Real estate investment trusts (REITs) in Kuala Lumpur are expected to have a rough year as the level of Grade A office buildings in the country available for sale falls.
Speaking to Btimes.com, managing director of estate agents Rahim and Co Robert Ang believes that their will be fewer REITs on the market in 2011.
"REITs look at investments of above RM100 million. However, there is no good stock in the market. If there are quality assets, most developers will hang on to them as an investment, and probably float their own REITs," Mr Ang said. "What you have in the market now are assets for sale by trust funds who are cashing out."
In particular, the sector expert suggested that the situation was keeping foreign buyers out of the market.
However, the firm's co-founder and executive chairman Datuk Abdul Rahim Rahman is more confident about the prospects for real estate in Malaysia this year, with a number of projects led by the Economic Transformation Programme likely to boost activity.