KUALA LUMPUR, Dec 21 — Greater Kuala Lumpur (Greater KL) is expected to continue seeing the emergence of local co-working operators in 2018, supported by technological advances which enables a flexible working culture.
Knight Frank Malaysia Research and Consultancy Executive Director, Judy Ong said the serviced office and co-working segments were gaining popularity through strong government-led initiatives by Malaysia Digital Economy Corporation (Mdec), leading to the launch of the Malaysia Digital Hub and the Malaysia Tech Entrepreneur Programme.
“Demand for serviced office and co-working space is expected to grow across a diverse mix of industries and professions, such as technology start-ups and small and medium enterprises,” she said in Knight Frank’s 2017 Round-up and 2018 Outlook released today.
On commercial property outlook, the independent global property consultancy service provider said it continued to see positive demand for office space in established and upcoming decentralised locations along the rail transportation routes, such as the Sungai Buloh–Kajang Mass Rapid Transit Line 1 and the existing Light Rail Transit and Keretapi Tanah Melayu commuter rail system.
“The development and infrastructure in the upcoming international financial district, Tun Razak Exchange, is expected to revive demand for office space in the KL city,” she said.
On residential property outlook, Ong said the recent freeze on four components of the property market, which included condominiums and serviced apartments priced at RM1 million and above, was expected to provide a breather to the challenging luxury residential sector.
She said developers are expected to take stock of the situation by reviewing and re-planning their proposed products and might further defer property launches.
“We expect to see more bite-size units which translates to lower quantum pricing (less than RM1 million) coming into the market, although moving forward, there may be a risk of oversupply of units in this category,” Ong added. — Bernama