Klang Valley’s property market is “saturated” and high land prices are pushing potential investors away into newer but cheaper areas, according to Axis Real Estate Investment Trust (REIT) Managers Bhd.
In Shah Alam, for instance, companies were disposing their land prior to moving out to other areas such as Nilai, noted Stewart LaBrooy, Chief Executive Officer and Executive Director of Axis REIT.
“The Klang Valley is now too expensive for a lot of investments (such as) in Shah Alam. Land prices for industrials in Shah Alam for recent transactions are now about RM120 psf compared with Petaling Jaya 10 years ago at RM90 psf,” he said.
“It is getting to a point where Shah Alam will not be able to have price points to support industries per se.”
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