CBRE Global Research and Consulting
© 2013, CBRE Malaysia
(333510P) (VE(1)0232)
Greater Kuala Lumpur
MarketView
INCREASED ECONOMIC ACTIVITY, DRIVEN BY DOMESTIC
CONSUMPTION, DRIVES SECOND QUARTER GDP GROWTH
Quick stats
Q2 2013
Q2 2013
GDP 4.3% (Q2 2013)
NET EXPORTS
RETAIL TRADE
IPI 3.7% (Q2 2013)
CONSUMER CONFIDENCE
Source: [Bank Negara Malaysia (BNM)]
Chart 1: Growth in GDP and Domestic Demand
GDP and
Domestic Demand: Q2
2013 y-o-y
Real GDP Growth 4.3%
Private Consumption 7.2%
Public Consumption 11.1%
CPI 1.8%
Distributive
Trade: Q2 2013 q-o-q y-o-y
Wholesale
Trade
RM109,2
85 million
Retail
Trade
RM75,69
9 million
Net
Exports -41.6%
Exports
(Q1)
RM169,4
66 million
Imports
(Q1)
RM152,9
13 million
Monetary and
Banking:
Q2
2013 y-o-y
Base Lending Rate 6.53%
Loans Approved
(Residential
Properties)
RM31,1
87
million
Exchange Rate
RM1.00 to US$
(e.o.p.)
0.3228
Malaysia’s economy grew
stronger in Q2 2013
Malaysia’s GDP expanded slightly by
4.3% (Q1 2013: 4.1%) in the second
quarter of the year, but decreased
year-on-year (Q2 2012: 5.6%).
This is mostly attributable to pre-
election government spending and
an increase in economic activity after
the May 2013 polls, although the
figure was still below economists’
consensus expectations of 4.9%.
It should be noted that Malaysia’s
current account surplus fell sharply
to RM2.6 billion in the second
quarter (Q1 2013: 8.7 billion) mainly
due to declining exports and strong
imports. The government has since
announced its intention to take
certain steps, including sequencing
large investments that have high
import content, increasing Malaysia’s
competitiveness and diversifying
export markets, to reverse this
situation.
As a result of these external
concerns, the central bank cut its
forecast for full-year growth to 4.5%-
5.0% from 5.0%-6.0%.
Domestic demand expected to
outpace Malaysia’s GDP
Amidst a challenging external
environment, domestic demand is
expected to continue being the driver
of Malaysia’s economic growth, with
growth in domestic demand
projected to outpace overall GDP
growth in the second half of 2013.
Domestic demand growth will be
supported by the implementation of
projects under the various economic
transformation programmes. In
addition, a rise in consumerism and
favourable labour market conditions
are expected to continue supporting
consumer spending.
At the same time, escalating levels of
household debt fuelling this demand
raise concerns. Nevertheless, a
more encouraging outlook is
provided by positive consumer and
business sentiment.
As at June 2013, inflation was stable
at 1.8% (May: 1.8%) after an
increase from 1.7% in April 2013.
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(333510P) (VE(1)0232)
OFFICE
Continued leasing activity provides
encouragement
The Kuala Lumpur City (Golden Triangle + CBD) office
market showed encouraging signs of life during the
review quarter as vacancy rates decreased to 12.7%
(13.2% as at Q1), on the back of some notable leasing
activity. Continued evidence of the ongoing flight to
quality came in the form of an oil and gas major leasing
over 200,000 sq ft of office space in Integra Tower, the
recently completed prime office building within MGPA’s
Intermark integrated development.
Overall, there was no change in average gross asking
and passing rents for selected Grade A office space in
the city, at RM8.10 psf and RM7.10 psf respectively.
Long-awaited Shell and CIMB buildings ready
As at Q2 2013, the total supply of office space in Greater
KL stands at about 91.1 million sq ft, a sizeable change
from Q1’s 89.2 million sq ft and up 5% y-o-y.
