In its Property Market Report for 1Q 2024, Property Guru said this trend highlights the complexity of market dynamics, where counterintuitive trends can occur even amidst declining demand.

The report noted that the rental demand index for residential properties recorded a decline of 11% quarter-on-quarter (q-o-q) due to seasonal festivities, which typically affect rental activity at the start of the year.

“In addition, the decrease in rental demand in 1Q 2024 may also be influenced by challenges such as rising asking rents and an increase in property supply,” it noted.

In a statement today, PropertyGuru Malaysia country manager Kenneth Soh said while demand and supply figures suggest a period of adjustment, the market’s resilience and the nature of these shifts provide a cautiously hopeful outlook.

“The balance between supply and demand is evolving, and with careful navigation, the rental market could maintain its stability.

“This would continue to attract property investment from buyers looking to enjoy good rental yields, especially in areas showing faster economic growth and those with infrastructure developments in the pipeline,” he said.