The case for build-to-rent housing in Malaysia

Free Malaysia Today

Industry has potential to grow if borrowing costs remain high and tenant protection is improved, experts in the property sector say.   Read More: https://www.freemalaysiatoday.com/category/highlight/2023/09/22/the-case-for-build-to-rent-housing-in-malaysia/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: http://bit.ly/2Rn6xEV Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on Twitter: http://bit.ly/2OCwH8a  Follow FMT on Instagram: https://bit.ly/2OKJbc6 Follow FMT on TikTok : https://bit.ly/3cpbWKK Follow FMT Telegram - https://bit.ly/2VUfOrv Follow FMT LinkedIn - https://bit.ly/3B1e8lN Follow FMT Lifestyle on Instagram: https://bit.ly/39dBDbe ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #FMTBusiness #BuildToRent #Property

Transcript

00:00 To buy or not to buy?

00:04 Well, when it comes to property, most would prefer a home to call their own.

00:08 But for many Malaysians, the dream of owning a home remains elusive due to high property

00:12 prices.

00:14 The situation has led to concerns over a property glut and one very big question for developers.

00:20 Can they actually sell the properties they build?

00:22 For some developers, the answer lies not in sales, but rentals.

00:26 An emerging trend in the property sector is built-to-rent or BTR properties.

00:31 Designed for renters, these properties are professionally managed and maintained.

00:37 It's a concept that has already found success in the US, UK and Australia.

00:41 Now, there is growing demand for BTR properties in Malaysia, but the Real Estate and Housing

00:46 Developers Association does not foresee the bulk of its members rushing to build them.

00:52 The built-to-rent concept is less likely to be undertaken by the majority of private developers,

00:58 as their capital structures are designed to develop and sell projects rather than renting

01:04 them out.

01:06 Sufian Abdullah, CEO of a local developer, also says BTR homes may not be appealing to

01:11 those in the property business.

01:13 For one, BTR requires a longer-term commitment from developers and returns may be lower compared

01:18 to traditional options.

01:20 This is because the private rental market in Malaysia is competitive.

01:24 There are loads of affordable choices including properties with amenities.

01:29 Still, like any other business, developers too have to adapt to what their customers

01:33 want.

01:34 The question is whether Malaysians are still hung up on their dream of owning a home.

01:39 Tan Lok Mun, a director of an architectural firm, says there is a need to change mindsets

01:44 that it is okay to just rent a home instead of buying one.

01:48 There is nothing wrong with renting.

01:50 Renting is not an underachiever if it chooses to rent rather than to buy a house and be

01:55 held down by mortgage and repayments.

01:58 Renting also suits some with careers and lifestyles that give them the flexibility to emigrate

02:04 and travel with their work.

02:06 Danish Rajariza, FMP News.

02:08 [Music]

Transcript

Recommended