Office rents in Kuala Lumpur rose almost 6 per cent in the first quarter and are expected to maintain their momentum for at least the next year or so, according to Yeo Chu Hui, managing director of Malaysian developer Atlas Corp.
With the economy forecast to grow about 8 per cent per year the rest of this decade and demand for top grade office space expected to be strong, rents should remain firm, Mr Yeo said.
Mr Yeo recently launched Plaza Pantai, a six-tower, 1.1 million sq ft intelligent office development 3.5 km from central Kuala Lumpur, above one of the stations on the new light rapid transit railway system.
'The confidence in the Malaysian economy is tremendous. Local companies have been expanding their offices and more new companies are coming to Malaysia,' Mr Yeo said.
In about one week, two of the six towers in Plaza Pantai were snapped up by Malaysian and Singaporean investors, he said.
Atlas officials said there was a crying need for top grade office space in the city.