KUALA LUMPUR, June 13 — Yields from prime office real estate here have declined from 2016 and are expected to keep dropping, according to the latest research by property consultancy firm Knight Frank.
In the Knight Frank Prime Office Rental Index, rent at such locations fell by 1.3 per cent in the first quarter of 2017 versus the same period last year and 0.8 per cent from the preceding quarter.
Kuala Lumpur’s gross effective rent was now US$15.60 (RM66.45) per square metre per month, effectively the lowest among all 20 Asia Pacific countries surveyed in the research.
Knight Frank said that office rent in both Kuala Lumpur and Singapore declined “with both markets anticipating significant incoming supply this year”.
Hong Kong was the highest rates among the group, at US$207.60 per square metre per month.
Thailand’s capital, Bangkok, recorded the highest year-on-year rise in the prime office rentals, increasing by 9.6 per cent.
Tokyo, Jakarta, Beijing, and Perth are the other four cities that are expected to see a decline in prices according to the forecast for this year, while 10 of the 20 cities are projected to see an increase.