International | 43 Muhammad Zhahril Dato’ Zaki of Raine & Horne International Zaki Partners Malaysia says current average yields in the office market are currently 5-7%. This rises to 6-8% for retail property. In the retail property market, Muhammad says the eCommerce trend may slow demand for physical shops. However, the food and beverage sector is expected to take up some of the unoccupied retail space. In addition, continuous supply of new retail space may impact the occupancy rates of less competitive retail malls. In the industrial property market, demand for warehousing is increasing, especially for logistics services. Supply is also being impacted by the establishment of several ‘mega’ industrial parks in the northern regions of Peninsula Malaysia such as Kedah Rubber City, Kedah Aerotropolis and Bukit Kayu Hitam Special Border Economic Zone. Across the office property market, Muhammad believes the ongoing growth of remote working may reduce demand for conventional office space. Exchange 106 and Merdeka 118 are expected to bring multi-million square metres to the office market, which will lead to massive competition among existing office blocks. Muhammad Zhahril Dato’ Zaki Zhahril.Zaki@malaysia.rh.com.au Malaysia
RkJQdWJsaXNoZXIy MTI3ODI1