How Is Property Classified Market Positioned in Malaysia?
Malaysia, with a population of 32.7 Mn in 2021 and being the 2nd largest economy in Southeast Asia region, Malaysia real estate is experiencing a digital wave sweeping across its 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. Before the pandemic began, buying or renting a home was virtually unimaginable; it acted as a catalyst for people to explore ways to expand digital business platforms Overall, there is an increased interest in using online platforms to buy/rent a home. 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 contributing $~ Mn revenue in 2021 and growing at CAGR of 21.8 % during 2015-2020. 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.
Malaysia Property Classified Market Segmentation
By Business Model: Revenue Via Listings and Classifieds generated highest revenue due to increased user base. Majority of the property classified ad marketplaces provide the main services at free of cost so that the users can buy/rent properties and the sellers can list their properties for free. 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: % of Transactions were carried out via Renting of Properties with ~% of the property transactions being the new development and ~% buying/renting the same for investment purposes. The advertisement-based revenue model is gaining traction and is often used by websites/applications/marketplaces that attracts huge amounts of traffic. Revenue is generated by selling ad space and it is one of the most standard methods of gaining revenue.
By Type of Region: Klang Valley leads the Malaysia Property Classified Market with the market share of ~% in terms of revenue due to a high concentration of commercial and recreational activities.
Properties are benefitting from the confluence of demand from various buyer groups, including foreigners looking for a good buy, Malaysia investors, owner-occupiers who want to live closer to the city, as well as a sizeable pool of budget-conscious tenants who might be priced out of the prime rental market in the city centre.
The conurbation is the heartland of Malaysia’s industry and commerce and has one of the highest properties in Malaysia. The number of vacant office spaces in the Klang Valley grew at an alarming rate throughout, surpassing 150 million square feet despite a slowing appetite for businesses to expand. This paves the way for classified companies, thereby increasing revenue.
Malaysia Property Classified Market Competition
The market is moderately concentrated for listings and classifieds companies with major players including PropertyGuru, iProperty, RentGuard, Mudah.my, StarPropertyetc. The market is fragmented market for aggregators & co-living companies with top players namely Hatchery Place, Co-Coon, HelloHome Komune Living, JL Co-living, Utopia holding more than ~% market share in terms of revenue. 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% CAGR during 2020-2026 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.
Key Segments Covered in Malaysia Property Classified Market: –
By Business Model
Listings and Classifieds
Aggregators and Co-Living
By Purpose of the Purchase
Key Target Audience
Property Classified Companies
Real Estate Developers
Time Period Captured in the Report:
Historical Period: 2015-2021
Forecast Period: 2021-2026F
Listings and Classifieds
Aggregators and Co-Living
The Bed KLCC
Key Topics Covered in the Report: –
Overview of Malaysia Property Classified Market
Ecosystem of Major Entities in Malaysia Property Classified Market
Business Cycle and Genesis of Malaysia Property Classified Market
Malaysia Property Classified Market Size, 2015-2021
Malaysia Property Classified Market Segmentations
Competition Analysis: Market Share of Major Listings and Classifieds and Major Aggregators & Co-Living Companies
SWOT Analysis in Malaysia Property Classified Market
Revenue Models in Malaysia Property Classified Industry
Growth Drivers and Restraints in Malaysia Property Classified Market
Technological Advancements in Malaysia Property Classified Market
Impact of COVID19 in Malaysia Property Classified Market
Key Trends in Malaysia Property Classified Market
Outlook and Future Projections for Malaysia Property Classified Market
Future Market Segmentation by Business Model and Revenue Sources
Recommendations / Success Factors
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Ankur Gupta, Head Marketing & Communications