Malaysia Real Estate Report

Published 15 December 2015

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Providing expert analysis, independent forecasts and competitive intelligence on the real estate industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Real Estate Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

Why you should buy this report

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position

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Malaysia Real Estate Report
Product Price
$1,295.00

BMI View : Malaysia's location in South E ast Asia and its welcoming attitude to foreign investment are major attractions to overseas investors. The real estate market is affected at present by slower economic growth, but the medium- term prospects are good. An expanding service sector as well as rising i ncomes and improving trade indicate a more positive outlook for all three sub- markets we cover.

Following a strong 6.0% GDP growth in 2014, the economy has been facing some challenges in 2015 and growth is expected to be lower, at 4.7%. This trend is expected to continue in 2016, with GDP growth predicted at 4.5%. This is partly explained by the impact of tighter monetary policy and rising interest rates on domestic demand and partly by a weaker external sector. With exports equating to about 90% of GDP, the economy is vulnerable to the economic slowdown in key export destinations such as China. However, despite the slower overall growth in the next 12 months, in the medium term the steady pace of economic expansion combined with robust domestic consumption and improving trade, particularly with the rest of the Association of Southeast Asian Nations (ASEAN) should have a positive impact on the economy, including the commercial real estate sector.

Kuala Lumpur, the capital, continues to be the centre for Malaysia's industrial and service sectors, hosting the bulk of office and industrial property in the country. Johor Bahru, at the border with Singapore is benefiting from cross-over demand particularly for ilower grade office space and manufacturing and logistics property. Kota Kinabalu has seen some significant growth in its tertiary sector in recent years, raising demand for office space. Growing urbanisation and tourist arrivals also boost demand for retail space, with several malls in the pipeline.

In the office market, the impact of slower GDP growth has been felt in 2015. Demand for office space has remained stable and the overall vacancy rate in...

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BMI Industry View
7
SWOT
9
Political
11
Economic
13
Operational Risk
15
Industry Forecast
17
Office Industry Forecast
17
Table: Office Rental Rates
20
Table: Office Yields (%)
21
Retail Industry Forecast
23
Table: Retail Rates
26
Table: Retail Yields (%)
27
Industrial Industry Forecast
29
Table: Industrial Rates
32
Table: Industrial Yields
33
Residential/Non-Residential Construction - Outlook And Overview
34
Table: Residential and Non-Residential Building Industry Data (Malaysia 2013-2018)
34
Table: Residential and Non-Residential Building Industry Data (Malaysia 2019-2024)
34
Table: Malaysia - Real Property Gains Tax From January 2013 And January 2014, By Type
37
Table: Major Projects - Residential/Non-Residential Construction And Social Infrastructure
44
Macroeconomic Forecast
48
Economic Analysis
48
Table: Economic Activity (Malaysia 2010-2019)
52
Industry Risk Reward Ratings
53
Table: Table: Asia Real Estate Risk Reward Index
53
Rewards
54
Risks
54
Market Overview
55
Competitive Landscape
57
Demographic Forecast
60
Table: Population Headline Indicators (Malaysia 1990-2025)
61
Table: Key Population Ratios (Malaysia 1990-2025)
61
Table: Urban/Rural Population & Life Expectancy (Malaysia 1990-2025)
62
Table: Population By Age Group (Malaysia 1990-2025)
62
Table: Population By Age Group % (Malaysia 1990-2025)
63
Methodology
65
Industry Forecast Methodology
65
Sources
66
Risk/Reward Index Methodology
67
Table: Real Estate Risk/Reward Index Indicators
68
Table: Weighting Of Indicators
69

The Malaysia Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Malaysia Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Malaysia.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Malaysia to test other views - a key input for successful budgeting and strategic business planning in the Malaysian real estate market.
  • Target business opportunities and risks in Malaysia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.