KUALA LUMPUR, Aug 23 -- The demand for serviced residences is slowly gaining ground, posting a significant growth of 14.7 per cent year-on-year in the first half of this year (H1 2019), according to iProperty.com.my H1 2019 Portal Demand Analytics.
The analysis provides a view of the current demand trends using the property portal’s user visits and property listings (sellers) data in the Malaysian residential property market with a special focus on Kuala Lumpur, Selangor, Penang and Johor.
iProperty.com.my general manager, customer data solutions, Premendran Pathmanathan said demand had shifted from condominiums to serviced residences due to affordability and strategic locations that provide convenience.
"The reason for this lies in the pricing where the median price has depreciated by 8.2 per cent to RM490,000, thus making serviced residences more affordable with a slightly lower entry price within and around city centres.
"However, at a national level, this building type median price is somewhat similar to condominiums (RM500,000) because (locations of) serviced residences provide convenience and accessibility," he told reporters at the Portal Demand Analytics launching ceremony here today.
The analysis provides the view of the current demand trends using the property portal’s user visits and property listings (sellers) data in the Malaysian residential property market with a special focus on Kuala Lumpur, Selangor, Penang and Johor.
He said the attraction of serviced residences goes beyond affordability when built right, while the appeal is also having the right address, accessibility to public transportation and availability of commercial elements such as food and beverage outlets.
"Recent supply of this building type in the right locations have resulted in interest growing.
"Currently, serviced residences represent about three per cent of the sub-sale transacted market share," he added.
Meanwhile, he said terraced houses, which constituted 32 per cent of total visits, had seen robust demand growth of 3.7 per cent.
"The median price of this type of property is RM300,000 and the reason why it is lower than condominiums and serviced residences is that these two housing types are located around and within city centres," he said.
Premendran said the top four housing markets in Malaysia were Kuala Lumpur (+3.8 per cent), Selangor (+9.8 per cent), while Penang and Johor both dropped by 4.4 per cent and 16.1 per cent respectively.