Why Property Agencies Like to Sell Below RM500k Properties
In Malaysia’s property market, one trend stands out: agencies love to focus on properties priced below RM500,000. At first glance, this might seem like agents just chasing volume. But the truth goes deeper—it’s about commission structures, cash flow, and survival in a competitive market.
The Commission Reality
For most sub-RM500k projects, developers are offering 4% and upwards in commission. That means selling a RM480,000 unit could easily generate RM19,200 or more in fees. Not bad at all.
Why This Price Band Works
- Bigger Buyer Pool
Homes under RM500k are accessible to more Malaysians, especially first-time buyers. More demand means faster transactions. - Faster Loan Approvals
Banks are more comfortable lending at this range. Approvals are quicker, rejection rates are lower, and deals don’t drag for months. - High Volume = Consistent Income
An agent who closes three sub-RM500k deals in a month can earn commissions equivalent to a single luxury property sale—but with less risk of the deal falling through.
The Bigger Picture for Agencies
While negotiators benefit from steady commissions, agencies as a whole win too.
- Stable cash flow: A consistent volume of smaller deals smooths out monthly revenue.
- Lower operational risk: Losing one big sale won’t sink the agency if you have dozens of mid-market transactions.
- Better valuation: Investors and potential buyers view agencies with predictable, diversified revenue more favorably than those reliant on sporadic luxury closings.
For the agency boss, a high volume of predictable transactions means stable income to cover fixed costs and a business less vulnerable to market swings than one dependent on rare luxury deals.
Why This Segment Is the Bread and Butter
In short, properties below RM500k strike the perfect balance: strong commissions, faster turnover, and broad buyer demand. That’s why they remain the bread and butter for both individual negotiators and entire agencies.
Final Word
👉 For negotiators, the lesson is clear: consistent income comes from where the demand is.
👉 For agency leaders, building a training model around this segment is the key to sustainable growth.
