Non-residential property subsector up 4.9% to RM6.4b in 1H17

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PETALING JAYA (Oct 27): The non-residential property subsector grew by 4.9% to RM6.4 billion in the first half of 2017 (1H17), according to the “Economic Report 2017/2018”.

This growth was due to the rebound in starts for shops (29.3%, compared with a 46.7% contraction in 1H16 and serviced apartments (14%, compared with a 35% contraction in 1H16).

“However, construction starts in the industrial and small office home office (SoHo) declined 9.7% and 16.1% respectively (1H16: -76.7% and -24.9%), mainly due to moderation in the O&G-related industries,” it said.

The report also noted that the planned supply of purpose-built offices (PBO) shrank by 6.1% to 972,995 sq m from 1,036,671 sq m a year ago, but construction starts for PBO remained at 277,776 sq m.