KUALA LUMPUR (Jan 3): Tun Razak Exchange (TRX) is the number one property pick of 2018 of real estate advisory firm Savills (Malaysia) Sdn Bhd, which believes the TRX will emerge as the most successful commercial development in the country this year.
The rest of its top pick list of the year comprises properties adjacent to Mass Rapid Transit (MRT) system, logistic-related industrial properties, and retail properties.
"TRX is on track to be the most successful masterplanned commercial development ever. It has already attracted an array of international and domestic institutions in one central precinct. These include HSBC, Prudential, Affin, Mulia and Lendlease.
"True to its original plan, the 70-acre site will redefine the golden triangle of the nation's capital and become Malaysia's undisputed financial hub," Savills said in a statement today.
The TRX site, which was initially inaugurated as the KL International Financial District in 2010, "has achieved remarkable growth in terms of market acceptance and speed of development", it noted. "Menara Prudential is slated for completion at the end of 2018, with the Affin Headquarter and Mulia's Exchange 106 (the tallest building in Malaysia) to be completed in 2019, followed by the HSBC Headquarter by end of 2020," it added.
Savills also envisioned that the MRT system would "create a new property yardstick in 2018".
"The MRT is rapidly gaining wide acceptance, and as it changes commuter patterns, it will also influence property values. Working together with ride shares, the MRT is providing a credible public transport network that is long overdue in this city. This will focus demand around stations and reshape the pattern of property values in Greater KL. Properties will increasingly be assessed by the distance from the stations," it explained.
Meanwhile, Savills said logistics properties, which will be driven by increasing e-commerce activities, will be the focus in the industrial sector.
"Just as online retailing has had an impact on the retail market, the move to same-day delivery is bringing fundamental changes to the industrial sector. As the whole logistics supply chain brings disruptive change, we have seen significant increase in demand for large sites in strategic locations," the firm said.
"There will be some major acquisitions and development of logistics assets as e-commerce gathers pace, primarily with Alibaba's move into Greater KL to adopt it as its regional logistics hub," it added.
Lastly, Savills said Malaysia is likely to be the top destination for new retail brands that are expanding into Southeast Asia.
"For new major retailers expanding into this region, Malaysia provides the best ease-of-access and most promising demographics. In 2017, we have seen the entry of new-to-market names like Max, a highly successful fashion brand from Dubai; HLA, a high street major from China; LC Waikiki and De Facto from Turkey. Malaysia is attractive for many reasons, and for most retailers, it is easy, transparent and geographically strategic," it stressed.