{"id":76352,"date":"2024-01-18T16:14:58","date_gmt":"2024-01-18T08:14:58","guid":{"rendered":"https:\/\/www.iqiglobal.com\/blog\/?p=76352"},"modified":"2026-01-09T16:03:08","modified_gmt":"2026-01-09T08:03:08","slug":"iqi-q4-2023-rental-report-highlights","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/iqi-q4-2023-rental-report-highlights\/","title":{"rendered":"The Best Time To Rent Out Your Property is Now: Key Highlights From IQI’s Q4 2023 Rental Report"},"content":{"rendered":"\n

Version: CN<\/mark><\/a><\/strong><\/em><\/p>\n\n\n\n

\n\n\n\n
Rental prices are on the rise! Is this a good or bad thing for you?<\/p>\n\n\n\n
Well, look no further – make way for Malaysia’s first-ever Home Rental Index<\/strong>!<\/p>\n\n\n\n
Our team at IQI presents you the Malaysia Home Rental Index<\/strong>, based on the analysis of more than 58,000 residential rental transactions<\/strong> involving condominiums, apartments, serviced residences, and flats since 2018.<\/p>\n\n\n\n
This complements NAPIC’s Malaysia House Price Index, and is the country’s one and only<\/strong> comprehensive measure of trends in rents.<\/p>\n\n\n\n
If you’re a homeowner, or you’re looking to rent, read on to find out whether buying or renting is the best choice for you.<\/p>\n\n\n\n
\n\n\n\nHighlights From IQI’s Q4 2023 Rental Report<\/h2>
1. First of all, what makes the rental prices change?<\/a><\/li>
2. Got it. What was the growth in rentals like in 2023?<\/a><\/li>
3. Okay, but what does a higher index mean for us?<\/a><\/li>
4. So… higher rental rates = good or bad?<\/a><\/li>
5. But interest rates are getting higher too…<\/a><\/li>
6. Perfect! What areas should I look into if I want to invest?<\/a><\/li>
7. Give me another reason why I should invest in property now.<\/a><\/li><\/ul><\/div>\n\n\n\n
\n\n\n\n
<\/a>1. First of all, what makes the rental prices change?<\/h2>\n\n\n\n
Before you have a look at the (possibly complicated) graphs, you might first be wondering…<\/p>\n\n\n\n
What factors affect the rental prices, actually?<\/strong><\/p>\n\n\n\n
The Malaysia Home Rental Index shifts based on factors such as:<\/p>\n\n\n\n
\n
the balance between the supply of rental properties and the number of people looking to rent<\/li>\n\n\n\n
seasonal trends<\/li>\n\n\n\n
changes in the activity of the investors who buy properties to rent them out<\/li>\n<\/ul>\n\n\n\n
In easier terms: when more people<\/strong> are looking for properties to rent, and if there’s a shortage of properties<\/strong> available, the price might go up<\/strong>. <\/p>\n\n\n\n
If less people<\/strong> are looking for rentals, causing a surplus of available rentals<\/strong>, the price might go down<\/strong>.<\/p>\n\n\n\n
Prices also change depending on the season<\/strong> such as holidays.<\/p>\n\n\n\n
All of these factors play into how the Malaysian Home Rental Index rises and drops.<\/p>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
<\/p>\n\n\n\n
<\/a>2. Got it. What was the growth in rentals like in 2023?<\/h2>\n\n\n\n
During pandemic times, rental prices saw a significant drop. The first quarter (Q1) of 2020<\/strong> until the fourth quarter (Q4) of 2022<\/strong> was the worst period for rents<\/strong> due to the COVID-19 pandemic.<\/p>\n\n\n\n
However, 2023 was a year of recovery, with the index hitting its highest level<\/strong> since the second quarter of 2020.<\/p>\n\n\n\n
The rental index today is 7.4% higher<\/strong> than the period of Q1 2020 through Q4 of 2022!<\/p>\n\n\n
\n
$\"Malaysia$
Home rental index trends from Q1 2018 until Q4 2023.<\/figcaption><\/figure>\n<\/div>\n\n\n
<\/a>3. Okay, but what does a higher index mean for us?<\/h2>\n\n\n\n
