Malaysia » Rental Market

Three issues hearting the Malaysia rental market are economy, stock market and rental taxes. Many critics think that these three problems can be tackle by good governance. Inflation is also have its role in making the conditions some bit difficult for the people seeking better deals for renal business. Fuel and food prices are high and in volatile condition. But fuel prices are comparatively low in comparison with neighbouring countries. 

Demands for rental property are little due to the feeble customer and business needs along with somewhat inflation in the county. Demand for houses and offices are still high in some area in the country including Kuala Lumpur, which is the capital city of the country. Malaysia is also witnessing over supply of the residential property.

Many famous property developers are revising the launch dates of their property due to these uncertain conditions. These developers are showing their concern over high constriction costs and weak demands of rental property.

Some good signs of price fall are shown from the government side. These actions will surely help in improving the current situation of rental property market in Malaysia. These good steps will eventually help Malaysia real estate rental market to grow and prosper in the country.    

Some good figures about the house prices are given below which are showing huge improvements during the past 3 years.  

• 2007 Rise in house price is 4.8%
• 2006 Rise in house price is 2.1%
• 2005 Rise in house price is 2.3%

Kuala Lumpur house price data of last four is given below:

• 2007 Rise in house price was 7.9%
• 2006 Rise in house price was 5.3%
• 2005 Rise in house price was 6.5%
• 2004 Rise in house price was 6.5%

Data collected for the house price rise for 2007 is showing strong growth which is a healthy sign for the rental property businesses. The excellent performance of the residential property business was due to the strong economic growth of the country. Interest rates for getting mortgage plans were low in those previous years. These low interest rates excited the purchasers to invest in real estate properties rather than keep their money in the bank accounts.  

There is a strong growth in the high end luxury buildings for the residential, office and rental purposes. Projects containing iconic building are in pipeline. These iconic projects are in development phase on prime locations.

Malaysian government is focusing on the projects of affordable house for poor communities. From 2004 to 2008 a high number of houses are built to fulfil this commitment of the Malaysian government. That is the reason why Malaysia is considered as the only country in Asia with lowest house price to income ratio.  Currently, Malaysia property rental market is small. Only 6% housing stock is available for the rental business. 86% percent of this rental stock is inhibited by the owners. Only 7% of all the rental housing stock is government owned.

Kaula Lumpur is a hot spot for luxury buildings concerned with fabulous market centres. According to the Malaysia rental market report, rental yields in the central region of Kaula Lumpur are in full swing. Small units are also earning high. Government have removed the Capital Gains tax. Authorities are also giving various Property ownership facilitated to the purchaser and tenant. On the other hand, Malaysia rental market contracts are being simplified which will be added facility for the purchaser or tenant.