According to PropertyGuru, asking rents is anticipated to trend downwards, particularly within the private residential sector, “as more projects reach completion.”
In the third quarter of this year, approximately 9,000 private residential units were completed, including executive condominiums, representing the highest quarterly supply completion since the second quarter of 2016. This surge has propelled the overall rental supply index to rise by 11.3% quarter-on-quarter (QoQ).
Reflecting on the initial three quarters of 2023, the total number of completed units is more than three times the figures recorded during the same period in 2022.
PropertyGuru expects the estimated completion of 20,400 private homes in 2023, marking the most significant annual supply completion since 2017. Furthermore, the forecast for 2024 predicts an additional 8,959 units.
PropertyGuru emphasised that the easing of domestic demand will have an impact on prices. During 3Q23, the rental demand index experienced a significant decline of 10.4% QoQ.
“With land borders reopened, workers from Malaysia no longer need temporary rental lodgings. As more homes get completed, the number of local households moving into their new dwellings has also increased,” PropertyGuru explained.
Overall rental price index showed a decline, marking a 2.5% decrease QoQ and indicating the second consecutive quarter of contraction.
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