“The performance of the Malaysia Home Rental Index in 2023 indicates increasing demand for rental properties and suggests potential further increases in 2024.”<\/p>\n\n\n\n
What that means is, a higher index shows a higher demand for rentals. Which means better performance!<\/p>\n\n\n\n
In Q4 2023<\/strong>, the Malaysia Home Rental Index was up 5.5%<\/strong> from the previous year, although it had fallen 1.2% from its third-quarter high.<\/p>\n\n\n\n
And IQI believes that rental prices will be higher in the next 12 months<\/strong>, showing a continuing growth in rental demand.<\/p>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
<\/p>\n\n\n\n
<\/a>4. So… higher rental rates = good or bad?<\/h2>\n\n\n\n
Higher rates make owning a home more expensive<\/strong>, which can lead to more Malaysians choosing to rent instead of buy.<\/strong><\/p>\n\n\n\n
That creates competition among renters<\/strong> for the available rental homes.<\/p>\n\n\n\n
Which is great news<\/strong> if you are a homebuyer thinking of renting out your property<\/strong>!<\/p>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
<\/p>\n\n\n\n
<\/a>5. But interest rates are getting higher too…<\/h2>\n\n\n\n
Of course, let’s not forget about the Overnight Policy Rate (OPR)<\/strong><\/a>. The OPR has increased<\/strong> from 1.75% to 3%<\/strong> since May 2022, which contributed to higher prices.<\/span><\/p>\n\n\n\n
But if you are an investor, you don’t have to worry about the higher interest rates, thanks to the rising rental rates that come with it.<\/p>\n\n\n\n
Which means, the higher rental rates<\/strong> can compensate<\/strong> for the higher interest rates<\/strong> you have to pay.<\/p>\n\n\n
\n
$\"Malaysia$
Average cost of residential rent in Selangor, KL and Malaysia as of Q4 2023.<\/figcaption><\/figure>\n<\/div>\n\n\n
<\/a>6. Perfect! What areas should I look into if I want to invest?<\/h2>\n\n\n\n
As of Q2 2023, the average gross rental yield<\/strong> in Malaysia is 5.16%<\/strong> according to IQI’s data partner, Global Property Guide.<\/p>\n\n\n
\n
$\"Malaysia$
Average gross rental yields, provided by Global Property Guide.<\/figcaption><\/figure>\n<\/div>\n\n\n
The Malaysian rental market has proven to be very strong even amidst the challenges of the pandemic. <\/p>\n\n\n\n
In 2024, expect to see increasing rental rates especially in these thriving metropolitan areas: Kuala Lumpur, Johor Bahru and Iskandar Puteri.<\/strong><\/p>\n\n\n\n
<\/a>7. Give me another reason why I should invest in property now.<\/h2>\n\n\n\n
During the pandemic, one of the reasons rental rates dropped was because of the restriction of international travel.<\/strong><\/p>\n\n\n\n
Now that the borders are open and tourists are flocking to countries other than their own, more long-term residents, short-term tenants and international students<\/strong> are coming to Malaysia.<\/p>\n\n\n\n
This will create a higher demand for rental properties<\/strong>. One of them could be yours!<\/p>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
<\/p>\n\n\n\n
This is an opportunity that you shouldn’t miss. And hey, it’s backed by data from your very own, very first Malaysia Home Rental Index. Trust the numbers.<\/p>\n\n\n\n
Sign me up! I want to invest in Malaysian property now.<\/strong><\/p>\n\n\n\n
We’re here for you! Get in touch with one of our property professionals below, and let them guide you from start to finish.<\/p>\n\n\n\n
\n\n\n\n
IQI is one of the leading property agencies in the world – and the release of Malaysia’s first Home Rental Index proves so. Let us help you invest in a property by leaving your details below!<\/strong><\/span><\/p>\n\n\n\n\t\t\t\t\t\t