KUALA LUMPUR: The office rental market in Kuala Lumpur is expected to remain competitive, Cushman & Wakefield said in its 1Q2010 research report, as more landlords are willing to negotiate and offer leasing terms to maintain existing tenants while enticing new ones.

Stiff competition is also expected for the next six months with more buildings completed in 2010, it added.

“Nevertheless, with the strong economic performance recorded in 4Q2009 and the implementation of the government’s economic liberalisation scheme, the average office occupancy and rental rates are expected to remain stable, barring any major economic setbacks,” it noted.

On the investment front, the research report stated that capita values are expected to remain steady throughout 2010 despite weakening rentals and higher yield expectations.

In the final quarter last year, the outrun exceeded expectations and helped to limit the full-year decline to 1.7% as the economy rebounded by 4.5% year-on-year during the period. The economy contracted in the previous three quarters.

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