The second quarter of 2013 witnessed the completion of
4 developments, all located outside KL City: Menara
D’Damansara (253,000 sq ft of NLA), Plaza 33, i.e. the
2nd phase of Jaya 33 (530,840 sq ft), and Menara CIMB
(609,000 sq ft) as well as Menara Shell (538,617 sq ft)
located in KL Sentral.
There were no office completions in KL City during the
quarter and none are expected until 2014; overall, large-
format, high-quality city-centre office completions
between now and 2017, when the first phase of TRX is
scheduled to be completed, appear limited.
At least 2.53 million square feet of office space (in 9
buildings) will be completed during the second half of
2013. 3 buildings are located in Petaling Jaya (at least
750,000 q ft of NLA), 2 in Shah Alam (475,000 sq ft), and
4 in suburban areas of Kuala Lumpur: Commerce One
on Old Klang Road (201,620 sq ft), Menara LGB in TTDI
(414,119 sq ft), Sentral Vista (250,000 sq ft) and 1
Sentrum (440,000 sq ft) in KL Sentral/Brickfields; hence,
supply in suburban areas will represent 50% of all the
completed projects in Greater KL over the next 6
months.
The significant amount of supply completions in KL
Sentral since 2012 has driven up vacancy rates in
surburban areas, and we expect that it will take some
time for this new supply to be absorbed.
2014 supply to exceed 2013’s
Our latest figures show that as much as 6.27 million
square feet of new office space will be completed in
Greater KL in 2014, although a considerable amount of
this supply is located in strata-title or secondary
buildings. Nevertheless, the market is set to remain
poised in favour of tenants for the near future.
FLIGHT TO QUALITY CONTINUES
Chart 2: Total Greater KL Supply
Chart 3: Breakdown of KL Supply by Area
Chart 4: Future Supply by Location
Source: CBRE Research
Source: CBRE Research
Source: CBRE Research
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OFFICE
Market defined by activity in suburban areas
Although vacancy rates increased in suburban areas,
those in Outer Klang Valley (i.e. Selangor) showed
improvement from 19.4% in Q1 2013 to 17.7% in Q2
2013. Despite this and the earlier-mentioned leasing
activity in the city centre, however, the overall Greater KL
vacancy rate registered 15.0%, up from 14.4% last
quarter.
Integra Tower and Menara LGB benefitting from
large lettings
Notable city-centre transactions during the quarter
included the aforementioned letting in Integra Tower, a
move we understand will be phased throughout the rest
of the year, as well as the relocation of Fuji Xerox into
Menara Binjai, and LHDN taking up 100,000 sq ft in
Menara Olympia on Jalan Raja Chulan.
The ongoing ‘flight-to-quality’ continues with Deloitte
having announced their move out of Damansara Uptown
1 to relocate to Menara LGB in early 2014. The
willingness of large corporate occupiers, especially
MNCs, to relocate to newer buildings with higher
specifications has been evident since at least 2010,
when companies could be seen leaving older buildings
along the Jalan Sultan Ismail strip for newer, higher
quality completions around the KLCC precinct, such as
GTower and Vista Tower.
Malton’s acquisition of Pusat Bandar
Damansara land is resolved, as Petaling Jaya’s
V Square is included as part of settlement
Among the 5 investment transactions recorded during
Q2 2013, the most significant involved the disposal of a
20-storey commercial office building identified as Block 1
of V Square, along with 964 car park bays, in Petaling
Jaya, sold to Bukit Damansara Development (indirectly
owned by Johor Corp.) by Khuan Choo Property
Management (a subsidiary of Malton Berhad).
This transaction was directly related to the acquisition of
9.6 acres of prime land (plus existing buildings) by IESB,
in majority owned by the major shareholder of Malton
(Pavilion group), Datuk Desmond Lim. The complex
transaction, which has a reported value of RM700
million, consists of RM500 million cash plus 266,667 sq ft
of office space within the redeveloped Pusat Bandar
Damansara. The transfer of V Square was undertaken in
exchange for a portion of this in-kind office space, with
the remaining 80,000 sq ft to be transferred once the
PBD redevelopment is complete.
