Malaysia - Office Rents In KL Outskirts Rise By Five Percentage Points In Two Years
August 8, 2012
Average rents for offices in the outskirts and suburbs of Kuala Lumpur are showing higher rates of growth than in the city centre, where rents continue to hold steady.
Office rents in the outskirts and suburbs of Kuala Lumpur are growing at a faster rate than in the KLCC-Golden Triangle, where rents have hovered at around RM 4 psf per month.
The Ministry of Finance's National Property Information Centre (NAPIC) found that office rentals in the outskirts of the Malaysian capital had increased by 18% as at December 2011. In 2009, office rents had grown by only 13%.
It also said that over the last three years, average office rents in the city centre - which includes KL Sentral and Midvalley - have rose to RM 3.46 psf per month from RM 2.92 psf per month.
Average rents in suburban areas such as Bangsar South, Bangsar, Mon Kiara, Damansara Heights and Taman Tun Dr Islaim had jumped from RM 3.10 psf per month to RM 3.51 psf per month.
In contrast, office rents in the KLCC-Golden Triangle region inched up by a mere 1% from RM 4.60 psf per month from RM 4.66 psf per month.
KLCC had the highest office rent at RM 11.50 psf per month. However, average rent in the CBD dropped to RM 3.27 psf per month to RM 3.46 psf per month.
"Our best explanation for this is that some offices are relocating themselves outside the city centre already," said Zailan Mohd Isa, Director at NAPIC.
"We feel that businesses are making decisions together with government policies, especially since the government is having the MRT coming in. This is the best explanation we can see... In the city centre, there are traffic jams furthermore," he said.
Tags: Business space, Commercial units, Office rental