With the population here in Malaysia and even around the globe growing every year, it is inevitable that housing will become a serious issue if planning isn’t done early. According to the United Nations, they forecast that by 2050, 68 per cent of the world’s population will be living in urban areas.

With the pandemic showing no signs of relenting, Malaysia’s property market looks to be in a slump. The falling price of properties indicates that there is less demand while the stagnating prices of rent may be an indicator that many are choosing to rent in the face of uncertainty. Even before the pandemic, in western nations, prices for homes in major cities have become so unattainable that many are forced to rent.

Taking this into consideration, today we are looking at an interesting new model of housing – build to rent – where the concept involves the building of a multi-residential project but instead of selling the units, the developer maintains ownership in favour of renting the units out for a long-term passive income source.

This arrangement is perfect for the younger generation which often prioritises lifestyle aspirations over homeownership. This model has also shown success for the older generation, who may want to downsize their home after their children leave for college, work, etc.

This is where the IBS construction model is highly beneficial. For ‘build to rent’ models, the faster a unit is complete the faster you can start renting and the faster you start seeing a return on investment. IBS solutions or prefab construction is known for the speed in which it can deploy high-quality structures. So, while you may not be saving on the construction cost with this method of construction, you are actually saving on opportunity costs as it takes a lot less time for these buildings to get completed. You can read more on the benefits of IBS Construction here, here and here.