KUALA LUMPUR: An increasing number of Malaysians are shifting away from urban centres, mainly due to the rising cost of housing rentals in the cities.
Those who opt to move to suburban areas outside of major cities are also attracted by the fact that more spacious properties can be rented for less.
This decision is driven by the need to cut costs and accommodate the rising need for larger homes and a dedicated home office, in light of the widespread adoption of hybrid working arrangements.
The downside of such arrangements, however, is that more and more Malaysians are facing longer commutes, with some even having to travel for hours each day just to get to work and back.
Wong Whei Meng, chief executive officer of Speedhome, a platform for renting out real estate, said besides the increasing cost of living, the shift was also driven by the improved network of public transport.
"People are shifting to larger units, instead of studios or away from cities, primarily due to more acceptance of hybrid working environments.
"This includes the need for a home-office space for privacy purposes.
"When the cost of living increases, distance to travel becomes less of a concern because of hybrid working arrangements.
"Better networks of public transport, such as the Mass Rapid Transit, are also pushing people towards the outskirts," he told the New Straits Times.
The surge in property prices and economic uncertainty are also contributing to a notable change in such trends, whereby people are more inclined to rent as compared with buying their own property.
PropertyGuru's Malaysia Property Market Report for the fourth quarter of 2023 highlighted a 5.9 per cent fall in the Sale Demand Index in the third quarter.
Demand for landed homes also decreased by three per cent quarter-on-quarter, with a sharper fall attributed to higher values, reflecting increased costs of a high interest rate.
The report also highlighted a notable surge of 24 per cent in demand for rent from the fourth quarter of 2021 until the third quarter of 2022.
The PropertyGuru Malaysia Consumer Sentiment Survey for the second half of 2023 showed that high property prices had deterred 87 per cent of potential homebuyers, with 66 per cent being discouraged by high interest rates.
Many were gravitating towards more affordable alternatives such as renting.
"About 65 per cent of the survey's participants continue to rent because they lack the savings to purchase a home," the report said.
But while longer commutes may allow people to save on rental costs, it may eventually lead to health problems, including mental health issues.
Experts warned that longer hours spent in transit expose commuters to outdoor air pollutants and other issues.
They also warn that mental health issues include stress levels that tend to go up when sitting in vehicles for long periods of time.
These then contribute to other health conditions, which may lead to an early death.