KUALA LUMPUR (Dec 4): The property sector may still be subdued but the rental market in the Klang Valley is performing well, according to residential property platform Speedhome.
“There are nearly 8 million people living in Klang Valley and the demand for housing has been increasing. The rental performance is not as bad, as everyone thinks. According to our data, 8 out of the top 15 areas we serve have had positive rental growth,” Speedhome chief executive officer Wong Whei Meng said during an Allianz Malaysia-Speedhome forum on “Digital Innovation in Property and Insurance Market”.
Speedhome is an online platform connecting landlords with tenants that provides Allianz rental insurance protection, as well as house purchasing services.
The company has transacted 2,000 properties to date, with a gross rental value of RM25 million.
For mature communities such as Petaling Jaya, Wong said the average rental growth has been good, with a minimal rent of RM1,500.
Wong also noted that the average rent in the KLCC area had rebounded, growing by 8% year-on-year.
The second-highest increase in rents is in the Old Klang Road area, probably due to the fact that there are new office buildings there and white-collar employees working nearby being willing to pay higher rent, he said.
Wong attributed the lower rent in Kepong to nearby tenants moving out because of traffic congestion, the result of ongoing MRT construction.
Ampang’s poor average rental growth on the other hand, is mostly because of the age of the residential supply on the platform.
“The main reason is because most of these properties belong to the township project and the population development of the community is not yet mature,” Wong observed.