Rents across Malaysia increased by 5.5% in 2023, according to data from a newly released index.

Rents were now 7.4% higher than during the pandemic’s worst phase, suggests the Malaysia Home Rental Index by real estate agent network IQI, a member of Juwai IQI.

In the fourth quarter, it said that rents fell by 1.2% compared to the third quarter, but they still ended the year 5.5% higher than in Q4 2022.

The index also noted that the average residential rent in Malaysia was RM1,975 per month: RM1,851 in Selangor and RM3,192 in Kuala Lumpur when examined state-wise.

It said Selangor’s market was more stable, ending 2023 with rents 10.7% higher than Q4 2022 and 5% above Q4 2019, indicating a steady market with expectations of modest growth.

“Investors can find the highest yields in Johor Bahru, Iskander Puteri, and Subang Jaya. Even the lowest yield is attractive by international standards, at 4.02% in Georgetown,” said Juwai IQI co-founder/group CEO Kashif Ansari

It said yields are a calculation of gross income after expenses for property investors. The average gross rental yield in Johor Bahru is 6.23%, 5.67% in Iskander Puteri and 5.41% in Subang Jaya.

The rental index, which analyses over 58,000 residential rental transactions since 2018, is intended to serve as a complement to NAPIC’s Malaysia House Price Index, says its promoters.

Based on what it said was ‘robust recovery’ in the 2023 Malaysia Home Rental Index, IQI’s forecast was for a continuation of growth in rental demand.

Given the historical resilience of the Malaysian rental market and the post-pandemic economic rebound, it has projected a sustained rental rate increase into 2024, particularly in high-yield urban centers such as Kuala Lumpur, Johor Bahru and Iskander Puteri.

“The data suggests a shift toward recovery, with the Malaysia Home Rental Index reaching its highest point in nearly three years — since early 2020. Factors influencing these trends include supply-demand balance, seasonal variations, seasonal variations in the transaction mix, and investor activity,” he said.

Source: TheMalaysianReserve.com

G’Vinton, a serviced residence development by Sunrich Capital Sdn. Bhd. (Subsidiary of GSD Land) in George Town. Strategically located on approximately 1 acre of land along Jalan Sultan Ahmad Shah, in between Ambank and NSTP building. It is only a mere minute’s drive to KOMTAR and Penang’s most popular tourist destination – Gurney Drive.

This development will see the construction of a 39-storey serviced residence, featuring 508 unit of services suites and nine levels of car parking podium. There will also be four units of shot offices located at the ground level. Recreational facilities will be located at level 38.

Project Name : G’Vinton
Location : George Town
Property Type : Serviced residence
Tenure: (to be confirmed)
Built-up Size: 387 sq.ft. & 474 sq.ft.
Total Units : 508
Indicative Price : (to be confirmed)
Developer :Sunrich Capital Sdn. Bhd. (GSD Land)

SITE PROGRESS

SITE PROGRESS: G’Vinton (Dec 2024)

SITE PROGRESS: G’Vinton (Sep 2024)

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

Penang’s residential launches which resumed in 2023 are expected to gain momentum in 2024, CBRE|WTW said.

In its Real Estate Market Outlook 2024 report launched yesterday, the property consultancy said new launches of high-rise residentials will comprise mainly those located on the island, while landed residentials will be in Seberang Perai.

The most active sector in Penang in the third quarter (3Q) of 2023 continued to be housing which accounted for 77 per cent of total transactions, the report said.

“The active market has improved the residential overhang situation, which decreased to 3,341 units in the 3Q 2023 compared with 5,754 in the 3Q 2022.”

It is a buyer’s market with some bargain hunting in the high-rise segment while landed units are observed to be “good for capital investment.”

The report said retirement resort developments have also attracted growing interest against a backdrop of state government initiatives to encourage more affordable housing projects.

Meanwhile, in the first nine months of 2023, Penang’s property transactions continue to trend higher with 17,953 units changing hands compared with 17,297 units in the same period a year ago, valued at RM13.21 billion and RM9.51 billion, respectively.

The report said major catalytic infrastructure projects such as the Penang Silicon Island, originally known as the Penang South Reclamation Project, the Penang Light Rail Transit project and Penang International Airport expansion will sustain the island’s growth trajectory.

