BMI View: Malaysia's commercial real estate market benefits from t he country's location in Southe ast Asia, as well as the government's welcoming attitude to foreign investment and the developed and transparent nature of its business environment. The country has a developed real estate investment trust (REIT) market, although there is room for this to expand. However as the wider economy is facing some reduced growth, the country's real estate market is also experiencing only subdued demand, despite strong potentials in the medium-term.
Following a strong 6.0% GDP growth in 2014, the Malaysian economy is facing some headwind as growth is reduced to an estimated 4.2% in 2015. This trend is expected to continue as growth only gradually returns to levels of 4.6% by 2019. Monetary tightening and expected interest rate rises are expected to further impact domestic demand. With exports equating to about 90% of GDP, the economy is also vulnerable to the economic decline in key export destinations, as seen in China. However, in the longer term domestic consumption is set to rise, and as economic links with the rest of the Association of Southeast Asian Nations (ASEAN) improve, so too should demand for commercial real estate.
Kuala Lumpur, the Malaysian capital, continues to be the centre for the industrial and service sectors of Malaysia, harbouring the bulk of office and industrial property in the country. Johor Bahru, at the border to Singapore is benefitting from cross-over demand particularly for its lower grad office segment, as well as manufacturing and logistics property. Kota Kinabalu has seen some significant growth in its tertiary sector over the past years, raising demand for office space. Growing urbanization and tourist numbers also boost the city's demand in retail space, with several malls in the pipeline.
The Malaysian office market is suffering on the one hand from a general oversupply, leading to decreasing occupancy rates, and on the other hand...
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.
- 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).
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.
- 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.
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
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.
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.