Prime Klang Valley office market to see large new supply

KUALA LUMPUR:The prime office market in the Klang Valley will see a large supply of new office developments before the year ends. The vacancy rate is expected to rise notwithstanding an expected steady absorption rate, CH Williams Talhar & Wong real estate consultancy said in its 2010 property market outlook report released here on Friday April 16.

An additional 3.51 million sq ft of retail space is expected to be completed this year, which will place the sector in a challenging position despite the stronger market sentiment.

In keeping with the constant change and demand for retail vibrancy, a number of retail centres are ready to embark on major upgrading exercises to make themselves "relevant" in the shopping arena in Klang Valley, the report said.

As for the residential sector in Klang Valley, with an unprecedented 39% (2,399 units in 13 new developments) increase in supply of high-end luxury condominium units in 2009 in the Klang Valley, the overall occupancy rates for these high-end properties have been affected, it said.

As for the Johor property market, the increased optimism experienced last year is expected to gain momentum into 2010. The on-going infrastructure facilities will lead to increased development activity particularly in Skudai and Plentong.

"Generally, the Johor property market has improved since late 2009. Prices of residential and industrial sectors have shown signs of improvement," the report said.

The Penang property market meanwhile is expected to pick up momentum this year as the community gains confidence in the local economy against the worldwide recession. Developers continue to show confidence in the market with more large scale projects. -- Bernama