KUALA LUMPUR, July 9 (Bernama) -- The Malaysia Home Rental Index for the first quarter (1Q) of 2024 by IQI reported that the average rent across Malaysia increased by 1.8 per cent to RM1,920 in the quarter under review compared with 1Q 2023, with a trend towards increased affordability as the rate of increase declines.
IQI co-founder and group chief executive officer Kashif Ansari said the performance of the Malaysia Home Rental Index in 1Q 2024 suggests that demand growth for rental properties is slowing but remains at the higher end of levels set in recent years.
“The average rental price in Malaysia over the past two years is RM1,895, slightly lower than the first-quarter average price of RM1,920,” he said in a statement.
“The Malaysia Home Rental Index shifts based on the balance between the supply of rental properties and the number of people looking to rent, seasonal trends, changes in the number of international students in the country, and changes in the activity of the investors who buy properties to rent them out,” said IQI.
IQI said that rental rates for the next 12 months are expected to climb moderately and up by zero per cent to three per cent from their level in 1Q 2024.
“As international travel and inward tourist arrivals continue to rebound, Malaysia may see an influx of new long-term residents, occupiers of short-term rentals, and international students. This may also contribute to a higher demand for rental properties and provide opportunities for investors,” it said.
IQI said that in Kuala Lumpur, rents are up 7.6 per cent compared to one year ago, with the average rent of RM2,735 is two per per cent higher than the trailing two-year (eight-quarter) average.
“Rents in Kuala Lumpur are still over a Covid-19 affordability bonus because rental rates have not yet fully recovered from their pandemic-era declines.
“Average rents in the first quarter of 2024 are 27 per cent lower than in the same quarter of 2020, before the pandemic,” it added.
-- BERNAMA
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