iProperty.com.my, has unveiled the 2020 Portal Demand Analytics (Rental Market), 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.
Malaysians are more inclined to rent due to the impact caused by COVID-19
User visits to iProperty.com.my have increased since the pandemic, indicating that more property seekers are turning to digital platforms. iProperty.com.my reached an all-time high of over 10 million monthly visits in February 2021. In February 2021, iProperty.com.my saw a +20.4% rise in property enquiries across its website as compared to last year before the first Movement Control Order, in addition to a +51% year-on-year (Y-o-Y) growth in visits (MCO).
Surge in Residential Rental Property Listings affects National Rental Demand Figures
Due to the COVID-19 pandemic’s confusion, consumers preferred to rent rather than purchase.
While rental visitorship has increased, the rise in rental property listings has outpaced it, resulting in a drop in national rental demand to -12.6%.
Overall, the rental yield for terraced houses increased to +3.3% in H1 2020 from +3.4%. The median asking rent for condominiums was RM1,800, down from RM1,900 in H1 2020, while the median asking rent for serviced residences was RM1,600, down from RM1,700 in H1 2020.
Pengerang Emerges as the Most in-demand Rental Area in Johor
As Malaysia’s state with the most unsold homes, the Johor residential rental property market remained sluggish as newly built units sat empty, resulting in a Y-o-Y decrease in demand for all building types of -27.8%.
In addition, the closing of the Singapore-Malaysia border has had an effect on the rental market in Johor Bahru. Nonetheless, the completion of the Rapid Transit System (RTS) project in 2026 is expected to fuel demand for residential rental properties in Johor. Because of its status as the southern oil and gas centre, the industrial city of Pengerang is the most in-demand region in Johor. Many visitors were looking for double-storey terraced houses with built-up areas of 1,500 to 2,000 sqft, priced between RM1,400 and RM1,700.
Shylendra Nathan, General Manager of iProperty.com.my commented that the year 2020 was more beneficial to tenants than to landlords. Landlords have lowered their rental rates in order to compete for a small pool of financially stable tenants. Tenants are in a good position to negotiate rates, as demonstrated by small declines in median asking rent prices and rental yields.
He added that the ongoing vaccination programme has provided much-needed optimism for the local property market and are expecting to see higher consumer confidence in the property market as a result.
Get the iProperty.com.my 2020 Portal Demand Analytics (Rental Market) at www.iproperty.com.my/newsroom