The 920-hectare Penang Silicon Island project will be developed as a smart city with Multimedia Super Corridor Cybercity status and is set to enhance the state’s foreign and domestic direct investment and tourism appeal.

Construction for the Light Rail Transit (LRT) is set to begin early this year, with its first phase to take five years. The LRT line will link various key locations including the airport and city centre.

The Penang International Airport expansion is aimed to boost tourism by increasing its capacity to 12 million passengers per year from the current 6.5 million. The project is expected to begin in September 2024 and will take between three and four years, the report said.

Source: Bernama

Penang Development Corporation (PDC) has signed a Memorandum of Agreement (MoA) with the Penang State Housing Board (LPNPP) regarding the ownership of 59 parcels in Block H, Mahsuri near Bayan Baru here.

The agreement was signed between the Deputy Chief Executive Officer of PDC, Roslan Hassan, and the Chief Executive Officer of LPNPP, ‘Ainul Fadhilah Samsudi, in the presence of the Chief Minister, Y.A.B. Tuan Chow Kon Yeow.

In his speech, Kon Yeow stated that the signing of the MoA would witness the initiation of the Mahsuri Urban Regeneration City (URC) project as the first to be implemented through the strata termination process in the state.

“This MoA also designates LPNPP as the sole owner of the Mahsuri URC pioneering development project and serves as a starting point for the acquisition and success of Phase 1, expected to commence work on-site in the first quarter of 2025.

“URC Mahsuri will also be the first pioneering project for the implementation of an urban regeneration housing concept in the state, benefiting the original 300 owners on the site,” he said at the event on Monday.

Kon Yeow said Phase 1 of the URC Mahsuri project involves the reconstruction of 300 housing units covering 850 square feet and equipped with various facilities, including sufficient parking spaces.

“When this project is completed, all unit owners, including those from the other five blocks in Mahsuri, will be relocated to Phase 1,” he added, stating that the project is expected to take three to four years to complete.

Furthermore, Kon Yeow mentioned that LPNPP had appointed a developer for the implementation of the URC Mahsuri project on April 11, 2023, through a Request for Proposal (RFP).

“The successful developer has been appointed and is currently undertaking preliminary work to obtain technical approval before work can commence on-site,” he explained.

At the same time, he hoped that the Ministry of Local Government Development could review the need for the creation of acts related to urban regeneration or amendments to existing acts to facilitate the implementation of such projects and the like.

“Urban regeneration is not an easy task as there are various constraints to existing acts.

“For example, the strata termination process that requires the approval of 100 percent of parcel owners for the implementation of this URC project, as stipulated in the Strata Titles Act 1985 (Act 318),” he said.

It is understood that the URC Mahsuri project involves two phases, with Phase 2, comprising housing units and commercial lots, scheduled for implementation in 2028 after the strata termination process involving five more successfully completed blocks.

The implementation of both phases of the project involves a cost of RM489 million and is expected to be fully completed by the year 2032.

LPNPP successfully completed the transfer of ownership transactions from two individual units in Block H to the state housing agency on October 6 and December 6, 2023.

Subsequently, LPNPP will proceed with the strata termination for 60 parcels on Lot 2323, which will return the land for this lot to the Parent Title for the completion of the URC Mahsuri Phase 1 project, expected to be completed by June this year.

The Penang State Government had previously announced the implementation of the Urban Regeneration City (URC) in Block 5 Mahsuri, which was developed about 30 years ago and has approximately 300 housing units ranging in size from 300 to 400 square feet (sf).

In addition to Block 5 Mahsuri, four more pioneering schemes through the URC method will be implemented, namely the Free School Apartment in Taman Free School, Padang Tembak Apartment, Siakap Garden in the Central Seberang Perai (SPT) district, and Mak Mandin Apartment in the Northern Seberang Perai (SPU) district.

Source: Buletin Mutiara

About Straits City

A 40-acre prime seafront integrated development by the Singapore Exchange-listed Straits Trading Co Ltd and its dual-listed subsidiary, Malaysia Smelting Corp (MSC). Strategically located in the Central Business District of Butterworth, a mere 2km from Penang Sentral, Straits City enjoys unparalleled connectivity with well-established transportation options such as trains, and ferries, while also providing easy access to major highways.

This development situated near Taman Selat, comprises a mix of residential and commercial components with the aim of transforming the area into a vibrant hub.

Find out more about Straits City