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The Klang Valley's 1H 2022 median rental price rise indicates that the rental market is recovering

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The median rental price for the best high-rise residential properties in Kuala Lumpur and Selangor increased by double-digit percentages in the first half of 2022 (1H 2022), compared to the second half of 2021.

 

Sheldon Fernandez, country manager for PropertyGuru Malaysia said an increasing number of people looking for real estate are turning to rent as a way to better their lifestyle and housing requirements.

 

"This is due to a challenging economic climate which includes rising interest rates and a higher cost of living," he said.

 

He claimed that on iProperty.com.my, the firm has observed a 34 per cent search increase for rental properties in H1 2022.

"This growth in searches suggests that renting is a viable option for consumers who are looking for more freedom and flexibility as well as a financial advantage. The encouraging rental price growth of several top properties in the Klang Valley is also an indication that the property market has the ability to recover post-pandemic.

"This provides some assurance to potential buyers and upgraders who are looking to invest in a residential property. On a similar note, this situation provides an opportunity for financially-sound property investors to capitalise on the lucrative potential of rental properties," he said.

iProperty.com.my's data offers a clearer picture of rental price movement by identifying high-rise properties within three different price tiers - below RM1,500; RM1,500 to RM2,500; and above RM2,500. This offers greater insights into various types of rental investment options that are performing well in the current climate.

 

Fernandez said that a strategic location and economical price tags are the primary driving factors behind the median rental price growth of several high-rise properties below RM1,500 in Kuala Lumpur.

 

Miharja Condominiums in Cheras tops the list with an 11.5 per cent growth. The condominium is located near LRT and MRT stations and many retail experiences such as shopping malls, food courts, and restaurants.

 

The median rental price growth for a few high-rise buildings in Bukit Jalil and Kuchai Lama ranged from 7.8 per cent for Residencensi Lanai in Bukit Jalil to 9.1 per cent for De Tropicana in Kuchai Lama.

 

According to Fernandez, the project's easy accessibility from several important routes has boosted the positive movement.

 

Middle-class residents continue to favour homes in Selangor's suburbs such as Bandar Sungai Long, Cyberjaya, and Semenyih.

 

Young middle-class urbanites choose top residences with rents between RM1,500 and RM2,500 since they are frequently in more advantageous locations and provide a number of lifestyle benefits.

 

Taragon Puteri Bintang in Kuala Lumpur saw its median rental price grow by 33.3 per cent in the first half of 2022 (1H 2022), while Setapak offers more affordable high-rise options with upgraded lifestyle facilities and convenient access to the city centre, he said.

 

As for Selangor, five rental properties in Subang Jaya and Puchong dominated the top median rental price growth list due to their traditional appeal as mature neighbourhoods which sustain family and community living.

Fernandez said that being home to various eateries, family attractions, and educational institutions, liveability is one of Subang Jaya's strong points, while Puchong's appeal has always been connectivity, with numerous LRT and highway access points.

Top properties with rental prices above RM2,500

The expatriate population has been drawn back to Malaysia's real estate market by the reopening of international borders, particularly for the top, luxury houses (rents above RM2,500).

 

According to Fernandez, these properties are popular with vacationers and business travellers searching for short-term lodging.

 

Setia SKY Residences in Kuala Lumpur's city centre witnessed a median price rental surge of 29 per cent, while Mont Kiara, another well-liked neighbourhood among expats, saw its median rental prices jump between 11.1 and 10.5 per cent (i-Zen @ Kiara 2), making it a favourite target for real estate investors.

 

Fernandez said the majority of local tenants in the higher income bracket seek an improved living environment with spacious areas, welcoming green surroundings, and enriching lifestyle amenities.

 

He gave the example of Tropicana Grande, a resort-style condo with clubhouse amenities and a frontage on Tropicana Golf and Country Resort, which saw a 9 per cent increase in its median rental price.

 

Verde @ Ara Damansara, which has recreational amenities designed after hotels, also made the list with a surge in the median rental price of 12.9 per cent.