KUALA LUMPUR: The market for office property sector is expected to remain firmly tenant-led in 2019 as there is no immediate catalysts to boost demand, said independent global property consultancy Knight Frank.
In its 2018 wrap-up and 2019 outlook on nine markets across Asia Pacific, it said although the increase of the shared office/co-working segment provided a breather to a market with oversupply, with more stock expected, there would be further headwinds ahead.
“Rental and occupancy levels will remain under pressure as landlords continue to offer attractive leasing options to attract new occupiers and retain existing tenants,” it said in a statement.
For residential properties, Knight Frank said the Kuala Lumpur’s prime housing market was generally holding firm and more property launches were expected amid improved market sentiment.
“The slight upward revision in stamp duty and real property gains tax rates as announced in the 2019 Budget would unlikely have a significant impact on the market, although the growing mismatch in supply and demand coupled with rising financing costs would continue to impinge in price growth as market finds its equilibrium,” it said.
In contrast, it said the exemptions and initiatives, in particular the waiver of stamp duty on the instrument of transfer and loan agreement for residential homes valued up to RM300,000 for a two-year period and the six-month waiver stamp duty charges for properties priced from RM300,000 to RM1 million, are expected to kick-start the housing market moving into 2019 and beyond. – Bernama
