Foreign funds like ING Real Estate Fund, Macquarie Global Property Advisor, Kuwait Finance House, CapitalLand and Asian Equity Partners have been quiet in Asia since mid-2008.
THERE will be moderate return of regional real estate funds into Malaysia this year looking to buy Grade A office towers, retail malls and hotels, said a property consultant.
Foreign funds like ING Real Estate Fund, Macquarie Global Property Advisors; Kuwait Finance House, CapitalLand and Asian Equity Partners have been quiet in Asia since mid-2008 - cautious about the impact of the US' economic woes.
But sentiments started to change since early last year as prices of properties in Malaysia are still relatively low, allowing for higher return on investment. There is also strong upside potential if compared with neighbouring Singapore.
"There are a few foreign funds sniffing the market. But the concern is whether are there enough prime properties to sell," said CH Williams Talhar & Wong (WTW) deputy managing director Danny S.K. Yeo.
Yeo said in 2011 there were slightly less than 10 major property transactions and he expects the market to do better this year.
Meanwhile, WTW managing director Foo Gee Jen said projects like the mass rapid transit (MRT), light rail transit (LRT) line extension and the high-speed train will open up new development areas between Sungai Buloh and Kajang, as well as Seremban, Malacca and Ipoh.
"We will see a lot of new residential projects coming up in these areas," he told reporters yesterday, after presenting the 2012 WTW Property Market report.
WTW expects the local property market to grow by 10 per cent in transaction value this year from over RM40 billion last year, and prices to increase moderately.
"We also expect the market for real estate investment trust (REIT) to grow. The REIT size is still small at US$1.5 billion (RM4.54 billion) compared with US$23 billion (RM69 billion) in Singapore. REITS will provide an alternative investment to properties," Foo said.
Foo said office rentals will remain stagnant or decline for older buildings but there will be higher asking rentals for newly completed buildings with green certification and Multimedia Super Corridor status.
He said with over 0.74 million sq m of new office space entering the market this year, older buildings will face pressure from declining occupancies as tenants seek newer, better quality offices. - The Star
THERE will be moderate return of regional real estate funds into Malaysia this year looking to buy Grade A office towers, retail malls and hotels, said a property consultant.
Foreign funds like ING Real Estate Fund, Macquarie Global Property Advisors; Kuwait Finance House, CapitalLand and Asian Equity Partners have been quiet in Asia since mid-2008 - cautious about the impact of the US' economic woes.
But sentiments started to change since early last year as prices of properties in Malaysia are still relatively low, allowing for higher return on investment. There is also strong upside potential if compared with neighbouring Singapore.
"There are a few foreign funds sniffing the market. But the concern is whether are there enough prime properties to sell," said CH Williams Talhar & Wong (WTW) deputy managing director Danny S.K. Yeo.
Meanwhile, WTW managing director Foo Gee Jen said projects like the mass rapid transit (MRT), light rail transit (LRT) line extension and the high-speed train will open up new development areas between Sungai Buloh and Kajang, as well as Seremban, Malacca and Ipoh.
"We will see a lot of new residential projects coming up in these areas," he told reporters yesterday, after presenting the 2012 WTW Property Market report.
WTW expects the local property market to grow by 10 per cent in transaction value this year from over RM40 billion last year, and prices to increase moderately.
"We also expect the market for real estate investment trust (REIT) to grow. The REIT size is still small at US$1.5 billion (RM4.54 billion) compared with US$23 billion (RM69 billion) in Singapore. REITS will provide an alternative investment to properties," Foo said.
Foo said office rentals will remain stagnant or decline for older buildings but there will be higher asking rentals for newly completed buildings with green certification and Multimedia Super Corridor status.
He said with over 0.74 million sq m of new office space entering the market this year, older buildings will face pressure from declining occupancies as tenants seek newer, better quality offices. - The Star
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This was really nice post and information it is also good to hear that a regional real estate funds will return to Malaysia. It was really impressive. Hopefully I can hear also a positive news about Philippines property. Thanks so much.:)
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