Malaysia Real Estate Report Q2 2011: New research report available at Fast Market Research

New Business market report from Business Monitor International: "Malaysia Real Estate Report Q2 2011"
 
 
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Tags:
Estate
Construction
Ratings
Rental
Sub-sector
Berhad
Estateconstruction
Johor
Supply
Asia

Industrys:
Business
Research
Marketing

Location:
Massachusetts - US

March 27, 2011 - PRLog -- In theory, the outlook for commercial real estate in Malaysia should be positive. Although BMI is looking for economic growth to slow markedly during 2011, thanks to what we see as a likely 'hard landing' for China's economy, Malaysia's deceleration will be from a fast level. The construction sector - and, indeed, much of the economy - showed resilience in the wake of the global financial crisis. Other country-specific factors, such as a generally benign business environment for multi-nationals, the growing links between Johor state and Singapore (and nearby parts of Indonesia) and the New Economic Model - Prime Minister Najib Tun Razak's comprehensive plan for sustained growth - are all encouraging.

The reality is less promising. When we interviewed our in-country sources in mid-2010, they indicated that rental rates had basically moved sideways. Our interviews at the end of 2010 pointed to general softness in conditions, notwithstanding that industrial rents had held up in all three of the cities for which we gathered data - Kuala Lumpur, Kota Kinabalu and Johor Bahru. In particular, there appears to have been a brutal slide in office rents in the capital. In mid-2010, our in-country sources suggested that rental rates in that sub-sector ranged between MYR75 and MYR118 per m2 per month. At the end of the year, the corresponding figures were MYR33 and MYR55. Rents appear also to have fallen very sharply at the top end of the Johor Bahru retail sub-sector.

The basic problem is one of oversupply. Vacancy rates in the Kuala Lumpur office sector remain well into double digit levels. The supply of new office space is not expected to peak until 2012. In the retail sub-sectors, it seems that the supply of new space peaked in 2010. As noted above, there appears to be a much better balance between supply and demand in the industrial sub-sectors.

For the time being, our in-country sources are looking for a mild increase in rental rates through 2011 and 2012. To the extent that they provided us with specific figures, they envisage that yields will move broadly sideways. Yields in Johor Bahru are, for the time being, higher in all sub-sectors than are those in Kuala Lumpur and Kota Kinabalu.

The response of Malaysia's construction and property companies to this rather uninspiring outlook has been to merge. The December 2010 combination of Sunway Holdings with Sunway City was the third such deal in the recent past and is, according to media reports, worth around US$1.29bn. It appears reasonable to look for additional mergers and acquisitions in 2011.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/128774_malaysia_real_estate_re...


Report Table of Contents:

SWOT Analysis
- Malaysia Real Estate/Construction SWOT
- Malaysia Economic SWOT
- Malaysia Business Environment SWOT
Real Estate Market Overview
- Table: Malaysia's Real Estate Markets - Rentals, 2009 And 2010 (m2/month, US$)
- Table: Malaysia's Real Estate Market - Net Yield, 2010 And 2011 (%)
- Table: Malaysia's Real Estate Market - Terms Of Contract/Lease
- Table: Malaysia's Real Estate Market - Available And Vacant Space (m2)
Industry Forecast Scenario
- Table: Malaysia's Real Estate Market - Rentals, 2010-2012 (m2/month, US$)
- Table: Malaysia's Real Estate Market - Forecast Net Yield, 2008-2015 (%)
- Construction Industry Outlook
- Table: Malaysia Construction And Infrastructure Industry Data, 2007-2015
- Table: Malaysia Construction And Infrastructure Industry Data, 2012-2020
- Macroeconomic Outlook
- Table: Malaysia - Economic Activity
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Asia Real Estate/Construction Business Environment Ratings
- Malaysia's RECBER
- Project Finance Ratings: Outlook For Asia Pacific
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Malaysia's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Asia, Annual FDI Inflows, 2006-2008
- Table: Trade And Investment Ratings
- Table: Top Export Destinations, 2001-2008 (US$mn)
Company Monitor
- AZRB
- General Corporation Berhad
- IJM Corporation Berhad
- Isyoda Corporation Berhad (ICB)
- MRCB
- WCT Berhad
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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Tags:Estate, Construction, Ratings, Rental, Sub-sector, Berhad, Estateconstruction, Johor, Supply, Asia
Industry:Business, Research, Marketing
Location:Massachusetts - United States
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