KUALA LUMPUR, Jan 29 — The property sector was weak in the second half of 2017 and will remain lethargic due to the remaining glut in the high-end residential, office and retail, said Knight Frank Malaysia.
In its Real Estate Highlights for the second half of 2017 released today, the property consultancy said demand would stay lacklustre for the first six months of 2018, due among others to uncertainties stemming from the 14th general elections.
Knight Frank managing director Sarkunan Subramaniam the office sector would also continue to face pressures due to oversupply and low take up.
“Meanwhile, despite the current challenges in the retail industry, the mid to longer term prospect remains positive as more retailers embrace the concept of ‘clicks and mortar’ amid the e-commerce boom while owners and mall operators continue to undertake asset enhancement initiatives to reposition their assets in the changing retail landscape.”
He added that the government’s recent intervention would alleviate the problem, but would not correct it completely.
“The property market will continue to self-correct as it looks to find its equilibrium,” he said.
According to the report, Kuala Lumpur high-end condominium market pricing and rental remained flat during the review period.
“The condominium sub-sector is still consolidating whilst the retail sub-sector is expected to face further challenges with additional incoming supply poised to come into the market in 2019,” it said.
