Malaysia property market to remain flat in 2019: Rahim & Co
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The property market is expected to remain flat this year before picking up again next year, said Rahim & Co International Sdn Bhd. Executive chairman Tan Sri Abdul Rahim Abdul Rahman said the property market will remain flat across all sectors this year, except for the warehousing sub-sector, which will be driven by growth of e-commerce.
He said the overall market will take about 12 months to begin picking up, in line with the anticipated resolution of the trade war between the US and China.
Rahim & Co director of research Sulaiman Akhmady Mohd Saheh said the residential market will take one to two years to improve due to affordability issues while the office market will remain slow for more than a year due to incoming supply.
He said asking rents for offices have dropped 20% while effective rents have dropped 8-10%.
Questions & Answers
Q.Which specific property sector is expected to see growth this year, despite the overall flat market?
Which specific property sector is expected to see growth this year, despite the overall flat market?
The warehousing sub-sector is expected to see growth this year. This is attributed to the driving force of e-commerce expansion.
Q.What is the primary reason given for the anticipated improvement in the overall property market next year?
What is the primary reason given for the anticipated improvement in the overall property market next year?
The overall market is expected to pick up next year in line with the anticipated resolution of the trade war between the US and China.
Q.What are the main issues causing the residential and office markets to remain slow?
What are the main issues causing the residential and office markets to remain slow?
The residential market faces affordability issues. The office market is affected by incoming supply, which has led to drops in both asking and effective rents.
Q.By how much have asking rents and effective rents for offices fallen?
By how much have asking rents and effective rents for offices fallen?
Asking rents for offices have dropped by 20%. Effective rents have seen a fall of 8-10%.