Remarkable rental returns: 10 hottest projects in 2017

Ipoh, Malaysia.

High angle view of the Ipoh cityscape – terrace homes in Taman Merdeka, Ipoh recorded rental yield figures of 7.5%.  Source: Getty Images. 

These residential properties recorded rental yields ranging from 6.6% to as high as 10.9%.

The overall rental yield for houses in Malaysia has been relatively low these past 2 years. Although it is currently a buyer’s market, there is still a fair amount of projects that have stood out from the rest.

To unearth these real estate gems, we filtered through sub-sale transactions across Malaysia in the past year and ran some numbers to identify the top 5 high-rises and landed residential developments, respectively that offer the best rental revenue (yield) in proportion to the property’s price.

Rental Yield = (Monthly median rental X 12)/Median property price X 100

GUIDE

  • MEDIAN PROPERTY PRICE: Sales data captured from the Valuation and Property Services Department (JPPH) and compiled by iProperty.com’s big data solution, iPropertyiQ.com.
  • MEDIAN RENTAL: The annualised figure of asking median rent obtained from iProperty.com Malaysia’s property listing database. Only monthly rents within the evaluation period are used to determine the median for each project.
  • REVIEW PERIOD: Oct 2016 to Sept 2017.*Refer to footnotes.

Looking at the best-performing rental properties, Mont Kiara snagged the number one spot for high-rise homes whereas Pengerang emerged victorious in the landed homes category.

CHECK OUT: Highest Capital Growth: Top 5 Condos & Terraces in 2017

TOP 5 CONDOMINIUMS

1. Kiara Ville, Mont’ Kiara

»Rental Yield: 10.6%

This luxury condominium is a joint-venture project between by Binaderas Sdn Bhd (a subsidiary of Ireka Group), CapitaLand Financial and OCBC Bank (Singapore). The 6-tower condominium offers residential units measuring from 1,100 sq ft to 3,935 sq ft.

Kiaraville Mont Kiara

Source: Google Maps

  • Completion Date: February 2008
  • Average PSF: RM701 (as of October 2017)
  • Facilities: Swimming pool, Barbecue area, Cafeteria, Covered car park, Gymnasium, Jogging track & Nursery
  • Nearby amenities: Publika Shopping Gallery (1.4km); 1 Mont’ Kiara (1.9km); Solaris Mont’ Kiara (700m) & Mont Kiara International School (1.3km)
  • Connectivity: Jalan Duta Toll is located 5.8km away; New Klang Valley Expressway (NKVE); Jalan Duta Sungai Buloh Highway & SPRINT Highway.

2. Berjaya Times Square Serviced Residence, Bukit Bintang

»Rental Yield: 7.2%

Located right in the heart of KL city centre, this integrated development comprises of serviced residences and a shopping mall. Developed by Berjaya Group, the residences are available in built-up sizes of 550 sq ft, 570 sq ft and 1,070 sq ft.

Berjaya Times Square Residence, KLCC.

Source: Google Maps

  • Completion Date: October 2003
  • Average PSF: RM965 (as of November 2017)
  • Facilities: Swimming pool, Basketball court, Tennis court, Squash court, Cafeteria, Gym & Sauna
  • Nearby amenities: Berjaya Shopping Mall located just below; The Royal Selangor Golf Club (2.1km); Lot 10 Shopping Centre (2.3km); Plaza Low Yat (2.1km) & Tung Shin Hospital (3.3km)
  • Connectivity: Imbi Monorail station is located right next to the development; Jalan Tun Razak; Jalan Pudu; Jalan Sultan Ismail & Jalan Bukit Bintang.

3. Jesselton Residences, Kota Kinabalu

»Rental Yield: 6.7%

Source: iProperty.com

Jesselton Residences is a high-end condominium developed by Palikota Sdn Bhd, a subsidiary of Jesselton Waterfront Holdings. Located along Jalan Haji Saman, is also the tallest waterfront building in the central business district of Kota Kinabalu and the residences are located right above the Jesselton Mall. This mixed development is located right at the waterfront, between the Customs House and the Jesselton Point Jetty. There are 333 residential units available, ranging from 965 sq ft to 6,443 sq ft.

  • Completion Date: 2016
  • Average PSF: RM1,000 (as of November 2017)
  • Facilities: Gymnasium, Sauna, & infinity Swimming pool
  • Nearby amenities: Located right next to Suria Sabah Shopping; KPJ Damai Specialist Hospital (5.7km); Padang Merdeka (2.2km); Sutera Harbour Golf & Country Club (4.2km)
  • Connectivity: The Kota Kinabalu International Airport is located 9.2km away; Jalan Tun Razak; Jalan Tun Fuad Stephen & Jalan KK Bypass.

4. Mont’ Kiara Damai, Mont’ Kiara

»Rental Yield: 6.6%

Mont-Kiara-Damai-Condominium

Source: Google Maps

Mont Kiara Damai by UEM Sunrise Berhad is a luxury resort-style condominium situated along Jalan Kiara 2, with only 230 units spread out across 40 storeys and 8.7 acres of freehold land. Unit sizes are huge, starting from 2,272 sq ft all the way up to 11,000 sq ft.

  • Completion Date: July 2004
  • Average PSF: RM628 (as of October 2017)
  • Facilities: Gymnasium, Games room, Tennis court, Swimming pool, Clubhouse, Cafeteria, Business centre & Barbecue area
  • Nearby amenities: Solaris Mont Kiara (1.5km); Publika Shopping Gallery (2.4km); Hartamas Shopping Centre (3.2km) & Garden International School (3.3km)
  • Connectivity: Jalan Duta Toll is located 6.9km away; New Klang Valley Expressway (NKVE); SPRINT Highway & Jalan Duta Sungai Buloh Highway.

