KUALA LUMPUR — Aug. 23, 2019: The demand for serviced residences recently showed an uptrend, posting growth of 14.7 per cent year-on-year in the first half of this year, showing that demand had shifted from the condominiums sector due to affordability and locations.
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 the city centres.
However, at a national level this building type median price is somewhat similar to condominiums (RM500,000) because the locations of serviced residences provide convenience and accessibility, iProperty.com.my general manager (Customer Data Solutions) Premendran Pathmanathan revealed today.
The company’s portal demand analytics provide a view of the current demand trends using the property portal’s user visits and property listings (sellers) data in the residential property market with focus on Kuala Lumpur, Selangor, Penang and Johor.
According to Pathmanathan, 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.
A recent supply of this building type in the right locations has resulted in interest growing and currently serviced residences represent about three per cent of the sub-sale transacted market share.
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.
The top four housing markets identified by the company were Selangor (+9.8 per cent) and KL (+3.8 per cent) while Johor dropped by 16.1 per cent and Penang 4.4 per cent. — Bernama