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Analysis Condominium House Malaysia Property Public Transport Rental Serviced Apartment Urban

House rental rates nearby the Kelana Jaya LRT line

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Some of us may wonder how the Kelana Jaya light railway transit (LRT) line has affected the rental rates of nearby houses.

Our team at RED ANGPOW has performed an analysis on that subject matter recently.

We have gathered data on rental prices of more than 90 residential areas along the Kelana Jaya LRT line that covers the distance of 46.4 kilometers and 37 stations.

Then, by using our very own tool, we formulated some graphical analyses to describe the patterns of rental rates along that LRT line.

The first analysis

Kelana Jaya LRT line

Firstly, we have detected there are 39 residential areas with the rental rates lower than RM2,000 per month.

On the contrary, tenants in 58 residential areas need to fork out more than RM2,000 every month to pay for their rents.

The second analysis

Kelana Jaya LRT line

Secondly, we have also analyzed the range of rental rates for apartments, condominiums, link houses, and serviced residences and compared their distances from the Kuala Lumpur city center.

For houses located in residential areas within the distance of 19 km from the city center, the rents range from RM900 to RM8,500 per month.

Most of the houses in those residential areas are rented out at the rates of between RM1,000 and RM5,000 per month.

Only two residential areas have rental rates of below RM1,000 per month while five residential areas comprise houses with rents higher than RM5,000 per month.

The third analysis

Kelana Jaya LRT line

Thirdly, we will take a look at rental rates for houses nearby stations along the Kelana Jaya LRT line.

From the chart, we can see that a 4-bedroom house nearby Ampang Park LRT station can be rented out at a rate of about RM7,000 per month.

On the other end, tenants are expected to pay the monthly rent of RM1,300 for a 3-bedroom house nearby Wawasan LRT station.

If you think a single bedroom house can be rented at a lower rate, then you are in for a surprise.

A single bedroom house located in the vicinity of Kerinchi LRT station may contribute around RM4,000 to the landlord’s income every month.

The final analysis

Lastly, let’s find out the median rental rates for 3-bedroom houses in residential areas located nearby the Kelana Jaya LRT line.

Altogether, there are 19 residential areas with 3 bedrooms around 11 LRT stations which comprise 16 condominiums, 2 apartments, and 1 serviced residence.

Those LRT stations are Wawasan, Lembah Subang, Kelana Jaya, Taman Melati, Wangsa Maju, Gombak, Ara Damansara, Sri Rampai, Universiti, Bangsar and Dato’ Keramat.

Any unit at The Haute condominium which is located about 1 kilometer from Dato’ Keramat LRT station can be rented out at the rate of RM2,000 per month.

The second place goes to Menara Pelangi apartment (about 10-minute walk from Bangsar LRT Station) with the rental rate almost equalling The Haute.

For those who plan to rent a 3-bedroom house with the rental rates lower than RM1,500, they may look around somewhere near Wawasan LRT Station.

Rhythm Avenue, The 19 USJ City Mall and Goodyear Court 10 will be the right places for them to start searching.

All those three residential areas are conveniently located about 1 kilometer away from the Wawasan LRT Station.

Before we go…

In the future, RED ANGPOW will perform similar analysis on Sri Petaling and Ampang LRT lines.

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Rentals near Schools

People are willing to pay 40% higher rental to be near school. This is the rental psf vs distance to school for Apt & Flat, housing for the poor in cities. See the orange line. RM1.40 near school vs RM1 psf if >3km from school Who says the poor don’t care about education?

If you look at condominium and serviced residence market, the distance to school has no bearing to condo rental rate. We suspect that the condo are for the singles and young families. In fact, serviced residence has direct relation with distance to school. the further, the higher. interesting.

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Analysis Property Rental

Klang Valley Average Rental Price

This is the graph according to neighborhood, which means we divided the postcode areas into several neighborhood. pure hard work and diligence by the team. We are doing this for the whole country. So that each listing that are posted on property websites are analyzed and geo-tagged to their specific location.

For now, we are only displaying the total properties. The graph shows the median price for all properties. we have not divided according to products – such as condo, flat, apartment. Please pay, hahaha.

The range is between RM500-15k per month for all properties inc flats and bungalows. Blue is low rental and brown is high. KL city centers, PJ, parts of Damansara and parts of Melawati are asking for the highest price but not necessarily fetch high rental yields.

