KUALA LUMPUR― Demand for prime office space rentals in Malaysia’s capital dropped again in the second quarter of this year, according property consultancy firm Knight Frank, making it the worst performing city in Asia Pacific.
Knight Frank’s latest quarterly Prime Office Rental Index showed office rental in Kuala Lumpur fell by 0.4 per cent compared to the first quarter report, for the same index, and is forecasted to continue to decrease.
The report said that Kuala Lumpur office rentals has been sliding for the past year with “creeping overall vacancy rates.”
“However, we expect to see sustained demand in selected established and upcoming decentralized office locations served by the LRT and new MRT lines.” Knight Frank Malaysia’s Executive Director for Corporate Services, Teh Young Khean, said in an accompanying statement.
The prime office rental rates is currently RM5.30 per square feet for every month, ranking it as the fifth bottom Asia Pacific city, ahead of southern neighbour Singapore.
Australian cities Brisbane, Melbourne and Perth continued to score highest on the index, while Phnom Penh, Tokyo and Bengaluru recorded the largest quarter-on-quarter increase.