Gross Rental Yield: approximately 5%, driven by increasing demand in strategic location such as Penang, Kulim, and Johor.
Annual Appreciation Rate: approximately 4.4%, this can vary depending on the location and the type of property.
Vacancy Rate: approximately 10%, however this rate can fluctuate depending on market and area.
Choosing a location:
- Areas around public transporation, hospital, and major highways are important for industrial properties.
- Properties near port, or airports are also ideal.
- Places near emerging business hubs (For example: Johor for logistic or Penang for tech and manufacturing) are also good.
Pros and Cons of Industrial Properties
| Pros | Cons |
|---|---|
| With Malaysia becoming a key manufacturing hub, especially in tech sectors, demand for industrial properties remains high. | The success of an industrial property investment is highly dependent on its location, particularly proximity to key industries and infrastructure. |
| Industrial properties often come with longer leases, providing stable cash flow. | Industrial markets can be influenced by global supply chains, which might lead to sudden shifts in demand. |
| Government incentives for certain industries can make these properties more attractive. | Industrial properties have higher maintenance costs due to the nature of their use. |