Speedhome CEO Wong Whei Meng expects the Klang Valley’s residential leasing market to be stuck in the rut for quite some time. This comes as the gap in rental expectations between tenants and landlords increased to almost 30 percent in the first quarter of 2019, on the back of the significant hike in supply.
In fact, the one-stop home rental, buy and sell platform’s transaction data for the past two years showed that several well-known areas within Kuala Lumpur did not witness any increase in rental returns, mainly due to increased supply of properties, reported The Sun Daily.
Read: Why Short-Term Rental Is The New Thing Now
Nonetheless, Wong believes that owners who bought their homes five years ago at lower prices can still enjoy good returns, while new owners and current owners may find it more difficult given that new homes in the market now cost over RM300,000.
Speedhome’s analysis of transacted rental deals as well as the Valuation and Property Services Department’s (JPPH) median selling price showed that Hartamas posted the highest rental yield at 5.6 percent, followed by Selayang and Ampang at 5.3 percent and 4.8 percent respectively.
He noted that homeowners were expecting too much rent, while the influx of new high-rise residential properties widened the gap in rental expectations between homeowners and tenants.
Read And Download: Tenancy Agreement Guide
Homeowners at Hartamas, for instance, expect a rent of RM2,772 but tenants are only willing to fork out RM1,972.
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