Growing Demand of Student Accommodation in Subang

Growing Demand of Student Accommodation

Student life are consider one of the best times of one’s life. However, poor and inadequate accommodation can prove stressful.

Fortunately, there are numerous choices of legitimate student lodging today and parents are happy to pay for comfortable places for their children. Understudy convenience has turned into a conceivable resource class for investors. The demand for a place to stay is growing fast with the increase of higher-education student population.

In fact, Malaysia plans to double its international student enrollment from more than 135,000 in 2014 to 250,000 by 2025. 

“Our casual enquiry with private advanced education foundations (HEIs) uncovered that the enrolment of universal students is increasing with most of them originating from other Asian nations, notably China, Indonesia, Africa and the Middle East. The government target to attract up to 200,000 students by 2020.

“Additionally, Malaysians and foreigners are both look for understudy convenience. If there are more than 100,000 overseas enrolments, we conceive all out interest for student accommodation will be a few times this number.” 

“The market for student accommodation has been popular in Malaysia over the most recent couple of years. Most of the investors are focusing at schools and colleges areas, such as, Shah Alam, Subang Jaya, Cyberjaya, Sunway, Setapak and Cheras and spots like Semenyih and Kampar outside the Klang Valley have seen a ton of understudy lodging being assembled.” 

“Given that Malaysia is endeavoring to turn into a center hub for tertiary instruction, students hostel is very high demand. Properties on the market in regions near schools and colleges are progressively being changed over into students settlement. Indeed, even shop-lots have transformed into students accommodation.”

“In Kampar, Nilai and Bangi, there is a strong demand for student accommodation due to the large number of education institutions and corresponding students in the area. High residential occupancy is notice with higher than average rental rates,’ he adds.

Taking care of landlord and student needs

Growing demand for student accommodation has opened up opportunities for local businesses, such as Vince Home Management and Maxihomes Management Sdn Bhd, to help those with properties close to universities and colleges,

Maxihomes Management Sdn Bhd founders, Vincent Nee and Derek Soh – They started the business with renting the entire house and sharing with friends then come out with the idea of adding value to the house and rent to others college mates.

With the current state of the economy, many Malaysians choose to have their children to further their studies in local universities. As for the foreign students, with the debilitated ringgit  and the fact that Malaysia has some of the top universities in the world, this country has become an entirely reasonable choice for higher education.

 

Show me the money

While students get a comfortable and safe place to live, the company’s owners get returns that look promising.

Vincent and Derek, explains that to maximize the amount of rent, the units should renovate with the room addition or two where possible. He stresses, however, that such renovations should done with permission of the authorities and adhere to the regulations.

“Our biggest challenge is to handle student complaints and conflicts, especially when something is not working. The students expecting to rectify immediately and sometimes, the owners do not want to fix it because of the cost. To solve the issue, we create a ticketing system, which has a given time frame to fix issues or solve problems for them.

“The key to handling challenges is to make sure tenants and owners get fair treatment, so that both parties are happy. Achieving this involves a lot of interaction with our tenants and owners.”

In the conclusion, though the student accommodation sector promises attractive returns, the business cannot be done haphazardly and various factors have to considerate. Still, as the local and international student population keeps growing, this will be one investment sector worth looking at.

2020-03-27T13:09:53+08:00

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