KL Office and Condo Market to Remain
Challenging
on property transactions
across all property
sectors in Johor is being
discussed,” he said.
Menara Keck Seng, Jalan
Bukit Bintang
The Kuala Lumpur office
and condominium markets
are expected to remain
challenging in 2014 due
to slow rentals amid new
supply and various cooling
measures, according to
Rahim and Co Chartered
Surveyors Sdn Bhd.
Sulaiman Saheh, its
director of research and
strategy, said compressed
and tighter yields are
expected from downward
pressure on rentals with
looming new supply.
A report released in the
second half of 2013 by
Knight Frank titled “Real
Estate Highlights: Kuala
Lumpur, Penang and
Johor Baru” concurred
with Sulaiman and adds
that the various cooling
measures laid out in
Budget 2014 will soften
demand in the condo
market, with the expected
interest rate hike further
dampening sentiments.
Sulaiman added that while
the cooling measures are
meant to create a more
sustainable property price
growth, they would impact
the market by slowing
down sales frequency and
create a more gradual
price appreciation in the
property market.
“Among the measures
are a hike in the Real
Property Gains Tax
(RPGT), abolishment of
the Developer Interest
Bearing Scheme, and the
increase in minimum price
for foreign buyers to RM1
million. Also, a 2% levy
Knight Frank expects the
Kuala Lumpur hospitality
sector to remain resilient.
The sector is backed by
strong demand for hotels
which is expected to
remain the forerunner of
the country’s economic
development backed by
concerted efforts from the
government.
It said it is cautiously
optimistic for the Klang
Valley retail market as
consumers are expected
to tighten spending ahead
of further government
subsidy rationalisation
measures, a hike in
electricity tariffs and toll
rates.
According to Sulaiman,
landed properties are
still preferred, especially
freehold properties, as he
expects the emergence of
niche submarkets within
the secondary market.
“New property launches
face more challenges
but developers will be
more creative with their
products and marketing
strategies,” he said.
Meanwhile, Penang’s highend &W6