On an assignee’s priority list, second only to finding a great school for their children comes securing a convenient and comfortable home for the family. In this article Pathfinder Relocation Services Sdn. Bhd. (PRS) shares its thoughts on the housing market in Malaysia and the importance of ensuring lease agreements are written in the favour of the assignee tenant.
Kuala Lumpur is continuing to grow rapidly, with a number of high-end housing complexes due for completion in the next two years. This has placed a downward pressure on the rental rates of older complexes. Although condominium rental prices are tending to decrease, the rental rates for gated communities are holding steady, as there is limited availability in areas preferred by expatriates.
Serviced apartments are a market in themselves and the rates have been increasing each year. As a guide, at the time of writing, the monthly rental in a gated community in KL ranges from RM12,000 to RM20,000 (£2,500 to £4,200) for a 4/5 bedroom unfurnished house. At the other end of the scale, a one-bedroom unfurnished apartment could be secured for RM3,500 to RM5,000 (£750 to £1,100) per month.
Penang in the north of Malaysia has seen house prices increase 20% compared to previous years, whilst rental prices have remained somewhat stagnant. The south of the island nearer to the industrial zones around Bayan Lepas are seeing major growth. As a rule of thumb the assignee can be looking for a nice house in a gated community for what would only be the starting range in Kuala Lumpur.
The internet is a great tool and many potential housing options can be found, but, surfer, beware! Is the house or apartment actually available and will the housing agent be working for you or the landlord’s interest? It’s certainly something to consider.
Finding the right house is only half the story, as a client-focused destination service provider will ensure that the lease is written in the favour of the assignee, or their company if the company is the one paying the rental. The standard leasing agreement that PRS negotiates for an ‘expatriate’ type property is two years with an ‘expatriate clause’ which states that after one year, should the assignee’s work permit be cancelled (for a reason beyond his/her control) or is relocated by their company, then upon two months written notice to the landlord, the tenant will be released from the lease contract. This in an important clause to have included as it discharges the assignee or their company from having to pay the full 24-month rental due to an early departure.
Pathfinder Relocation Services Sdn. Bhd. is an independently owned and operated Destination Service Provider for Global Mobility Companies and International Businesses relocating staff to Malaysia. Founded in 1993, PRS has been successfully relocating assignees to Malaysia through its extensive, yet personal services.
PRS is a multi-platinum Commitment to Excellence award recipient from Cartus Global Network and was shortlisted for the Cartus Masters Cup in 2012. Pathfinder Relocation Services Sdn. Bhd. (PRS) is a member of EuRA (European Relocation Association) and is bound by their ethics and rules of conduct. PRS obtained the EuRA Quality Seal in 2009.