A number of property rental apps have hit the market in Malaysia in recent months spurred by the pandemic’s ‘new normal’ demands. Asian Property Review talks to the persons-in-charge of two of them to get a better picture of the trend.
A Millennial Fix
First off, Vincent Lim, Managing Partner of Cozyhomes.my, a curated online platform that lists fully furnished designer homes for rent, gives his take. Next is Eric Tan, CEO and co-founder of Instahome, a platform described as a fully digital end-to-end rental solution.
1. Why is renting a rising trend in Malaysia, especially with millennials?
Lim: From our observation, there is weak purchasing sentiment and lack of confidence when it comes to big ticket items like property. This is due to several factors including rising cost of living, lesser room for capital appreciation as well as significantly cheaper rental rates compared to housing loan installments.
When owning a property, there are also assessment fees, maintenance fees, insurance, etc, that add to the cost of ownership. All these commitments make renting far more ideal, especially with the oversupply situation in the Klang Valley.
Today, we find that the younger generation prefers to spend more of their time and income on their lifestyle and travelling – be it domestic or overseas.
This leaves less income for commitment to property which has led to this group, comprising 65% of all renters currently, to continue to rent indefinitely.