KL PRIME OFFICE RENTAL POSITIVE OVER NEXT 12 MONTHS - KNIGHT FRANK

Global property consultancy Knight Frank has “a positive forecast” for Kuala Lumpur's prime office rent over the next 12 months, according to its Asia-Pacific (APAC) Prime Office Rental Index for the second quarter of 2024 (2Q 2024).

In a statement, it said the data shows a 2.6% year-on-year (y-o-y) rise in rents, alongside a 0.2% quarterly rise, which suggests “a stable and healthy outlook for the market.”

“The forecast suggests that the office rental market in Kuala Lumpur is expected to remain stable, reflecting a balanced environment and this stability is a positive sign for investors and businesses looking for continuity in their real estate decisions,” it said.

Knight Frank Malaysia executive director of office strategy and solutions Teh Young Khean said along with some take-ups in prime offices within the Kuala Lumpur fringe submarket, rental and occupancy rates are expected to improve, indicating a positive outlook for the market. 

“We continue to see strong and active inquiries from the ground, including sectors such as tech, professional services, insurance, global business services, oil and gas, and banking and finance,” Teh said.

On a regional basis, Knight Frank said data shows a 3.1% y-oy decline in prime office rents, a marginal improvement from the 3.2% drop in 1Q 2024.

According to the property consultancy, although the downward trend extends to eight consecutive quarters, “the slight stabilisation” suggests that the regional office sector may be approaching a turning point amidst ongoing challenges.