Reasonable property prices in Malaysia; gross rental yields are now 2.62% to 6.52%

Residential Valuation Specialist | March 18, 2022

Last Updated: Mar. 18, 2022
KUALA LUMPUR - Apartments and Condos
Ampang
COST (US$) YIELD (p.a.)
TO BUY MONTHLY RENT
1-BR sq.m. 158,096 476 3.61%
2-BR sq.m. 213,559 640 3.59%
3-BR sq.m. 183,056 855 5.61%
4-BR sq.m. 429,686 1,119 3.13%
5-BR sq.m. 851,458  n.a.  n.a.
Ampang Hilir
1-BR sq.m. 154,247  n.a.  n.a.
2-BR sq.m. 275,748 839 3.65%
3-BR sq.m. 352,034 1,913 6.52%
4-BR sq.m. 947,975  2,544 3.22%
5-BR sq.m. 923,801 2,819 3.66%
Bangsar
1-BR sq.m. 203,268 671 3.96%
2-BR sq.m. 254,378 882 4.16%
3-BR sq.m. 348,717 1,217 4.19%
4-BR sq.m. 925,711 2,187 2.84%
5-BR sq.m. 1,461,216 3,185 2.62%
Damansara Heights
1-BR sq.m. 309,135 846 3.28%
2-BR sq.m. 393,332 1,035 3.16%
3-BR sq.m. 567,273 1,692 3.58%
4-BR sq.m. 596,119 2,074 4.18%
5-BR sq.m. 1,179,326  n.a.  n.a.
Kenny Hills
1-BR sq.m.  n.a.   n.a.  n.a.
2-BR sq.m.  n.a.   n.a.  n.a.
3-BR sq.m.  346,487  1,598 5.53%
4-BR sq.m. 562,405 1,920 4.10%
5-BR sq.m. 957,435  n.a.  n.a.
KLCC
1-BR sq.m. 299,936 854 3.42%
2-BR sq.m. 392,269 1,077 3.30%
3-BR sq.m. 653,695 1,745 3.20%
4-BR sq.m. 812,221 2,244 3.32%
5-BR sq.m. 1,239,422 2,819 2.73%
Mont Kiara
1-BR sq.m. 194,523 620 3.82%
2-BR sq.m. 190,913 795 5.00%
3-BR sq.m. 275,425 1,152 5.02%
4-BR sq.m. 428,691 1,670 4.68%
5-BR sq.m. 625,948 2,358 4.52%
Sri Hartamas
1-BR sq.m.  n.a.   n.a.  n.a.
2-BR sq.m.  n.a.   n.a.  n.a.
3-BR sq.m.  n.a.   n.a.  n.a.
4-BR sq.m.  n.a.   n.a.  n.a.
5-BR sq.m.  n.a.   n.a.  n.a.
Taman Tun Dr. Ismail
1-BR sq.m. 187,924 681 4.35%
2-BR sq.m. 255,100 816 3.84%
3-BR sq.m. 238,799 802 4.03%
4-BR sq.m. 326,196 998 3.67%
5-BR sq.m.  n.a.   n.a.  n.a.
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

Gross rental yields from apartments in Malaysia remain moderate. The Gross Rental yield is the rent the landlord will earn - before taxation, vacancy costs, and other costs - compared to the property´s purchase price. While Malaysian property is often not particularly attractive in terms of return on investment, a stable country is a stable market. Residential property prices in Malaysia showed a notable growth over the past 20 years.

We may say that condominium prices in Kuala Lumpur range from USD 150,000 to USD 1,400,000 and rents range from around USD 300 to USD 2,000 per month. In Kuala Lumpur City Centre (KLCC), it would not be unusual for property prices here to be USD 299,936 (1-bedroom), USD 392,269 (2-bedroom) and USD 653,695 (3-bedroom), with rents of USD 854 (1-bedroom), USD 1,077 (2-bedroom) and USD 1,745 (3-bedroom). Earning a rental yield of around 3%.

In Ampang, another area popular with expats, one might find prices of USD 158,096 (1-bedroom), USD 213,559 (2-bedroom) and USD 183,056 (3-bedroom), with rents from USD 476 (1-bedroom), USD 640 (2-bedroom) and USD 855 (3-bedroom). Earning rental yields of around 3% to 5%.

Another popular choice for expats is the Damansara Heights, only 17 minutes by LRT/MRT or 30 minutes by bus away from KLCC - a residential suburb where mostly wealthy locals reside. Apartment and condominium prices in this area might cost USD 309,135 (1-bedroom), USD 393,332 (2-bedroom) and USD 567,273 (3-bedroom), with rents of USD 846 (1-bedroom), USD 1,035 (2-bedroom) and USD 1,692 (3-bedroom). Earning a rental yield of around 3%. Property is much pricier here than in KLCC and Ampang.

Bangsar is another expat-friendly neighborhood and apartment and condominium prices in this area might be  USD 203,268 (1-bedroom), USD 254,378 (2-bedroom) and USD 348,717 (3-bedroom), with rents from USD 671 (1-bedroom), USD 882 (2-bedroom) and USD 1,217 (3-bedroom), earning a rental yield of around 3% to 4%.

The return is significantly better for larger apartments at around 4% to 6% than for small apartments at about 3%.

Round trip transaction costs are very low for foreigners buying residential property in Malaysia. See our Residential transaction cost analysis for Malaysia.

 

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