Occupancy rate for Kuchings office sector remains stable WTWY

by Sharon Kong, sharonkong@theborneopost.com. Posted on March 21, 2014, Friday

KUCHING: The occupancy rate for the office sector in Kuching remains stable and high, says CH William Talhar Wong & Yeo Sdn Bhd (WTWY), thanks to government monitoring.

WTWY in its Sarawak Property Bulletin said the supply of offices in Kuching has always been well monitored by the state government, leading occupancy rate for this sector to remain generally stable and high at above 90 per cent.

Most vacant spaces are being occupied by the government and its subsidiaries, it highlighted. In fact, it is mostly government-linked entities who have been more active in Kuchings private commercial office buildings sector.

WTWY pointed out two buildings known as Gateway Towers were simultaneously launched in August 2013 to house the headquarters for the Sarawak Economic Development Corporation (SEDC) and the Land Custody and Development Authority (LCDA), both government-linked entities.

Another government-linked building, called Baitul Makmur 2, is now being planned as a second building to be annexed to the existing Baitul Makmur at Bukit Siol area in Petra Jaya and is expected to be constructed in the near future.

Apart from these, WTWY believed there was no other known private commercial office building coming up in Kuching for the next year or so.

Office sector development is not a popular foray for local developers who prefer to stick to the mainstream sector of residential and commercial sale of large commercial space is doubtful since most large corporations are based in the peninsula and rentals are low and stagnant, it explained.

Speaking of rental yields, WTWY noted that it remains low at five to six per cent per annum with rental rates stagnated at about RM2.80 to RM3.00 per square foot (psf) or so.

As in the previous year, there was no purpose-built office building being transacted for 2013, it added.

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Occupancy rate for Kuchings office sector remains stable WTWY