KUALA LUMPUR, Feb 15 ― Rent in the Klang Valley could go up as much as 10 to 20 per cent this year as the effects of Covid-19 movement restrictions dissipate and boost demand for properties, New Straits Times (NST) reported today citing property agents.
Current rental rates are already higher than pre-pandemic levels, according to several agents quoted by the English newspaper, with properties close to central areas in the city and amenities recording the most jump.
“Last year and this year we saw an increase in rental rates. During the movement control order the rental rate was low but it is picking up. The rental rate (now) is higher than during the pre-Covid period.
“Depending on the location, rentals can go up between 10 and 20 per cent,” real estate agent Jonathan Kiang Kai Ming was quoted saying.
Bangsar, Bangsar South, Month Kiara, Damansara Heights and KLCC are among some of the locations that are seeing rent increments, the agent added.
A key factor driving rent up is the stabilising overnight policy rate (OPR), which is pushing mortgage up, one real estate agent said.
“Normally the increase will be five to 10 per cent or around RM50 to RM100 for rental houses that cost around RM1,000 per month,” said property negotiator Nurrul Nadia Syidha Abd Raoof, an agent who handles sales and rents around Selangor and Nilai.
“When OPR increases they have to pay higher loan instalments, hence they raise the rent. But it is normal to have the rental increase every year, especially as the economy is recovering from Covid-19,” the agent added.
Speculation about the prospect of higher rent came amid reports that the rent rate had gone up 5.5 per cent across the country in 2023.
IQI's rental index released recently said rents were now 7.4 per cent higher than during the pandemic’s worst phase, although it was the only rental index to have put out such data. IQI is part of the Juwai IQI, an industrial real estate agency.
Malay Mail could not independently verify the data.
Wong Whei Meng, the chief executive officer of Speedhome, a platform for renting out real estate, was quoted by NST saying the average rental rate across the Klang Valley had steadily increased by up to 20 per cent in 2023, and there was an increase between three and five per cent in January this year.
Among areas with high rental rates include Jalan Ampang, Jalan Binjal, Jalan Changkat Kia Peng, Jalan Conlay, Bukit Ledang, Bukit Tunku, Cangkat Damansara, Desa Sri Hartamas, Jalan Bukit Nenas, Jalan Chendana, Jalan P. Ramlee and Jalan Sultan Ismail, according to Wong.
“Those up for renewal will experience some hike,” he said, referring to those whose tenancy agreements expire sometime this year.
