Retail and Office Supply in Greater Kuala Lumpur? An update here.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

kopiandproperty.com was attending the REHDA Institute’s Big Data & Analytics for Sales & Marketing Conference. It was aptly entitled, “Big Data Analytics for Real Estate and Property Development – Property Data Made Easy” because all the speakers and even the forum panelists were able to share their knowledge and experience in an easy to digest manner. I think everyone who attended this conference gained tremendously, including myself. One particular update which I think everyone should know is the state of the retail and office supply here in Greater Kuala Lumpur. Is it really that negative as everyone was saying? Will it get worse because of the upcoming supply into the market? Let’s look at some of the slides from Mr.Allan Soo (MRICS, Registered Valuer), Deputy Executive Chairman for Savills Malaysia.

We could see that the future of retail supply in Greater KL is HUGE. 20 milllion sq ft retail space is in the pipeline. Do refer to the image below for all the upcoming ones from now till 2022. All supply are estimated.

Before we get way too alarmed, let’s look at the vacancy rate first. If this is already super high today, we better be worried. Fortunately, the numbers look healthy as at now. What we can hope is that with economic growth, the demand for retail space will keep growing.

The conclusion as per Allan would be as per the image below. Frankly, not that negative even if there will definitely be pressure on all existing players because more supply are coming…

Office Space – Greater Kuala Lumpur?

Total Office Stock in greater KL is the ASEAN’s largest! (My personal opinion is that this is fine because we are the second most advanced economy here in the region and Singapore is a small country, of course the office supply cannot be higher than Malaysia. In fact if the supply in these larger ASEAN nations continue to be low, this will ensure the rental there to be higher. It’s an advantage for Malaysia when multinationals choose a country to set up their operations.)

The following would be the future office supply in Greater KL from today until 2021. Looks huge yeah but many of these are actually corporate office towers which meant that some of these new supply already have occupants. They just need to fill up the rest.

Greater KL Office Vacancy Rate. On a yearly basis this is growing but please note that the below 10% in 2008 is certainly VERY UNHEALTHY yeah. Hopefully we do not go back to below 10% because it will make business operations more expensive due to shortage of office space.

Please do read Savills Malaysia’s (click here for their FB page) conclusion for the Greater KL office space.

For a copy of the full slides, please do download it here. Please share this article with your friends yeah.

Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market.

Next suggested article: 10 reasons to start buying a property (Part 1)

We love to hear from you (Leave reply)

LIKE us for property news update, FREE.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You may enjoy these articles too.



kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

Leave a Replay

LIKE us for property news update, FREE.

Property investment news everyday? Subscribe for free!

An article a day, keeps updated all the way.

Join 1,263 other subscribers

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

join the family

Like us for daily investment news and more

Hit the like