Friday 29 Mar 2024
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PETALING JAYA (Oct 27): Shop overhangs increased by a whopping 54.3% to 7,754 units worth RM5.1 billion in the first half of 2017 (1H17) from a year ago, according to the “Economic Report 2017/2018”.

In contrast, overhangs had only inched up 2.2% to 5,024 units worth RM2.5 billion in 1H16 from 1H15.

“Nevertheless, demand for commercial buildings remained favourable with the average occupancy rate of office and retail space at 83.5% and 81.5%, respectively indicating sustained demand for commercial space, especially in prime areas,” the report noted.

As of June 2017, the existing stock of shopping complexes stood at 15.1 million sq m (end-June 2016: 14.2 million sq m) while there are 111,792 industrial buildings (end-June 2016: 106,453 buildings).

There were 5,829 shop transactions valued at RM4.6 billion in 1H17 – compared with 6,452 transactions worth RM4.7 billion in 1H16 – which accounted for 56.2% of total transactions in commercial property.

Johor and Selangor contributed the most to these transactions, making up 18.4% and 16.8% respectively.

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