This resolution brings to an end a three-year legal battle,
and we understand the PBD redevelopment will include
at least 2 office and 3 residential towers and a suburban
retail mall.
Chart 5: Kuala Lumpur Vacancy Rates
Chart 7: Grade A Capital Values
Source: CBRE Research
Source: CBRE Research
Source: CBRE Research
Chart 6: Grade A Passing Rents
INCREASED LEASING ACTIVITY OFFERS ENCOURAGEMENT
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Retail Supply
The total retail supply in Greater KL remained at 48.33
million sq ft as of 2Q 2013, as there were new completions
during the period. Notable malls due to be completed this
year include Cheras Sentral Shopping Centre (developed
by Mayland Properties), which is approximately 50% let and
due to open in November this year, Nu Sentral (a MRCB
and PNB Joint Venture), about 70% pre-let and due to open
end-2013/ early-2014, and Encorp Strand Mall (developed
by Encorp), which was due to open in June but has now
been pushed back to end-2013.
Looking further ahead, the two largest malls due to come
onto the market in the near future include IOI City Mall
(1.35 million sq ft) and Empire City Mall (1.8 million sq ft).
The former is reportedly on track to open end-2014, while
the latter was due to be completed by end of 2014 but has
now been delayed to 2015.
Occupancy and Prime Rents
As at 1H 2013, occupancy rates in city centre malls
continued rising, although those in suburban malls declined
slightly. The average occupancy rate remained at 91%.
Popular malls continue to demonstrate a high level of
occupancy (circa 95%) whereas malls that are located
further away, or not as well designed nor as well managed,
have lower occupancy rates.
Prime rents increased by around 2%, with the highest rent
in the city centre at RM155 psf, and in the suburbs at RM48
psf. There are also outstanding rent reviews for 2013, and
we expect to see further increases in rents.
In other news
The iconic British toy store Hamleys announced they will
open their first store in Kuala Lumpur in December 2013,
following a franchise agreement with a local retailer.
Hamleys was founded in London over 250 years ago, and
has over 30 stores worldwide. They hope to open 6-7 stores
in Malaysia and Singapore over the next 10 years.
Malaysia was intermittently affected by the yearly ‘haze’
caused by wildfires in Sumatra. In Paradigm Mall for
example, it was reported that there was a slight increase in
mall traffic and slightly better sales for F&B outlets.
With Malaysia also having held general elections on 5th
May 2013, overall effects on the retail industry of the
aforesaid events have yet to be determined.
The overall sentiment is that the market has become more
competitive, and this is reflected in rental levels and
increased incentives demanded by retailers (e.g. fit-out
contribution). However, South East Asia still remains very
lucrative for many retailers based in Europe/USA/Australia,
and there has been a steady flow of new-to-market retailers
(e.g. H&M) entering the Malaysian Market.
FOREIGN RETAILERS CONTINUE TO ENTER THE MARKET RETAIL
Chart 8: Retail Supply
Chart 9: Average Occupancy Rate
Chart 10: Prime Retail Rental Index
Source: CBRE Research
Source: CBRE Research
Source: CBRE Research
0.00
10.00
20.00
30.00
40.00
50.00
60.00
20
06
20
07
20
08
20
09
20
10
20
11
20
12
1H
20
13
20
13
e
20
14
e
20
15
e
Tota
l N
LA
(m
illio
n s
q ft)
100
150
200
250
300
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
1H
20
13
Renta
l In
dex (
Q4 1
995 =
100)
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
1H
20
13
City Centre Suburbs Klang Valley Average
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RESIDENTIAL NEW REGULATIONS TO CURB HOUSEHOLD EXPOSURE
Chart 11: BNM: Residential loan applications & loan approvals
Source: [Bank Negara Malaysia (BNM)] Restriction on pre-approved loans
On 5th July 2013, The Central bank (BNM) announced a
set of measures aimed at avoiding excessive household
indebtedness and to reinforce responsible lending
practices by key credit providers. These measures, which
take effect immediately, are:
a) Maximum tenure of 10 years for financing extended
for personal use;
b) Maximum tenure of 35 years for financing granted
for the purchase of residential and non-residential
properties;
c) Prohibition on the offering of pre-approved personal
financing products.
