The Malaysian economy registered a positive growth rate in Q4 2009 after three consecutive quarters of contraction. Positive growth is forecast for 2010.

• Prime office rents continued to experience downward pressure as companies remained cautious about expansion amidst a time of substantial new supply.

• Overall retail occupancy rates and rents remained stable in Q1 2010. However, the outlook remains challenging due to the considerable amount of new supply scheduled for 2010.

• The residential sector continued to experience selective improved demand, particularly for niche residential properties and high-end landed residential properties. However, high-end condominiums in Kuala Lumpur experienced a drop in capital values and stagnant rents due to the high level of new supply.

• There were no investment transactions over the quarter. Investor interest continued to be dominated by domestic and government-linked companies. Foreign investors are likely to return to the market during the later part of the year, although limited net sellers will increase competition for available stock.

Read more at DTZ site.