OFFICE RENTALS IN KL TO DECREASE IN THE NEXT 12 MONTHS

Cities such as Guangzhou, Shenzhen, Hong Kong, Phnom Penh and Ho Chi Minh City could also see a decrease while Taipei, Bangkok and Singapore could see an increase. 

Malaysia’s capital Kuala Lumpur among cities in Asia Pacific (APAC) are expected to see office rental decrease over the next coming 12 months, according to a new research. 

Research called Asia-Pacific Prime Office Rental Index for Q2 2023 has listed several other cities to see a decrease in office rentals such as Guangzhou, China; Shenzhen, China, Hong Kong, SAR; Phnom Penh, Cambodia and Ho Chi Minh City, Vietnam. 

Other than that, the index also showed cities that will either see no changes now increase in the next 12 months: 

UNCHANGED	INCREASING
Auckland, New Zealand Melbourne, Australia Tokyo, Japan Beijing, China Seoul, South Korea Jakarta, Indonesia Manila, Philippines Bengaluru, India Mumbai, India Delhi, India	Brisbane, Australia Perth, Australia Sydney, Australia Shanghai, China Taipei, Taiwan Bangkok, Thailand Singapore

A total of 23 markets in Asia Pacific were tracked for the index. Only 15 out of these 23 reported stable-to-increasing rents, which is down from 16 in Q1 2023. Overall, the index indicated that there is a 1.6% drop quarter-on-quarter while maintaining a year-long downward trend since Q2 2022, bringing the annual decline of rent to 3.1%. 

Related link: MALAYSIAN RINGGIT BEGINS LOWER AGAINST US DOLLAR AHEAD OF GDP RELEASE

The research concluded that this can be “largely attributed to continued soft conditions in the Chinese Mainland.”