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What is the future of the rental market in Malaysia?

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After nearly two years of the global pandemic disrupting economic and social activities, 2023 is expected to be a year of economic recovery, although with some challenges. As international borders reopen and the job market improves, along with increased local demand, economic growth is expected to be positive. 


There are many reasons why people are opting to rent in the current situation:


1. Increased Demand for Affordability

Rising property prices in many urban areas are leading to increased demand for more affordable homes in the secondary market. According to the Edge Market, Selangor's average house price increased from RM204,105 in 2000 to RM 534,846 in 1Q2021, with an average annual change of 4.8%. Double-digit growth was seen in 2010-2013. The highest annual change of 23.11% was in 2015, while 2020 saw only a 3.63% increase.  



2. Growth of the Rental Market

More people are opting for rental properties instead of buying, leading to the growth of the rental market in Malaysia. Siva from The Edge Market mentions that the majority of the population cannot afford houses, so they end up renting. And some become renters for life, which means they were not able to save enough to buy a single property,




3. Rise of Online Real Estate Platforms

The use of online real estate platforms such Propertyguru, iProperty, Edgeprop are increasing with additional features like virtual tour, zero deposit solutions making it easier for landlords and tenants to connect and transact in the secondary market.


4. Emergence of Proptech

Proptech companies in Malaysia, such as iProperty and Propertyguru, which employ technology to improve the real estate experience by linking owners and landlords with buyers and tenants, are expanding. It can provide the much-needed speed and precision for developers, banking institutions, and property investors when valuing their precious assets.




5. The Impact of the Sharing Economy

The sharing economy is expected to continue growing, leading to the development of new models for shared ownership of properties which leads to the rise of co-living or subletting. According to a Malaysia Digital economist, The global impact of the sharing economy will be in the range of USD3.1 trillion with a potential growth rate of 31% according to the study where Malaysia has the potential to see a contribution of up to USD 14 billion to its GDP by 2025. 


It is anticipated that the rental market will continue to be a significant aspect of the real estate industry, providing opportunities for both buyers and sellers to connect and engage in transactions. However, ongoing factors such as rising inflation, an increase in the Overnight Policy Rate (OPR), and affordability issues are expected to weigh on market conditions. As a result, it may take some time before consumers become confident in making large property decisions. 




Cheers,

BlueDuck!

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Shifting Perspectives: Why More Millennials Are Opting to Rent Instead of Buy Property?

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Investing in real estate, whether it be a property or land, has historically been a solid choice with its tendency to appreciate in value. Yet, in light of evolving economic landscapes, the Millennial generation may hold a different perspective. 


When it comes to securing a place to call home, what's the favoured option for Millennials - buying or renting? Well, According to MLive millennials prefer renting more than buying. From their blog, 24.7% of millennials who are currently renting in 2022 plan to always rent (and not buy a home). That's much higher than 2018, when 13.3% of renting millennials planned to always rent.


 


But why?There are a few factors we’ve concluded. 


1. Affordability


Buying a property can be too expensive for some Millennials. This includes the money needed for a down payment, the regular payments for the mortgage and property taxes. Especially for those with student loan debt or other financial responsibilities, it can be too much. Renting may be a more realistic option in these situations.


2. Freedom


Many Millennials choose to rent instead of buying because it gives them more flexibility and freedom to move around. They like to be independent, both financially and in terms of location, and they value experiences more than things. For them, things like travelling, and doing adventurous activities are more important than owning a lot of stuff.




3. Flexibility


Millennials who are in the early stages of their careers or who may need to move frequently for work may be more likely to rent, as it allows them to be more agile and avoid the hassle and expense of selling a home.


4. Different Perspective

Many Millennials don't care as much about owning a home and a car as their parents did. These things used to be seen as important signs of success, but that's changing. A lot of young people today don't think that owning things is as important as older people do.

Well, are you looking to rent a house? Buying a property can be too expensive with a big down payment and other costs, especially if you have student loan debt or other financial responsibilities. Renting is a more affordable option, and it gives you the freedom to move around and have experiences without worrying about owning material possessions.

