A question of demand and supply for Tun Razak Exchange
A BIG pipeline of commercial properties in and around the city centre itching to be launched over the next decade or so is stoking concerns by the day – will there be sufficient demand for all these buildings?
1Malaysia Development Bhd, the master developer of the massive RM26bil Tun Razak Exchange development is fully aware of such concerns.
Close to half of the TRX real estate project will comprise office buildings. The project comes along at a time when many other mammoth commercial projects such as the re-development of 926ha Rubber Research Institute (RRI) Malaysia land in Sungai Buloh and Permodalan Nasional Bhd’s proposed 100-storey Menara Warisan Merdeka are poised to take off.
Naturally, the question of oversupply is posed to the government agency.
“The easy answer to such concerns is… that our interest is aligned towards making sure that there is not going to be an oversupply,” says 1MDB chief executive officer Datuk Shahrol Halmi.
“As a government agency, 1MDB is cognisant of the impression that… look, we are the Government, a 800-pound gorilla, therefore we can squeeze people (private developers) out,” he says, referring to the fact that the agency is spearheading such a big project in one of the city centre’s prime areas.
“But I ask you… is it the Government’s job to go and regulate the area of square footage that is available in the market – is that a good idea?
Is it then fair to say if there is better quality that is available on a certain side then that would be our chosen place?” he asks.
“The reality is that it is not the Government’s interest to destroy the economy of the city,” Shahrol says.
How then do we address concerns of oversupply?
“Via market researches, do studies on commercial property demand, moving forward – let market economics dictate,” he says.
Cause for Concern?
Find the Cause for Concern:
No comments:
Post a Comment