Developers unfazed by Kuala Lumpur's office space glut

Kuala Lumpur

ONE-FIFTH of office space in Kuala Lumpur is unoccupied but developers appear unfazed as they continue to roll out large developments.

According to the Napic (National Property Information Centre) Property Report 2015 released last week, of the purpose-built commercial space amounting to 7.75 million square metres as at the fourth quarter of last year, 1.56 million sq m remained available.

Property consultants warn of a large overhang in commercial space. Savills Research pointed out in a 2015 report that a number of Grade A buildings completed between 2011 and 2014 only managed to eke out occupancy rates of 50-75 per cent.

But the proliferation continues.

The more notable mega developments include those by Permodalan Nasional Bhd (PNB) and China Railway Group Ltd. The former has launched a 118-storey tower under its Warisan Merdeka project while the latter intends to break ground on its regional centre in…