ORIGINAL ARTICLE
The Power of Place: How Location Drives Residential Rental Prices in Kuala Lumpur Educational Zones
More details
Hide details
1
Centre for Real Estate Studies (UTM CRES), Institute of Smart Infrastructure and Innovative Construction (ISiiC), Universiti Teknologi Malaysia, Johor Darul Takzim, Malaysia
Submission date: 2024-11-10
Final revision date: 2025-02-03
Acceptance date: 2025-02-18
Online publication date: 2025-03-09
Publication date: 2025-03-09
Corresponding author
SHANG YIN TAN
Centre for Real Estate (UTM CRES), Institute for Smart Infrastructure and Innovative Construction (ISiiC), Faculty of Built Environment and Surveying., Universiti Teknologi Malaysia, Malaysia
Civil and Environmental Engineering Reports 2025;35(2):24-34
KEYWORDS
TOPICS
ABSTRACT
This study investigates the factors influencing the rental value of residential properties near educational institutions in Kuala Lumpur, Malaysia, where rental prices have shown steady growth but vary significantly across different areas. The research focuses on the impact of locational attributes on rental values, examining key factors such as proximity to the central business district, public transportation access, environmental amenities, green spaces, safety, and neighbourhood services. Data was collected from approximately 300 students renting houses in these areas using a snowballing sampling method, which helped to reach participants through referrals, ensuring a relevant sample of renters in educational zones. The data was then analysed using SPSS, employing Descriptive analysis and Pearson correlation to assess the strength and significance of relationships between locational attributes and rental values. In conclusion, the results show that the proximity to educational center (r=0.50, p<0.05) and proximity to public transportation (r=0.37, p<0.05) statistically significant to the rental values, on the other hand, attribute of green urban areas (r=-0.11, p>0.05) shows no significant to the rental values. The study contributes to the existing literature by providing empirical evidence on the role of locational attributes in shaping rental values near educational institutions, helping bridge the knowledge gap in urban housing research. These results offer practical implications for property developers who can use these insights to develop a property which fix the demands and needs, property investors and owners, who can adjust the pricing strategies based on the demand for key location and also the policymakers who can incorporate these findings into urban planning and housing policies to enhance the rental market’s sustainability in educational zones.
REFERENCES (10)
1.
Aluko, O 2011. The Effects of Location and Neighbourhood Attributes on Housing Values in Metropolitan Lagos. Ethiopian Journal of Environment Studies and Management 4, 69-82.
2.
Brecard, D et al. 2018. Accessibility, Local Pollution and Housing Prices. Economic et Statistique 500, 97-115.
3.
Darfo-Oduro, R 2020. Determinants of Residential House Rental Prices in Accra Metropolis.
4.
Fernandez, D 2011. The Impact of Location on Housing Prices: Applying the Artificial Neural Network Model as An Analytical Tool.
5.
Gluszak, M and Tanas 2018. Discrete Choice Model of Residential Location in Krakow. Journal of European Real Estate Research 10, 4-16.
6.
Odubiyi, T, Oguntona, O, Oshodi, O, Aigbavboa, C and Thwala, W 2019. Impact of Security on Rental Price of Residential Properties: Evidence from South Africa. IOP Conference Series: Materials Science and Engineering, Ota, Nigeria 640.
7.
Pan, Q, Pan, H and Zhang, M 2014. Effects of Rail Transit on Residential Property Values: Comparison Study on the Rail Transit Lines in Houston, Texas, and Shanghai, China. Transportation Research Record 2453, 118-127.
8.
Rahman, MM, Hossain, T, Chowdhury, MRH and Uddin, MS 2021. Effects of Transportation Accessibility on Residential Housing Rent: Evidence from Metropolitan City of Khulna, Bangladesh. Journal of Urban Planning and Development 147.
9.
Sani, A, Mohammes, MI and Usman, H 2023. Locational, Neighbourhood and Physical Characteristics of Residential Rental Properties: A review. Journal of Commerce Management and Tourism Studies 2, 143-154.
10.
Shen, Q, Xu, S and Lin, J 2018. Effects of Bus Transit-Oriented Development (BTOD) on Single-Family Property Value in Seattle Metropolitan Area. Urban Studies 55, 2960-2979.