Malaysia's rental market hit a five-year high in Q4 2024, according to the latest IQI Malaysia Home Rental Index report. Juwai IQI's co-founder and group CEO, Kashif Ansari, summarised the findings. "National rents rose 3.9% year-over-year to an average of RM2,052 to hit a five-year high,," he said, "though growth remained steady rather than extreme.

The report listed Kuala Lumpur rents as stabilising at RM2,847 after a volatile period, while Selangor rents showed a mild recovery. The results suggest the market is trending toward stability. The fact that rents are stabilising rather than surging ahead should be good news for renters worried about the cost of living the CEO noted.

Rental Prices Hit a New High in Q4 2024
The current rental levels is at its peak since Q1 2020, when rents declined due to the COVID-19 pandemic. Today, new lease rents are 24% higher than their 2020 low, but renters still pay RM442 less per month than in 2019, on average. "Compared to Q3 2024, rents grew 2.8% in Q4, and were 3.9% higher than at the end of 2023. This steady rise, following a flat Q3, suggests that rents are returning to pre-Covid levels. "The trend remains healthy but not overheated when compared to the rapid growth in 2022 and Rental rates boomed by 13.1% and 5.5% in those years, respectively.

"Our 2025 forecast calls for moderate growth, not another boom or crash. Thankfully, rental rates have stabilised. We expect to avoid a return to the extreme volatility seen in 2020 and 2021, when they fluctuated by as much as 26% year-over-year.

Market Outlook: Cost-of-Living Stability Ahead
Overall, Malaysia's rental market has hit a five-year high, but growth is slowing in two of its largest cities. That should reassure renters that their cost of living will likely be relatively stable in the year ahead