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"Malaysia Real Estate Report Q1 2014" now available at Fast Market Research


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2014-01-05 21:34:56 - Recently published research from Business Monitor International, "Malaysia Real Estate Report Q1 2014", is now available at Fast Market Research

Overall, BMI has a positive outlook for the Malaysian commercial real estate sector. In particular positive demographics with increasing income levels, strong FDI levels and the government's plan to increase the population of the Kuala Lumpur area to 10 million from the current 6 million by 2020 will also spur greater property demand. However, an oversupply of office and retail space is threatening rental rates, as well as a mismatch of investor specifications and new developments.

There are strong downside risks to our forecasts; with an estimated 17 million square feet coming online between 2015-2017 demand would have to double to absorb this supply. The over-supply of commercial real estate could result in depressed rentals and yields. Additional downside risks to

the market is the vacancies resulting from a mismatch of specifications and tenant's needs, according to an analyst at Savills Research there is a trend of tenants leaving buildings that are 10-15 years old as a result of poor maintenance standards.

Full Report Details at
- www.fastmr.com/prod/759115_malaysia_real_estate_report_q1_2014.a ..

After enduring a disappointing Q113 and periods of investor caution in the months preceding the May elections, both economic growth and investor confidence have returned to the Malaysian market. Despite improvements in the overall investment climate, weak external demand and persistent structural difficulties BMI is forecasting GDP growth of 4.6% for2013. Discouraging capital flight, stabilizing inflation, and working to curb speculative investment will be the priorities of the BN party, having recently survived the parliamentary elections.

While oversupply remains a concern in the office sector, Malaysia's retail sector has benefitted strongly from increased consumption levels flowing from a rising and increasingly urbanized middle class. The 2013 implementation of a minimum wage has also helped stabilize a foundering labour market.

We do not expect rents to move much in the short term as demand and foreign investment continues to return to the market; price levels into 2014 will largely be dependent on continued investor confidence Malaysian financial regulation as well as economic data from the United States and China.

Key forecasts 2013-2014 (Oct-Mar):

* Kota Kinabalu is the only region forecasted to experience rent increases for office space over the forecast period, coming in at 5%
* Rental rates for retail spaces are forecasted to remain stable for all regions
* All regions are going to face increases of 5% for industrial rental rates

Key developments

* The office sector is now over supplied especially following the completion of more than 12 major office developments in Klang Valley.
* Proposed retail centres within Damansara City by Guocoland (Malaysia) Berhad, Pavilion Extension by Urusharta Cemerlang Sdn Bhd, KLCC Extension - Lot K by KLCC Properties Holdings Berhad, Sapura Retail by Sapura Ventures Sdn Bhd and Gallery at Pan'gaea by OSK Property Holdings Berhad are expected to be completed by 2015

Report Table of Contents:

BMI Industry View
SWOT
- Political
- Economic
- Business Environment
Industry Forecast
- Office
- Table: Office Forecast Rents - (MYR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
- Retail
- Table: Retail Forecast Rents - (MYR per m2/month)
- Table: Retail Forecast Net Yield, 2010-2017 (%)
- Industrial
- Table: Industrial Forecast Rents - (MYR per m2/month)
- Table: Industrial Forecast Net Yield, 2010-2017 (%)
- Construction And Infrastructure Forecast Scenario
- Table: Malaysia Construction And Infrastructure Industry Data, 2011 - 2016
- Table: Malaysia Construction And Infrastructure Long Term Forecast, 2017 - 2022
Macroeconomic Forecast
- Table: Malaysia - Economic Activity
Industry Risk Reward Ratings
- Asia - Risk/Reward Ratings
- Table: Asia Real Estate Risk/Reward Ratings
- Malaysia - Risk/Reward Ratings
- Rewards
- Risks
Market Overview
- Office
- Table: Office Historic Rents - 2011-2013 (MYR per m2/month)
- Table: Terms of Rental Contract/ Leases - H113
- Table: Net Yield, 2011-2013 (%)
- Retail
- Table: Historic Rents - 2011-2013 (MYR per m2/month)
- Table: Net Yield, 2011-2013 (%)
- Table: Terms of Rental Contract/ Leases - H113
- Malaysia - Retail Sales Indicators
- Table: Malaysia Retail Sales Indicators, 2010-2017
- Industrial
- Table: Historic Rents- 2011-2013 (MYR per m2/month)
- Table: Net Yield, 2011-2013 (%)
- Table: Terms of Rental Contract/ Leases - H113
Competitive Landscape
Company Profile
- IJM Corporation Berhad
- Malaysian Resources Corporation Berhad (MRCB)
- WCT Berhad
- Ahmad Zaki Resources Berhad (AZRB)
Demographic Forecast
- Demographic Outlook
- Table: Malaysia's Population By Age Group, 1990-2020 ('000)
- Table: Malaysia's Population By Age Group, 1990-2020 (% of total)
- Table: Malaysia's Key Population Ratios, 1990-2020
- Table: Malaysia's Rural And Urban Population, 1990-2020
Methodology
- Industry Forecast Methodology
- Sources
- Risk/Reward Ratings Methodology
- Table: Real Estate Risk/Reward Rating Indicators
- Table: Weighting Of Indicators

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at www.fastmr.com or call us at 1.800.844.8156.


Author:
Bill Thompson
e-mail
Web: www.fastmr.com
Phone: 18008448156

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