However, the limits on financing tenure will not affect
applications made before 5th July 2013.
On 11th July 2013, BNM maintained the Overnight Policy
Rate (OPR) at 3.00% during its MPC Meeting. This has
resulted in BLR remaining at 6.60%, with a typical
mortgage rate of BLR minus 2.2%-2.4%.
In the Monetary Policy Statement, BNM has indicated
that domestic demand is expected to continue to support
economic growth amid a continued moderation in
external demand. However, the sustained weakness in
the external environment may affect overall growth
momentum. Going forward, private consumption is
expected to remain steady, underpinned by income
growth and stable labour market conditions. Capital
expenditure in domestic-oriented industries and the
ongoing implementation of infrastructure projects will also
support investment activity.
Total loans applied for purchase of residential property
reached record highs at RM112.7 billion in the first 6
months of 2013, up 16.5% from the corresponding period
of 2012. This was mainly due to the surge in applications
during the months of March-June 2013, when the RM20
billion mark was breached monthly, with the exception of
May 2013.
Loan approval rates also recorded an all-time high of
RM55.2 billion during the same period, an increase of
21.9% from 1H 2012. However, banks continue to remain
cautious on residential mortgages approvals, with
approval rates registering 49% for the first quarter of
2013, albeit a slight improvement from 47% during the
same period in 2012.
Developers launched a number of new projects in Kuala
Lumpur during the first six months of 2013, especially
during the later stages of the period. These projects
combine for a total of over 3,200 units and include
prominent developments such as The Horizon
Residences (Jalan Tun Razak), RuMa Hotel &
Residences (Jalan Kia Peng, KLCC), Four Seasons
Place (Jalan Ampang, KLCC), The Mews Serviced
Residences (Jalan Yap Kwan Seng KLCC), Pavilion
Hilltops (Mont’Kiara), TTDI Ascencia (Taman Tun Dr.
Ismail) and others. Most of these new launches recorded
strong take-up rates, and it appears some pricing
benchmarks may be tested, with the Four Seasons Place
in KLCC priced at an average RM2,750psf and Pavilion
Hilltop in Mont’Kiara reportedly reaching prices of
RM1,000psf.
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Limited growth in new supply
The total existing supply of residential properties in
Greater Kuala Lumpur stood at about 1.77 million units
as at end-Q2 2013, with landed residential properties
accounting for 43.5% of the total stock, followed by non-
landed properties at 34.9% and low-cost housing at
21.6%.
Supply growth since end-2012 has been minimal (less
than 1.0%), part of a wider slowdown in supply growth
seen since 2006; we partly attribute the growth in capital
values seen in many areas of Greater Kuala Lumpur
since 2009 to this decline in new starts. Although the
numbers of new starts have rebounded since 2011, they
remain below the level seen during 2003 – 2007.
Scarcity of development land
About 75.7% of all the residential units in Greater Kuala
Lumpur are located in Selangor, with the remaining
24.0% and 0.3% located in Kuala Lumpur and Putrajaya
respectively. Putrajaya, the country’s administrative
capital, accounts for just over 4,740 units which are
primarily for the housing of civil servants.
Kuala Lumpur and its suburbs have grown at a rapid
pace, causing development land to become scarce and
in turn driving up capital values for many areas in
Selangor. New residential developments are being
located further and further away from the city centre, with
an increasing level of development seen in the southern
portion of Greater KL, forming a growth corridor linking
the city with Putrajaya/Cyberjaya and down to KLIA.
Previously overlooked areas such as Semenyih, where
SP Setia have recently launched a project and where
Sime Darby and Country Garden own large tracts of
land, are poised to see a marked increase in
development activity in the near future.
