Demand for serviced residences gains momentum in 1H19

The demand for serviced residences is slowly gaining ground, posting a significant growth of 14.7 per cent year-on-year in the first half of this year (H1 2019), according to iProperty.com.my H1 2019 Portal Demand Analytics.

The analysis provides a view of the current demand trends using the property portal’s user visits and property listings (sellers) data in the Malaysian residential property market with a special focus on Kuala Lumpur, Selangor, Penang and Johor.

iProperty.com.my general manager, customer data solutions, Premendran Pathmanathan said demand had shi ed from condominiums to serviced residences due to affordability and strategic locations that provide convenience.

“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 city centres.

“However, at a national level, this building type median price is somewhat similar to condominiums (RM500,000) because (locations of) serviced residences provide convenience and accessibility,” he told reporters at the Portal Demand Analytics launching ceremony here yesterday.

The analysis provides the view of the current demand trends using the property portal’s user visits and property listings (sellers) data in the Malaysian residential property market with a special focus on Kuala Lumpur, Selangor, Penang and Johor.

He said the a raction 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.

“Recent supply of this building type in the right locations have resulted in interest growing. Currently, serviced residences represent about three per cent of the sub-sale transacted market share,” he added. — Bernama