city centre, with an increasing level of development seen in the southern portion of Greater KL, forming a growth corridor linking the city with Putrajaya/Cyberjaya and down to KLIA.
The CBRE report points out that previously overlooked areas, including Semenyih, are poised to see a marked increase in development activities in the near future.
As of quarter two (2Q) 2013, 196,092 units were classified as incoming supply, defined as units for which construction permits have been approved (whether or not construction has begun). Of this, 186,581 units were deemed to be under construction, implying that construction work has begun on 95.1% of the units with construction permits.
Total existing supply of residential properties stood at about 1.77 million units as at end-2Q 2013, with landed units accounting for 43.5% of total stock, non-landed properties made up 34.9% and low-cost housing was at 21.6%.
It notes that supply growth since end-2012 has been minimal at less than 1%, part of a wider slowdown in supply increase since 2006 that contributed to a rise in capital values in many areas of Greater KL since 2009.
Although the number of new starts has rebounded since 2011, it remained below levels seen during 2003 to 2007.
“Buying interest from foreign buyers, especially from Singapore, Hong Kong, China and Japan could cushion the softer domestic demand going forward,” Koh observes.
Meanwhile, Knight Frank’s First Half 2013 Real Estate Highlights says while prices have flattened over the past 12 months as a result of government cooling measures, more activities are expected post-election as additional cooling measures implemented in competing Asian markets such as Singapore, Hong Kong and China, may lead to greater interest in the Kuala Lumpur, Penang and Iskandar Malaysia property markets.
“Malaysia is an attractive alternative investment destination due to its stable property market and relative housing affordability that offers reasonable returns in terms of capital appreciation/rental income.
“New launches featuring a good mix of unit sizing, particularly those located near high-level infrastructure projects, are expected to attract strong take-up as they appeal to a wider market of buyers and investors,” the Knight Frank report says.
In the luxurious condominium sector, CBRE estimates 6,484 units to be completed in Kuala Lumpur during the second half of 2013.
Of the 42,979 units of high-rise development (condominiums and serviced residences) in Kuala Lumpur valued at or above RM500 per sq ft (psf), it says about 35% are considered to be “luxury” (valued at RM800 psf and above).
Knight Frank says that with prices of high-end condominiums expected to remain flat for the remainder of this year, investors and purchasers will have the choice of opting for more bargain condominiums in the city and its immediate neighbourhood of Ampang Hilir/ U-Thant as the price per sq ft narrows between city and suburban living.
The Mont’Kiara vicinity is also seeing an increase in new launches, with projects such as Pavilion Hilltop, Residensi 22 @ Mont’Kiara, Sun Kiara Condominium, Kiara 163 Serviced Residence, Weida Mont’Kiara and others to be launched in the near future.
During the review period, there were two new completions in Mont’Kiara – Kiaramas Danai (287 units) and 28 Mont’Kiara (460 units).
Knight Frank says the office market is expected to remain challenging as supply continues to outstrip demand.
In KL city, demand for good grade dual-compliant office space is expected to remain resilient in the short term. Owners of old and dated office buildings are proactively seeking to upgrade and enhance their assets in a bid to remain competitive and retain tenants (and to attract new ones) amid a challenging leasing market.
The decentralised office location of KL Sentral, however, is expected to face further pressure on its occupancy and rental rates due to the recent completion of some 1.9 million sq ft and impending completion of some 1.7 million sq ft by year-end.
The short-term threat from these completions may, however, be mitigated as several buildings have secured anchor tenants.
Knight Frank says the impending opening of Nu Sentral later this year is expected to improve integration between the various completed components within KL Sentral and add further appeal to the transportation hub as a popular alternative office location, thus leading to improved demand and absorption rates in the medium to longer term.
With rapid developments of public transportation links (LRT extension and MRT lines), accessibility and connectivity between KL City and its fringe locations will be greatly enhanced. Coupled with the availability of good grade office space at competitive rental rates, this will accelerate the decentralisation process.
