Rising rental rates across key urban centres are making homeownership increasingly attractive for Malaysian households, with new data showing that buying a property is now cheaper than renting in a growing number of locations.
Property technology group Juwai IQI said the number of property categories where monthly mortgage repayments are lower than rental costs has surged from 18 in 2024 to 29 in 2026, reflecting a shift in housing affordability dynamics.
According to the firm’s latest analysis, Kuala Lumpur’s Jalan Kuching emerged as the location offering the largest monthly savings for buyers. A four-bedroom apartment in the area costs an average of RM3,644 per month in mortgage repayments, compared with RM5,016 in rent, translating into monthly savings of RM1,372.
Juwai IQI Co-Founder and Group Chief Executive Officer Kashif Ansari said the trend is creating opportunities for households that have been considering a move into homeownership.
“One of our agents recently assisted a family that moved from renting a two-bedroom unit in Iskander Puteri to purchasing a three-bedroom condominium. Their monthly housing expenses remained roughly the same despite upgrading to a larger home,” he said.
The study found that buyers of four-bedroom homes in Jalan Kuching could potentially save more than RM164,000 over a decade if rental and mortgage costs remain unchanged.
Other locations where buying has become more economical than renting include Bukit Bintang, Tampoi, Subang Jaya, Iskander Puteri and Petaling Jaya.
In Bukit Bintang, for example, buyers of three-bedroom units would spend about RM4,379 per month on mortgage repayments versus RM5,214 in rental costs, resulting in monthly savings of RM835.
Meanwhile, buyers in Tampoi, Johor Bahru could save RM775 monthly on four-bedroom properties, while homebuyers in Subang Jaya and Iskander Puteri stand to save between RM365 and RM554 per month depending on property type.
Ansari noted that 12 property categories that previously favoured renting have shifted in favour of buying over the past two years, largely because rental rates have increased more rapidly than property prices and financing costs.
Among the notable shifts were two-bedroom and four-bedroom apartments in Jalan Kuching, three-bedroom units in Bukit Bintang, as well as selected residential categories in Iskander Puteri and Subang Jaya.
“For families who are financially prepared and looking in the right locations, the monthly numbers are increasingly favouring ownership,” he said.
However, renting remains the more cost-effective option in several premium property markets.
The study found that 24 out of 59 property categories analysed still favour renting based on monthly costs, particularly in high-end locations such as KLCC and George Town.
In KLCC, the monthly mortgage repayment for a two-bedroom apartment averages RM6,185, compared with a monthly rental rate of RM4,463. Similarly, renters in George Town pay significantly less than homeowners servicing mortgages for comparable units.
Ansari said premium properties often command purchase prices that reflect location prestige, scarcity and status rather than rental yield considerations.
“The data shows that more expensive properties are more likely to cost more to buy than rent. Buyers in these markets are often paying for the address and long-term ownership value rather than monthly affordability,” he said.
The analysis compared housing market data from February 2024 and February 2026 across 59 location and bedroom-type combinations nationwide. Mortgage calculations were based on a 30-year loan tenure, a 4.5 per cent annual interest rate and a 10 per cent down payment.
While the study focused on monthly housing costs, Juwai IQI noted that it does not account for factors such as capital appreciation, maintenance costs, deposits or variations in financing rates, which remain important considerations for prospective buyers and renters.
