Score methodology
How the Score Works
The deal score is a structured, rule-based screening tool. It is not a valuation, a financial model, or a guarantee of accuracy.
What the score measures
The deal score (0–100) is an early-stage screening signal combining eight weighted components. It is designed to surface obvious weaknesses and missing data, not to replace professional advice.
A high score does not mean the deal is good. It means the submitted data does not show obvious red flags across the measured dimensions.
The score is only as good as the data provided. If the agent's rent figure is inflated, the yield component will look better than reality. Always verify claims independently.
What the score does not measure
- –Actual market value (only asking price is submitted)
- –Legal title status, land tenure, or state authority approval
- –Loan eligibility, debt service coverage ratio, or mortgage affordability
- –Tax obligations for foreign property owners in Malaysia
- –Actual occupancy or tenancy data (only claimed rent is used)
- –Physical condition, defects, or building maintenance status
- –Strata management quality
- –Future infrastructure or development plans nearby
- –Currency risk for non-RM buyers
Score Components
Assessed from the asking price per square foot. In the MVP, this is scored from the PSF band alone. When transaction benchmark data is added, this will compare asking PSF against the median transacted PSF for the same condo and area.
Calculated from the agent-claimed monthly rent: (monthly rent × 12) ÷ asking price. Scored on a graduated scale: 5%+ strong (20 pts), 4–4.99% acceptable (15 pts), 3.5–3.99% weak (11 pts), 3–3.49% weak (8 pts), below 3% poor (4 pts). Investment buyers with yield below 4% receive an additional deduction.
Checks whether the asking price meets the estimated state minimum purchase threshold for foreign buyers. 9/10 if it appears to meet or exceed the threshold. 1/10 if it appears to fall below. Near-threshold prices (within ~12% above minimum) are flagged as potentially inflated to meet the threshold.
Evaluates whether the deal makes sense for the stated purpose. Own-stay buyers score 13/15. Investment buyers are scored on gross yield: 15/15 for 5%+, down to 3/15 for below 3%. Mixed use and unsure receive moderate scores.
Neutral at 5/10 in the MVP. When transaction volume and competing listing data are added, this will reflect how frequently similar units in the building transact and how many competing units are currently listed for sale.
3/10 if no developer is named. 6/10 if a developer is named but not yet in the database. When developer data is added, this will reflect completed project count, delivery record, listed/private status, and known red flags.
1.5/5 if no contractor is named. 3/5 if named, as a baseline. When CIDB data is added, this will reflect registration status, CIDB grade, high-rise residential experience, and known delivery issues.
Reflects data completeness. Rent provided: +3. Developer named: +2. Contractor named: +1. City/area provided: +1. Bedrooms specified: +1. Notes provided: +1. Maximum 10 points.
Verdict Bands
How Asking PSF is calculated
Example: RM 1,200,000 ÷ 1,000 sq ft = RM 1,200 per sq ft.
PSF allows size-adjusted comparison between units. It is most useful when compared against recent same-building transacted PSF, not just asking PSF.
How Gross Rental Yield is calculated
Example: (RM 4,500 × 12) ÷ RM 1,200,000 × 100 = 4.50% gross yield.
Why gross yield is not net yield
Gross yield does not deduct any costs. Net yield is always lower. Common deductions:
- Vacancy periods (units are rarely 100% occupied year-round)
- Monthly maintenance and strata fees
- Annual property assessment (cukai pintu)
- Rental agent management fee (typically 1 month per year)
- Minor repairs and furnishing replacement
- Income tax on rental income (if applicable)
A common rule of thumb: net yield is 1–2 percentage points below gross. A 4.5% gross yield may produce 2.5–3.5% net in practice.
Why foreigner threshold does not mean a good deal
Meeting the threshold means a property may be eligible for foreign purchase. It does not mean the price is fair, state approval will be granted, or the deal is a good investment.
A common pattern: condos priced at exactly RM 1,000,000 (the KL foreigner minimum) regardless of actual market value. This price may have been set to qualify for foreign purchase, not because the building supports that valuation.
Why transaction data is needed for stronger accuracy
Asking price is not transacted price. Transaction data (from NAPIC, Brickz, or EdgeProp) shows the actual stamped sale price registered with the government after a sale completes. This is the most reliable indicator of current market value.
Without transaction data, the Price Logic score is based on PSF band analysis only — a rough indicator, not a precise valuation.
Why developer and contractor checks matter
A poorly capitalised developer can abandon or delay projects. A weak contractor can produce buildings with serious structural or finishing defects.
For contractors: CIDB grade ranges from G1 (small capacity) to G7 (large capacity). G7 is appropriate for major high-rise residential work. Registration grade alone does not guarantee build quality.
Why listing rent is only indicative
Rental figures from listing portals are asking rents — what landlords request, not what tenants pay. Signed tenancy agreements often transact 5–15% below asking rent, especially in high-supply submarkets.
Data Sources
User submission
Asking price, unit size, bedrooms, furnishing, claimed rent, purpose, buyer status, developer and contractor names.
Foreigner threshold table (manual)
Indicative state-level minimum purchase thresholds. Updated manually. Always verify with a licensed Malaysian property lawyer.
NAPIC / JPPH
National Property Information Centre — official government transaction data. Future data source.
Brickz
Project and township transaction reports, PSF trends. Future data source.
EdgeProp
Past transaction data, area and project insights. Future data source.
PropertyGuru / iProperty / EdgeProp listings
Indicative asking rent only. Used for rental benchmarking context, not as transacted rent.
Developer official websites
Completed and ongoing project lists. Future data source.
KPKT / National Housing Department
Developer registration and housing project records. Future data source.
CIDB contractor search
Registration, CIDB grade, and registered categories. Future data source.
Public news and Bursa filings
For listed developers: financial health, litigation, project delays. Future data source.
Resident feedback
Forums, Facebook groups, Google Reviews. Qualitative signal only.