Klang Valley property rentals have risen up to 20pc this year [NSTTV]

KUALA LUMPUR: Rentals for properties in the Klang Valley have experienced an increase of 10 to 20 per cent this year, with some property agents not excluding the possibility of further increments.

Real estate agent Jonathan Kiang Kai Ming said rentals were picking up after recording a significant reduction during the Movement Control Order (MCO) following the Covid-19 pandemic. He added that rentals were currently higher than the pre-Covid period.

"Last year and this year we saw an increase in rental rates. During MCO the rental rate was low but it is picking up. The rental rate (now) is higher than during the pre-Covid period," he said.

Depending on the location, rentals can go up between 10 and 20 per cent.

"Areas that are picking up quickly include Bangsar, Bangsar South, Month Kiara, Damansara Heights and KLCC," said Kiang, who has been in the real estate line for five years.

Property negotiator Nurrul Nadia Syidha Abd Raoof said it was normal for rentals to go up every year, especially when the economy grows.

"Normally the increase will be five to 10 per cent or around RM50 to RM100 for rental houses that cost around RM1,000 per month," said Nurrul, who handles sales and rents around Selangor and Nilai.

She said the rise in rental was also a response by owners to cope with the increased overnight policy rate (OPR).

"When OPR increases they have to pay higher loan installment, hence they raise the rent.

"But it is normal to have the rental increase every year, especially as the economy is recovering from Covid-19," she said.

Nurrul said areas experiencing a rise in rental rates typically include those in proximity to public transportation, condominiums connected to malls and main cities.

Asked about the possibility of an additional increase this year, Nurrul said it would depend on various factors, including the economy and public demand.

"I think there might be an increase, but it won't be too significant and sudden," she added.

Wong Whei Meng, the chief executive officer of Speedhome, a platform for renting out real estate, said the average rental rate across the Klang Valley had steadily increased by up to 20 per cent in 2023, compared with 2020, which was during the Covid-19 pandemic.

This year, it has increased between three and five per cent.

He, however, believed that there would not be any additional rental hike this year.

"Those up for renewal (their tenancy agreements having expired sometime this year) will experience some hike," he said.

Wong said among areas with high rental rates include Jalan Ampang, Jalan Binjal, Jalan Changkat Kia Peng, Jalan Conlay, Bukit Ledang, Bukit Tunku, Cangkat Damansara, Desa Sri Hartamas, Jalan Bukit Nenas, Jalan Chendana, Jalan P. Ramlee and Jalan Sultan Ismail.

The high rental rates may be attributed to a growing preference for larger units, driven by factors like an area's maturity — meaning it has been fully developed — as well as accessibility, lifestyle and the demand for fully furnished accommodation.

Wong said Kapar, Dengkil and Semenyih were increasingly favoured locations, primarily due to their affordability, offering monthly rental rates ranging between RM1,300 and RM1,400.

"These areas and those adjacent to them are a good balance of distance and cost of living and certainly an area to pay attention to (for its potential to grow)."

Wong said a few proposed developments in the Klang Valley were expected to affect property rentals. These included the Light Rail Transit Line 3 (LRT3), Mass Rapid Transit Line 3 (MRT3) and Kuala Lumpur-Singapore High-Speed Rail (HSR) project.

"The Malaysia My Second Home programme too will certainly impact property prices and reduce overhang at the high-end market," he added.

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