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Table 4. Nominal GNP against property transactions Year Nominal GNP Property Transactions (%) 1988 85.8 8.1 9 1989 95.7 11.3 12 1990 110.5 16.6 15 1991 123.6 18.7 15 1992 139.8 21.5 15 1993 153.5 23.6 15 1994 180.9 29.7 16 1995 208.1 39.9 19 1996 237.8 49.0 21 Source: Bank Negara Malaysia Annual Report 1996/Property Market Reports Amounts in RM billion Like the residential sector, the non-residential property sector has also been very active with a continued demand of office space. This is reflected in the high numbers of projects launched over the recent years. On-going expansion in new business created strong demand for commercial buildings. The rapid expansion of the service sector contributed to the strong growth for office buildings and shopping complexes, particularly facilities to support the financial, insurance, wholesale and retail activities. According to the latest Bank Negara Annual Report 1996, the office space market continued to perform above expectations with average occupancy rates increasing to 97% at the end of 1996, compared with 93% in 1995. Office buildings located in the Golden Triangle enjoyed an impressive average occupancy growth rate of 99%. The average monthly rental increased by 5% from RM48.07 per square metre at the end of 1995 to RM50.45 per square metre at the end of 1996. A total of 15 new office buildings were launched in 1996. The total number of these projects in 1996 was 19. Table 5 shows the supply of office space in terms of area in square metres and number of projects in and around Kuala Lumpur over the past 14 years and Table 6 shows the office supply in Klang Valley by the year 2000. The construction sector as a whole will remain highly competitive in a foreseeable future. The expected general economic slowdown coupled with the depreciation of the Ringgit affects purchasing power. When comes to investing in property, your attitude depends very much on various factors. Next week, we will look at these factors in details. Table 5. Supply of Office Space In and Around Kuala Lumpur Source: Bank Negara Annual Report 1996 Note: 1997 represents the forecast figures | Table 6. Office Supply - Klang Valley Source: Khong & Jaafar