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KUALA LUMPUR (May 29): Tenant-led office market in Kuala Lumpur continues to be under pressure with looming supply and weak absorption of space, according to Knight Frank's Asia Pacific Prime Office Rental Index - Q1 2019.
Knight Frank Malaysia executive director of corporate services Teh Young Khean (pictured) said rents in KL city is likely to see a decrease.
“The tenant-led office market continues to be under pressure with looming supply and weak absorption of space. Amid heightened competition and growing economic concerns, rents in Kuala Lumpur City Centre are likely to fall,” he said.
The report revealed a 0.3% decrease in Kuala Lumpur rents over the period Q4 2018 – Q1 2019, and rents are forecasted to further decrease over the next 12 months.
Knight Frank Asia-Pacific Prime Office rental index fell 0.4% quarter-on-quarter in the first quarter of 2019.
In the report, index decline was attributed to continued heightened global uncertainties led by US-China trade tension re-escalation, Brexit and various major elections across the region.
The index remains up 6.2% year-on-year, however, the quarterly decline continues the growth deceleration trend witnessed over the past few quarters, said the report.
Of the 20 cities tracked by the index, 15 recorded either stable or increased rents; two cities less than the 17 reported in the previous quarter.
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