Southeast Asia Outlook 2024

Southeast Asia Outlook 2024: Opportunity Beckons

CUSHMAN & WAKEFIELD

MARKET STATISTICS

OFFICE (KL CBD Grade A)

RETAIL (KL CBD Prime)

INDUSTRIAL (GREATER KL)

X 6.80

X 219.32

0.90 - 4.20

Rents Q4 2023 (MYR psf pm) 2024 Forecast

X

X 26.5%

15.8%

Vacancy Q4 2023 2024 Forecast

N/A

X

Current Inventory (million sf)

59.12

17.45

47,143 units

Pipeline Supply (million sf)

14.88

5.35

3,605 units

MARKET SNAPSHOT

Pipeline supply over Current Inventory Ratio

25%

31%

8%

MALAYSIA: KUALA LUMPUR

X

X

Capital Value Outlook

X

X

Source: Cushman & Wakefield Research

ECONOMY

RECENT SIGNIFICANT DEALS

• Malaysia’s economic momentum is expected to steadily improve heading into 2024 to reach 4.5%-5.5%, compared to estimated 4% this year. • The penciled growth is expected to benefit from strong domestic demand and resilient services sector. • A rebound in global electronics demand would boost Malaysia manufacturing growth. Electrical and electronics industry is the largest sector in Malaysia’s manufacturing economy and contributed about 4.9% of GDP in 2022. • Overall, the office market remains resilient due to its ability to bounce back from economic challenges and adapt to changing market dynamics.

PROPERTY NAME

PROPERTY TYPE

Price (mil USD) / US $PSF

NET YIELD (%)

BUYER

SELLER

DATE

Joint Venture between PNB, Employees Provident Fund, KWAP

Osram Opto Semiconductors Kulim

427.6 / 338 psf

Osram AG

Industrial

-

Q4 2023

CelcomDigi Tower

Malaysian Resources Corp

96.2/ 214 psf

Sentral REIT

Office

8.0 *

Q4 2023

CAPITAL MARKETS ANALYSIS

QIA, Tan Sri Lim Siew Choon, Malton

Pavilion Bukit Jalil

Pavilion REIT

Retail

490/ 269 psf

-

Q1 2023

1. OFFICE: Rents are increasing contributed by the rising operating expenses and increasing demand for quality offices by occupiers amid the tight new supply. 2. INDUSTRIAL: Malaysia’s manufacturing sector is thriving, which translates to increased needs for warehousing, transportation, and other logistic services.

3. RETAIL: Prime mall rents remained remarkably stable indicates resilience and possibly renewed tenant confidence.

CapitaLand Malaysia Trust

CapitaLand Investment

240.5/ 272 psf

Queensbay Mall

Retail

7.3% Q1 2023

Source: RCA, Cushman & Wakefield Research

*Gross

24

25