Kuala Lumpur: According to Knight Frank, the continuing weak performance in the real estate market in Singapore and Malaysia is because of cooling measures and disappointing economic performance combined. Knight Frank is independent global property consultancy.
ìIn India and most of the Southeast Asia, slow or sluggish performance is continuing,î said Knight Frank in its real estate market overview of 2016 and estimation of 2017 in the Asia Pacific region.
Sdn Bhd of Knight Frank Malaysia said that the year 2016 was subdued and it will continue to be the same in 2017. Even though the company is expecting to see more sales activity in the commercial property market this year, the residential property sector is likely to perform weakly in 2017.
Sarkunan Subramaniam, managing director of Knight Frank Malaysia, anticipates that commercial and investment properties will be priced between 10-20 per cent low than the estimated market value.
ìEven though developers will implement strategies to attract customers and improve sales, they will face lower demand,î he said.
Knight Frank also projected a slow performance in Kuala Lumpur, Singapore, Perth, and other Southeast Asian cities in various sectors such as bank and finance institutes, commodities, oil and gas, and shipping industries.
All of these industries have witnessed a knock-on impact on real estate market in Southeast Asian cities,î said the property consultancy. ìAnd Kuala Lumpur is one of the cities to receive lesser demand for commercial space in the last one year.î