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Renting News: When ‘neighbour’ increased the rental, I will follow too. Does it happen like this?

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Renting News: When neighbour increased the rental, I will follow too. Does it happen like this?

What may happen if rental in Kuala Lumpur increased very fast?

If rental in KL city centre increased very quickly, people may rent at the fringes of KL city centre. If the whole KL city is very expensive, people will rent homes with a Selangor address. This is common and this is why prices always rise from the place with the most demand first. When the supply can no longer keep up, the supply would have to be expanded somehow. Else, the rental will increase until the market collapses. Either people stop coming to KL to work since rental is just too high or the owners start to reduce rental voluntarily. 🙂

Imagine renting a room within KL city centre for RM1,500? People would have to rent lower by moving away instead. Okay, people would now say then why rental in Shah Alam also high in comparison? 😛 Haha. There are also people working in Shah Alam mah. These people may be coming from other places and thus the demand will increase and thus rental will also increase too.

Coming back to the article which I read.

Article in KGV International Property Consultants (Johor) Sdn Bhd executive director Ir Samuel Tan says that the current fast and furious rental market in Singapore may help the rental market in Johor.

Tan said, “Singapore’s relatively outstanding performance in crisis management over the past three years earned itself brownie points in attracting investment as well as the choice of the rich and wealthy to settle down or work. However, Singapore’s living cost as a whole will rise further albeit at a more gradual pace moving forth.”

“We believe Johor Bahru being the closest neighbour to Singapore will be able to tap some spill-over in terms of business opportunities, investment across sectors as well as a choice of accommodation. As it is, many businesses and manufacturers based in Singapore have already relocated some or all of their operations to Malaysia to capitalise on the lower cost.” Do read the full article here: Article in

It’s possible IF there is a BETTER link

The Rapid Transit System (RTS) was supposed to be ready earlier… then someone went to delay it. Now, it will only be ready by 2026. I do not think Jan 2026 yeah, probably second half of 2026. Please make my prediction wrong and start it earlier. Now for the question. How many expats would want ot be based in JB if they have to brave hours of traffic to and fro daily just to get to office and go home? It seems the answer should be ‘not many.’

Or maybe the companies employing these expats have higher bargaining power lah. Means the expats listen to what the companies say versus looking for another company which would house the expats in Singapore. So, the employers are able to influence these expats to stay in JB versus staying in Singapore instead. We will see what happens but if rental really does not stop rising, this will become a very realistic option. It could even become a norm yeah. Good for JB market. Go Go JB rental market!

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Next suggested article: When rates rise, buying falls, financial logic right?

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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