“Excess office spaces can be repurposed as budget hotels while retail spaces can be repurposed as destination malls that focus on digital services, food and beverages and entertainment”, Knight Frank Malaysia managing director Sarkunan Subramaniam (filepic) said.

KUALA LUMPUR: Unsold properties can be redeveloped or repurposed to match market demand, according to property consultants.

This will also help reduce the glut in the market.

“Excess office spaces can be repurposed as budget hotels while retail spaces can be repurposed as destination malls that focus on digital services, food and beverages and entertainment”, Knight Frank Malaysia managing director Sarkunan Subramaniam said.

He was speaking at the Annual Regional Property Development Conference here yesterday that discussed ideas to create new demand for real estate space in Malaysia.

“Office spaces showed negative net absorption in KL where it reduced from 0.81 million sq ft in 2015 to -0.10 million sq ft in the first half of 2017. This is proof that there are excess buildings coming up in the city as well as other parts of the country”, said Sarkunan.

Meanwhile, JLL Singapore Capital Markets Research’s head for South-East Asia Regina Lim said demographic changes in the region is creating a different type of demand in the property market.

“Young people want to be in a space that allows them to be themselves. Hence, integration is needed,” she said.