The Malaysian online rental platform, SPEEDHOME, in its latest Klang Valley Rental Demand and Supply Trend Report, highlighted a healthy tenant demand growth at 8.54%.
The reopening of economic sectors mainly drove the strong growth as areas in Klang Valley progressed in the National Recovery Plan.
“The second half of the year 2021 was a fruitful period for SPEEDHOME. We observed an uptrend in overall rental demand and actual
transactions in SPEEDHOME. This was mostly driven by non-Klang Valley residents coming back to Klang Valley in line with the introduction of hybrid working and universities reopening,” SPEEDHOME CEO Wong Whei Meng said.
“Due to the high oversupply of high-rise units in Klang Valley, you can expect a slower increase in rental prices in Klang Valley,” Wong added.
The report showed the top high rental yield areas are still dominated by mature areas, such as Damansara, Batu Caves, and Shah Alam with a rental yield ranging from 4.27% to 4.8%.
It also highlighted that Shah Alam, which has consistently remained at the top 3 demand areas on a half-year basis, dropped to number 6 in the second half of 2022 due to the flood. However, this temporary drop is predicted to recover in the next few months and stabilize by the first half of 2022.
On the other hand, Brickfields and Petaling Jaya continue to top the high supply area list. However, the robust tenant demand has helped cushion this impact on the rental price.
The report also showed a positive rental expectation gap with the landlord rental asking price is lower than the tenant budget in some areas in the second half of 2021. Overall Klang Valley’s affordable renting median rental price stands at RM1,375.
“We do see some improvement in the Klang Valley rental market, but the market is still in a recovery stage. With the border reopening on the 1st of April, it will prompt higher demand for the mid to high-end market,” Wong added.