KUALA LUMPUR: More than half or 56 per cent of Malaysians are keen to enter the property market sometime in the next one year, according to a PropertyGuru study.
The consumer sentiment study (CSS) for the second half of 2023 (2H23) highlighted that despite rising property prices and continuous economic challenges, the purchasing intent of potential homebuyers remained constant when compared to the previous CSS installment figure of 55 per cent.
PropertyGuru.com.my and iProperty.com.my country manager Sheldon Fernandez said in 1H23, the local property market was riddled with various economic external pressures.
He added that Bank Negara Malaysia's data from June recorded a decrease in loan applications, and PropertyGuru's Malaysia Property Market Report (MPMR) for the third quarter of 2023 (3Q23) saw a decrease in property enquiries in Q2 of the year.
"Despite the gloomy outlook, it is encouraging to see that the purchasing intent from consumers remains unchanged.
"While we do expect slower transaction activity in the housing market for the rest of the year, we hope that the gradually stabilising economy will revive Malaysians appetite for properties in 2024," he said in a statement today.
Although the intention to buy is strong among Malaysians, the CSS survey findings also indicate that consumers remain wary of the various barriers towards homeownership, with the most prominent one being housing unaffordability.
From the study, 87 per cent of property respondents continue to rank property prices as the biggest barrier to their buying ambitions.
Other purchasing deterrents include rising interest rates, concerns about economic recession, inability to get home loans from banks, down payment hiccups and political instability.
According to Fernandez, rising property prices coupled with stagnant wages and increasing living costs have made homeownership aspirations harder to attain for many Malaysians.
While steady price appreciation reflects a healthy real estate market, the growing wage-house price gap will price out large segments of the population.
"Similar to previous waves, respondents in the survey have indicated the need for government assistance, key considerations can include moderating price fluctuations, which could help maintain a balanced property market where prices are aligned with income growth and cost of living.
"We are hoping for some good news from the progressive wage policy that will be tabled in Budget 2024, as it might be the support Malaysians need to bring them closer towards their homeownership dream," he noted.
In response to the overnight policy rate (OPR) hikes and resulting higher borrowing costs, the study revealed that 35 per cent of respondents expressed that they are looking at cheaper properties.
This underscores a willingness among potential homebuyers to recalibrate their expectations and consider options that align with their financial capacity.
With consumer budgets shrinking or maintaining against the backdrop of rising costs, it is more important than ever for consumers to identify their priorities when it comes to purchasing a home.
Additionally, the study also noted that respondents are agreeable to compromise on certain amenities in exchange for a more affordable home to fulfill their homeownership aspirations.
Respondents, mainly older individuals and renters, are happy to forgo certain amenities such as gyms (49 per cent), playgrounds (46 per cent), jogging tracks/recreational spaces (45 per cent) and balconies (43 per cent) if it leads to a lower price tag.
On the other hand, parking spaces, functional kitchens, and second bathrooms are more preferred by respondents, which highlights a changing consumer preference where practicality and cost savings are prioritised when selecting a home.
Meanwhile, one in four (26 per cent) of the respondents are willing to pay more for a green home, and more than half of respondents (58 per cent), specifically adults aged between 22 and 29 years, also believe that homes with green features can help save on utility and maintenance fees in the long run.
Most respondents (62 per cent) are still open to the idea of green features in homes, but unsure on its benefits – developers could take this opportunity to showcase how opting for a green home could bring more value to homeowners' lives and the environment in the long run.
