Comparing Factory Asking Prices and PSF Without Misleading Yourself

Name the denominator every time

For a sale, asking-price PSF is the asking price divided by the selected area in square feet. The selected area might be land or built-up accommodation. Label it explicitly.

Consider a hypothetical factory offered at RM6 million, with 30,000 sq ft of land and 20,000 sq ft of built-up accommodation. Its asking price is RM200 per land sq ft or RM300 per built-up sq ft. Both calculations are correct; neither can be compared meaningfully with an unidentified “RM250 PSF” quotation.

For rentals, state the time period as well. “RM per sq ft per month” is different from an annual rate or a sale-price calculation. If a quoted monthly rent is RM40,000 for an identified 20,000 sq ft, the calculated rate is RM2 per sq ft per month. This is an illustration, not a Malaysian market benchmark.

Keep asking prices separate from transaction evidence

An asking price records what a seller is seeking. It does not establish the amount a buyer has agreed to pay or the value a professional would assign to the property.

Maintain separate columns for advertised asking prices, verified transaction evidence and professional valuation advice. Note the date and source of every comparable. If a listing has changed, retain the latest confirmed quotation rather than treating several versions as separate properties.

NAPIC's official portal provides property-market information and access to data resources. Use its published period and definitions when referring to a dataset. A national or state-level total is useful context, but it cannot by itself establish the appropriate price for one factory in one industrial estate.

References: NAPIC's official portal

Compare properties that solve similar needs

Build a shortlist around comparable location, property form and intended use. Separate vacant industrial land from completed factories, and distinguish substantial office accommodation from production accommodation.

Record tenure, remaining lease term where relevant, building condition, configuration and any uncertainty about approved alterations. These differences may help explain a pricing gap, but do not invent a standard percentage adjustment for each one.

Location comparisons also need precision. Two addresses in the same district may have different journey patterns, access arrangements or neighbouring activities. Check the factors material to your business rather than assuming a district label makes properties interchangeable.

Add the cost of making the property work

The purchase price or headline rent is only one part of the decision. Prepare a separate, quote-based budget for necessary adaptation, professional work, moving, reinstatement and operating overlap where applicable.

Keep one-off expenditure separate from recurring occupation costs. Ask which charges are included in a rental quotation and which remain payable separately. Do not assume that two landlords have quoted on the same basis.

Avoid presenting a simple total as a full investment appraisal. Financing, taxes and transaction costs require advice and figures relevant to the particular buyer and transaction. Use verified quotations and professional estimates rather than copying percentages from an unrelated deal.

Turn the comparison into a decision

Give each property a short comparison note: confirmed price, area basis, evidence date, key differences, estimated adaptation costs and unresolved questions. Highlight missing information instead of filling gaps with optimistic assumptions.

A lower asking-price PSF may justify further investigation. It does not automatically identify the better factory. The stronger choice is the property whose price, documented characteristics and practical costs make sense together for your business.