For tenants, We have a solution for you with our zero deposit program. With BlueDuck, moving into your new rental can be easy, without the burden of a large upfront payment. Enjoy the benefits of renting with BlueDuck and experience the freedom you deserve!


But let us know your thoughts. What do you prefer, rent or owning a house? And why do you choose that?


Contact us or Email to us to know more!

Cheers,

BlueDuck Team.

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What are the differences between tenancy vs lease agreement in Malaysia? 🤔

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The distinction between a tenancy agreement and a commercial lease agreement in Malaysia lies in the nature of the property being rented. Tenancy agreements are generally utilised for rental purposes of residential properties, while commercial lease agreements are utilised for rental purposes of commercial properties such as offices or retail stores.


Here are a few other key differences between tenancy agreements and commercial lease agreements in Malaysia:


1. Length of tenancy: The duration of tenancy agreements in Malaysia is commonly set for one year, but it can vary based on the mutual agreement between the landlord and tenant, and may be shorter or longer. On the other hand, the term of commercial lease agreements tends to be longer, ranging from three to five years.


    2. Rent: The rent for a residential tenancy is typically determined by the market rate for similar properties in the area. Commercial leases may have a higher rent due to the potential for higher profits from a business.




    3. Termination: Well, here in Malaysia, either the landlord or tenant can end a tenancy agreement with a one-month notice. For commercial lease agreements, there may be stricter rules for termination, such as imposing a penalty on the tenant for prematurely breaking the lease.


    4. Maintenance and repair: Landlords are generally responsible for maintaining and repairing residential properties in Malaysia. In a commercial lease, the tenant may be responsible for some or all of the maintenance and repair 



    Which option is better, you might ask?


    It is not possible to determine which is "better" as it depends on the specific needs and circumstances of the individual. For some people, the security and stability of a long-term lease may be preferable, while for others the flexibility of a shorter tenancy may be more appealing. It is important for individuals to carefully consider their needs and priorities before entering into either a tenancy or a lease agreement.


    Ready to simplify your move-in experience? Well BlueDuck is here and ready to serve!

    Say goodbye to cash rental deposits with the BlueDuck Zero Deposit Program.


    Imagine an effortless transition into your new home. Discover all the benefits and start your new chapter today: www.blueduck.my 



    Cheers,

    BlueDuck Team!

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    Smart Rent-Saving Strategies: How to Cut Costs and Live Comfortably. 😎

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    Are housing expenses causing financial strain? You are not alone. Many people in Malaysia struggle to manage the cost of rent each month. Even if you are careful with your budget, rent may be one of your biggest expenses. Luckily, there are ways to lower these costs with a bit of creativity. 

    Here are some ways you can get started:


    1. Look for apartments in less expensive areas

    Rent prices can vary widely depending on the location of the apartment. Consider moving to a less expensive area or a neighbourhood that is up-and-coming, where rents may be lower but still on the rise.

    2. Share the cost of rent with roommates

    Sharing an apartment or house with roommates can significantly reduce the cost of rent. You can split the cost of rent, utilities, and other expenses, making it more affordable for everyone.



    3. Negotiate the rent with your landlord

    If you have a good rental history and have been a good tenant, your landlord may be willing to negotiate the rent with you. It never hurts to ask for a lower rent or to negotiate for other perks like a longer lease.


    4. Live in a smaller apartment

    A smaller apartment will typically be less expensive than a larger one. Consider downsizing your living space in order to save on rent. It will be worth it for long term!


    5. Take on a longer lease to negotiate a lower monthly rate 

    Landlords may be willing to offer a lower monthly rate in exchange for a longer lease. This can be a good option if you're planning to stay in one place for an extended period of time.


    Oh and did you know that paying rent on time with a credit card can help to build or improve credit scores? Some credit cards offer rewards or cashback for purchases, so paying rent with a credit card can help maximise your rewards on a regular expense!

    Many of you may have wondered whether it’s possible to pay rent with a credit card. As someone who rents a place myself, I understand rent payment is not cheap. Be it renting a room, a house, or even an office lot, the monthly rent payment took a big chunk of our cash income. 


