KL rental accommodations more affordable now, says ECA survey


KUALA Lumpur (KL) is deemed more affordable now following an exit from the rankings of Asian’s top 40 most expensive rental locations based on a survey by ECA International.

The global market provider of knowledge, information and technology conducted a research which compares rental costs in accommodation in areas typically inhabited by expatriate staff in over 240 locations worldwide.

“The property market in KL has suffered from high levels of speculations over the past couple of years and high levels of new construction,” regional director Lee Quane said in a statement yesterday.

“The market is oversupplied and landlords have to compete significantly on rental prices to secure tenants.”

He also said the domestic economy has not been strong enough to bolster demand for the excess of higher-end properties on the market.

“However, a slowdown in property construction and cooling measures from the Malaysian central bank should see the market stabilise in the future years,” he added.

Hong Kong remains the most expensive location in Asia for accommodation rental. Rental prices for an unfurnished, mid-market, three-bedroom apartment in centralised locations in Hong Kong averaged at US$10,461 (RM41,844) per month.

Elsewhere in the region, accommodation costs have been on the rise. Accommodation costs in many locations in China have increased in the past 12 months. Shanghai is the most expensive location in mainland China and the thirdmost expensive location in the Asian region.

Rents in Tokyo have continued to go up, rising by 4% on average. Mumbai, India, also continues to climb through the rankings and is now the fifthmost expensive location in Asia for expats to rent.

Meanwhile, Singapore has also fallen in the list of the most expensive places in Asia for accommodation rental.

Rental prices for an unfurnished, mid-market, three-bedroom apartment in the Central Business District in Singapore averaged at US$4,337 per month — over US$175 cheaper per month than a year previously.

The downward trend in accommodation costs in Singapore was also witnessed in other locations in the South- East Asia region. Declines in rental costs in districts commonly inhabited by international executives have also occurred in Ho Chi Minh City (Vietnam), Jakarta (Indonesia) and Yangon in Myanmar.