CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics






Nov 30, 2017

Malaysia: gross rental yields have moderated


Last Updated: Nov. 30, 2017
KUALA LUMPUR - Apartments and Condos
Ampang
COST (US$) YIELD (p.a.)
TO BUY MONTHLY RENT
1-BR sq.m. 169,297 598 4.24%
2-BR sq.m. 272,718 878 3.86%
3-BR sq.m. 296,470 1,047 4.24%
4-BR sq.m. 494,750 1,940 4.70%
5-BR sq.m. 852,862 3,545 4.99%
Ampang Hilir
1-BR sq.m. 190,290 616 3.89%
2-BR sq.m. 377,927 834 2.65%
3-BR sq.m. 893,636 1,697 2.28%
4-BR sq.m. 925,213 2,552 3.31%
5-BR sq.m. 1,201,569 2,921 2.92%
Bangsar
1-BR sq.m. 197,650 741 4.50%
2-BR sq.m. 254,157 950 4.49%
3-BR sq.m. 526,310 1,557 3.55%
4-BR sq.m. 1,011,922 2,598 3.08%
5-BR sq.m. 1,390,457 3,471 3.00%
Damansara Heights
1-BR sq.m. 307,578 743 2.90%
2-BR sq.m. 356,220 1,078 3.63%
3-BR sq.m. 376,178 1,231 3.93%
4-BR sq.m. 518,695 1,757 4.06%
5-BR sq.m. 649,040 2,167 4.01%
Kenny Hills
2-BR sq.m. 215,757 634 3.53%
3-BR sq.m. 440,868 1,411 3.84%
4-BR sq.m. 572,650 2,426 5.08%
5-BR sq.m. 1,025,149 2,452 2.87%
KLCC
1-BR sq.m. 287,052 878 3.67%
2-BR sq.m. 412,966 1,281 3.72%
3-BR sq.m. 677,135 2,025 3.59%
4-BR sq.m. 903,249 2,567 3.41%
5-BR sq.m. 1,247,546 3,425 3.29%
Mont Kiara
1-BR sq.m. 165,921 711 5.14%
2-BR sq.m. 236,637 895 4.54%
3-BR sq.m. 328,270 1,218 4.45%
4-BR sq.m. 526,604 2,096 4.78%
5-BR sq.m. 698,709 2,579 4.43%
Sri Hartamas
1-BR sq.m. 121,826 519 5.11%
2-BR sq.m. 166,683 753 5.42%
3-BR sq.m. 236,782 927 4.70%
4-BR sq.m. 548,004 1,680 3.68%
Taman Tun Dr. Ismail
1-BR sq.m. 165,920 726 5.25%
2-BR sq.m. 268,835 763 3.40%
3-BR sq.m. 285,457 788 3.31%
4-BR sq.m. 428,107 1,216 3.41%
5-BR sq.m. 561,603 1,602 3.42%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: EdgeProp Definitions: Data FAQ See also: Update Schedule

Condominium prices in Kuala Lumpur are reasonable at between US$1,800 to US$2,000 per square metre (sq. m.)

A stable country, a stable market. The extraordinary stability of residential property prices in Malaysia – rising in some years by 2% or 3%, falling in other years by a few per cent – means that the observer is never shocked by a sudden boom or price-collapse. In inflation-adjusted terms, prices have been rather stable for the past 15 years.

Limits to capital appreciation. Given that Malaysia is a large place and relatively thinly populated, there are limits to capital appreciation prospects (arguably, except in ‘dormitory town’ areas neighbouring Singapore). Therefore, the prime attraction of property ownership in Kuala Lumpur is income.

Gross rental yields have however fallen significantly:

  • Condominiums of 120 sq. m. have gross returns of 4.5%, but two years ago, our researchers found that rental yields averaged over 8% for this size.
  • Bungalows have really low gross rental yields at around 2.5%, and again, have fallen significantly.

Conclusion: Malaysian property is less attractive as an investment than it has been for many years, given the falling rental yields.

Round trip transaction costs are very low in Malaysia. See our Malaysia transaction costs analysis Dubai transaction costs analysis and our Malaysian home buying costs compared with other countries in Asia.






Comments


Be the first to comment on this article!



Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Compare Countries



Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Malaysia





PROPERTY RECOMMENDATIONS

 
Download free property reports from international research houses

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions