JB’s high-rise residences’ vacancy rate expected to hit above 50% this year
BY RACHEL CHEW of EdgeProp.my
KUALA LUMPUR: The vacancy rate of Johor Baru’s high-rise residences is expected to hit above 50% for the first time in 2019, said CBRE|WTW Johor Baru director Tan Ka Leong.
During his presentation of the Johor Baru real estate market outlook at the launch of the CBRE|WTW Asia Pacific Real Estate Market Outlook 2019 Ma-
laysia report yesterday, Tan pointed out that the 2019 market outlook for high-end, high-rise residential in Johor Baru will remain challenging.
“Generally, all the property segments in Johor Baru were horizontal in 2018. Landed residential property transaction volume was down 20% while high-rise residential property transactions dropped 50% last year. There were also fewer high-end residential transactions in 2018,” Tan noted.
He added that some 10,500 units of incoming supply will be added to the high-rise residential market in 2019. “That translates into about 10% of the existing 102,851 units. I foresee prices and rents moving downwards in 2019 and for the first time, the vacancy rate will break through the current 50% resistance level in 2019,” Tan shared.
The situation is just as bad with the purpose-built office and retail sectors in Johor Baru.
Tan said there is currently 5.84 million sq ft of purpose-built office space in Johor Baru and in 2019, some 928,000 sq ft or 16% additional space will be added to the market.
Tan also expected the vacancy rate for purpose-built office space to rise from the current 26% to 35% in 2019.
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