Landed Property vs. High-Rise: Which Property Should You Invest In?

So, you've made the exciting decision to purchase your first—or next—property. Great! After evaluating and choosing the investment strategy and location for your property investment , the next big question is: Should you buy a landed house or condo unit?

Before deciding, you’ll want to understand the advantages and challenges that comes with each option. Let’s explore the pros and cons of both to see which suits your investment goals.

The pros and cons of investing in landed property

Pros:

1. Larger Space
   Landed properties usually have larger spaces than high-rise units — more kitchen space for cooking, bigger bedrooms, and extra outdoor space for gardening, outdoor activities, and even future extensions. This flexibility can be particularly attractive to families who need more room as they grow.
   
   
2. Renovation Freedom
   With landed properties, you can design and upgrade your homes without being constrained by additional rules from high-rise management. Homeowners have more freedom to tailor the property to their needs.
   
   
3. Higher Appreciation/Resale Value
   Historically, landed properties tend to appreciate more over the long term than high-rise units in  , especially in desirable neighbourhoods. Here’s a glimpse of how landed property prices have risen across Malaysia from 2000 - 2021.
   
   

   Landed Property: Annual change of average house price from 2000-2021
   Location	Average price in 2000	Average price in 2021	Average annual change
   Kuala Lumpur	RM235,249	RM708,812	+5.6%
   Selangor	RM204,105	RM534,846	+4.8%
   Perak	RM89,525	RM235,000	+4.5%
   Penang	RM174,279	RM300,000	+3.2%
   Pahang	RM82,456	RM224,800	+5.0%
   Johor	RM132,872	RM350,000	+4.8%
   Sabah	RM182,870	RM363,660	+3.8%
   Sarawak	RM175,005	RM354,078	+3.9%

4. Peace and Quiet
   The physical space between houses reduces noise disturbances from neighbours, a common issue in condo living where walls are often shared.

Cons:

1. Higher Initial Investment
   One of the biggest drawbacks of landed properties is their higher purchase price due to the larger space and the scarcity of land, especially in urban areas.
   
   
2. More Upkeep and Maintenance
   Unlike condos or apartments that have building management to handle repairs and maintenance, the responsibility for upkeep in a landed property falls solely on you.
   
   
3. Less Security
   Unlike condos, which often have 24/7 security and controlled access points, homeowners of landed properties may need to invest in additional security measures such as alarms or private guards.
   
   
4. Compromise on Location
   Landed properties closer to city centers are often more expensive, requiring higher investment. For those who want a more affordable option and lower cost of living, the trade-off is often purchasing a property further from the city, which can increase their commute to work, schools, shopping malls and hospitals.

The pros and cons of investing in high-rise units

Pros:

Convenience of Facilities

Most modern condos offer facilities such as gyms, swimming pools, playgrounds, and even small convenience stores for residents. These perks can enhance your lifestyle while also make the property more attractive to potential tenants if you're renting it out.

Lower Initial Cost

Condos, particularly in the mid-range segment, generally come with a more affordable price tag than most landed properties, making it easier to qualify for a home loan.

Safety and Security

High-rise condos and apartments tend to offer higher levels of security than landed properties, such as 24/7security guards, gated access, visitor management systems, and CCTV surveillance.

Better Rental Yield

Condos in prime locations, particularly near city centers, public transportation hubs, offices, and universities, tend to be in high demand for rentals. The high demand for these locations often results in a strong and stable rental yield. Here’s a look at what high-rises in prime locations are fetching for rental.

Cons:

Less Privacy

Due to the high density of residents, condos tend to offer less privacy than landed homes. With many neighbors living in close proximity, you may experience more noise and disruptions, especially in older buildings with thinner walls.

Sinking Funds and Maintenance Fees

The convenience of facilities and security means additional sinking funds and monthly maintenance fees to cover the upkeep of shared facilities building maintenance.

Typically Smaller Space

High-rise condos generally offer less living space compared to landed homes. While some units may have balconies, many do not, and the lack of a private outdoor area can be a drawback for those who value outdoor space.

Lower Long-Term Appreciation

While condos may appreciate quickly in the short term, particularly in booming urban areas, their long-term appreciation tends to be slower than that of landed properties.

Restrictions and House Rules

Condo living often comes with restrictions, such as limits on pet ownership, noise levels, and parking space allocations. Home renovations or changes to the exterior facade are often regulated, giving owners less flexibility to redesign or expand their living space.

Conclusion: Landed house vs condo

Both landed properties and high rise units have their advantages and disadvantages. Landed properties offer space, flexibility, and long-term growth but come with higher costs and more upkeep. High-rise condos, apartments, or service apartments provide affordability, convenience, and strong rental yields but may lack privacy and have additional fees.

Ultimately, you should weigh the pros and cons of each option based on your personal needs and investment goals to choose the best property investment for you.

Once you have made your decision, you can check your eligibility and apply online.

💡 The information provided above is purely for educational purposes.