Nearly all incoming units are in construction
stage
As of Q2 2013, a total of 196,092 units were classified as
incoming supply, defined as units for which construction
permits have been approved (whether or not construction
has begun). The breakdown of the units by location is
more or less similar to the existing Greater KL unit
distribution.
186,581 units are deemed to be under construction,
implying that construction works have begun on 95.1% of
the units with construction permits.
This increase in new starts suggests that the overall
Greater KL housing market is now poised for a period of
stabilisation, with the period of significant growth in
capital values seen since 2009 being replaced by an era
of more gradual increases.
HOUSING MARKET SET FOR PERIOD OF MODERATION
Chart 12: Greater KL residential supply
LC = Low-cost; p = Preliminary
Source: [Department of Valuation, Ministry of Finance]
Chart 13: Incoming supply
Chart 14: 2012 Average transaction value
Source: [Department of Valuation, Ministry of Finance]
Source: [Department of Valuation, Ministry of Finance]
HOUSING
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Increase in luxury high-rise developments
Of the 42,979 units of high-rise developments
(condominiums and serviced residences) in Kuala
Lumpur valued at or above RM500 psf, about 35% are
considered to be ‘luxury’ (valued at RM800 psf and
above).
While the majority of new launches are in suburban
areas, there are also a number of upcoming new
developments in the KLCC vicinity, including projects
such as KL Trillion Serviced Apartments and Verve
Suites @ KLCC among others. The Mont’Kiara vicinity is
also seeing an increase in new launches, with projects
such as Pavilion Hilltop, Residensi 22 @ Mont’Kiara, Sun
Kiara Condominium, Kiara 163 Serviced Residence,
Weida Mont’Kiara and others due to be launched in the
near future.
During the review period, there were two new
completions in Mont’Kiara, i.e. Kiaramas Danai (287
units) and 28 Mont’Kiara (460 units). It is estimated that
as many as 6,484 units of high-end condominiums will be
completed in Kuala Lumpur during 2H 2013.
Improvement in secondary market activity
Activity in the secondary market remained moderate
during 1H 2013 and this trend is expected to continue
throughout 2H 2013. We have seen a slight increase in
the average price for secondary transactions of
condominiums in the areas of KLCC, Bangsar, and
Mont’Kiara (up 2.18% q-o-q to RM785psf during the
review quarter), primarily in older schemes in Bangsar as
well as Mont’Kiara, although activity appears to have
picked up in KLCC as well, with investors returning in
search of opportunities.
With ongoing speculation that BNM may curb developers’
ability to offer certain incentives such as DIBS (developer
interest bearing scheme), it will be interesting to see what
effect this has on the secondary market, assuming that
primary sales activity slows as a result. We believe that
such a restriction should spur sales of secondary units to
some degree, although the overall effect should not be
significant.
Rental rates remain flat
The rental market remained weak, although the rental
rate stayed firm at about RM3.32psf per month q-o-q. We
are seeing lower asking rents for some developments in
the study area, especially for larger units facing
increased rental competition from newer, more
reasonably (smaller) sized units.
Average asking rents in KLCC are about RM3.80psf per
month, while those in Bangsar and Mont’Kiara are
RM3.25psf per month and RM2.90psf per month,
respectively.
MORE HIGH-END CONDOMINIUMS IN THE PIPELINE
Chart 15: High-end condominium supply
Chart 16: Average capital values
Chart 17: Asking rental rates
Source: [CBRE Research]
Source: [CBRE Research]
Source: [CBRE Research]
CONDOMINIUM
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Increased tourist arrivals
Incentives announced during the 2013 budget appear to
have borne fruit as tourist arrivals rose by 15.9% y-o-y,
from 5.6 million for the period of January to March 2012
to 6.5 million for the same period in 2013. To recap, the
tourism sector has been allocated RM358 million (USD
$111.9 million) within the framework of ‘Visit Malaysia
2013/2014’ and is expected to attract 26.8 million tourists
by 2014.
Other incentives announced include a three-year income
tax exemption for local tourist operators who handle
more than 1,500 domestic or 750 foreign tourists
annually.