    Paying rent with a credit card is now a reality thanks to BlueDuck payment platform. No longer do you have to dip into your cash savings or take out a cash advance to make rent payments. With the option to pay with a credit card, you can preserve your cash flow and take advantage of the perks that come with using your credit card.


    Drop a whatsapp and know more about paying rent with credit cards today at bit.ly/heyBD!!!



    Cheers,

    BlueDuck Team.

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    Why Renewing Your Tenancy is a Smart Choice?

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    As the end of your tenancy agreement nears, you are faced with a decision: Renew your lease or search for a new place to call home?

    The choice to renew your lease involves a thorough evaluation of various factors such as the neighbourhood, rental unit and its amenities, rental rate and more. The choice between renewing your lease and staying put or searching for a new living arrangement is a significant one and should not be made lightly.


    1. Familiarity

    One of the benefits is you don’t have to move. Moving to a new place can be an overwhelming experience, with the process of searching for a new rental unit, visiting listings, and deciding on a new home can be time-consuming. Once you have found a new place, packing your belongings, arranging for movers, and settling into your new home can add further stress and uncertainty to the moving process.

    By renewing your tenancy, you can avoid all of these costs and heacheads. You can continue living in a familiar environment and maintain the sense of community that you’ve built.

    2. Cost Savings

    Aside from the costs of moving, you can also save money. Staying in your current rental unit means that you won't have to pay the security deposit,  which is required for securing a new rental home or apartment. This can save you a significant amount of money upfront. If you haven’t already used Zero Deposit, you might need to pay a double deposit while waiting to get back your deposit from the previous landlord. 

    Furthermore, renewing your tenancy can also offer financial benefits. Moving can be expensive, with costs such as movers, deposits, and new furnishings adding up quickly. By renewing your tenancy, you can avoid these costs and continue to enjoy a more stable financial situation. For example, if you’ve been living in your current home for a while, you may have made some improvements or upgrades that would be expensive to duplicate if you had to move.



    3. Stability & Security


    Renewing your lease can provide consistency and stability in your life by allowing you to continue living in your current rental. Moving to a new place involves adjusting to new routines, neighbourhood, and potentially new roommates or neighbours. This can be stressful and overwhelming. Staying in your current rental, where you have established a routine and a sense of familiarity, can provide a safe and stable option. If what you have is working for you, there may not be a good reason to change. Well, just like the old saying—if it’s not broken, don’t fix it.

    When faced with the decision of whether to renew your tenancy or find a new place to live, there is a lot to consider. Such as familiarity with the house, saving money and staying in your current rental can provide a sense of consistency and stability, allowing you to continue building roots in a location that you already know and love. It saves you time, money and energy!



    Cheers,

    BlueDuck Team!

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    Wohoo! We are the Cradle Fund CIP SPRINT recipient! 🥳

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    We are proud to announce that we have been selected as one of the recipient of the CIP Sprint.
    This accolade is a testament to the company's dedication to innovation, sustainability, and excellence in the technology industry. 

    After months of due diligence processes, we are one of the recipients of Cradle CIP SPRINT program recipient which provides access to valuable business networking opportunities and other value-added services to aid in the development of business models, market validation skills, and market access. 
    May this achievement bring more opportunities for us to go further and inspire the rest of the local startups to stay ahead of the game! 

    Thank you SIDEC for celebrating the joy with us!!!🥳🥳



    Check out  Cradle Fund to see their news update!



    As we continue to grow and evolve, we remain committed to the core values of innovation, sustainability, and excellence. With the support of the CIP Sprint program, we want to make even greater contributions to the technology industry and create a more sustainable future for all.


    We would like to extend our heartfelt thanks to Cradle for their recognition and support. We are looking forward to continuing our journey of innovation and success, and to making a positive impact in the fintech world for years to come! This cannot be accomplished without everyone's support! We are eagerly anticipating what 2023 has in store for us!

    Cheers,
    BlueDuck.
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