KUALA LUMPUR, Sept 25 — High-rise properties in established and emerging urban areas had achieved favourable median rental price increase, with the top high-rise residential properties in Kuala Lumpur and Selangor registering the highest median rental price growth in the first half of this year (1H 2022).
iProperty.com.my said these properties saw double-digit percentage growth compared to 2H 2021.
In a statement today, it noted that a growing number of property seekers are shifting their focus to renting as a solution to upgrade their lifestyle and living space, due to the challenging economic climate, including rising interest rates and a higher cost of living.
PropertyGuru Malaysia country manager, Sheldon Fernandez said the search for rental properties on iProperty had increased by 34 per cent in 1H 2022, indicating that renting has become a viable option for consumers looking for more freedom and flexibility as well as 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, and provides an opportunity for financially-sound property investors to capitalise on the lucrative potential of rental properties,” he said.
iProperty 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 -- offering greater insights into various types of rental investment options that are performing well in the current climate.
Strategic locations and economical price tags are the primary driving factors for the median rental price growth of several high-rise properties (rents below RM1,500) in Kuala Lumpur, with Miharja Condominium in Cheras topping the list with an 11.5 per cent growth.
The condominium is located near light rapid transit (LRT) and mass rapid transit (MRT) stations and many retail experiences such as shopping malls, food courts and restaurants.
It said that selected high-rise properties in Bukit Jalil and Kuchai Lama have also emerged as winners, registering between 9.1 per cent and 7.8 per cent in median rental price growth, bolstered by their convenient accessibility via several major highways.
Meanwhile, properties in Selangor’s suburbs such as Bandar Sungai Long, Cyberjaya and Semenyih continue to be popular among middle-income tenants.
It noted that top properties with rents of between RM1,500 and RM2,500 appeal to young middle-income urbanites as they are typically in more strategic locations and offer several lifestyle advantages.
Taragon Puteri Bintang in Kuala Lumpur saw its median rental price grow by 33.3 per cent in 1H 2022, while Setapak offers more affordable high-rise options with upgraded lifestyle facilities and convenient access to the city centre, it said.
As for Selangor, it said 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.
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.
Meanwhile, the reopening of international borders has attracted the expatriate community back to Malaysia’s property market, especially the premium and exclusive top properties (rents above RM2,500).
These properties are also prominent among tourists and business travellers looking for short-term accommodations, it said.
It noted that in the Kuala Lumpur city centre, Setia SKY Residences recorded a median price rental growth of 29 per cent, while Mont Kiara, another popular area among expatriates, saw its median rental prices rise between 11.1 per cent (i-Zen @ Kiara 2) and 10.5 per cent (Lumina Kiara), making it a favourite target for property investors.
As for local tenants in the higher income tier, many of them look for an enhanced living experience with sizable spaces, conducive green surroundings and enriching lifestyle facilities.
A prime example is Tropicana Grande -- a resort-style condominium with clubhouse facilities and fronts the Tropicana Golf and Country Resort -- which saw its median rental price rise by nine per cent.
Verde @ Ara Damansara, with its hotel-inspired recreational facilities also made the list with a median rental price growth of 12.90 per cent. — Bernama
