Landlord-tenant rental expectation gap in Klang Valley narrows
PETALING JAYA: The rental expectation gap between landlord and tenant narrowed in the first half of 2021 as the landlord’s median asking price decreased by 2.25% compared with that in the same period last year, according to Speedhome’s report on Klang Valley Rental Supply and Demand for the first half…
PETALING JAYA: The rental expectation gap between landlord and tenant narrowed in the first half of 2021 as the landlord’s median asking price decreased by 2.25% compared with that in the same period last year, according to Speedhome’s report on Klang Valley Rental Supply and Demand for the first half of 2021 (H1’21).
Speedhome CEO Whei Meng Wong said the rental expectation gap remained in a single-digit percentage at 6.6% in H1’2021.
Despite the narrower rental expectation gap, the overall rental transaction median price increased 1.82% compared with the same period last year, mainly contributed by an increase in transactions in popular areas such as Petaling Jaya, Brickfields, and more.
The report revealed that tenants’ bargaining power remained strong in H1’2021 as more properties were expected to enter the market causing a flux in an already oversupplied market. The unique tenant rental request recorded a 2.31% positive growth in spite of the full movement control order, and the number is expected to grow in line with the national recovery plan.
Wong said demand is increasing in Setia Alam as it continues to develop.
“This is the first time in three years that an outskirt area emerged in our top 20 demand areas,” he said in a statement today.
Besides that, Petaling Jaya topped the list of the most demanded area for the third consecutive year. With a price range of RM1,850 to RM2,200, the main factor driving the tenant demand in this area is established facilities, job opportunities, prime location, and affordable renting followed by Brickfields, Cyberjaya, Putrajaya, and Setapak.
While demand from students and young working adults looking for easy access to transport is driving the demand for Brickfields and Setapak, the demand for Cyberjaya and Putrajaya is driven by affordable renting and university students in the areas.
The report is based on Speedhome real-time data that analysed more than 20,000 monthly tenant requests. The report also highlighted other insights and emerging trends of the rental property market crucial for tenants and landlords.
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