What do you guys think about prospect of property investment in Malaysia especially in Klang Valley? Is it still valid and relevant?

- Oversupply of housing units. First time buyers/younger buyers mostly do not have 10% and money for lawyer cost etc. So they opt for new development which most offer zero entry cost. As a consequence, subsale unit very hard to get buyer (especially unit priced rm400k to RM800k).

- Not easy to get tenant, very competitive market. Maybe oversupply also the factor.

- Cost to own a rental unit is not cheap.
1) Have to installed lighting, fans, aircond, kitchen cabinets, curtains, etc for bare unit. That might cost around RM20k minimum in average.
2) Cost for agent fee, every 2 years or every year.
3) Cost owner have to bear in between period to get a new tenant, maybe minimum can lost 1 month rental, if not lucky can be 2 or 3 months before get new tenant.
4) Cost for monthly Maintenance fees (for condos or landed wioth facilities). This not cheap.
5) Headache to handle bad tenants that give problems or damage the unit. In some cases the deposits cannot cover the repair cost. Owner can consider being lucky if can get good tenant. In general from my experience not easy to get really good tenant. Becos peoples with good financial mostly live in own house, not renting.
6) Cost to pay yearly Cukai pintu/cukai petak.
7) Most cases I notice owner cannot cover bank monthly installment wioth the rental money. Need to top-up.
Considering all these costs, if you carefully calculate, at the end, landlord are are loosing end.

- Condominium can be very less attractive after 10 to 15 years. Looks rundown, old. But not all. So, to sell old condo, not that easy to get buyer. That is one thing, to get the buyer. Another thing is the price might be same or if not lucky, the price is lower that the price owver buy from developer. If higher, not that much. If you calculate all the cost owner have to beat during years of tenancy, after get some untong after sell, is it still worth or just break even? or rugi?
If rugi, all the headache having unit for investment, just for nothing. Only penat and waste of time. Or at least only had the pride of becoming a landlord Feel like orang kaya when have title as landlord.

8) If rent received > installament plus maintenance cost, please factor in contributions to LHDN. Kenot lari.

If you don’t have the interest, nor the patience then definitely no.

So much hidden fees in having a property, no wonder I see those people who are super in to investing would always say property is the worst.

And it’s very hard to find or even analyse what will be the next Laurel residence, that can help you generate a positive cash flow.

Bottom line for me is, if you don’t have the interest in property then just save your money and invest in other stuff.

Owning a property is a lot of patience and it’s heartbreaking to see your money go when you just look at it through a pure investment lens.

Yes, if you invest in the right sector.

when landed more than condo unit , yes

when condo unit more than landed , nooooooo

What mean you

If u got the money, buy the developer's share better.

Not just oversupply or maintenance or interest. The risk is ever-evolving, a policy change could alter everything.

Example: The factories in Senawang & Sungai Gadut Industrial Estate used to place their foreign labors at nearby housing estates. Thus the demand has always been there for 20+ years.

Then suddenly the N9 state govt came out with this CLQ policy. CLQ - Centralize Living Quarters, aka centralize labour hostel lah. Forcing the factories to place their workers in CLQ of designated areas (of cos developed by those connected lah).

Overnight, the housing demand of nearby Taman shrunk drastically. Meanwhile the CLQ operators are laughing all the way to the bank. Every month sit there collect rentals from tens of thousands foreign labors.

Yes, the Govt is also fighting with u for money.

Until poorperly overhang is reduced substantially, price will remain suppressed. In a few years time, this country will become a ageing nation; more subsale will be in the market. Most of those bought in the last 10 years are under water.

Only ignorant consider high rise for investment.

Investment is a no... own stay, maybe... its better to put money into etf or put into EPF.

In KL Selangor we can still rent an empty condo at RM1000 for 900sqf. After 10 years maybe rental go up to RM1200. Imagine if total 30 years renting a house and total payout is RM432k. And among 30 years if we put RM1500 into our KWSP account, after 30 years with compounding interest the amount will be RM 1.3m.

During the tenure of renting house, we do not need to pay any maintenance fee, cukai tanah and most important is saving huge interest from bank loan. A property of RM 500k the total interest payout is similar like RM 500k for 35 years, whopping RM1m paying to bank. But after 35 years the property especially condo may worth less than the purchasing price because the condo age is "old" while there are other newer condo at affordable price.

Your calculation is RM1.2k/mth for the next 30 years. That's interesting.

i would buy reit instead

Condominium and Flat property value will stagnant and the property itself aging, facilities need to fix/ replace. If the Persatuan Penduduk is under perform then the whole asset will depleting from time to time.

Only possibility for massive increase in value is if you look at new development area or new township areas. That also comes with its own set of risk. If township program successful then profit, but if failure or abandoned then you're left holding the bag.

That's the biggest issue I have with Condo. Your condo conditions is dependent on the JMC attitude.

This post has been edited by Mixxomon: Jul 1 2025, 09:09 AM

Not worth investment anymore as SS > DD, including auction property

My friend got a house at Damansara Damai double storey and rented out for RM900 for pass 15 years and rental amount remain same until today. Setapak PV old condo (PV2 PV5) more than 1200sqf, the 2nd hand market value at once went up to RM550k but now around RM400k. The rental once reach RM1700 for bare unit last time but now the rental goes down to RM1500. Because this area got too many new projects and newer condo. If you don't believe you can go survey around the area. I stay nearby Setapak and Sentul and I know the movement of these areas.

I strongly believe even in 2035 you can still get the RM1200 for a unit less than 1000sqf and 20 years old condo because too many vacant unit by then.

You can still make money from buying new condo IF:

Your entry price is less than others (eg. you buy special rate from bulk purchase or you know the bosses of the developer)

You have good connections with renovators who can do up your unit nice nice for rental market at a good price

You didn't take 90% loan so your rental is more than your instalment

Use that as diversification of your investment. Invest in unit trust also lose money. Best is EPF, every year will definitely have dividends above rental yield.

Property investment is no longer viable unless:

1. your entry price is lower psf (i.e auction or not reputable dev), in which case you may need to take some risk. if you are buying from undercon, subsale, all the risks have been covered and priced in.

2. affordable housing. you can't go wrong when your project is subsidzed by gov.

3. landed development at the right location.

the rest of us can forget about property investment and just buy for own stay. less headache this way.

invest in non residential properties

I agree with you... oversupply of condo units (i.e. esp oversupply of new highrise development) kills subsale market and also renting market.

What I see, developers are crazy to develop new highrise to give advantage of zero entry cost offer to first time buyer under 20-s or early 30s. This group of peoples nowadays I doubt have savings to afford buying subsale. No or little savings maybe due to high cost of living and tend to spend money to maintain lifestyle such as temptation spend money for viral food and drink, clothing, travelling, etc to keep up with media social world.