Imagine owning a piece of landed property in Malaysia without the hefty down payments, complicated loans, and maintenance hassles.
Sounds too good to be true?
Enter Urby, a fractional real estate investment platform that’s changing the way Malaysians invest in property.
This review provides an in-depth look at Urby Malaysia, its key features, benefits, and considerations for potential investors.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Before making any investment decisions, conduct your own research, assess your risk tolerance, and consult a licensed financial advisor if needed.
What is Urby Malaysia?
Urby is a fractional real estate investment platform that allows investors to purchase property-specific Profit-Share Contracts (PSC), referred to as shares.
These shares are directly backed by landed residential properties in the Klang Valley, enabling investors to gain exposure to the property market without the burdens of traditional homeownership.
Urby was founded with a dual mission:
- To encourage investments that revitalize and rejuvenate communities.
- To promote sustainability by upcycling old homes and contributing to environmental and social impact.
Key Features of Urby Malaysia
- Low Entry Barrier – Start investing with as little as RM10.
- No Mortgage Required – No need for loans or property maintenance responsibilities.
- Data-Driven Property Selection – Properties are chosen using UrbanMetry’s data analytics.
- Flexible Exits – Investors can sell their shares on the secondary market.
How Does Urby Work?
Urby operates through Profit-Share Contracts (PSCs), which are agreements between investors and property owners—typically UrbanWave, Urby’s sister company.
Unlike platforms that use Special Purpose Vehicles (SPVs) to pool investor capital and manage properties, Urby’s PSC model allows investors to earn a share of the profits only when the property is sold.
Investors do not take on ownership responsibilities or maintenance costs, making it a hassle-free way to benefit from property appreciation.
How to Invest in Urby
- Sign Up (By Invitation Only) – Currently, new users need a referral link to join.
- Complete eKYC Verification – Users must verify their identity before investing.
- Browse Available Properties – Select landed residential properties to invest in.
- Purchase Shares – Acquire PSC shares starting from RM10.
- Monitor Investments – Track property performance through the Urby app.
Pros of Investing with Urby Malaysia
1. Accessibility to Property Investment – Invest in landed, freehold properties with a low minimum investment of RM10.
2. No Property Management Responsibilities – Investors are not responsible for mortgage payments, maintenance, taxes, or other costs.
3. Direct Investment in Specific Properties – Unlike REITs, Urby offers investment opportunities in specific landed residential properties.
4. Potential for Financial Returns – Investors can earn from property appreciation or by selling shares in the secondary market.
5. Community and Sustainability Impact – Investments help revitalize neighborhoods and promote sustainability through home upcycling.
6. Transparency – Urby provides detailed property information, including land titles, pricing, and investment terms.
7. Diversification – No restrictions on the number of properties investors can invest in, allowing portfolio diversification.
Cons of Investing with Urby Malaysia
1. Not Currently Regulated – Urby is not yet regulated in Malaysia but is engaging with regulatory bodies for future compliance.
2. Limited Rights as an Investor – Investors do not have the right to live in, rent out, or make decisions about the property.
3. Investment Risks – Risks include property market demand, PSC price volatility, liquidity concerns, and potential homeowner default.
4. No Guaranteed Returns – Property values fluctuate, and investment returns are not assured.
5. Liquidity and Exit Challenges – Selling shares depends on market demand in the secondary marketplace.
6. Limited Access – Currently, sign-ups are by invitation only.
Fees and Charges
1. Transaction Fees – 2.5% fee when purchasing property shares via the Daily Drop feature.
2. Revenue Model – Urby currently earns revenue from new property listings.
3. Withdrawal Fees – No fees for withdrawals, but standard bank charges may apply.
Personal Experience Using Urby
1. A New Player in the Market
Urby is powered by UrbanMetry, an AI-driven city and property data company founded in 2014. Unlike traditional real estate investment platforms, Urby doesn’t have strong backing from major property developers or well-known real estate figures.
It also hasn’t been widely featured in mainstream financial news, which made me a bit cautious at first.
2. User-Friendly and Intuitive App Design
The Urby app is designed with simplicity in mind, making it easy to navigate and place orders to buy shares without hassle.
Unlike many stockbroker apps that can feel cluttered with charts and market data, Urby keeps distractions to a minimum, offering a clean and straightforward interface.
Additionally, if any issues arise, users can conveniently reach out to their customer support via WhatsApp for quick assistance.
3. Free RM20 Sign-Up Bonus
New users can claim a RM20 bonus after completing four simple onboarding tasks.
It’s a nice incentive to explore the platform, but considering the investment amounts required, this is more of a small perk than a game-changer.
4. Topping Up My Account
Depositing funds into Urby requires a DuitNow transfer, which felt slightly less secure compared to FPX, the method I’m more familiar with.
It took about 5 minutes for my money to reflect in my Urby account—not a major issue, but something to keep in mind for those who expect instant transfers.
5. Not Approved by the Securities Commission Malaysia (SC)
One of my main concerns was that Urby isn’t officially approved by the SC.
However, Urby representatives assured me that they voluntarily follow SC guidelines, especially in protecting investors’ funds through a trustee. They’ve also implemented SC’s anti-money laundering and counter-terrorism financing (AML/CTF) policies, including a Know Your Customer (KYC) process.
While this is reassuring, I still think full SC approval would boost confidence among investors.
6. Highly Specific Type of Investment
Urby focuses solely on landed, freehold properties in Klang Valley, which limits diversification.
Since this is a unique type of real estate investment, investors are entirely dependent on the Urby app—there’s no option to transfer shares to another platform or secondary market.
This means liquidity could be a challenge.
7. Limited Listings on the Platform
As of March 18, 2024, only six properties are available: Ketupat House, Rumah Santosha, Bethel House, Duke Conor, Tabur House, and TauFuFah House.
Compared to traditional real estate crowdfunding or REITs, the choices are quite limited.
I hope Urby expands its listings to make it a more attractive investment option.
Who Should Consider Investing in Urby Malaysia?
Urby may be ideal for:
1. Individuals seeking accessible entry into property investment: Those who want to invest in Malaysian landed property with a relatively small initial investment, starting from RM10.
2. Investors looking for passive real estate exposure: People who want to benefit from potential property value appreciation without the responsibilities and complexities of property management, such as dealing with tenants, maintenance, and mortgages.
3. Those interested in community and sustainability-focused investments: Individuals who value investing in a platform that aims to revitalise neighbourhoods and promote sustainable practices like upcycling old houses.
4. Investors comfortable with the risks of newer and currently unregulated platforms: Individuals who understand and are willing to accept the risks associated with investing through a platform that is not yet regulated in Malaysia.
5. Individuals with a long-term investment horizon: As the primary returns are tied to property appreciation and eventual sale or buyback, investors with a longer-term perspective may find Urby more aligned with their goals.
6. Investors looking to diversify their portfolio: Urby offers an alternative asset class to traditional investments and REITs, allowing for diversification into specific landed residential properties.
7. Tech-savvy individuals: The platform operates primarily through a mobile app, so users should be comfortable using digital platforms for their investments.
Conclusion: Is Urby Malaysia Worth It?
Urby introduces a unique way to invest in Malaysian landed properties with a low entry barrier, zero maintenance obligations, and the potential for long-term financial returns.
However, its unregulated status, investment risks, and liquidity challenges mean investors should approach with caution.
For those seeking an innovative, community-driven investment platform, Urby may be worth exploring.
Interested in joining Urby? Visit their website to learn more and join the waitlist!
