Sabah, Johor, and Penang are the next-best locations to invest in, other than Klang Valley for commercial investors to invest based on Malaysia Commercial Real Estate Investment Sentiment Survey (CREISS) for 2022 carried out by Knight Frank.
The survey is carried out across the Malaysian commercial property industry, the purpose of this survey is to comprehend current sentiments towards the commercial real estate sector and where it may lead soon
With regards to capita value, the survey said that more than two-thirds of the respondents (76%) expect the Industrial and Logistics sub-sectors to enjoy capital value appreciations in 2022, with slightly more than half the respondents (57%) also anticipating the same for the Healthcare sub-sector.
In terms of yield performance, 68% of respondents expect yields to increase in the Logistics sub-sector, with anticipated higher yields for Healthcare and Industrial sub-sectors.
Predictably, it said that these opinions are comparable on increase in rents, with rents of Logistics properties expected to increase, according to 64% of respondents; and 53% also agreeing that increases are expected in the Industrial sub-sector, in line with growing demand for space in these 2 sub-sectors.
Rounding off the overall thoughts of respondents in the survey, Sarkunan Subramaniam, Group Managing Director, Knight Frank Malaysia says, “As we navigate the new economy in a somewhat changed world that is anticipating further disruption, there is a need to cultivate resilience in real estate portfolios – to anticipate risk and minimize disruption in an increasingly complex world.
The growing awareness and adoption of environmental, social, and governance (ESG) frameworks in the real estate industry will help drive the value of sustainable real estate into the future.”
