Although the trend had once been the opposite, Asean Today said cities had been hit by an “exodus”, largely due to the spike in property prices.
From 2015 to 2016 alone, the price of buying a house rose by 7.2%, more than the rate in developed economies such as the US and the UK, where prices increased by 5.1% and 5.2%, the report said.
Over the last ten years, the cost of buying a house has increased by 99%, far beyond the means of most of the younger generation.
For those who work in the cities but are unable to afford the cost of living there, commuting from smaller towns on the outskirts has become a viable option thanks to infrastructural development such as the construction of highways and better internet access.
Meanwhile, the report said job opportunities in rural areas were also increasing, especially in the tourism and agriculture sectors.
It said the population shift from city to countryside would see an accompanying shift in investments, with money trickling down even to the more rural areas.
“As more of the urban youth flock to the countryside, the big cities like Kuala Lumpur may find that investment in property and infrastructure will take a slight hit.
“Unless immigration keeps the city expanding, foreign investment will also move to follow the people. This move will mean more investment in rural towns. Therefore, those currently living in the countryside need to prepare themselves for an increase in people to their towns.”