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Uncategorized

Rental in Mont Kiara

Q: How much rental income do you expect for your property in Mont Kiara?

A: On average, the condominium market is RM3.00 psf and service residence at RM3.50 psf per month.

How much is the rental you are paying now? Are you paying below market?

Categories
Condominium Property Rental Serviced Apartment

Overview Of Rental Price Per Square Feet For Residential Property In Malaysia

It is important to have the right set of market number to guide you as a reference when making decision before you rent or buy property for rental investment.  By knowing what is the average price per square feet for the same property type in the same location with similar facilities and amenities helps you to filter worst deal quickly from your search list. This should help you narrow down the pool of your selection to smaller list of good deals to search.

Charts and data provided here are for industry wide number and are not representing any specific location or development. This should serve as guide only as the numbers varies based on many other additional factors. Nevertheless, it should give you a good intuition of what is happening in the property market.

Histogram shows asking rental price per square feet of homes to rent. Condominiums and serviced residence are the type of properties that has the highest available number to rent. They also command the highest rental price per square feet in the region of 2 RM per square feet and 3.1 RM per square feet respectively. Landed property such link house and bungalow & semi-d  ask for lower rental price per square feet generally lower in term of supply.

Notes: Rental price per square feet is defined as asking rental price divided by built up per square feet.

House rental per square feet by property type in Malaysia

Rental Price Per Square Feet By Type Of Property

Asking rental price per square feet for landed property is about half of non-landed property.  Highrise, especially condominium and serviced residence  per square feet is mostly higher due to the facilities available and located nearby train stations, malls, shops, schools and workplace.
Table - Highrise house rental per square feet by property type in Malaysia
Table - Landed house rental per square feet by property type in Malaysia

Rental Price Per Square Feet Vs. Built Up Size (Square Feet)

We found something interesting by comparing built up size and rental price per square feet as per charts below.  The trend of rental price per square feet is higher for smaller unit of the highrise (condominium, service residence, apartment and flat). It was a trend in the last couple of years that developers have been building smaller size units of highrise to keep the property selling price lower. Their aim is to make the properties affordable to a wider middle upper income segment of buyers between 400K to 800K as the selling price per square feet has increased significantly (property price = price per square feet x builf up size). These properties are typically built at prime areas and most of it are nearby train stations, malls and business centers.

Generally, for landed property, rental price per square feet is relatively similar across all built up size with exception to bungalow and semi-d type where data is showing that for built up of 3,000 square feet and above is asking for significantly higher rental price per square feet. We have found out that for  3,000 square feet and above bungalow and semi-d, the ultra rich society are willing to pay premium for the exclusive units in the affluent neighborhoods.

Highrise house rental per square feet and build up size by property type in Malaysia
Landed house rental per square feet and build up size by property type in Malaysia

Map Of Highrise Property By Rental Price Per Square Feet

Note: Size and color of the circles represent price per square feet.Distribution of Malaysia Rental price per square feet

Map Of Landed Property By Rental Price Per Square FeetDistribution of Malaysia Rental price per square feet

 

This is just an overview of rental property price. Please subscribe to our newsletter to get more detail insights on which areas or property development that offer great deals.



Categories
Condominium Property Rental Return

What is the average rental yield in Klang Valley?

Are you curious about how your property portfolio is performing?

We are too. So we messed around with the data and what we saw, surprised us.

House Rental Yield In Klang Valley

 

The market’s average gross yield for properties is below 4%.

Below 4% gross yield? What does this mean for all of us?

It means, the gross cashflow generated over a year divided by the value of the property is 4%.

Yield = (total rental income) / (property value)

Yes, gross. Not net cashflow.

Compare this gross yield to the interest rates that the bank is charging below.

Mortgage rate in Malaysia

Mostly at 4.5-4.75%.

In short, we may be in a negative net yield position right now. Cashflow we received from rental is LESS than the interest rate payment we pay banks every month. In short, we are subsidizing our tenants.

Ok, fine. You may argue that you bought the property a long time ago, therefore, the rental payment covers monthly installment. Well that’s great! Congratulations.

But if you have to decide today if you want to buy or rent, as a general rule now (as of Nov 2018), it is cheaper to rent than to own.