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The
Office Space Market in Ipoh : A Glut
The office space
market in Ipoh is seriously in access and it is
obvious that there is a mismatch between supply and
demand. Try taking a drive around Ipoh and one would
notice a lot of empty office space available for
rental especially in Pengkalan, Old Town, Bangunan
Mayban Trust, Bangunan M & A, Bandar Ipoh Raya, etc.
Since the completion of the Greentown Business
Centre, a lot of businesses, large corporations and
even a few government departments had moved to this
area making it the most strategic business location
in Ipoh. It is now the location for banks, the
Federal Building, KWSP Building, City Council,
hotels and securities firms among others.
Many of these businesses and corporations were
previously maintained in Old Town and Bangunan
Mayban Trust. For instance, the income tax office
and the office of the Employees’ Provident Fund or
KWSP were previously located at Bangunan Mayban
Trust. After their move to their own buildings in
Ipoh Garden and Green Town Business Centre
respectively, Bangunan Mayban Trust took a dive in
its occupancy rate and at the present moment, it
only has a 20 percent occupancy rate while the rest
of the building is empty. This in turn leads to a
decrease in rental value to the rate of RM1.30 per
square foot. Other buildings that suffer from a
similar fate are the Bangunan Tabung Haji and Bank
Islam with their rental value at RM1.80 per square
foot and RM1.60 per square foot respectively.
Meanwhile, a new building is under construction in
the Jelapang area, owned by the Kementerian Dalam
Negeri and once completed, it is rumoured that the
Jabatan Imigresen and Jabatan Pendaftaran Negara
will be moving there. The Jabatan Imigresen is
located at Wisma Kinta at the present moment while
the Jabatan Pendaftaran Negara is at Greentown
Business Centre. Will Wisma Kinta suffer the same
fate as Bangunan Mayban Trust once the Jabatan
Imigresen moves to its new Jelapang office?
The glut of office space available for sale or
rental in Ipoh is in a dire situation and something
needs to be done before it gives outsiders an
impression of a ghost town – lots of empty buildings
minus the presence of humans. The only party
benefiting from this over supply is the one renting
as it has a host of choices to choose from.
Developers should shift their focus and concentrate
on the types of projects that are in demand such as
low and medium cost houses. The state government
through the Majlis Bandarya Ipoh should play a
significant role in overcoming the over supply of
office space by not approving any more of such
projects in the coming future. Also the owners of
existing available office space should be more
flexible in their choice of tenants and if possible,
cater to a more diverse market rather than leaving
it empty.
To fill up the empty office space means getting
companies or businesses to rent it and there is only
one solution – increasing the business activities in
the state of Perak. Instead of depending on the
federal government to promote Perak as an investment
potential, the state government should play a
pivotal role in attracting investors, both local and
foreign. It should emulate the efforts made by the
Malacca and Selangor state governments by frequently
sending delegations abroad to promote Perak as a
profitable investment destination.
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