KUALA LUMPUR: Global real estate consulting firm JLL has maintained an optimistic outlook on market activity in Malaysia, aligning with positive macroeconomic expectations.
In a statement, JLL Malaysia head of research and consultancy Yulia Nikulicheva said that in the first quarter of 2024 (Q1’24), it anticipates potential notable transactions in Malaysia.
“We are observing the keen interest of both international and domestic investors who are carefully evaluating opportunities across all sectors,” she said.
JLL Asia-Pacific capital markets CEO Stuart Crow said that while the cost of debt remained elevated, investors across Asia Pacific are still erring on the side of caution.
“The prospect of interest rate cuts in 2024 may potentially reverse current trends, but we can expect greater sector diversification among investors, particularly towards sectors such as logistics and industrial and living, which have seen high investor conviction across the region,” he said.
According to JLL, commercial real estate investment in Asia-Pacific rose 3% year-on-year (y-o-y) to US$31.6 billion (RM150 billion) in Q4’23 after seven consecutive quarters of decreasing volumes.
JLL said that in Q4’23, an uptick in volumes provided some upside after a challenging year that saw overall investment across the region decline by 17% y-o-y to US$106.8 billion.
It said China stood at the forefront of Asia-Pacific’s investment rebound for the second consecutive quarter, recording a 50% y-o-y increase to US$11.1 billion.
“Sectors such as logistics (decreased 5% to US$6.5 billion) and living (rose 24% to US$1.5 billion) performed better than other sectors, especially in China.
“Investments in office, down 13% y-o-y to US$13.7 billion, continued to contract amid uncertainties on interest rate movements, the extent of re-pricing and occupancy,” it added. – Bernama