According to iProperty.com.my’s 2020 Portal Demand Analytics (Rental Market), many Malaysians are more inclined to rent due to the impact caused by Covid-19.
Post-pandemic user visits to iProperty.com.my have been on an upward trajectory as more property seekers are shifting to digital platforms.
In February 2021, iProperty.com.my recorded an all-time high of over 10 million monthly visits. In addition to a +51 percent year-on-year (Y-o-Y) growth in visits, iProperty.com.my saw the level of property enquiries through its platform increased by +20.4 percent in February 2021 when compared to last year before the first Movement Control Order (MCO).
Rental visitorship to iProperty.com.my increased as users opted to rent due to uncertainties caused by the Covid-19 pandemic. Although rental visitorship has grown, the increase in rental property listings has outpaced it, causing the national rental demand figure to dip to -12.6 percent.
Overall, the rental yield for terraced houses was at +3.3 percent from +3.4 percent in H1 2020. The median asking rent for condominiums was at RM1,800, from RM1,900 in H1 2020, while for serviced residences, the median asking rent was at RM1,600 from RM1,700 in H1 2020.
Demand for residential rental properties in Kuala Lumpur was at -7.7 percent Y-o-Y for all building types. One reason for the decline was the lower rental demand for the apartment segment caused by unemployment in the capital city.
Overall, the rental yield for terraced houses was at 3 percent from 3.2 percent in H1 2020, while condominiums was at 4.1 percent from 4.3 percent in H1 2020. The median asking rent for serviced residences, which was RM2,300 in H1 2020, dropped to RM2,000 by the end of 2020.
Visitors in Kuala Lumpur are seeking four-bedroom terraced houses between 1,500 to 2,000 sqft in size as well as condominiums between 1,000 to 1,250 sqft in size, or a minimum of three-bedroom units priced below RM2,300.
The Portal Demand Analytics (Rental Market) is an overview of the residential rental property demand using iProperty.com.my’s user visits and property listings data for residential properties in Malaysia with a focus on Kuala Lumpur, Selangor, Penang, and Johor. The rental analytics looks at four property types: terrace house, condominiums, service residences, and apartments.