5. Wangsa Heights, Bukit Antarabangsa, Ulu Kelang

»Rental Yield: 6.6%

A much older, albeit still affordable condominium, Wangsa Heights was built by Superview Development Sdn Bhd. There are 1-bedroom, 2-bedroom, 3-bedroom and penthouse units available, with built-up sizes ranging from 725 sq ft to 2,600 sq ft.

Wangsa-heights-Condominium-UK

Source: Google Maps

  • Completion Date: 2001
  • Average PSF: RM235 (as of November 2017)
  • Facilities: Gymnasium, Swimming Pool, Sauna, Squash Court, Playground & Barbecue Area.
  • Nearby amenities: Giant Supermarket Bukit Antarabangsa (1.0km); Oakleaf Country Club (3.0km) & Zoo Negara Malaysia (4.4km)
  • Connectivity: Kuala Lumpur Middle Ring Road 2 (MRR2) and the Ampang-KL elevated highway are just 5 minutes away & Duta-Ulu Kelang Expressway.

TOP 5 TERRACE HOMES

1.Taman Desaru Utama, Kota Tinggi, Johor

»Rental Yield: 10.9%

Taman Desaru Utama

Source: Gregory Low, CORE Home Management

Taman Desaru Utama is a 495-acre integrated township featuring landed homes including terraces, bungalows, semi-Ds and villas. A brainchild of SKS Group, Taman Desaru Utama offers affordable homes; one can purchase 1-storey terrace houses priced from Rm298,000 onwards.

  • Average PSF: RM354 (as of September 2017)
  • Facilities: Clubhouse, banks, restaurants, retail shops, petrol station
  • Nearby amenities: Bandar Penawar Sports School (550m); MARA professional College (1.1km); SKS City Mall (2.4km) & Desaru Beach (6.3km);
  • Connectivity: Penawar Toll Plaza is just 4.6km away, Jalan Kota Tinggi-Pengerang & Senai-Desaru Expressway.

2. Taman Tasik Semenyih, Semenyih, Selangor

»Rental Yield: 10.3%

Most well-known as a student township due to its proximity to Nottingham University, Taman Tasik Semenyih is divided into 7 precincts. Developed by Bandar Tasik Semenyih Sdn Bhd, a subsidiary of BTS Land Capital, this township comprises of 2-storey landed homes i.e. terraces, bungalows and semi-Ds. The seventh precinct, which is also the most well-maintained one is pictured below:

Taman-Tasik-Semenyih

Source: Google Maps

  • Average PSF: RM252 (as of September 2017)
  • Facilities: Lake gardens, eateries & shop lots
  • Nearby amenities: Semenyih Lake Country Club (500m); Nottingham University (1.8km); Econsave (3.5km) & The Store (3.4km).
  • Connectivity: Jalan Semenyih, Jalan Broga, Jalan Bangi & Jalan Sungai Lalang.

3. Taman Damai Jaya, Skudai

»Rental Yield: 9.4%

Taman Damai Jaya is a mature residential borough, consisting of terrace homes and located roughly 9km away from the Skudai CBD. Its neighbours include the following notable townships: Mutiara Rini, Bukit Indah and Horizon Hills.

Taman-Damai-Jaya

Source: Google Maps

  • Average PSF: RM295 (as of September 2017)
  • Facilities: Shop lots, clinics & banks
  • Nearby amenities: Carrefour Sutera Utama (4.9km); Afiat Healthpark (6.7km); AEON Bukit Indah (7.okm) & Universiti Teknologi Malaysia (10.4km)
  • Connectivity: Jalan Selesa Jaya, Persiaran Indah Utama & Second Link Expressway.

4. Taman Merdeka, Batu Berendam, Malacca

Another typical residential area, Taman Merdeka is roughly 12km away from the Malacca CBD. Potential residents could choose from either single or double storey-terrace homes.

Taman-Merdeka-Batu-Berendam-

Source: Google Maps

»Rental Yield: 8.9%

  • Average PSF: RM183 (as of November 2017)
  • Facilities: Shop lots & 1Malaysia Clinic
  • Nearby amenities: Giant Hypermarket Cheng Malacca (2.4km); Malacca International Airport (6.1km) & AEON Malacca (8.2km).
  • Connectivity: The north-bound toll leading onto the North-South Expressway is 10.4km away; Jalan Taman Merdeka & Jalan Batu Berendam.

5. Taman Cempaka, Menglembu, Ipoh

»Rental Yield: 7.5%

Located roughly 7km away from the Ipoh (South) Toll Plaza, this housing scheme offers 2-storey terrace houses. Homes as low as RM115,000 are currently available on the market.

Taman-Cempaka

Source: Google Maps

  • Average PSF: RM172 (as of September 2017)
  • Facilities: Shop lots, eateries & community hall
  • Nearby amenities: Ungku Omar Polytechnic (2.0km); Pantai Hospital (2.7km); AEON Mall Kinta City (3.7km); Fatimah Hospital (4.1km); Extreme Park Sunway City Ipoh (6.5km) & Lost World of Tambum Theme Park (7.5km).
  • Connectivity: Jalan Sri Cempaka & Jalan Tambun Baru.

FOOTNOTES:

1) The data from JPPH officially record a property transaction once the stamp duty for the Sales and Purchase Agreement is paid, hence why the review period ended in September 2017, as the data from JPPH has not been released yet. 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.

2) Residential projects with less than 10 transactions were not taken into consideration when selecting the top 5 winners and built-up sizes of homes were not used as a metric when selecting the 5 winners in each category.

3 ) Distances to nearby amenities were determined using Google Maps.

*This article was amended on 20 March 2017, in particular for Property number 3. Previously, there was an error for Jesselton Residences. The error is regretted and thank you to Victor Gan for pointing it out.

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