00:00 To buy or not to buy?
00:04 Well, when it comes to property, most would prefer a home to call their own.
00:08 But for many Malaysians, the dream of owning a home remains elusive due to high property
00:12 prices.
00:14 The situation has led to concerns over a property glut and one very big question for developers.
00:20 Can they actually sell the properties they build?
00:22 For some developers, the answer lies not in sales, but rentals.
00:26 An emerging trend in the property sector is built-to-rent or BTR properties.
00:31 Designed for renters, these properties are professionally managed and maintained.
00:37 It's a concept that has already found success in the US, UK and Australia.
00:41 Now, there is growing demand for BTR properties in Malaysia, but the Real Estate and Housing
00:46 Developers Association does not foresee the bulk of its members rushing to build them.
00:52 The built-to-rent concept is less likely to be undertaken by the majority of private developers,
00:58 as their capital structures are designed to develop and sell projects rather than renting
01:04 them out.
01:06 Sufian Abdullah, CEO of a local developer, also says BTR homes may not be appealing to
01:11 those in the property business.
01:13 For one, BTR requires a longer-term commitment from developers and returns may be lower compared
01:18 to traditional options.
01:20 This is because the private rental market in Malaysia is competitive.
01:24 There are loads of affordable choices including properties with amenities.
01:29 Still, like any other business, developers too have to adapt to what their customers
01:33 want.
01:34 The question is whether Malaysians are still hung up on their dream of owning a home.
01:39 Tan Lok Mun, a director of an architectural firm, says there is a need to change mindsets
01:44 that it is okay to just rent a home instead of buying one.
01:48 There is nothing wrong with renting.
01:50 Renting is not an underachiever if it chooses to rent rather than to buy a house and be
01:55 held down by mortgage and repayments.
01:58 Renting also suits some with careers and lifestyles that give them the flexibility to emigrate
02:04 and travel with their work.
02:06 Danish Rajariza, FMP News.
02:08 [Music]
