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Malaysia: House Prices, Rents, and Rental Yields

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Last Updated: Oct 17, 2007

Yields on KL condominiums excellent

Last Updated: Oct 17, 2007
KUALA LUMPUR - Bungalows COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
290 sq. m. 716,880 2,662 4.46% 2,472 9.18
410 sq. m. 1,227,950 4,403 4.30% 2,995 10.74
530 sq. m. 1,472,340 5,857 4.77% 2,778 11.05
700 sq. m. 2,191,000 7,049 3.86% 3,130 10.07
KUALA LUMPUR - Condominiums
70 sq. m. 128,940 841 7.82% 1,842 12.01
125 sq. m. 175,000 1,299 8.91% 1,400 10.39
175 sq. m. 288,225 1,971 8.20% 1,647 11.26
225 sq. m. 463,950 2,761 7.14% 2,062 12.27
275 sq. m. 581,350 3,072 6.34% 2,114 11.17
350 sq. m. 792,400 3,514 5.32% 2,264 10.04
500 sq. m. 1,171,000 5,185 5.31% 2,342 10.37
*Ampang (KL Segment), Ampang Hilir, Bangsar, Damansara Heights, Kenny Hills, KLCC, Mont Kiara, Pantai Hills, Sri Hartamas, Taman Tun Dr Ismail, Ukay Heights
Source: Global Property Guide

While yields in Kuala Lumpur have generally dropped, luxury condominiums still have moderate yields of around 7% on the average. Yields vary widely from 5.31% to 8.91%. Smaller units of less than 200 sq. m. tend to generate higher yields.

Yields on Kuala Lumpur bungalows have greatly declined from 8.13% to 4.35%, even reaching a low of 3.86% for 700-sq m houses.

The lower yields may be attributed to property prices increasing much faster than rent. Prices per sq. m. of bungalows, in particular, rose enormously to US$2,844 from US$1,198 in a couple of years.

 

Your Comments

posted by Praveen | 2008-05-07

executive, malaysia

As prices of property are incresing faster than rentals, does this mean that there is NO bubble in the market? In the Malaysian context, what indicators that u suggest we use in tracing a bubble?

posted by our Editor: Matthew Pollock | 2008-05-07

I would suggest you read the articles in "School of Proft" off the home page.

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