Steady incoming hotel supply
As at Q2 2013, the total supply of 3- to 5-star hotel rooms
in Kuala Lumpur remained at 26,921 keys, unchanged
from the previous quarter.
Completions in the immediate future include the 3-star
168-room Wolo Hotel, the 5-star 513-room Pullman
Kuala Lumpur Bangsar Hotel and 354-room hotel suites
within The One @ Bukit Ceylon development. These
1,035 rooms are expected to be completed by end-2013,
increasing the hotel supply by 3.8%.
Moving forward, 2014 will see expected completions of
1,299 rooms, equivalent to 4.6% supply growth, spread
across 5 properties. Notable completions include the 5-
star 160-key St Regis Hotel which will also house 48
serviced apartment suites (as well as branded
residences for sale), along with the 4-star, 203-room
Holiday Villa Kuala Lumpur located along Jalan Mayang
within KL City Centre.
Opportunities in affordable segments
The hotel sector remained healthy during Q2 2013, with
average occupancy rates for 5-star hotels increasing by
723 bp from 67.8% in Q2 2012 to 75.1% in Q2 2013.
Occupancy rates for 3-star hotels also increased y-o-y
from 57.1% in Q2 2012 to 60.8% in Q2 2013, although 4-
star hotels saw a slight decrease in occupancy rates.
Average room rates (ARR) for 3-, 4- and 5-star properties
were RM119 (USD $37), RM236 (USD $74) and RM354
(USD $111) respectively, with an average room rate
across all three segments of RM263 during Q2 2013.
Encouragingly, although 4-star occupancy rates declined
slightly, ARR for this segment improved by 1.7% q-o-q.
Given the cost associated with building new luxury
properties, we believe the 3- and 4-star segments offer
better prospects, especially as the number of modern
internationally-branded 3- and 4-star properties in the city
centre is limited.
HOTEL WOLO, PULLMAN AND OTHERS NEARING COMPLETION
Table 18: KL hotel snapshot Q2 2013
Chart 19: 3-5-star hotel supply & occupancy
Source: [JPPH / MIHR / CBRE Research]
Chart 20: 3-5-star hotels (ARRs)
Source: [MIHR / CBRE Research]
5-star 4-star 3-star
Total supply (units) 12,479 7,988 6,454
New supply (units) - - -
Occupancy rates
(%)
75.1% 66.9% 60.8%
Q-o-q change (pts) 190 pp (17 pp) 373 pp
Y-o-y change (pts) 723 pp (460 pp) (51 pp)
Average room
rates (RM / night)
354 236 119
Q-o-q change (%) 0.0% 1.7% (12.5%)
Y-o-y change (%) (1.3%) 1.3% (1.7%) Source: [JPPH / MIHR / CBRE Research]
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
70.00%
75.00%
80.00%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Occu
pan
cy (
%)
Su
pp
ly (Ro
om
s)
Supply (JPPH) Occupancy
0
50
100
150
200
250
300
350
400
AR
R (
RM
)
5-star 4-star 3-star
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SERVICED APARTMENT ASCOTT SENTRAL DUE TO BE COMPLETED IN 2H 2013
Table 21: KL serviced apartment (SA) snapshot
Q2 2013
q-o-q
change
(%)
y-o-y
change
(%)
Total supply (units) 5,889 0.0% 6.1%
Average
occupancy rates
(%)
71.1% 6.8% 0.2%
Average room
rates (RM / night)
281 (1.1%) 2.1%
RevPAR (RM /
night)
200 5.7% 2.3%
Chart 22: SA supply & occupancy
Source: [MIHR / CBRE Research]
Chart 23: SA ARR and RevPAR
Source: [MIHR / CBRE Research]
Steady serviced apartment growth
As of Q2 2013, the supply of serviced apartments in
Kuala Lumpur remained unchanged at 5,889 units in 33
serviced apartment developments.
The two serviced apartment developments which are
expected to be completed by year-end are still on track.
This will add a further 307 units (+5.2% of total stock) to
the market. These developments are the Lanson Place
Bukit Ceylon (150 units) and the Ascott Sentral Kuala
Lumpur (157 units), which should be completed in Q3
and Q4 2013 respectively.
We continue to receive queries from serviced apartment
operators eager to increase their Malaysian portfolios,
and we expect to see more such developments in the
near future. In particular, some midtown/ suburban areas,
such as Damansara Heights, Bangsar and Mont’Kiara,
where existing supply is quite limited, appear to be of
interest to major operators.
Robust serviced apartment performance
Average occupancy rates for serviced apartments was
recorded at 71.1% during the quarter, representing a
increase of 6.8% compared to 66.6% in the previous
quarter.
Average room rates (ARRs) saw a slight decrease from
RM284 to RM281.
We note that, this performance came despite General
Elections being held during the review period, resulting in
a moderate decline in commercial activity.
Hospitality Sector Outlook
Generally, the Kuala Lumpur hospitality market continued
to be resilient during the second quarter of 2013, driven
by increased tourist arrivals, as the overall performance
of the hotel and serviced apartment sectors remained
stable compared to the previous quarter.
With much of the concern about political uncertainty that
have been present for the past year seemingly resolved,
it remains to be seen what impact this has on tourist
arrivals and business activity. A number of prominent
developments are due for completion over the next 12
months, and the performance of these properties, plus
their impact on existing stock, will have to be monitored
closely.
Source: [MIHR / CBRE Research]
60.0%
62.0%
64.0%
66.0%
68.0%
70.0%
72.0%
74.0%
76.0%
78.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Occu
pancy
Rate
s (%
)
Se
rvic
ed A
part
ment S
upply
(Ro
om
s)
Supply of SA Occupancy Rate
RM0
RM50
RM100
RM150
RM200
RM250
RM300
RM350
RM400
2007 2008 2009 2010 2011 2012 Q1 2013
Q2 2013
Rat
es
(RM
)
ARR REVPAR
10
Q2
20
13
Gre
ate
r Ku
ala
Lu
mp
ur | M
ark
etV
iew
© 2013, CBRE Malaysia
(333510P) (VE(1)0232)
CONTACTS
Nabeel Hussain
Associate Director
Research & Consultancy
Level 9, Menara Millennium
Jalan Damanlela, Bukit Damansara
50480 Kuala Lumpur, Malaysia
t: +603 2092 5955 ext 126
For more information about this Kuala Lumpur MarketView, please contact:
Fong Kean Hwa
Vice President
Residential Research
Level 9, Menara Millennium
Jalan Damanlela, Bukit Damansara
50480 Kuala Lumpur, Malaysia
t: +603 2092 5955 ext 162
Lek Chay Tong
Assistant Vice President
Retail Research
Level 9, Menara Millennium
Jalan Damanlela, Bukit Damansara
50480 Kuala Lumpur, Malaysia
t: +603 2092 5955 ext 134
Ridhwan Radzi
Senior Research Executive
Hospitality Research
Level 9, Menara Millennium
Jalan Damanlela, Bukit Damansara
50480 Kuala Lumpur, Malaysia
t: +603 2092 5955 ext 134
Nur Hamizah
Research Executive
Economic Research
Level 9, Menara Millennium
Jalan Damanlela, Bukit Damansara
50480 Kuala Lumpur, Malaysia
t: +603 2092 5955 ext 147
Global Research and Consulting
This report was prepared by the CBRE Malaysia Research Team which forms part of CBRE Global Research and
Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market
research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe.
Disclaimer
© 2013, CB Richard Ellis (Malaysia) Sdn Bhd. Information herein has been obtained from sources believed reliable.
While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation
about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions,
assumptions or estimates used are for example only and do not represent the current or future performance of the
market. This information is designed exclusively for use by CBRE clients, and cannot be reproduced without prior
written permission of CBRE.
Julien Hives
Assistant Vice President
Office Research
Level 9, Menara Millennium
Jalan Damanlela, Bukit Damansara
50480 Kuala Lumpur, Malaysia
t: +603 2092 5955 ext 156