One of the biggest problems that millenial and Gen-Z clients have nowadays is the expensive (and rising!) prices of property in the Klang Valley. Everyone wants the very best place with what they can afford. So you agents can help them and speed up your sales processes by knowing local areas and the general pricing of houses in each one! In this article, we share some cool and useful heat maps made by Crib for you to do just that!
Being the spine of Malaysia's economy with over 8 million people, more than half of the country’s residential property sales are in Klang Valley. It only consists of 3 states — Kuala Lumpur, Selangor and Putrajaya — all of which can be pricey to live in.
But how pricey exactly?
Many searches and conclusions have gone into the living costs of the Klang Valley. According to iPrice Group Sdn Bhd for example, the estimated living cost for a single person in Kuala Lumpur (KL) is RM3,262. And for couples to live a comfortable life without children, they’d need a household income of about RM12,000. This is based on typical lifestyles of M40 and T20 couples without children, along with the assumption that taxes are 7% and EPF deductions are 11% of their monthly income.
The heatmaps are done by splitting Klang Valley into hexagons used to represent smaller, localised areas. Each hexagon has a 2km radius area, and property transactions (from 2020) made within each one were then used for analysis.
They found that the most expensive houses (dark brown) tend to focus in Central and Northeast KL. Those with median prices over RM 1 million are in desirable and high-end locations with predominantly landed property, which includes places like Bangsar, Elmina, Ampang hilir, Sri Hartamas, Bukit Damansara and Taman Tun Dr. Ismail. Other similar areas include Mont Kiara and Desa Park City with higher median prices ranging from RM780k to RM900K. And finally surrounding these areas then are houses in the lower range of RM500K to RM1 million.
It is also noted that while KLCC city centre is one of the most desirable places to own a house, the median prices are lower because of serviced apartment units with small build-ups that lower the price down.
These monthly incomes are done based on the assumption that each buyer:
Again, the highest income results (dark purple) are mostly focused around KL’s city centre. So buyers would need to expect at least a RM10,000 monthly income to afford a house there. This also clearly shows that residential properties further away from the city centre are generally cheaper.
So, now that you have these heat maps, you can wow your clients with even more expert property knowledge! Easily use them as reference when gauging how expensive residential properties tend to be in a specific area, plus how much your client would need to earn if they’d like to buy a house there!
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