Rental rates for industrial properties in Greater Kuala Lumpur, Malaysia is expected to rise due to increasing demand for warehouse space
[GBP Note: Wikipedia defines the Klang Valley as an area in Malaysia comprising Kuala Lumpur and its suburbs, and adjoining cities and towns in the state of Selangor. An alternative reference to this would be Kuala Lumpur Metropolitan Area or Greater Kuala Lumpur.]
Published: Monday May 5, 2014 MYT 12:00:00 AM
Updated: Monday May 5, 2014 MYT 9:59:02 AM
BY EUGENE MAHALINGAM
PETALING JAYA: Rental rates for industrial properties within the Klang Valley is expected to rise this year due to increasing demand for more warehouse space.
According to negotiator Justin Tia, demand for factory space in the first quarter of the year “has been hot” and is set to continue well into the rest of the year.
“The industrial property market is not softening. There are a lot of properties still in demand,” he told StarBiz.
“Some of the properties are still not ready and there are already tenants eager to take them up,” Tia said, adding that there was demand for space from even foreign parties.
He said an industrial lot at the Putra Industrial Park in Puchong was recently taken up by an Italian firm, while a Japanese/Malaysian joint venture had invested in the Subang New Village factory area.
“The premises at the Subang New Village is not yet ready and is already being taken up,” said Tia.
According to him, the average price of factory space at Putra Industrial Park and Subang New Village was RM2 per sq ft and RM1.50 per sq ft respectively.
“We do expect to see an increase in rental rates for space measuring between 20,000 sq feet and 40,000 sq feet this year. For lots over 100,000 sq ft, we do expect some slowdown.”
Meanwhile, property consultant CH Williams Talhar & Wong Sdn Bhd (WTW) in its 2014 property market report said it expected supply to tighten further in 2014, as supply had not caught up with demand recently.
“This is likely to push up rents in 2014 especially for well-planned industrial parks with infrastructure, facilities and services that are capable of supporting high technology and capital intensive manufacturing outfits.”
Click here for full article and photo in The Star Online
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