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The report titledMalaysia Property Classifieds Market Outlook to 2026F –Driven by Increasing Internet Penetration and Smartphone Users along with Rise in Virtual Toursprovides a comprehensive analysis of the potential of Property Classified industry inMalaysia. The report covers various aspects including the current real estate scenario and rental rates in Malaysia, revenue generated from Malaysia Property Classified market, its segmentations viz Business Model(Listings and Classifieds and Aggregators and Co-Living), By Rent and Sale, By Region (Penang, Putrajaya, East Region, Cyberjaya Selangor, Johor, Klang Valley, Kuala Lumpur), revenue models, major trends and development, issues and challenges, technological advancements and competition analysis. The report concludes with market projections for future of the industry including forecasted industry size by revenue along with analyst recommendations and key market opportunities.

Overview of Malaysia Property Classified Market

Malaysia, with a population of 32.7 Mn in 2021 and being the 2nd Largest Economy in Southeast Asia region, is experiencing a digital wave sweeping across its real estate value chain, disrupting how buyers and sellers interact with one another. Consumers are not just bound to explore the buying/ renting options through digital platforms but are interested in other residential services as well.  Additionally, the current pandemic has presented consumers as well as developers with a unique opportunity to put their trust in digital platforms. Malaysia is the emerging market for Property Classified in ASEAN growing at CAGR of 19.2% during 2015-2021. Most full-stack Property Classified players in Malaysia have remained focused on the low-rise residential property segment considering the burgeoning housing shortage, rapid urbanization and urban migration trends. A number of developers are offering extended payment terms, lighter down payment schemes, and waived reservation fees with a limited time offers, which financially prepared buyers should take advantage of. However, the industry is highly vulnerable to fraud due to its complex nature, reliance on technology, and interaction between stakeholders and third parties.

By Business Model: Revenue Via Listings and Classifieds generated highest revenue due to increased user base. A growing millennial workforce, fast evolving consumer trends and untapped demand potential in the market are real draw cards for start-ups and developers looking to enter the Aggregators and Co-Living market.

By Purpose of Purchase: The Rent transaction dominates the marke with advertisement-based revenue model gaining traction in the recent years.

By Region: Klang Valley leads the Malaysia Property Classified Market in terms of revenue due to a high concentration of commercial and recreational activities. The number of vacant office spaces in the Klang Valley grew at an alarming rate despite a slowing appetite for businesses to expand. This paves the way for classified companies, thereby increasing revenue.

Malaysia Property Classified Market Competition:

Table: Proportion of Business Segments in Revenue, 2019-2024E

Company / Parameter

2019

2024E

Insurance

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~

Banking (Loans & Bank Accounts)

~

~

Others

~

~

Total

~

~

 

Ken Research analyses the high potential for scaling up the aggregator model to peer GCC countries and recommends certain measures to ensure sustainable growth of the platform.

Aggregators must also up-ante their technology stack capable of satisfying customer directly from the platform and predict customer’s future buying decisions.

 

The market is moderately concentrated for listings and classifieds companies with major players including PropertyGuru, iProperty, RentGuard, Mudah.my, StarPropertyetc and fragmented market for aggregators & co-living companies with top players namely Komune Living, Sleepy Bear and others. Players are competing on the basis of Commission Charged, Number of Listings, Locations Covered, Detailed Comparisons, User Interface & Technology and Value-Added Services. Factors such as expensive rentals, fixed one- to two-year tenancy contracts and the hassle of dealing with intermediaries, have driven the growth of co-living concepts in Malaysia.

Malaysia Property Classified Market Future Outlook and Projections

Malaysia Property Classified Market is expected to grow at a massive rate of 33.3% CAGR during 2021-2026 providing a lucrative opportunity for property classified investors. Technology has been increasingly becoming an attractive asset for landlords, potential real estate investors and tenants looking for an efficient and secure opportunity in the Commercial Real Estate segment (CRE). This presents a lucrative opportunity for Property Classified investors to witness high returns on their investment. The real estate digital classifieds space is still in the early stages of growth and the listings are dominated by builders and brokers.  Further, with newer technology-based services such as 360-degree view, listing convenience, subscription management etc., and the focus is likely to be on educating individual users. Therefore, the advertisements are more likely to be focused on the individuals on both the buying and selling side, which could help reduce the resistance of online real estate tractions by individual users.

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