Perak Residential Properties: An analysis of Price Trends and Rental Yields (2011-2015)

Perak Residential Properties: An analysis of Price Trends and Rental Yields (2011-2015)

Perak 7.1 – Price Movements of Single Storey Terraced Houses

• Single storey terraced houses in both Taiping and Ipoh were priced at RM 130,000 in 2011. The 2015 figures showed Taiping overtaking Ipoh with the former’s prices at RM195,000 compared to the latter’s RM170,000.

• Taiping and Hilir Perak both enjoyed a capital appreciation of 50% over four years while Ipoh recorded the lowest capital appreciation at 30.8%. 

• Despite Ipoh being the state’s capital with better infrastructure, prices of single storey terraced houses in Taiping still manage to command a higher average price.

• Taiping is situated further north of Perak and about the same distance away from the highway as Ipoh. Parit Buntar and Hilir Perak (Teluk Intan) are situated much further away from the highway.

• On average, prices have increased by RM55,000 across the 4 towns since 2011, recording an average increase of 46%.

Perak 7.2 – Rental Movements of Single Storey Terraced Houses

• The highest rental yield in 2015 was recorded in Ipoh at 3.5% {RM500x12months/RM170,000} followed by Teluk Intan at 3.27%, Taiping at 3% and Parit Buntar at 2.8%.

• The rental rate in Ipoh has remained unchanged since 2013 at RM500 while the other three areas have seen a steady growth in rental rate from 2011 to 2015.


Perak 7.3 – Price Movements of Double Storey Terraced Houses

• The average price of double-storey terraced houses is highest in Taiping at RM315,000 followed closely by Ipoh at RM310,000.

• Capital appreciation was highest in Parit Buntar at 86.8% and lowest in Ipoh at 40.8%. Hilir Perak and Taiping recorded 66.8% and 57.6%, respectively. 

• Prices of double-storey terraced houses in Taiping is 62% more expensive than single-storey terraced houses. The figure is 57% in Parit Buntar, 55% in Hilir Perak and 54% in Ipoh. 

Perak 7.4 – Rental Movements of Double Storey Terraced Houses

• Ipoh commanded the highest rental yield in 2015 at 3.1% {RM800x12months/RM310,000} and showed a steady increase of RM50 in rental rates from 2011 to 2015. 

• Hilir Perak and Taiping recorded rental yields of 2.4% and 2.2%, respectively.

• Teluk Intan (Hilir Perak) enjoyed a better rental yield than Taiping due to its lower cost of investment for double storey terraced house {RM180,000 compared to RM200,000}.

 

DISCLAIMER: The source of data is from the Valuation and Property Services department (JPPH) which officially records a property transaction once the stamp duty for the Sales and Purchase is paid. Analytics are based on the data available at the date of publication and may be subject to revision as and when more data becomes available.

This article was first published in the iProperty.com Malaysia July 2016 Magazine. Get your copy from selected news stands or view the magazine online for free at www.iproperty.com.my/magazine.  Better yet, order a discounted subscription by putting in your details in the form below!

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