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






Oct 06, 2013

Malaysia: gross rental yields have moderated


Last Updated: Oct. 06, 2013
KUALA LUMPUR - Condominiums COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
120 sq. m. 313,920 1,196 4.57% 2,616 9.97
200 sq. m. 523,800 1,926 4.41% 2,619 9.63
350 sq. m. 945,700 3,630 4.61% 2,702 10.37
KUALA LUMPUR - Bungalows
350 sq. m. 1,310,400 3,336 3.05% 3,744 9.53
500 sq. m. 1,612,500 4,900 3.65% 3,225 9.80
600 sq. m. 2,061,600 5,784 3.37% 3,436 9.64
800 sq. m. 2,659,200 7,608 3.43% 3,324 9.51
Districts researched
Ampang, Ampang Hilir, Bangsar Baru, Bukit Kiara, Damansara Heights, Jalan Ampang, Kenny Hills,
KLCC (Kuala Lumpur City Centre), Mont Kiara, Sri Hartamas, Taman Tun Dr. Ismail, Ukay Heights
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Condominium prices in Kuala Lumpur are reasonable at between US$1,500 to US$3,000 per square metre (sq. m.)

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 almost completely stable for the past 15 years.

Given that Malaysia is a large place and relatively thinly populated, there are obvious limits to capital appreciation prospects (arguably, except in ‘dormitory town’ areas for neighbouring Singapore).

Therefore, the prime attraction of property ownership in Kuala Lumpur is income. Gross rental yields have fallen somewhat over the past year. Rents have not kept pace as nominal prices have risen. Yet the decline has been gentle, almost invisible. The 120 sq. m. condominium category remains the best-paying investment, with gross returns of 7%, but last year, our researchers found that rental yields averaged over 8% for this size.

Gross rental yields on condominiums generally range from 5% to 7%. Bungalows have lower yields, typically just over 4%.






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.



Malaysia Real Estate Highlights Q3-Q4 2013 - Knight FrankMalaysia Property Report 2013 - WTW InternationalCityscape Global
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 Global Property Guide reports

Our Newsletter

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

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on Juwai.com

Which parts of the world are most attractive for property investment today?

Click here to download our FREE Property Recommendations Reports!

Close Me