CBRE says some 6.27 million sq ft of new office space will be completed in the Greater KL region next year, although a considerable amount of this supply is located in strata-title or secondary buildings. Nevertheless, the market is set to remain poised in favour of tenants for the near future.
The KL city that constitutes the capital city’s golden triangle and central business district’s office market showed encouraging signs of life during the review quarter as vacancy rates fell to 12.7% (13.2% as at 1Q), on the back of some notable leasing activities.
Continued evidence of the ongoing flight to quality came in the form of an oil and gas major leasing over 200,000 sq ft of office space in Integra Tower, the recently completed prime office building within MGPA’s Intermark integrated development.
Overall, there was no change in average gross asking and passing rents for selected Grade A office space in the city, at RM8.10 psf and RM7.10 psf respectively.
As at the second quarter this year, the total supply of office space in Greater KL stood at about 91.1 million sq ft, 5% higher than the 89.2 million sq ft and up 5% year-on-year.
The second quarter of 2013 witnessed the completion of four developments, all located outside Kuala Lumpur city – Menara D’Damansara (253,000 sq ft of net lettable area), Plaza33 (530,840 sq ft), and Menara CIMB (609,000 sq ft) as well as Menara Shell (538,617 sq ft) located in KL Sentral.
The Star, 5/10/2013
CBRE’s latest Greater Kuala Lumpur MarketView says a period of stabilisation is in order, with the period of significant growth in capital values seen since 2009 being replaced by an era of more gradual increases.
“The rapid growth in Kuala Lumpur and its suburbs has resulted in a scarcity in development land that drove up capital values for many areas in Selangor.
“About 75.7% of all residential units in Greater KL are located in Selangor, with the remaining 24% and 0.3% in Kuala Lumpur and Putrajaya respectively. Putrajaya, the country’s administrative capital, accounted for just over 4,740 units which are primarily for housing of civil servants,” the report adds.
New residential developments are being located further and further away from the city centre, with an increasing level of development seen in the southern portion of Greater KL, forming a growth corridor linking the city with Putrajaya/Cyberjaya and down to KLIA.
The CBRE report points out that previously overlooked areas, including Semenyih, are poised to see a marked increase in development activities in the near future.
As of quarter two (2Q) 2013, 196,092 units were classified as incoming supply, defined as units for which construction permits have been approved (whether or not construction has begun). Of this, 186,581 units were deemed to be under construction, implying that construction work has begun on 95.1% of the units with construction permits.
Total existing supply of residential properties stood at about 1.77 million units as at end-2Q 2013, with landed units accounting for 43.5% of total stock, non-landed properties made up 34.9% and low-cost housing was at 21.6%.
It notes that supply growth since end-2012 has been minimal at less than 1%, part of a wider slowdown in supply increase since 2006 that contributed to a rise in capital values in many areas of Greater KL since 2009.
Although the number of new starts has rebounded since 2011, it remained below levels seen during 2003 to 2007.
DTZ
Nawawi Tie Leung executive director Brian Koh says that going
forward, a slower but more sustainable growth in terms of new launches and
take-up rate can be expected.Koh says that in the last quarter of 2013, the
things to look out for in the property market include a potential hike in bank
interest rates as Bank Negara is expected to introduce further
measures to rein in household debts. Higher borrowing rates may also affect
mortgage loan rates that may mean higher borrowing cost to housebuyers.
“Buying interest from foreign buyers, especially from Singapore, Hong Kong, China and Japan could cushion the softer domestic demand going forward,” Koh observes.
Meanwhile, Knight Frank’s First Half 2013 Real Estate Highlights says while prices have flattened over the past 12 months as a result of government cooling measures, more activities are expected post-election as additional cooling measures implemented in competing Asian markets such as Singapore, Hong Kong and China, may lead to greater interest in the Kuala Lumpur, Penang and Iskandar Malaysia property markets.
“Malaysia is an attractive alternative investment destination due to its stable property market and relative housing affordability that offers reasonable returns in terms of capital appreciation/rental income.
“New launches featuring a good mix of unit sizing, particularly those located near high-level infrastructure projects, are expected to attract strong take-up as they appeal to a wider market of buyers and investors,” the Knight Frank report says.
In the luxurious condominium sector, CBRE estimates 6,484 units to be completed in Kuala Lumpur during the second half of 2013.
Of the 42,979 units of high-rise development (condominiums and serviced residences) in Kuala Lumpur valued at or above RM500 per sq ft (psf), it says about 35% are considered to be “luxury” (valued at RM800 psf and above).
Knight Frank says that with prices of high-end condominiums expected to remain flat for the remainder of this year, investors and purchasers will have the choice of opting for more bargain condominiums in the city and its immediate neighbourhood of Ampang Hilir/ U-Thant as the price per sq ft narrows between city and suburban living.
New completions
While the majority of new
launches are in the suburban areas, there are also a number of upcoming new
developments in the KLCC vicinity, including projects such as KL Trillion
Serviced Apartments and Verve Suites @ KLCC among others.The Mont’Kiara vicinity is also seeing an increase in new launches, with projects such as Pavilion Hilltop, Residensi 22 @ Mont’Kiara, Sun Kiara Condominium, Kiara 163 Serviced Residence, Weida Mont’Kiara and others to be launched in the near future.
During the review period, there were two new completions in Mont’Kiara – Kiaramas Danai (287 units) and 28 Mont’Kiara (460 units).
Knight Frank says the office market is expected to remain challenging as supply continues to outstrip demand.
In KL city, demand for good grade dual-compliant office space is expected to remain resilient in the short term. Owners of old and dated office buildings are proactively seeking to upgrade and enhance their assets in a bid to remain competitive and retain tenants (and to attract new ones) amid a challenging leasing market.
The decentralised office location of KL Sentral, however, is expected to face further pressure on its occupancy and rental rates due to the recent completion of some 1.9 million sq ft and impending completion of some 1.7 million sq ft by year-end.
The short-term threat from these completions may, however, be mitigated as several buildings have secured anchor tenants.
Knight Frank says the impending opening of Nu Sentral later this year is expected to improve integration between the various completed components within KL Sentral and add further appeal to the transportation hub as a popular alternative office location, thus leading to improved demand and absorption rates in the medium to longer term.
With rapid developments of public transportation links (LRT extension and MRT lines), accessibility and connectivity between KL City and its fringe locations will be greatly enhanced. Coupled with the availability of good grade office space at competitive rental rates, this will accelerate the decentralisation process.
CBRE says some 6.27 million sq ft of new office space will be completed in the Greater KL region next year, although a considerable amount of this supply is located in strata-title or secondary buildings. Nevertheless, the market is set to remain poised in favour of tenants for the near future.
The KL city that constitutes the capital city’s golden triangle and central business district’s office market showed encouraging signs of life during the review quarter as vacancy rates fell to 12.7% (13.2% as at 1Q), on the back of some notable leasing activities.
Continued evidence of the ongoing flight to quality came in the form of an oil and gas major leasing over 200,000 sq ft of office space in Integra Tower, the recently completed prime office building within MGPA’s Intermark integrated development.
Overall, there was no change in average gross asking and passing rents for selected Grade A office space in the city, at RM8.10 psf and RM7.10 psf respectively.
As at the second quarter this year, the total supply of office space in Greater KL stood at about 91.1 million sq ft, 5% higher than the 89.2 million sq ft and up 5% year-on-year.
The second quarter of 2013 witnessed the completion of four developments, all located outside Kuala Lumpur city – Menara D’Damansara (253,000 sq ft of net lettable area), Plaza33 (530,840 sq ft), and Menara CIMB (609,000 sq ft) as well as Menara Shell (538,617 sq ft) located in KL Sentral.
The Star, 5/10/2013
No comments:
Post a Comment